Factors influencing Consumer Behaviour

1. Factors influencing
Consumer Buyer Behavior

2. A model of consumer behaviour –
the 7 O’s framework
• Who constitute the market?
• What does the market buy?
• Why does the market buy?
• Who participates in buying?
• How does the market buy?
• When does the market buy?
• Where does the market buy?

3. • Occupants
• Objects
• Objectives
• Organizations
• Operations
• Occasions
• Outlets

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.
• Study consumer behavior to answer:
“How do consumers respond to
marketing efforts the company might
use?”

5. Model of Consumer Buying Behavior
Marketing and
Other Stimuli
Buyer’s Black Box
Buyer’s Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Characteristics
Affecting
Consumer
Behavior
Buyer’s
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Purchase
Timing
Purchase
Amount

6. Characteristics Affecting
Consumer Behavior
Buyer
Psychological
Personal
Social
Cultural

7. Factors Affecting Consumer Behavior:
Cultural
Social Class
• People within a social class
tend to exhibit similar buying
behavior.
• Occupation
• Income
• Education
• Wealth
• Most fundamental determinant of a person’s
wants and behaviour.
• Values, Perceptions, Preferences and
Behaviour.
Subculture
• Groups of people with shared
value systems based on
common life experiences.

8. Culture, Subculture and
Social Class
Values
achievement & Success, Efficiency & practicality,
freedom, progress, material comfort vs. respect
and care for elders, honesty & integrity, hard work,
achievement & success, sacrifice.
Subculture provides more specific identification and
socialization for its members. It includes
nationalities, religions, racial groups and
geographical regions.
Social class are relatively homogenous and
enduring divisions in a society, which are
hierarchially ordered and whose members share
similar values, interests and behaviour.

9. Social Class- characteristics
• Tend to behave more alike than persons from
two different social classes
• Differ in dress, speech patterns, recreational
preferences
• Persons are perceived as occupying inferior or
superior positions.
• Social class is indicated bya cluster of
variables- for eg. Occupation, income, wealth,
education etc.
• Individuals can move up or down the social-
class ladder during their lifetime.

10. Factors Affecting Consumer Behavior:
Social
Reference Groups
•Membership
•Reference
Family
•Husband, wife, kids
•Influencer, buyer, user
Roles and Status
Social Factors

11. • A persons reference groups consist of all
the groups that have a direct or indirect
influence on the persons attitudes or
behaviours. Groups having a direct
influence on a person are called
membership group.
• Primary group vs. secondary group.
• Aspirational vs. dissociative groups.
• Opinion leader

12. • FAMILY : family of orientation and family
of procreation
• Roles and Status:
– Role consist of the activities a person is
expected to perform.
– Each role carries a status.

13. Factors Affecting Consumer Behavior:
Personal
Personal Influences
Age and Family Life Cycle
Stage
Occupation
Economic Situation
Lifestyle Identification
Activities Opinions
Interests
Personality & Self-Concept

14. Cultural
• Culture: the set of basic values,
perceptions, wants and behaviour
learned by a member of society from
family and other important institutions.
• Achievement and success, efficiency and
practicality, material comfort,
individualism, progress, fitness and
health, activity and involvement etc.

15. Cultural contd…
• Subculture: a group of people with
shared value systems based on common
life experience and situations.
• Nationalities, religions, racial groups and
geographic regions.

16. Cultural contd…
• Social Class: relatively permanent and
ordered divisions in a society whose
member share similar values, interests
and behaviour.

17. Characteristics of social class
• Persons within social class tend to behave
more alike than persons from two different
social class
• Persons are perceived as occupying inferior or
superior positions according to their social
class.
• Social class is not determined by a single
factor such as income but is measured as a
combination of occupation, income, education
and wealth.
• Individuals can move from one social class to
another-up or down during their lifetime.
• The social class may differ in their media
preferences.

18. Upper Class
Upper Uppers
Lower Uppers
Middle Class
Upper Middles
Middle Class
Working Class
Working Class
Lower Class
Upper Lowers
Lower Lower
INCOME
OCCUPATION
EDUCATION
WEALTH

19. Social Factors
• Reference groups: a person’s reference
groups consist of all the groups that have a
direct (face to face) or indirect influence on
the person’s attitudes or behaviour. Groups
having a direct influence on a person are
called Membership Groups.
• Primary groups: family, friends, neighbours
• Secondary groups: religious, professional
• Aspiration group
• Dissociative group
• Opinion leader

20. Social Factors…
Family
• Family of orientation
• Family of procreation

21. Social Factors contd…
• Roles and Status: a role consist of the
activities that a person is expected to
perform according to the persons around
them. Each role carries a status reflecting
the general esteem given to it by the
society.

