Understanding Consumer And Social Buying Bahavior 4


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Understanding Consumer And Social Buying Bahavior 4

  1. 1. Understanding consumer and Industrial Buying behavior Dr. Anil Mishra 9937635059, 09425452065 [email_address] Asian School Of Business Management
  2. 2. Consumer Buying Behavior <ul><li>Definition: Consumer behavior is a study of how individual make decision to spend their available resources (time, Money and effort) on consumption related items (what they buy, why they buy, where they buy, how often they buy and use a product or service) </li></ul>
  3. 3. Factors influencing consumer buying behavior <ul><li>Cultural factors: culture is considered as a set of rules, values, beliefs, behavior and concepts that is common to and binds together the members of a society. it usually passed on through one generation to generation. Our culture reflect what we eat, what we wear, the code of conduct, our buying habits, consumption pattern and the use and dispose product. </li></ul>
  4. 4. <ul><li>Subculture: every culture has its own set of subculture. A subculture is a culture followed by a group of people within a culture that is distinctly identified within a larger society. These groups have similar habits, behavior patterns, shared value system, buying behavior on the basis of their age , religion, common experiences or even geographic location. </li></ul>
  5. 5. Social class <ul><li>Social class refers to the classification of members of the society into hierarchy of distinct classes so that every individual in a class has approximately same position in the society. This class may be categorize as </li></ul><ul><li>Upper class: people with large businesses and wealthy corporate executive, Upper middle class: its class consists of well educated people holding top class positions in middle size firms , middle class: junior executive, sales people small business owner, lower class: blue collar worker like factory laborers, semi skilled and unskilled workers. </li></ul>
  6. 6. Reference group <ul><li>An individual’s attitude, value and behavior are influenced by different (small) groups. These groups are reference groups and they have a direct or indirect influence on the individual. These groups are further divided as </li></ul><ul><li>Primary reference group </li></ul><ul><li>Secondary reference group </li></ul>
  7. 7. <ul><li>Primary reference group </li></ul><ul><li>Membership reference group: This is the group to which a person holds membership and has frequent interactions with other members of the group. He comes in regular and informal contact with the members of the group. </li></ul><ul><li>Aspiration reference group: This is the group to which the individual does not hold any membership but desires to belong to that group. He tries to copy the attitudes and behavior, including behavior of the members of the group. </li></ul>
  8. 8. <ul><li>Disclaimant reference group: This is a reference group to which an individual holds a membership but does not want to belong to and therefore, all his actions would be opposed to that of the group. </li></ul><ul><li>Avoidance group: This is the group to which an individual does not hold any membership. He tries to resent the values and beliefs of such a group. </li></ul>
  9. 9. Secondary group <ul><li>Secondary groups include religious groups, professional associations and trade unions with which the interaction of customer is formal and infrequent. Every reference group has its own set of opinion leaders. Opinion leaders are perceived as people with special skills, knowledge, personality etc. </li></ul>
  10. 10. Family <ul><li>A family is defined as two or more persons related by blood, marriage or adoption and reside together. A Family is a small reference group but it is prominent in influencing consumer behavior. The husband, the wife and the children play different roles while purchasing different products and services and these roles vary from country to country. </li></ul>
  11. 11. <ul><li>Personal factor: </li></ul><ul><li>Age and life cycle stage </li></ul><ul><li>Occupation and financial status. </li></ul><ul><li>Lifestyle. </li></ul><ul><li>Psychological factor </li></ul><ul><li>Motivation </li></ul><ul><li>perception </li></ul>
  12. 12. Buying Decision <ul><li>Buying roles: </li></ul><ul><li>Initiator: A person who initiates the idea of purchasing the product. He recognizes that the problem can be solved or avoided by acquiring the product. </li></ul><ul><li>Influencer: A person whose views and advice influence the buying decision. </li></ul><ul><li>Decider: A person who decides where, when, why and how to buy the products. He makes final decision. </li></ul>
  13. 13. <ul><li>Buyer: A person who actually purchases the product. </li></ul><ul><li>User: A person who actually uses the product. </li></ul><ul><li>Maintainer: A person who repairs or services the product. </li></ul><ul><li>Disposer: A person who dispose the product. </li></ul>
  14. 14. Buying Behavior <ul><li>Extensive problem solving buying behavior: Consumers exhibit this type of behavior when they indulge in buying expensive, infrequently purchased and unfamiliar products. Consumers gather a lot of data regarding the various available in the product category. </li></ul>
  15. 15. <ul><li>Routinized buying behavior: When customers buy low cost, regularly purchased/ routine products, they donot make significant efforts to gather much information about the product. Instead they choose the brand, which they are familiar with or have been choosing for a long time. </li></ul><ul><li>Variety seeking behavior: when buying a low involvement product. They are not brand conscious and often switch brands. </li></ul><ul><li>Impulse buying: on the spot buying. </li></ul>
  16. 16. Buying Decision process <ul><li>Identify the problem: internally or external stimulus. </li></ul><ul><li>Information search: personal source, commercial source, public source experimental source. </li></ul><ul><li>Evaluation of alternatives </li></ul><ul><li>Purchase decision </li></ul><ul><li>Post purchase behavior </li></ul><ul><li>Post purchase use and disposal </li></ul>
  17. 17. Organisational Buying Behavior <ul><li>Difference in organisational market and consumer market </li></ul><ul><li>Time spend in the purchase </li></ul><ul><li>Number of buyers </li></ul><ul><li>Quantity purchased </li></ul><ul><li>Consumer markets are mostly segmented on the basis of geographic, demographic, and psychographic factors while organisational market are usually segmented on the basis of operating variables, purchasing approaches, situational factors. </li></ul>
  18. 18. Stages of buying <ul><li>Problem recognition </li></ul><ul><li>Need recognition </li></ul><ul><li>Product specification </li></ul><ul><li>Searching for potential supplier </li></ul><ul><li>Value analysis </li></ul><ul><li>Vendor analysis </li></ul><ul><li>Order routine specification </li></ul><ul><li>Multiple sourcing </li></ul><ul><li>Performance review </li></ul>
  19. 19. Thank u