Consumer buying behaviour, process of buying , relevance

1. Consumer Buying Behaviour
Section –I
Ref: Class Notes & Any Marketing Management Book
Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 1

2. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 2
Few Questions?
•What motivates the customer to buy ?

3. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 3
Few Questions?
•Why does he buys a specific brand?

4. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 4
Few Questions?
•How does he reacts to new Product

5. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 5
Few Questions?
•How he decides to buy ?

6. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 6
One Definition
Consumer behavior: . . . is defined as the
study of the buying units and the
exchange processes involved in acquiring,
consuming, and disposing of goods,
services, experiences and ideas
.

7. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 7
This definition brings up some useful points
1. Behavior occurs either for the individual, or in the context of a
group (e.g., friends influence what kinds of clothes a person wears).
2. Consumer behavior involves the use and disposal of products as
well as the study of how they are purchased.
3. Product use is often of great interest to the marketer, because this
may influence how a product is best positioned or how we can
encourage increased consumption. Since many environmental
problems result from product disposal (e.g., motor oil being sent
into sewage systems to save the recycling fee, or garbage piling up
at landfills) this is also an area of interest.

8. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 8
• Consumer Buyer Behavior
The Buying Behavior of
final consumers ( individuals &
households) who buy goods and
services for personal
consumption.
• Consumer Market
All the final consumers
who buy or acquire goods and
services for personal
consumption

9. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 9
Consumer v/s Customer
• Theoretically consumers are end users and customers are buyers but
this definition brings about some degree of uncertainty . Therefore we
define consumers as those who seek products to consume and satisfy
their needs. Based on this definition, consumers are the most important
element in marketing and understanding their behavior makes really
sense.

10. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 10
Consumer Decision-Making
Process
Post-purchase
Behavior
Purchase
Evaluation
of Alternatives
Information Search
Need Recognition
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps

11. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 11
The Buyer Decision Process
 Need recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Postpurchase behavior
• Needs can be triggered
by:
• Internal stimuli
• Normal needs become
strong enough to drive
behavior
• External stimuli
• Advertisements
• Friends of friends
6 - 11
Process Stages

12. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 12
The Buyer Decision Process
• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Post-purchase behavior
• Primary source of
information:
• Internal
• external
6 - 12
Process Stages

13. Approaches to Search for information and Problem Solutions
INTERNAL
EXTERNAL
Memory
Thinking
Word of mouth, media,
store visits, trial CATALOG

14. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 14
The information search stage
An internal search involves the
scanning of one's memory to recall
previous experiences or knowledge
concerning solutions to the
problem-- often sufficient for
frequently purchased products.
An external search may be
necessary when past experience or
knowledge is insufficient, the risk
of making a wrong purchase
decision is high, and/or the cost of
gathering information is low.
Personal sources (friends
and family)
Public sources (rating
services like Consumer
Reports)
Marketer-dominated
sources (advertising or
sales people)
The evoked set: a group of brands
from which the buyer can choose

15. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 15
15
Information
Search E.g.:
?
Lenovo
Apple
Dell
Lenovo
Apple
Dell
HCL
Lenovo
Apple
Dell
Hp
HCL
Compaq
Lenovo
Apple
Dell
Hp
Toshiba
Compaq
HCL
Acer
LG
…….
…….
Total set Awareness
set
Consideration
set
Choice
set
Decision
Consideration
set

16. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 16
The Buyer Decision Process
 Need recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Post-purchase behavior
6 - 16
Process Stages
• List of brands from which
consumer plan to make their
selection (evoked set)
• The criteria’s consumer use to
evaluate each brand.

17. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 17
The Buyer Decision Process
 Need recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Post-purchase behavior
6 - 17
Process Stages  Trail purchase
 Repeat purchase

18. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 18
The Buyer Decision Process
 Need recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Post-purchase behavior
6 - 18
Process Stages
 There are three outcomes-
1. Actual performance matches
expectations , leading neutral
feelings.
2. Performance exceeds
expectations, causing positive
disconfirmation of expectations.
3. Performance below the
expectations, causing negative
disconfirmation of expectations
and dissatisfaction.

19. Dr. J.Rai, IIBM- Patna Section I - CB BBA I-Sem 19
Factors Influencing Consumer Behavior
➢Cultural factors
➢Social factors
➢Personal factors
➢Psychological factors
and Households