22. Personal Factors
• Occupation
• Economic Situation
• Lifestyle: a person’s pattern of living as
expressed in his or her activities, interest and
opinions
• Personality and Self-Concept: the unique
psychological characteristic that lead to relatively
consistent and lasting responses to one’s own
environment.
• Age and Life-cycle stage

23. Family Life cycle & Behavioural
pattern
Stage Behavioural pattern Buying pattern
Bachelor Few financial burden, fashion
opinion leaders, recreation
oriented
Basic kitchen
equipment, basic
furniture, cars, games,
vacations
Newly
married
Better off financially than in
near future. Highest purchase
rate
Cars, refrigerators,
stoves, sensible and
durable furniture's,
vacations
Full nest I Home purchasing at peak.
Liquid assets low.
Dissatisfied with financial
position & saving. Interested
in new products. Influenced
by advertising.
Washers, dryers, TV,
baby food, medicines,
vitamins,
Full nest II Better financial positions. Variety of foods,

24. Family Life cycle & Behavioural
pattern
Stage Behavioural pattern Buying pattern
Full Nest III Better financial positions.
Some children gets jobs.
Hard to influence with
advertising.
New tasteful furniture,
unnecessary
appliances, magazines
Empty Nest
I
Most satisfied with financial
position. Home ownership at
peak. Make gifts and
contributions. Not interested
in new products.
Travel, recreation, self-
education, luxuries,
home improvements.
Empty Nest
II
Drastic cut in income, keep
home.
Medical appliances,
medical care products
that aid health, sleep
and digestion
Solitary
survivor
Income good but likely to sell
home
Medical products

25. VALS 2
Principle Oriented Status Oriented Action Oriented
Achievers
Actualizers
Strugglers
Strivers
Fulfilleds
Believers
Experiencers
Makers
Abundant Resources
Minimal Resources

26. Factors Affecting Consumer Behavior:
Psychological
Psychological
Factors
Motivation
Perception
Learning
Beliefs and
Attitudes

27. Maslow’s Hierarchy of Needs
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Self
Actualization
(Self-development)

28. Types of Buying Decisions
Complex
Buying
Behavior
Dissonance-
Reducing Buying
Behavior
Variety-
Seeking
Behavior
Habitual
Buying
Behavior
High
Involvement
Significant
differences
between
brands
Few
differences
between
brands
Low
Involvement

29. • Hi involvement in a purchase and aware of
significant differences among brands.
• Product is expensive, bought infrequently, risky
and highly self-expressive.
• The marketer needs to develop strategies that
assist the buyer in learning about the products
attribute and their relative importance.
• The marketer needs to differentiate the brand
feature and use print media to describe the
brands benefits and motivate store sales
person.
Complex Buying Behavior

30. • High involvement in purchase but sees
little difference in the brands.
• the consumer might experience
dissonance that stems from noticing
certain disquieting features or hearing
favorable things about other product.
• Thus marketing communications should
aim at supplying beliefs and evaluations
that help the consumer feel good about his
or her brand choice.
Dissonance-Reducing Buying
Behavior

31. Five-Stage Model of the
Consumer Buying Process
Problem
Recognition
Information
Search
Evaluation
Of Alternatives
Post purchase
Behaviour
Purchase
Decision

32. The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior

33. The Buyer Decision Process
Step 1. Need Recognition
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the
environment
Internal Stimuli
• Hunger
• Thirst
• A person’s normal
needs
Need Recognition
Difference between an actual state and a desired state

34. The Buyer Decision Process
Step 2. Information Search
•Family, friends, neighbors
•Most influential source of
information
•Advertising, salespeople
•Receives most information
from these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources

35. The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
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?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.

36. The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors

37. The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Dissatisfied
Customer
Satisfied
Customer!
Product’s Perceived
Performance
Cognitive Dissonance

38. Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption

39. Adoption of Innovations
Percentage
of
Adopters
Time of Adoption
Early Late
Innovators
Early
Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority

40. 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