Consumer Buying Behaviour for UG and PG students across Asian countries

1. Consumer Buying Behavior
Principles of Marketing
for
MBA/EMBA/BBA/BCom
Dr. Md Rizwan Alam
Professor-Marketing
rizwan2040@gmail.com
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2. • Defining and understanding Consumer
Behavior(CB)
• Explain CB model
• Factors influencing CB
• Consumer buying decision process
• Product Adoption categories
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3. • Walters (1974) defines consumer behaviour as: " ...
the process whereby individuals decide whether,
what, when, where, how, and from whom to purchase
goods and services.“
• Consumer buyer behavior refers to the buying
behavior of final consumers—individuals and
households who buy goods and services for personal
consumption.
• Mowen (1993) provides a different definition by
explaining consumer behaviour as: "... the study of
the buying units and the exchange processes involved
in acquiring, consuming, and disposing of goods,
services, experiences, and ideas".
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4. • Schiffman & Kanuk (2015) define consumer
behaviour as: "The behavior that consumers
display in searching for, purchasing, using,
evaluating, and disposing of products, services,
and ideas”.
• Kotler and Keller (2006) defines as the study of
how individuals, groups and organisations select,
buy, use and dispose of goods, services, ideas, or
experiences to satisfy their needs and wants.
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5. Five Interdisciplinary Dimensions of Consumer Behaviour
• Economic
Demand, Supply, Income, Purchasing Power
• Psychology
Needs, Motivation, Personality, Perception, Attitudes,
• Sociology
Society, Social Class, Power, Esteem, Status
• Socio Psychology
Group Behaviour, Group Influences, Conformity to group
norms, Role Leader.
• Cultural Anthropology
Beliefs, Values, Attitude towards wealth, Joint Family, Caste
System
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6. • Market-Opportunity Analysis
e.g. Vistara and Air Arabia explores opportunity in
European market
• Target Market Selection
e.g. Oreo, Kindle Reader App
• Marketing Mix determination
e.g. Maggi, Movie Ticket
• Marketing strategy
e.g. McDonald’s and Amity University
• Regulatory policy
e.g. Consumer Protection Act (COPRA), 2019, USFDA
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9. Culture
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10. • Culture is the learned values, perceptions, wants, and
behavior from family and other important institutions.
• Schiffman defines it as the sum total of learned beliefs,
values, and customs that serve to direct the consumer
behavior of members of a particular society.
• Clark (1990) puts “the pattern of enduring personality
characteristics found among the populations of nations”.
• Durmaz, Celik and Oruc (2011) identify traditional
beliefs, preferences, habits and customs that are needed
to be understood for the success in marketing. This is an
important variable in marketing particularly in market
segmentation, target market and product positioning.
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11. • Lamb, Hair and Daniel (2011) The underlying elements
of every culture are the values, language, myths,
customs, rituals, laws, and the artifacts, or products
that are transmitted from one generation to the next.
• Sir Edward B. Tylor's definition of culture (1871)
“Culture… is that complex whole which includes
knowledge, beliefs, arts, morals, law, customs, and
any other capabilities and habits acquired by [a
human] as a member of society.”.
• Ex. UAE is Islamic country allows divers and vibrant
culture to live harmoniously. It reflects on
architecture, music, attire, cuisine,
and lifestyle, foreign-influenced schools, cultural
centers, and themed restaurants.
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12. • Enculturation: the learning of one’s own culture.
• Acculturation: The learning of a new or foreign
culture.
• Language and symbols: Marketers must choose
appropriate symbols in advertising.
• Ritual: A ritual is a type of symbolic activity consisting
of a series of steps (multiple behavior) occurring in a
fixed sequence and repeated over time.
Rituals extend over the human life cycle.
Marketers realize that rituals often involve products.
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Culture Is Learned Issues

