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Buyer behaviour & steps


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Buyer behaviour & steps

  1. 1. Marketing Management Unit II: BUYER BEHAVIOUR1 I MBA A & B RR MM 2011 Batch
  2. 2. The most important thingis to forecast wherecustomers are moving, andto be in front of them.2 I MBA A & B RR MM 2011 Batch
  3. 3. Introduction and DEFINITION The aim of marketing is to meet and satisfy target customer’s needs and wants Consumer Behaviour studies how individuals, groups, and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires  whirlpool – anthropologist- he went to people’s home observed how they used their appliances and talked with all household members found out kids and men were using in women working families  Kodak – Advanta- high- tech which began to loose its appeal and simplicity began to edge out3 I MBA A & B RR MM 2011 Batch
  4. 4. Consumer Buying Behavior Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption. The central question for marketers is: “How do consumers respond to various marketing efforts the company might use?” 4 I MBA A & B RR MM 2011 Batch
  5. 5. Some consumer behavior roles The initiator who determines that some need or want is not being met and authorizes a purchase to rectify the situation- initiator A person who by some intentional or unintentional word or action influences the purchase decision, purchase or use of the product or service- influencer The individual who actually makes the purchase transactions- buyer The person who is directly involved in the consumption or use of the product- User5 I MBA A & B RR MM 2011 Batch
  6. 6. Model of Buying BehaviorMarketing Other Buyer’s Buyer’s decisionstimuli stimuli characteristics processProduct Economic Cultural Problem recognitionPrice Technological Social Information searchPlace Political Personal EvaluationPromotion Psychological Decision Postpurchase behavior Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount 6 I MBA A & B RR MM 2011 Batch
  7. 7. The major factors influencing buyingbehaviour Cultural factors  Culture  Subculture  Social class Social factors  Reference groups  Family  Social roles and statuses Personal factors  Age and stages in life cycle  Occupation and economic circumstances  Life style  Personality  Self- concept Psychological factors  Motivation  Perception  Learning  Beliefs and attitudes 7 I MBA A & B RR MM 2011 Batch
  8. 8. Factors Influencing Consumer BehaviorCultural Social Personal Psycho-Culture Reference Age and logicalCulture groups life-cycle Occupation Motivation Economic Perception Buyer Sub- Sub-culture Family situation Learning culture Lifestyle Beliefs and Roles Personality attitudes Social Social and and class self-concept class status 8 I MBA A & B RR MM 2011 Batch
  9. 9. Cultural Factors Culture Subculture Social Class Buyer Buyer9 I MBA A & B RR MM 2011 Batch
  10. 10. Culture The fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions.10 I MBA A & B RR MM 2011 Batch
  11. 11. Factors Affecting Consumer Behavior: Culture Culture is the Most Basic Cause of a Persons Wants and Behavior. Subculture• Group of people with shared value systems based on common life experiences.• African American Consumers• Asian American Consumers• Mature Consumers I MBA A & B RR MM 2011 Batch 11
  12. 12. Social Class 3 classes Low class- consumers usually buy on impulse and do not even care to read ad’s much Middle class- purchase carefully, read and compare Upper class US classes  Upper uppers  Lower uppers  Upper middles  Middle class  Working class  Upper lowers  Lower lowers 12 I MBA A & B RR MM 2011 Batch
  13. 13. Factors Affecting Consumer Behavior:Social Factors Reference groups- all the groups that have a direct or indirect influence on the person’s attitude or behavior  Groups have direct influence on a person are called membership groups  Primary groups- family, friends, neighbors and co-worker (fairly continuously and informally )  Secondary groups- religious, professional and trade union groups ( more formal and less continuous interaction)  Reference groups  Aspirational groups- are those the person hopes to join  Dissociate groups- are those whose values or behaviour an individual rejects  Opinion leader- is a person in informal product related communications who offers advice or information on a specific brand or product 13 I MBA A & B RR MM 2011 Batch
