The document discusses consumer buying behavior, outlining the factors that affect it such as cultural, social, personal, and psychological influences. It categorizes consumers by their income levels in India and describes the different types of buying behaviors, decision-making processes, and innovations that influence market positioning. Additionally, it provides various case studies of companies like Apple and Tesla that demonstrate successful strategies in understanding consumer needs and achieving competitive advantage.

1. Consumer Buying Behavior

2. Who are consumer?
• Consumers are individuals, households or
businesses who use the products.
• Consumer characteristics vary from country to
country. Therefore it has become challenging
task for marketer to understand the need, buying
behavior of consumer before developing product
and marketing program.

3. Characteristics affecting Consumer Behavior
• Cultural,
• Social,
• Personal
• and Psychological factors

4. Factors Influencing Consumer Behavior
Social
Reference
groups
Family
Roles
and
status
Personal
Age and
life-cycle
Occupation
Economic
situation
Lifestyle
Personality
and
self-concept
Psycho-
logical
Motivation
Perception
Learning
Beliefs and
attitudes
Buyer
Culture
Sub-
culture
Social
class
Cultural

5. • I. Cultural factors:
Culture is the combination of customs, beliefs and
values of consumers in a particular nation.
Majority Indians are vegetarians and a company which
sells non vegetarian items should analyze these values
of the consumer. For example, KFC which sells chicken
dishes all over the world added vegetarian burgers in
their menu to serve vegetarian consumers.

6. 2. Subcultures are part of culture comprising,
geographic regions, religions, nationalities
and racial groups. The value system of these
groups differs from others.

7. 3. Social class - these are permanent groups in the society
whose members have common likings.
• Indian consumers can be classifies into five different
categories. They are,
• a. Deprived
• b. Aspires
• c. Seekers
• d. Strivers and
• e. Global Indians

8. 1. Deprived are the people who earn less than Rs
90,000 annually. This group is also known as
below poverty line.
2. Aspires belongs to the families who earn
between Rs90, 000 to Rs 2, 00,000. This group
consist small shop keepers, industrial workers,
and small land holding farmers.

9. 3. Seekers earn between Rs 200,000 to 500,000. This class
varies largely. The group contains fresh workers, middle level
employees, government employees and business people.
4.Strivers belong to the group who earn between Rs 500,000
to 1,000,000. People in this category are considered very
successful. The group contains business people, large
farmers, senior government officials and professionals.

10. 5.Global Indians are earning more than Rs
1,000,000. This group is comprised of senior
government officials, professionals, business
people and top business executives. India is
witnessing the growth in this class. They are
truly global; they purchase international
brands and have international cuisine.

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

12. • II. Social factors
Human beings are social animals. They live
and interact with other people. Therefore
there is a chance of influence by others on
their opinions. Marketers like to identify such
influential persons or groups of consumer.
They are of two types
1.Reference 2. family

13. • Reference groups provide the benchmarks and
contrast needed for comparison and
evaluation of group and personal
characteristics. “Reference groups are groups
that people refer to when evaluating their
own qualities, circumstances, attitudes, values
and behaviors."

14. • Family: Indian culture gives utmost
importance to the family. People discuss with
their family before purchasing the valuable
items. Wife, children and parents influence
the decisions of the family.

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

16. • III. Personal factors
Individual factors like age, occupation, lifestyle and
personality influence the consumer decision making.
Personality is the image of people's traits. Traits
include Self confidence, Dominance, autonomy,
defensiveness, adaptability and aggressiveness.
Many companies used these concepts in their
marketing communications.

17. 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)
Motivation:
Abraham Maslow’s “Need Hierarchy Theory”:

18. • Perception:
It is the process of acquiring, interpreting,
selecting and organizing sensory information
Explanation of the definition: stimulus is
generated by hearing, smelling, seeing, touching,
and tasting. People develop stimulus about
product or services through any of the above
themes and creates an image in the mind.

19. • The marketing implication of the definition;
Marketer researches his consumer profile and
communicates the product or service
messages either through radio, demo, or
television.
The message given by company may pass
through three different selection procedures.

20. • a) Selective attention: The habit of the people to analyze the
information completely and interpreting it. They develop the
perception about the product or service only after complete analysis.
This is very difficult group to handle as they request for more
information.
• b) Selective distortion: the phenomena in which consumer will have
predispositions and interpret the organizations information as they
like it. This type of perception is both effective and non effective for
the company. If consumer understands the wrong message in a right
way it is advantageous but if he understand right message in wrong
way then company will be under trouble

21. • c) Selective retention: consumer will not
remember all the points informed by the
company. He/she may remember the good
points of company and forget the negative
points of the company.

22. Types of Buying Decision Behavior: Henry
Assael Model

23. • Complex buying behavior: Customers who are
representing this behavior are highly involved in the
purchase of the product or service. The process
became complex as difference between brands are
very high. For example, customer who wants to
purchase refrigerator would like to know the
meanings of defrosting, door lock, digital
temperature control etc.

24. • Dissonance reducing buying behavior:
The behavior exhibited by the customer when
product purchase requires high involvement
but only few differences exist. For example,
customers who want to purchase CTV will not
find many differences between the brands but
the price of the product and its technicality
makes customer to involve more.

25. • Variety - seeking buying behavior
When there are significant difference between
the brands existing but customer will not
involve more while purchasing, marketer
identify this behavior as variety seeking buying
behavior.

26. • Habitual buying behavior:
The low involvement between the brands and
few differences between the brands leads to
the habitual buying behavior. For example
spice powder marketed by MDH, Everest or
MTR have very few difference between them
and customer do not search the information
to purchase particular product.

