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Understanding
Consumer
Buyer Behaviour and
Marketing
Communication
Chapter 2
Thivyaashani Sivasubramaniam
Assistant lecturer, Department of Economics and Business Studies,
Vavuniya Campus, University of Jaffna.
BBA(Hon),PGEDBM,DEF,CBF
CONSUMER BEHAVIOR
The study of the buying units and the exchange process
involved in acquiring, consuming and disposing of goods,
services, experiences, and ideas.
Consumer researchers are interested not only in
how,why,where and when customers buy but also in how
they use the goods and services after purchase and how
they dispose of goods once they no longer have a use them.
CONSUMER VALUE
All the benefits derived from a total product
and all the cost of acquiring those benefits.
The new marketing concept that creates
customer value through the entire marketing
process by combining a customer orientation
with total quality management.
Delivering Customer Value Through Market-
Driven Management
Create customer focus throughout the business.
Listen to the customer.
Define and nurture your distinctive competencies.
Define marketing as market intelligence.
Target customers precisely.
Manage for profitability.
Make customer value the guiding star.
Delivering Customer Value Through Market-
Driven Management
Let the customer define quality.
Measure and manage customer expectations.
Build customer relationships and loyalty.
Define the business as a service business.
Commit to continuous improvement and innovations.
Manage culture along with strategy and structure.
Growth with partners and alliances.
Destroy marketing bureaucracy.
The Buyer Decision Process
Need RecognitionNeed Recognition
Information SearchInformation Search
Evaluation of AlternativesEvaluation of Alternatives
Purchase DecisionPurchase Decision
Postpurchase BehaviorPostpurchase Behavior
1. Recognition of a Need
The first stage of the buyer decision process is Need
Recognition. Need Recognition refers to the instance where a
consumer recognizes that a need or problem exists that needs
to be satisfied.
When a consumer perceives that a significant difference
between the actual and desired situation relative to potential
purchase ,he or she motivated to solve the problem.
Step 2. Information Search
•Family, friends, neighbors
•Most influential source of
information
•Family, friends, neighbors
•Most influential source of
information
•Advertising, salespeople
•Receives most information
from these sources
•Advertising, salespeople
•Receives most information
from these sources
•Mass Media
•Consumer-rating groups
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
•Handling the product
•Examining the product
•Using the product
Personal SourcesPersonal Sources
Commercial SourcesCommercial Sources
Public SourcesPublic Sources
Experiential SourcesExperiential Sources
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Purchase Intention
Desire to buy the most preferred brand
Purchase DecisionPurchase Decision
Attitudes
of others
Attitudes
of others
Unexpected
situational
factors
Unexpected
situational
factors
Step 5. Post purchase BehaviorStep 5. Post purchase Behavior
Consumer’s Expectations of
Product’s Performance
Consumer’s Expectations of
Product’s Performance
Dissatisfied CustomerDissatisfied CustomerSatisfied
Customer!
Satisfied
Customer!
Product’s Perceived
Performance
Product’s Perceived
Performance
Cognitive Dissonance
Buyer Decision Process for New Products
New Products
◦ Good, service or idea that is perceived by
customers as new.
Stages in the Adoption Process
◦ Marketers should help consumers move through
these stages.
Stages in the Adoption Process
AwarenessAwareness
InterestInterest
EvaluationEvaluation
TrialTrial
AdoptionAdoption
Adoption of Innovations
2.5%
PercentageofAdopters
Time of Adoption
Early Late
Innovators
Early
Adopters
Early Majority
13.5%
34% 34%
16%
Laggards
Late Majority
Influences on the Rate of Adoption
of New Products
Divisibility
Can the innovation
be used on a
trial basis?
Compatibility
Does the innovation
fit the values and
experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?
Relative Advantage
Is the innovation
superior to existing
products?
Communicability
Can results be easily
observed or described
to others?
