Byer Behav-With Descrip

8/14/2019 Byer Behav-With Descrip

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Topics to be coveredTopics to be covered

After completing the session weAfter completing the session wehave to learn the following:have to learn the following:

Definition of Buyer Behavior/Consu Definition of Buyer Behavior/Consu

Factors that Influence Consumer BeFactors that Influence Consumer Be Buyer Decision ProcessBuyer Decision Process

Stages in the Adoption ProcessStages in the Adoption Process

Adoption of innovationsAdoption of innovations


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Consumer Buying BehaviorConsumer Buying Behavior

Consumer Buying BehaviorConsumer Buying Behavior refers torefers tothe buying behavior of finalthe buying behavior of finalconsumers (individuals & households)consumers (individuals & households)who buy goods and services forwho buy goods and services forpersonal consumption.personal consumption.

It is defined as all psychological,It is defined as all psychological,

social & physical behavior of potentialsocial & physical behavior of potentialcustomers as they become aware of,customers as they become aware of,evaluate, purchase, consume & tellevaluate, purchase, consume & tellothers about product & services.others about product & services.


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Factors Affecting Consumer BehaviorFactors Affecting Consumer Behavior

Buyer

Psychological

Personal

Social

Cultural


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Factors Affecting Consumer Behavior: CulturalFactors Affecting Consumer Behavior: Cultural

3. Social Class

People within a social classtend to exhibit similar buying

behavior.Occupation

Income

Education

Wealth

1. Culture1. Culture Most basic cause of a person's wants andMost basic cause of a person's wants and

behavior:behavior: ValuesValues

PerceptionsPerceptions

2. Subculture

Groups of people with sharedvalue systems based on common

life experiences. nationalities

religion

3 Factors: Culture, Subculture, Social Class3 Factors: Culture, Subculture, Social Class


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Factors Affecting Consumer Behavior:Factors Affecting Consumer Behavior:

SocialSocial

Groups

Membership

Reference

Family

Husband, wife, kids

Influencer, buyer, user

Roles and Status

Social Factors


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Factors Affecting Consumer Behavior:Factors Affecting Consumer Behavior:

PersonalPersonal

Personal Influences

Age and Family Life CycleStage

Occupation

Economic Situation Personality & Self-Concept


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Factors Affecting Consumer Behavior:

Psychological

PsychologicalFactors

Motivation

Perception

Learning

Beliefs andAttitudes


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The Buyer Decision ProcessStep 1. Need Recognition

External Stimuli

TV advertising

Magazine ad

Radio slogan

Stimuli in the

environment

Internal Stimuli

Hunger

Thirst

A persons normalneeds

Need RecognitionDifference between an actualstate and a desiredstate


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The Buyer Decision ProcessThe Buyer Decision ProcessStep 2. Information SearchStep 2. Information Search

Family, friends, neighborsMost influential source of information

Advertising, salespeopleReceives most information

from these sources

Mass MediaConsumer-rating groups

Handling the productExamining the productUsing the product

Personal Sources

Commercial Sources

Public Sources

Experiential Sources


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The Buyer Decision ProcessStep 3. Evaluation of Alternatives

Product AttributesEvaluation of Quality, Price, & Features

Degree of ImportanceWhich attributes matter most to me?

Brand BeliefsWhat do I believe about each available brand?

Total Product SatisfactionBased on what Im looking for, how satisfied

would I be with each product?

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.


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The Buyer Decision ProcessThe Buyer Decision ProcessStep 4. Purchase DecisionStep 4. Purchase Decision

Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

Attitudes

of others

Unexpected

situational

factors


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The Buyer Decision ProcessStep 5. Post purchase Behavior

Consumers Expectations ofProducts Performance

Dissatisfied

Customer

Satisfied

Customer!

Products Perceived

Performance

Bye it again /

Tell other to Buy

Return the product/

Take decision not to bye again/

Take public actions


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Buying Decision ProcessBuying Decision Process

Post purchase BehaviorPost purchase Behavior : The markers job does not: The markers job does notend with the purchase. They must monitor followingend with the purchase. They must monitor following

post purchase behaviorpost purchase behavior Post purchase satisfactionPost purchase satisfaction: Satisfaction is a: Satisfaction is afunction of the closeness between expectations &function of the closeness between expectations &perceived performance. Three situation:perceived performance. Three situation: Disappointed: if performanceexpectation

Post purchase ActionsPost purchase Actions:: If satisfiedIf satisfied

they will buy it againthey will buy it again

They also tell other to buy that brandThey also tell other to buy that brand If dissatisfied:If dissatisfied: Return the productReturn the product Take decision not to buy it againTake decision not to buy it again May take public actions by complaining theMay take public actions by complaining the

company, going to lawyer, or to other groupscompany, going to lawyer, or to other groups


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Stages in the Adoption ProcessStages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption


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Buyers' Product Adoption ProcessBuyers' Product Adoption Process

Awareness:Awareness: Buyers become aware of theBuyers become aware of the

productproduct Interest:Interest: Buyers seek information and isBuyers seek information and isreceptive to learning about productreceptive to learning about product

Evaluation:Evaluation: Buyers consider product benefitsBuyers consider product benefitsand determines whether to try itand determines whether to try it

Trial:Trial: Buyers examine, test or try the productBuyers examine, test or try the productto determine usefulness relative to needsto determine usefulness relative to needs

Adoption:Adoption: Buyers purchase the product andBuyers purchase the product andcan be expected to use it when the need forcan be expected to use it when the need for

the general type of product arises.the general type of product arises. #### Rate of adoption depends onRate of adoption depends on

consumer traits as well as the product and theconsumer traits as well as the product and thefirm's marketing efforts.firm's marketing efforts.

Ad i f I i /Diff i PAd ti f I ti /Diff i P


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Adoption of Innovations/Diffusion ProcessAdoption of Innovations/Diffusion Process

Percentage

ofAdopters

Time of AdoptionEarly Late

Innovators

EarlyAdopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority


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Diffusion ProcessDiffusion Process

The manner in which different members of theThe manner in which different members of the

target market often accept and purchase atarget market often accept and purchase aproduct (go through the adoption process)product (go through the adoption process) Innovators:Innovators: Techno-savvies first customersTechno-savvies first customers

to buy a product, 2.5 % of consumersto buy a product, 2.5 % of consumers Early Adopters:Early Adopters: Tend to be opinion leaders.Tend to be opinion leaders.

Adopt new products but use discretion, 13.5%Adopt new products but use discretion, 13.5% Early Majority:Early Majority: 34% of consumers, first part34% of consumers, first part

of the mass market to buy the productof the mass market to buy the product Late Majority:Late Majority: Less cosmopolitan andLess cosmopolitan and

responsive to change, 34%responsive to change, 34% Laggards:Laggards: Price conscious, suspicious ofPrice conscious, suspicious of

change, 16%, do not adopt until the productchange, 16%, do not adopt until the producthas reached maturity.has reached maturity.

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Byer Behav-With Descrip