13. • Learned
• Shared
• Dynamic
• Symbolic
• Integrated
• Adaptive
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15. • Family orientation
e.g. especially in villages
• Saving orientation
e.g. during recession time of 2009, India remained
resilient
• Festivities
Indians have high reverence to their gods
• Shopping as a ritual
people shop for the need and fun
• Mythology
legendary heroes of a particular people, e.g. Mahabharat
• Food Habits
Dosa, idly more popular in south India
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16. Festivals Usual products for the consumers
Diwali Clay diay, tea-light candle with platter, kaju katli, soan
papdi,dodha bari,besan laddo
Holi Gulal, pichkari gun,holi color hamper
Raksha
Bandhan
Rakhi threads
Laddo, balu shahi, barfi, etc.
Dussehra Dhoti, kurta, saree, punjabi suits
Durga Pooja Gada Pendant, Bengali Sarees
Guruparabs Kara, pearl mala,lamp, salwar kameez,
Buddha
Purnima
Milk porridge (kheer), white dress, flowers, candles
Christmas Christmas tree, Red Santa Dress, Lady Christmas costuem
Id-ul-fitr Sivayan, phirni , kurta payjama
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18. • Projective technique
fear, anxiety, values, rituals, attitudes , personality,
orientation, through inkblots, fill in the blanks,
cartoons, incomplete sentence, TAT, Rokeach Value
Survey
• Attitude measurement test
• Content analysis
Verbal and nonverbal, pictorial communication
• Consumer fieldwork
store shopping behavior, mystery shopping,
• Value measurement instrument
Value and Life Style (VAL), List of Values (LOV)
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19. • Achievement orientation
• Work Ethic
• Material Success
• Middle of the road approach to tradition
• Impulse Gratification
• Use of hi-tech products
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20. • Subculture are groups of people within a culture
with shared value systems based on common life
experiences and situations.
• subculture is a segment of a larger culture whose
members share distinguishing values and patterns
of behavior
– Hispanic
– African American
– Asian
– Mature consumers
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22. • Gujratis
• Hydrabadis
• Parses
• Punjabis
• Keralites
• Kashmiri
• Muslims
• Hindus
• Sikhs
• Christian
• Buddhist
• Jains
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23. • Social classes are society’s relatively permanent and
ordered divisions whose members share similar
values, interests, and behaviors
• Measured by a combination of occupation, income,
education, wealth, and other variables
• A broad social grouping based upon level of prestige
determined by such characteristics as occupation,
income, family genealogy, moral standing, residential
area, and social relationships. Class is distinguished
from caste by the fact that the boundaries of the class
group are less rigid.
e.g. upper, middle, and lower class
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Membership
Groups
• Groups with
direct
influence and
to which a
person
belongs
Aspirational
Groups
• Groups an
individual
wishes to
belong to
Reference
Groups
• Groups that
form a
comparison
or reference
in forming
attitudes or
behavior
Groups and Social Networks

30. • Word-of-mouth influence and buzz marketing
– Opinion leaders are people within a reference
group who exert social influence on others
– Also called influentials or leading adopters
– Marketers identify them to use as brand
ambassadors
Characteristics Affecting Consumer
Behavior
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Groups and Social Networks

31. • Online social networks are online communities
where people socialize or exchange information
and opinions
Ex. Include blogs, social networking sites like
Facebook, MySpace, etc.
Characteristics Affecting
Consumer Behavior
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Groups and Social Networks

32. • Family is the most important consumer-buying
organization in society
Ex. Wife may influence husband in buying a
flat with separate or bigger kitchen.
• Social roles and status are the groups, family,
clubs, and organizations that a person belongs to
that can define role and social status
Characteristics Affecting Consumer
Behavior
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Social Factors

33. • Age and life-cycle stage
ex. Child is more attracted towards cartoon
packaged caps.
• Occupation
ex. Casual wearing consumers may buy from Zara
and Levi’s
• Economic situation- Aston Martin for high income
group
• Lifestyle- Rayban sunglass for trendy consumers
• Personality and Self-Concept: Rado
Characteristics Affecting Consumer
Behavior
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Personal Factors

34. Personality
• "A persons unique make up, which consistently
influences the way the person responds to his or
her environment." (Solomon, 1999)
• "Those inner psychological characteristics that
both determine and reflect how a person
responds to his or her environment" (Schiffman &
Kanuk, 2004)
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Personality and Self-Concept

35. • Hollander researched further into personality and
came up with 4 different concepts of personality:
(KC Williams 1981)
– External- How a person interacts with others
– Internal- Combination of values and attitudes
– Dynamic- How they behave in new situations
e.g social adjustments
– Consistent- Their characteristic style
Personal Factor, Cont.
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Personality and Self-Concept

