Consumer Buying Behavior

Consumer Behaviour

Learning Objectives:

•To Understand what motivates a customer to buy a product or service.• To Understand the Buying Roles • To Understand the different types of buying.• To Know the consumer decision making process.

Consumer Behaviour

Definition:

Consumer buyer Behaviour

The buying behaviour of final consumers- individuals and households who buy goods and services for personal consumption.

Consumer Market:

All the individuals and households who buy or acquire goods and services for personal consumption.

Consumer Behaviour

Businesses now spend considerable sums trying to learn about what makes “customers tick”.

The questions they try to understand are:

• Who buys?• How do they buy?• When do they buy?• Where do they buy?• Why do they buy?

Consumer Buying Decision Process

Who Makes the Buying Decision

Types of Buying Decisions

Stages in the Buying Process

Marketers Must Identify and Understand:

Consumer Buying Decision Process

Understand

Buying roles Buying behavior Buying decision

process

Initiator Influencer Decider Buyer User

Consumer Buying Decision Process

Understand

Buying roles Buying behavior Buying decision

process

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior Variety-seeking buying

behavior

Types of Buying Behaviour

Complex Buying behaviour

Variety Seeking buying behaviour

Dissonance reducing buying behaviour

Habitual buying behaviour

High Involvement Low Involvement

Significance differences between the brand

Few differences between the brand

Consumer Buying Decision Process

Understand

Buying roles Buying behavior Buying decision

process

Five stages in the consumer buying process

The amount of time spent in each stage varies according to several factors

Consumer Buying Decision Process

Five-Stage Model of the Consumer Buying Process

Need Recognition

Need/Problem Recognition Can be triggered by internal or external

stimuli Needs become wants, which lead to

behavior Marketing stimuli can stimulate a desire

for information

How does the customer obtain the information ?

• Personal sources:

family, friends, neighbours etc• Commercial sources:

advertising; salespeople; retailers; dealers; packaging; point-of-sale displays• Public sources:

newspapers, radio, television, consumer organisations; specialist magazines• Experiential sources:

handling, examining, using the product

How does the customer use the information obtained?

High-involvement purchases include those involving high expenditure or personal risk – for example buying a house, a car or making investments.

Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes.

Consumer Buying Decision Process

Successive Sets Involved in Consumer Decision Making

Alternative evaluation The stage of the buyer decision

process in which the consumer uses information to evaluate alternative brands in the choice set.

Customers evaluate products as bundles of attributes Brand attributes Product features Aesthetic attributes Price

Purchase intention and the act of buying are distinct concepts

Potential intervening factors between intention and buying (car example): Unforeseen circumstances Angered by the salesperson or sales manager Unable to obtain financing Customer changes mind

Key issues in the purchase decision stage: Product availability Possession utility

Purchase Decision

Four possible outcomes in the postpurchase stage: (1) Delight (2) Satisfaction (3) Dissatisfaction (4) Cognitive Dissonance

Firm’s ability to manage dissatisfaction and cognitive dissonance is: A key to creating customer satisfaction A major influence on word-of-mouth communication

Postpurchase Evaluation

Campbell’s neuromarketing initiative