  14. 14. Factors Affecting Consumer Behavior: SocialFactors Family  Family of orientation- parents and siblings  Family of procreation- one’s spouse and children Roles and statuses  Role consists of activities that a person is expected to perform  each role consists of a status  ex: judge and sales person  Marketers are aware of the status symbol potential of products and brands14 I MBA A & B RR MM 2011 Batch
  15. 15. Factors Affecting Consumer Behavior: Personal Personal Influences Personal InfluencesAge and LifeAge and Life Economic Economic Personality & Personality &Cycle Stage Occupation Occupation Situation Self-Concept Cycle Stage Situation Self-Concept Lifestyle Identification Lifestyle Identification Activities Activities Interests Interests Opinions Opinions 15 I MBA A & B RR MM 2011 Batch
  16. 16. Factors Affecting Consumer Behavior: Psychological Motivation Psychological Factors Beliefs and Affecting Perception Attitudes Buyers Choices Learning16 I MBA A & B RR MM 2011 Batch
  17. 17. Psychological - Motive A motive is a need that has a sufficient level of intensity. Creating a tension state that drives the person to act. Satisfying the need reduces the felt tension. 17 I MBA A & B RR MM 2011 Batch
  18. 18. Psychological - Perception The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.18 I MBA A & B RR MM 2011 Batch
  19. 19. Psychological - Learning Changes in an individual’s behavior arising from experience.19 I MBA A & B RR MM 2011 Batch
  20. 20. Psychological - Attitude An attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.20 I MBA A & B RR MM 2011 Batch
  21. 21. Maslow’s Hierarchyof Needs 5 Self- Self- actualization actualization (self-development (self-development and realization) and realization) Esteem needs 4 Esteem needs (self-esteem, recognition) (self-esteem, recognition) Social needs Social needs 3 (sense of belonging, love) (sense of belonging, love) Safety needs Safety needs 2 (security, protection) (security, protection) Psychological needs Psychological needs 121 (food, water, shelter) (food, water, shelter) I MBA A & B RR MM 2011 Batch
  22. 22. Consumer Buying Decision Process Understand  Initiator  Influencer Buying roles  Decider Buying behavior  Buyer Buying decision process  User 22 I MBA A & B RR MM 2011 Batch
  23. 23. Consumer Buying Decision Process Understand  Complex buying behavior  Dissonance-reducing buying behavior Buying roles  Habitual buying behavior Buying behavior  Variety-seeking buying Buying decision process behavior 23 I MBA A & B RR MM 2011 Batch
  24. 24. Consumer Buying Decision Process Understand  Problem recognition  Information search Buying roles  Evaluation of alternatives Buying behavior  Purchase decision Buying decision process  Post purchase behavior 24 I MBA A & B RR MM 2011 Batch
  25. 25. Four Types of Buying Behavior High Low Involvement InvolvementSignificant Complex Variety-differences Buying Seeking between brands Behavior Behavior Few Dissonance- Habitualdifferences Reducing Buying between Buying brands Behavior Behavior 25 I MBA A & B RR MM 2011 Batch
  26. 26. Buyer Decision Process Purchas e Evaluation Decision Purchase Post of Alternatives Behavior Information Search Problem/ NeedRecognition 26 I MBA A & B RR MM 2011 Batch
  27. 27. Buyer Decision Process Problem Recognition  Triggered by internal or external stimuli Information Search  Heightened attention- more receptive  Active information search  Sources- personal sources  commercial sources  public sources- mass media, consumer rating org.  Experiential sources- handling, examining, using the product Evaluation of Alternatives  Satisfy their need  Certain benefits  Bundle of attributes (hotels- location, cleanliness, atmosphere, price) 27 I MBA A & B RR MM 2011 Batch
  28. 28. Buyer Decision Process ( cond…) Purchase decision  Attitudes of others  Unanticipated situational factors Post Purchase Behaviour  Post purchase satisfaction  Post purchase actions  Post purchase use and Disposal28 I MBA A & B RR MM 2011 Batch
  29. 29. Decision Making SetsTotal Set Aware- ness Consid- Set eration Set Choice Set Decision29 I MBA A & B RR MM 2011 Batch
  30. 30. Decision Making Sets30 I MBA A & B RR MM 2011 Batch
  31. 31. Steps Between Evaluation of Alternatives and aPurchase Decision Evaluation of alternatives Attitude of others Purchase Purchase intention decision Unanticipated situational factors31 I MBA A & B RR MM 2011 Batch
  32. 32. How Customers Use or Dispose of Products To be Rent it Give it (re)sold Get rid of it away temporarily Loan it To be used Trade it Get rid of itProduct permanently Direct to Use for consumer original Sell it purpose Keep it Convert Through to new Throw it middleman purpose away Store it To 32 I MBA A & B RR MM 2011 Batch intermediary