This document discusses psychological and social factors that influence consumer purchase behavior. It covers four key psychological influencers: motivation, perception, learning/attitudes/beliefs, and buying situation. Motivation is influenced by both stated and underlying motives, which can be explained by Maslow's hierarchy of needs. Perception is shaped by selective attention, distortion, and retention. Learning occurs through conditioning, social observation, and reasoning. Social factors include culture, social class, reference groups, family, and personal characteristics. The document provides examples and questions to help understand these concepts and their impact on marketing strategy.

1. Buyer Behavior
Session 4: Psychological and Social Factors
Zeeshan Kingshuk Huq
Guest Faculty
zeeshan.huq@gmail.com

2. Questions that we shall look answers for
§ Why consumers make the purchases they make
§ What factors influence consumer purchase? What are
their choice criteria?
§ Why people behave as they do
§ What are the mental processes involved
§ Who buys
§ When do they buy
§ Where do they buy from
§ How does a buyer react to a marketing strategy /
campaign
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3. PSYCHOLOGICAL ASPECTS
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4. 4
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5. Four Key Psychological Influencers
§ Motivation
§ Perception
§ Learning, attitudes and beliefs
§ Buying situation
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6. Motivation
§ We are human, and motives are complex
 Your
daughter and you will have two different motives in
going to Bashundhora shopping mall
§ Underlying motive vis-à-vis stated motives à often
different
 Why
do people buy Cartier watch?
- Accurate Time?
- Status?
- Investment?
§ How can we explain the ‘need’s behind our motivations
 Maslow’s
Hierarchy of Needs theory
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7. Maslow’s Hierarchy of Needs
§ Applies to all – purchaser, non purchaser, any human
§ Humans are motivated to satisfy our needs
§ There is an arranged hierarchy by which we seek to
satisfy our needs
§ Once one level of satisfied, we move to the next level
§ Human beings will usually never end of any ‘need’
 Explains
affluent markets having consumer / retail growth
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8. Maslow’s Hierarchy of Needs
Self
actualization
Esteem
Social
Security
Physiological
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9. Perception
§ The way an individual perceives an external stimuli will
influence his/her reaction
§ Causes for difference in perception
 Selective
Attention à only filter a few from the thousands
of stimuli we encounter with
 Selective Distortion à we adjust perception to match
current mind set
 Selective Retention à we do not remember everything,
and we remember things confirming to our beliefs and/or
attitude (and also things which starkly contradicts!)
§ Marketers need to know the way people receive and
perceive stimuli
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10. Learning, attitudes and beliefs
§ Learning causes changes in long term and changes in
how information is processed
§ 3 types of Learning:
 Conditional
Learning à reinforcement is necessary for
individuals to develop attitudes and beliefs
 Social Learning à learning from behavior of others
 Cognitive Learning à use of power of reasoning to
develop attitudes and/or beliefs (important for high
involvement purchase)
§ We need to understand how buyer will ‘learn’ à helps
us design marketing strategy accordingly
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11. Addressing various psychological needs of buyers
§ Case: PVH
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12. SOCIAL FACTORS
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13. Social Factors that influence Buyer Behavior
§ Culture
§ Social class
 Not
necessarily
relevant to income
 Can vary from country
to country
§ Reference groups
 Formal
as well as
informal
 Own as well as nonrelevant
§ Family
 Nuclear
 Extended
 Alternative
§ Personal influence
 Age
 Occupation
 Family
Life Cycle
 Lifestyle
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15. 15
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16. 16
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17. 17
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18. 18
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19. Retail / Consumer local brand
- Choose a brand that is currently at a lower level of ‘need’
- Choose a marketing / positioning based on higher-need
GROUP ASSIGNMENT
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