Chapter 3Chapter 3

Analyzing consumer markets & Analyzing consumer markets & buying Behaviorbuying Behavior

-Consumer is all about the study of actions -Consumer is all about the study of actions of consumers in the market place & the of consumers in the market place & the underlying motives of those actions underlying motives of those actions

-All the behavior of human beings during -All the behavior of human beings during the purchase may be termed as “Buyer the purchase may be termed as “Buyer Behavior’’Behavior’’

NeedsNeeds Consumers preferences are changing & becoming Consumers preferences are changing & becoming

highly diversified highly diversified

Consumers prefer differentiated products Consumers prefer differentiated products

   meeting special requirements of the customers meeting special requirements of the customers

based on the market segmentationbased on the market segmentation

Rapid industrialization of new products with Rapid industrialization of new products with technological advancement has made the job of technological advancement has made the job of studying consumer behviour more imperative studying consumer behviour more imperative

   Implementation of marketing concept calls for Implementation of marketing concept calls for

studying the consumer behaviourstudying the consumer behaviour

Factors influencing consumer BehaviorFactors influencing consumer Behavior – Cultural factorsCultural factors

CultureCulture

-A child growing up in a society learns -A child growing up in a society learns a basic set of values, perceptions, a basic set of values, perceptions, preferences & behaviours through a preferences & behaviours through a process of socializationprocess of socialization

   - A child growing up in an agricultural - A child growing up in an agricultural

family learns what is the time for family learns what is the time for sowing, harvesting, and marketingsowing, harvesting, and marketing

SubcultureSubculture -Identified has Indian religions like -Identified has Indian religions like

Hindus, Muslims, Christians with Hindus, Muslims, Christians with specific references & tastes, regional specific references & tastes, regional groups such as north Indian, south groups such as north Indian, south Indian again differing in tastes, food Indian again differing in tastes, food etc.etc.

Social classSocial class -Within the social class people tend -Within the social class people tend

to exhibit similar behaviour including to exhibit similar behaviour including buying behaviour, marketers buying behaviour, marketers concentrate on classes like lower & concentrate on classes like lower & middle level classesmiddle level classes

– Social factorsSocial factors

Reference groupsReference groups

-A group which belongs & interacts has -A group which belongs & interacts has direct influencedirect influence

FamilyFamily

-Family influence from parents & spouse & -Family influence from parents & spouse & children children

  

Role& statusRole& status

-Refers to person position in each group.-Refers to person position in each group.

    

– Personal factorsPersonal factors

Age & stage of life cycleAge & stage of life cycle

-People change goods & services they -People change goods & services they buy over their life times. They eat buy over their life times. They eat baby food in the childhood, most baby food in the childhood, most foods in the growing & mature years foods in the growing & mature years & special diets in the old age.& special diets in the old age.

  

OccupationOccupation --Occupation has too influence on the Occupation has too influence on the

goods & services bought by each goods & services bought by each individualsindividuals

  

Consumer decision making/Buying Consumer decision making/Buying process/STAGESprocess/STAGES

1. Problem recognition1. Problem recognition

-It recognizes the problem or need of -It recognizes the problem or need of consumersconsumers

-A marketer at this stage needs to -A marketer at this stage needs to determine the circumstances that determine the circumstances that usually stimulate a consumer & go for usually stimulate a consumer & go for search on what kinds of needs or search on what kinds of needs or problems arise & what brought them problems arise & what brought them about * how they led to this particular about * how they led to this particular productproduct

2. Information search2. Information search

Sources:Sources:

1. Personal sources1. Personal sources

2. Commercial sources2. Commercial sources

3. Public sources3. Public sources

4. Experimental sources4. Experimental sources  

  

3. Evaluation alternatives3. Evaluation alternatives

FirstlyFirstly consumers look at each product as a bundle consumers look at each product as a bundle of attributesof attributes

  

SecondlySecondly consumer attach different importance consumer attach different importance weights to the relevant attributesweights to the relevant attributes

  

ThirdlyThirdly consumers develop a set of brand beliefs consumers develop a set of brand beliefs about where each brand stands on each attributeabout where each brand stands on each attribute

  

FourthlyFourthly consumer develop a utility, function for consumer develop a utility, function for each attributeeach attribute

  

Fifthly Fifthly consumer arrives at attributes, i.e. , consumer arrives at attributes, i.e. , judgments & preferences towards the brand judgments & preferences towards the brand alternatives through some evaluation procedure alternatives through some evaluation procedure

  

4. Purchase decision 4. Purchase decision

It includes with the set of It includes with the set of preferences also depend on the preferences also depend on the situation & attitudesituation & attitude

  

5. Post purchase decision5. Post purchase decision

After buying & trying the product After buying & trying the product the consumer will fell some level of the consumer will fell some level of satisfaction depends very much on satisfaction depends very much on the expectation & the product’s the expectation & the product’s perceived performance perceived performance