1) The document discusses consumer buying behavior and the factors that influence it. It defines key terms like consumer, customer, and consumer market. 2) It outlines the stages in the buying process - need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. 3) The factors that influence buying decisions are discussed - cultural, social, personal, and psychological factors like reference groups, family, culture, social class, age, and personality.

1. Chapter 1
Consumer Buying Behavior
Sharq Institute of higher
Education
Najeebhemat
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. The chapter objective
■ To understand the concept of consumer,
customer and consumer market.
■ To know what is consumer buying behavior and
the stage of consumer buying behavior.
■ To know the factors which influence the buying
behavior.
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3. Introduction and definition
■ Consumer the person who consume the
product.
■ Customer is the person who purchase the
goods.
■ Consumer buyer behavior refers to the buying
behavior of final consumers—individuals and
households who buy goods and services for
personal consumption
■ Consumer market refers the market which
selling the product to the end user.
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4. 4-4
Stages in the Buying Process

5. 4-5
Types of Needs
■ Utilitarian Needs – it is the
need which is usually to be
easy, and effortless like Sam’s
or a grocery store. Basic
needs
■ Hedonic needs – satisfied
when purchases accomplish a
need for entertainment, or we
can say it is the need for
entertainment.
■ It’s the needs for pleasure fun
and so on.

6. 4-6
Information Search
■ The value of information depends on the source of
information
■ Factors Affecting Amount of Information Search

Product Characteristics
• Complexity
• Cost

Customer Characteristics
• Past experience
• Perceived risk

Market Characteristics
• Number of alternative brands

7. 4-7
Sources of Information
External
Advertising
Word of mouth(An unpaid
form of promotion in
which satisfied
customers tell other
people how much they
like a business, product
or service )
Internal
Past experiences
Memory
Digital Vision / Getty Images
© Dynamic Graphics/Picture Quest

8. 4-8
Retailers encourage customers
to spend time
■ The more time customers spend shopping, the
more they will buy.

Customers who spend 40 mins in a store are more
than twice as likely to buy than someone who spends
10 mins. Also, they typically buy 2x as many items.
■ Stores use food and personal service
■ Websites provide enjoyable experiences with
technologies

9. 4-9
Evaluation of Alternatives
■ Multiattribute attitude model:

Customers see a retailer, product, or service as a
collection of attributes or characteristics

Predict a customer’s evaluation of a retailer, product,
or service based on
• Its performance on relevant attributes
• the importance of those attributes to the customer

10. 4-10
Postpurchase Evaluation
■ Satisfaction

A post-consumption evaluation of how well a store or
product meets or exceeds customer expectations
■ Becomes part of the customer’s internal
information that affects future store and product
decisions
■ Satisfaction builds:
■ Brand loyalty
■ Store loyalty

11. 4-11
Types of Purchase Decisions
■ Extended Problem Solving
-High financial or Social Risk
■ Limited Problem Solving
-Some Prior Buying Experience
■ Habitual Decision Making
-Store Brand, Loyalty

12. 4-12
Extended Problem Solving
■ Financial risks –
purchasing expensive
products or services
■ Physical risks – purchases
that will affect consumer’s
health and safety
■ Social risks – consumers
will believe product will
affect how others view
them
Consumers devote time and effort analyzing alternatives

13. 4-13
What Retailers Need to do for Customers Engaged in
Extended Problem Solving
Provide a Lot of Information
-Use Salespeople rather than advertising to
communicate
with customers
Reduce the Risks
-Offer Guarantees
-Return Privileges
© Royalty-Free/CORBIS

14. 4-14
Limited Problem Solving
■ Customers engage in this when
they have had prior experience
with products or services
■ Customers rely more upon
personal knowledge
■ Majority of customer decisions
involve limited problem solving
(c) Brand X Pictures/PunchStock
Purchase decisions process involving moderate
amount of effort and time

15. 4-15
Habitual Problem Solving
■ Purchases that aren’t important to the
consumer
■ Merchandise consumers have
purchased in the past
■ Consumers loyal to brands or a store
In habitual problem solving we should aware the following point

16. 4-16
Customer Loyalty
■ Brand Loyalty

Committed to a Specific
Brand

dislikes to Switch to a
Different Brand

May Switch Retailers to Buy
Brand
■ Store Loyalty

Committed to a Specific
Retailer

Dislike to Switch other
Retailers

17. Factors
Influencing the Buying Decision Process
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18. 4-18
Family Influences Buying Decisions
■ Purchases are for entire
family to use
■ Whole family participates in
decision making process
■ Retailers work to satisfy
needs of all family members
■ Husband wife childern.

19. Reference Groups
■ A reference group is one or more people from whom we
can get advice and information to buys some product
and services. or we can say that reference group is the
group of people which directly effect our purchasing
decision. Friends, neighbors, collogues and so on.
■ Reference groups affect buying decisions by:

Offering information

Providing chances of rewards for specific purchasing
behaviors

Enhancing a consumer’s self-image
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20. Culture

Western culture: individualism

Eastern culture: collectivism

Subcultures are the group of people who
having the same needs and demand with in
the culture.
■ Culture is the beliefs, morals and values shared
by most members of a society.
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21. Social Class
People within a social class tend to have
similar buying behavior.
Or a class of people based on social power,
wealth or other criteria.
• Occupation
• Income
• Education
• Wealth
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22. There are many personal factors which influence
buying behavior.
■ Age (at different ages people having different
demand and want for the product and service )
■ Personality ( deferent personality having
different attitude to buy the product)
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Personal factors