Product
Characteristics
Thank You

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Marketing Communication(Chapter 02)

  • 1. Understanding Consumer Buyer Behaviour and Marketing Communication Chapter 2 Thivyaashani Sivasubramaniam Assistant lecturer, Department of Economics and Business Studies, Vavuniya Campus, University of Jaffna. BBA(Hon),PGEDBM,DEF,CBF
  • 2. CONSUMER BEHAVIOR The study of the buying units and the exchange process involved in acquiring, consuming and disposing of goods, services, experiences, and ideas. Consumer researchers are interested not only in how,why,where and when customers buy but also in how they use the goods and services after purchase and how they dispose of goods once they no longer have a use them.
  • 3. CONSUMER VALUE All the benefits derived from a total product and all the cost of acquiring those benefits. The new marketing concept that creates customer value through the entire marketing process by combining a customer orientation with total quality management.
  • 4. Delivering Customer Value Through Market- Driven Management Create customer focus throughout the business. Listen to the customer. Define and nurture your distinctive competencies. Define marketing as market intelligence. Target customers precisely. Manage for profitability. Make customer value the guiding star.
  • 5. Delivering Customer Value Through Market- Driven Management Let the customer define quality. Measure and manage customer expectations. Build customer relationships and loyalty. Define the business as a service business. Commit to continuous improvement and innovations. Manage culture along with strategy and structure. Growth with partners and alliances. Destroy marketing bureaucracy.
  • 6. The Buyer Decision Process Need RecognitionNeed Recognition Information SearchInformation Search Evaluation of AlternativesEvaluation of Alternatives Purchase DecisionPurchase Decision Postpurchase BehaviorPostpurchase Behavior
  • 7. 1. Recognition of a Need The first stage of the buyer decision process is Need Recognition. Need Recognition refers to the instance where a consumer recognizes that a need or problem exists that needs to be satisfied. When a consumer perceives that a significant difference between the actual and desired situation relative to potential purchase ,he or she motivated to solve the problem.
  • 8. Step 2. Information Search •Family, friends, neighbors •Most influential source of information •Family, friends, neighbors •Most influential source of information •Advertising, salespeople •Receives most information from these sources •Advertising, salespeople •Receives most information from these sources •Mass Media •Consumer-rating groups •Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product •Handling the product •Examining the product •Using the product Personal SourcesPersonal Sources Commercial SourcesCommercial Sources Public SourcesPublic Sources Experiential SourcesExperiential Sources
  • 9. Step 3. Evaluation of Alternatives Product Attributes Evaluation of Quality, Price, & Features Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter most to me? Degree of Importance Which attributes matter most to me? Brand Beliefs What do I believe about each available brand? Brand Beliefs What do I believe about each available brand? Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Evaluation Procedures Choosing a product (and brand) based on one or more attributes. Evaluation Procedures Choosing a product (and brand) based on one or more attributes.
  • 10. Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand Purchase Intention Desire to buy the most preferred brand Purchase DecisionPurchase Decision Attitudes of others Attitudes of others Unexpected situational factors Unexpected situational factors
  • 11. Step 5. Post purchase BehaviorStep 5. Post purchase Behavior Consumer’s Expectations of Product’s Performance Consumer’s Expectations of Product’s Performance Dissatisfied CustomerDissatisfied CustomerSatisfied Customer! Satisfied Customer! Product’s Perceived Performance Product’s Perceived Performance Cognitive Dissonance
  • 12. Buyer Decision Process for New Products New Products ◦ Good, service or idea that is perceived by customers as new. Stages in the Adoption Process ◦ Marketers should help consumers move through these stages.
  • 13. Stages in the Adoption Process AwarenessAwareness InterestInterest EvaluationEvaluation TrialTrial AdoptionAdoption
  • 14. Adoption of Innovations 2.5% PercentageofAdopters Time of Adoption Early Late Innovators Early Adopters Early Majority 13.5% 34% 34% 16% Laggards Late Majority
  • 15. Influences on the Rate of Adoption of New Products Divisibility Can the innovation be used on a trial basis? Compatibility Does the innovation fit the values and experience of the target market? Complexity Is the innovation difficult to understand or use? Relative Advantage Is the innovation superior to existing products? Communicability Can results be easily observed or described to others? Product Characteristics