CONSUMER

BEHAVIOR
 Objective
• How do consumer characteristic influence
buying behavior.
• What major psychological processes influence
consumer responses.
• How do consumer make purchase decisions.
• How do marketers analyze consumer decision
making.
 Factors influencing
consumer behavior

• Culture:-
• Social
• Personal Factor
 Culture

• Culture-fundamental determinant of persons wants and

behaviors. Child-set value ,perceptions ,preferences
,behavior.
• Subculture-Nationalities,religion,ratial groups
geographic region.
• Social Class-dress, speech pattern, recreational
preferences.positions.occupations,income,wealth
Upper Class-Magazine and books.
Lower class-TV.
 Social factor
• Reference Groups-direct or indirect influence.
• Membership Groups-Direct Influence.
• Primary Group-family, friends,neighbours,coworkers.
• Secondary Group-Religious, professional and trade
union.
• Aspiration Groups.
• Dissociate Groups.
• Opinion Leader.
• Roles and Statuses.
 Personal Factor
• Age –people buy different goods and services over
lifetime. stages in lifecycle.
• Occupation and economic circumstances.
• Personality and self concepts.
*Sincerity-down to earth,honest,cheerful.
*Excitement.-daring,spirited,up to date.e.g.MTV
*Competence –reliable ,intilligent,successful.
*Sophistication-upper class and charming.
*Ruggedness.e.g.Levis.
• Lifestyle and Values:-
*Money constrained-Wal-Mart and Subhiksha.
*Time constrained-doing two things at a time.
 Four psychological process
affect consumer behavior.
1.Motivation
Biogenic-Hunger ,thirst, discomforts.
Psychogenic-recognition,esteem,belonging.
• Sigmund Freud, Maslow's Theory.Herzberg’Theory.
• Maslow’ Theory-1.physiological need,2.safty need,3.social
needs,4.Esteem needs.5.self actualization need.
2.Perception-is the process by which an individual
selects,organizes,and interprets information inputs to create a
meaningful picture of the world. selective attention, selective
distortion, selective retention.
3.Learning.-when people act, they learn.drives,cues,responces and
reinforcement.
4.Memory-STM,LTM.
*Memory process Encoding.
*Memory process Retrieval.
 The buying decision
process.
1. Problem Recognition.

2. Information Search.

3. Evaluation of alternatives.

4. Purchase Decision.

5. Post Purchase behavior.

 Problem Recognition
• Buying Process starts when buyer
recognize problem or need.
Internal Stimuli-Hunger ,Thirsts,sex.
External Stimuli- e.g.neighbour’s
car,Telivision.
 Information Search
1. Personal-
family,friends,neighbours,aquaintances.
2. Commercial-advertising,websites,sales
person, packaging ,displays.
3. Public-mass media, consumer rating
organization.
4. Experiential-handing,examining,using
products.
 Evaluation of
Alternatives
1.Try to satisfy need.2.looking for certain
benefits.3.See as bundle of attributes.
• Cameras-picture sharpness,speed,size,price.
• Hotels-location,cleanliness,atmosphere,price.
• Mouthwash-color,effectiveness,germ killing
capacity price, taste ,flavor,
• Tires-safety, tread life, ride quality, price.
• Belief-a descriptive thought that person holds
about something.
• Attitude-enduring faverable or unfaverable
evaluation,
emotional feeling and action tendencies towards
some object or idea.
 Expectancy Value Model
compute Attribute
r

Memory Graphic Size and Price

capacity capabilit weight
y
A 10 8 6 4
B 8 9 8 3
C 6 8 10 5
D 4 3 7 8
 Purchase Decision
• 1.brand 2 dealer 3 quality 4 timing 5 payment method.
• Noncompensatory models of consumer choice.-
*conjunctive heuristic-eg.1bhk flat.
*lexicographic heuristic-e.g. Hero Honda bikes.
*elimination by aspects heuristics.e.g.Hundai cars.
Intervening Factors-
1.Negative thought of other
2.Positive thought
3unanticipated situational factor-sales person may turn her
off.
• Consumer decision to modify, postpone , or avoid depends on
perceived risk. E.g. functional risk,physical risk,financial risk,social
risk,psychological risk,time risk.
 Post purchase Behavior
• Post purchase satisfaction-dissonance
,satisfied, delighted.
Post purchase actions-75% Toyota buyers are
highly satisfied.
dissatisfied customer may abandon or return
the
product.
Post purchase use and disposal-product
consumption rate.
summary
 Assignment (oral)
• Choose a recent purchase that
included not only
yourself but also other people in
making the decision .What roles did
you play in the buying centre? what
roles did these other people play and
how did they influence your choice?
 BUSINESS BUYER
• Business goods that are intended for use in
making other products, or for use in the operation
of a business or institution.
• Definition-one who buys goods and services for
• Making other goods and services.
• Reselling
• Use as consumerables in the organization.
Classification-
1.Agriculture sector 2.industrial sector 3 services
sector 4.resellers.5.buyers in government sector.
6.Non profit businesses
 B.Buyer Habit and
Patterns.
• Goes through long negotiations.

• Frequency of purchase

• Size of order.

• Several participants in the buying decisions.

• Distribution channels.
 Specialty due to
characteristics of
•
Market/product.
Buying clout-small no. of users.e.g.Telco,Bajaj.
• Concentration of Buyers.- bargaining power
• Direct one to one relationship with seller.
• Technical support for buying.
• New product diffusion is slower.
• Business buyer may also buy through
intermediaries.
• Closer monitoring of supply sources/prices of
products.
• Derived demand.
• More of rational buyer
• Business buying is partnering.
 Four types of Markets
• 1.industrial market-buy products and services to help
them produce other goods and services.e.g.Raw
Material,components,machinery.
• 2.reseller Market-organizations that buy products and
services to resell.eg.retailers and wholesalers.
• 3.Goverment Markets-government agencies that buy
products and services to help them
Carry out their activities.
• 4.Non profit organizations-not seek profits, they are
keenly interested in improving the
Effectiveness and efficacy of their organization.
Six roles in decision making
units.
1. Initiator-They are initiate the purchase post.eg.office
equipments, the initiative must be by Administrative
departments
2. Influencer-provide information and add decision criteria
throughout the buying process.
3. Decider-them are those who have authority to select a
supplier.
4. Users-Those who will use the product or services.
5. Approvers-authorize actions of deciders or buyers.
6. Buyers-formal authority to select the supplier and
arrange the purchase terms.
7. Gatekeepers-people who have the power to prevent
sellers or information from reaching members of the
buying center.
Organizational/Industrial
Buying process
1. Recognition of the the problem.
2. Determination of specification and quantity of
needed item.
3. Search for and qualification of potential
sources.
4. Acquisition and analysis of proposals.
5. Evaluation of proposals and selection of
suppliers.
6. Selection of order routine.
7. Performance feedback and evaluation.