36. Personality Traits
• Workaholism
• Compulsiveness
• Self confidence
• Friendliness
• Adaptability
• Ambitiousness
• Dogmatism
• Authoritarianism
• Introversion
• Extroversion
• Aggressiveness
• Competitiveness
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37. • Self-concept
A person's self-concept is his knowledge about
himself. Similar to how he can know other people, and
know facts about how they tend to think, and what
they enjoy doing, and what their temperament is like,
he can also know these things about himself.
• Self-esteem
is how you feel about those things you know, like
whether you enjoy the fact that you are talkative at
parties (high self-esteem) or you think that you are
annoying and need to learn to shut up sometimes
(low self-esteem).
Personal Factor, Cont.
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Personality and Self-Concept

38. • Ideal Self vs. Actual Self
Analyze:
1.Consumers buy products that are consistent
with their self concept.
2.There is a weak association between personality
and Buying Behavior.
Personal Factor, Cont.
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Personality and Self-Concept

39. Maslow’s Hierarchy of Needs
Q: How this hierarchy impacts buying behavior.
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40. Characteristics Affecting Consumer
Behavior
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Motivation
Perception
Learning
Beliefs and attitudes
Psychological Factors

41. A motive is a need that is sufficiently pressing to
direct the person to seek satisfaction.
Ex. Green consumer tends to buy green product
Motivation research refers to qualitative research
designed to probe consumers’ hidden,
subconscious motivations
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Psychological Factors
Motivation

42. Characteristics Affecting Consumer
Behavior
Perception is the process by which people select,
organize, and interpret information to form a
meaningful picture of the world from three
perceptual processes
– Selective attention
– Selective distortion
– Selective retention
Psychological Factors

43. Selective attention is the tendency for people to
screen out most of the information to which they
are exposed
Selective distortion is the tendency for people to
interpret information in a way that will support
what they already believe
Selective retention is the tendency to remember
good points made about a brand they favor and
forget good points about competing brands
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Psychological Factors

44. • Learning is the change in an individual’s behavior
arising from experience and occurs through
interplay of:
– drives
– stimuli
– cues
– responses reinforcement
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Psychological Factors

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Belief is a descriptive thought that a person has
about something based on:
• Knowledge
• Opinion
• Faith
Psychological Factors
Beliefs and Attitudes

46. Attitudes describe a person’s relatively consistent
evaluations, feelings, and tendencies toward an
object or idea.
“A predisposition or a tendency to respond positively
or negatively towards a certain idea, object,
person, or situation. Attitude influences an
individual's choice of action, and responses to
challenges, incentives, and rewards ...”
(http://www.businessdictionary.com)
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48. • Intentions to purchase are sometimes
interrupted.
• Potential “Interrupters”:
– Attitudes & influences of others
– Unexpected situational
factors
– Buyer’s Remorse
– Speed of decision
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49. • Consumer satisfaction/dissatisfaction results from gaps
between expectations and perceived performance.
– performance below expectations → disappointment
– performance equals expectations → satisfaction
– performance greater than expectations → delight
– performance much greater than expectations →
Expectation Recalibration
“An individual feels cognitive dissonance in terms of a
perceived malaise if a result of decision negatively
differ from expectation”( Festinger, 1957).
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50. Adoption process is the mental process an
individual goes through from first learning about
an innovation to final regular use.
Stages in the process include:
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51. • Innovators: venturesome, try new ideas at some
risk.
• Early adopters: opinion leaders who adopt new
ideas early, but carefully.
• Early majority: deliberate adopters, who adopt
before the average person.
• Late majority: skeptical, adopt only after the
majority of people have tried a product.
• Laggards: last to adopt, tradition bound, and
skeptical of change.
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53. • Disciplines of CB
https://www.indiaclass.com/interdisciplinary-
dimensions-of-consumer-behaviour/
• Characteristics o culture
https://anthropology4u.com/characteristics-of-culture/
• Consumer Buying Decision process
https://www.youtube.com/watch?v=iOr64qJypO8
• Consumer Buying Decision Process-FMCG
https://www.youtube.com/watch?v=jxso150VcpM
• New Poduct adoption process
https://www.youtube.com/watch?v=zjNUG4XJ9iQ
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