27. Decision Making: Situations
Less
Involvement
More
Involvement
Routine
Response
Behavior
Limited
Decision
Making
Extensive
Decision
Making

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

29. 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

30. 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

31. 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.

32. 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

33. 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

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

35. 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

36. 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

37. Buying Motives
• The thoughts, feelings, emotions and instincts that
induces customer to buy a product are called as
buying motives
• Prof D.J. Duncan “buying motives are those
influences or considerations which provide the
impulse to buy, induce action and determine
choice in the purchase of goods and services”.

38. Classification of buying motives

39. 1. Product buying motives are those influences and
reasons which prompt a buyer to choose a particular
product in preference to others. It may be design,
shape, dimension, size, color, package etc
Product buying motives are further classified as
a. Emotional product buying motive and
b. Rational product buying motive

40. a. Emotional product buying motives in which buyer decides to
purchase a product without thinking over the matter logically
and carefully. Buyer takes the decisions on the emotions.
1. Customer attaches the pride with the product.
2. Customer try to imitate form others
3. Purchase d the goods for affection on any family member.
4. Products that provide comfort are usually purchased on the
emotions.
5. Sexual appeal products are brought on emotional product motives

41. b. Rational product buying motives: When buyer examines pros
and cons of purchasing a product and takes decisions then
the behavior is called as rational product buying motives.
Buyers will be looking for any of the following factors before
taking rational decisions
1. The safety or security features provided by the product.
2. The value for money provided by the product.
3. Suitability and utility of the product.
4. Durability of the product.
5. Convenience of the product.

42. 2. Patronage buying motives are those
considerations or reasons that make a buyer
patronage a particular shop in preference to
other shops while buying a product.
Patronage buying motives are classified into
two categories. They are
a. Emotional patronage buying motives.
b. Rational patronage buying motives.

43. a. Emotional patronage buying motives are patronizing a
particular
shop without logical thinking or reasoning. Emotional
patronize buying motives include the following decisions
1. Appearance of the shop
2. Visual merchandising in the shop.
3. Reference groups influence about one particular shop.
4. Shopping in a big mall is a prestige issue.
5. Imitating the other reference groups‟ members.

44. b. Rational patronage buying motive will arises after buyer
analyzing the shop carefully and providing the information to
reference group members. Rational patronage buying
motives include the following
1. Convenience of the shop to the buyers.
2. Value for money provided by the shops.
3. Financial schemes and facilities provided by the shop.
4. Availability of wide range of goods.
5. Reputation of the shop in the area.

45. a. Actual users are people who actually use the
product or the material procured. Raw
materials may be used by the production
supervisor and his team. These individuals can
be a better judge of the specifications of the
purchase requirement than any other.
b. Influencers are people who provide the
information required to evaluate the vendor
and his products.
Participants in the business buying
process

46. c. Buyers are individuals or groups who finally procure by
placing the order with necessary specification. These
people also evaluate the vendor and select him.
d. Deciders are those who finally give consent on the
chosen supplier/s.
e. Gatekeepers acts as an agent between buying
committee (i.e. the Business Organization) and sellers
(i.e. the service providers or suppliers). The gatekeeper
may facilitate the flow of information in the process of
buying and can be played by an office assistant.

47. Positioning for Competitive Advantage-
marketing information-innovation-cases
• Positioning for competitive advantage involves
creating a distinct and desirable image for a
product or brand in the minds of target customers
that sets it apart from competitors. Marketing
information and innovation play crucial roles in
achieving and sustaining this competitive
advantage. Let's explore how these elements are
interconnected and look at some cases that
illustrate successful positioning strategies.

48. Marketing Information:
Market Research:
• Case: Apple Inc.
• Apple's success is attributed to its deep understanding of customer needs
through extensive market research. This has allowed them to anticipate
trends and deliver products that resonate with consumers.
Customer Segmentation:
• Case: Coca-Cola vs. Pepsi
• Both Coca-Cola and Pepsi have successfully segmented their target
markets. Coca-Cola positions itself as a timeless, classic beverage, while
Pepsi focuses on a younger, more dynamic audience.
Competitor Analysis:
• Case: Samsung vs. Apple
• Samsung strategically positions itself as a provider of a wide range of
consumer electronics, competing directly with Apple. Understanding
Apple's premium brand positioning, Samsung offers a variety of products
at different price points.

49. Innovation
• Product Innovation:
• Case: Tesla
• Tesla disrupted the automotive industry by combining electric power with
cutting-edge technology. Their innovation in electric vehicles and
autonomous driving has given them a significant competitive advantage.
• Technological Innovation:
• Case: Amazon
• Amazon's success is driven by continuous technological innovation. Their
use of advanced algorithms, artificial intelligence, and robotics in their
operations has allowed them to provide efficient and customer-centric
services.
• Marketing Innovation:
• Case: Red Bull
• Red Bull not only innovated in terms of product (energy drink) but also in
marketing. Their extreme sports sponsorships and unique marketing
events have created a distinct brand image, differentiating them in a
crowded market.

50. Cases of Successful Positioning:
• Nike: "Just Do It":
• Nike has positioned itself as a brand for athletes and
individuals striving for excellence. The "Just Do It"
slogan encapsulates the brand's attitude, associating it
with determination and achievement.
• Google: "Don't Be Evil":
• Google's positioning is built around innovation, user-
centricity, and ethical behavior. The "Don't Be Evil"
motto has defined the company's commitment to
positive societal impact.