Consumer Buying Behaviourppt

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  • 7/28/2019 Consumer Buying Behaviourppt


  • 7/28/2019 Consumer Buying Behaviourppt


    MEANING OF CONSUMER BUYING BEHAVIORConsumer buying behavior is the study of when,

    why, how, and where people do or do not buy product. It

    attempts to understand the buyer decision making process

    both individually & in groups & tries to assess influence onthe consumer from factors such as demographics,

    behaviour, family, friends, reference groups & society in


  • 7/28/2019 Consumer Buying Behaviourppt


    Consumer behavior can be defined as , The Decision Making

    Process And Physical Activity Involve In Acquiring, Evaluating,

    Using And Disposing Of Goods And Services.

    Definition of consumer buying


  • 7/28/2019 Consumer Buying Behaviourppt




    People are changing from time to time, so do their

    tastes and preferences. Identifying those is the firststep towards achieving success and the rest depends

    on the performance of the product.

    This also means that customers are open to new and

    different products from time to time. Its just that theywant the product to be flexible and adaptable to their

    needs and preferences.

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    Example Of FordLets take the example of Ford. Before establishing their

    base in India, they engaged in a lot of researches. Their

    researches were made on the Indian peoples social life, personal

    tastes and preferences, way of life, how they identify an effectiveproduct and what makes them get attracted towards a product.

    The social and economic conditions were analyzed.

    The general economy of India was also researched on.

    They had modified their product to suit the Indian conditions.Their technology had to be adjusted and suited to such an extent

    that their car is adaptable to Indian conditions. Today Ford is

    enjoying a huge market in India

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    It is common for customers to experience concerns after

    making a purchase decision. This arises from a concept that is

    known as cognitive dissonance. The customer, having bought aproduct, may feel that an alternative would have been preferable.

    In these circumstances that customer will not repurchase

    immediately, but is likely to switch brands next time.

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    Factors influencing consumer

    buying behavior

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    Factors influencing consumer

    buying behavior

    Cultural Factors

    Social Factors

    Personal Factors

    Psychological factors

    Celebrity Influences

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    Cultural Factors

    1. Culture:

    Cultural shifts

    A. Leisure time

    B. Health conscious

    2. Subculture

    3. Social class

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    Social Factors

    1) Reference group

    2) Family group

    3) Roles & Status

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    Personal Factor

    Age & Life Cycle Stage

    Family Life-Cycle StagesYoung Middle-Aged OlderSingle

    Married Without ChildrenMarried With ChildrenDivorced With Children

    SingleMarried Without Children

    Married With ChildrenMarried Without Dependent Children

    Divorced Without ChildrenDivorced With Children

    Divorced Without Dependent Children

    Older MarriedOlder Unmarried

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    Economic situations


    Personality & self concept

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    Psychological Factor


    MASLOW hierarchy of needs!! Physiological


    Love and Belonging Esteem

    Self Actualization

    Perception Learning


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    Celebrity Influence

    The celebrity affect the consumer buying behaviour by

    influencing consumer purchase decision through their unique

    promotion strategies.

    For Example - Amir khan is promoting Samsung mobile.

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    TelevisionIn 2000 35% population

    In 2005 to 50% population

    Plasma Television

    RefrigeratorIn 2000 9.4% population

    In 2005 12% population

    Godrej & Whirlpool


    In 2000 6.5% population

    In 2005 12% population


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    Home Owners

    In 2000 40 years of age

    In 2005 28-30 years of age

    Mobile UsersMobile users 130 millions

    internet users 40 millions

    Nokia & Samsung.

    Credit cardCredit card penetration has grown to 10 times between 2001 and2005. ICICI, HDFC, SBI.

    EntertainmentConsumer prefer Cinemax & PVR rather than multiplexes &Cinema hall.

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    Taste & Preferences

    Consumer prefers luxurious & branded products Titan, Fast

    Track, Rado for watches.

    Hospitability Industry

    Consumer wants better hospitability & tourism services

    SOTC, Star Tours, etc,.

    Housing Facilities

    Customer wants better housing facilities . Hiranandani,MHADA, LODHA etc,

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    Premium Products

    Rural Market

    After Sales Services

    Market Segmentation

    Growth OfTelecommunicationSector

    Tourism Industry

    Construction Field

    Health And Hygiene

    Internet Facilities

    Banking And FinancialInstitutions

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    Case Study in Yamaha gladiator-by Mr. Payeng (Mar 16, 2008)

    Sales Graph

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    Virtually every Auto Magazine in this country rate

    the Yamaha Gladiator as a good bike in the 125 cc segment.

    Even my own personal opinions do not differ much fromthese auto magazines.

    But have a look at the sales figures of the 125 cc and

    above segment in India posted below. Since Yamaha India

    do not have any other bike except the 125 cc "Gladiator" inthe 125 cc and above segment, the graph clearly indicates the

    sales figures of the Gladiator for Yamaha India.

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    Who are the 125cc target Customer & what are they lookingfor?

    Fuel Efficiency

    High Mileage

    But according to most Auto Magazines, the Fuel Efficiency of the

    Gladiator isn't bad and almost at par with what other 125 cc bikes


    Economies of scale & Scale &


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  • 7/28/2019 Consumer Buying Behaviourppt


    Need/problem Recognition The buying process begins with recognition on the

    part of the buyer that he has a problem or need.Market Research should try to identify what are thefactors that make a buyer go for a 125 cc bike.

    Factors like price, looks/styling, and resale value willbe always there, but according to me, the FuelEfficiency happens to be the most important factor for

    a 125 cc buyer. Information search

    Personal Sources

    Commercial Sources

    Public Sources

    Experiential Sources

    Based on the information gathered, a 125 cc buyer willarrive at an "Evoked or Choice Set" from the 125 cc

    bikes available in the market.

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    ComparisonHonda Shine

    Hero Honda Super Splendor/Glamour Suzuki Zeus/Heat

    Bajaj XCD

    TVS Flame Yamaha Gladiator

    Definitely a good looking bike. The advertisements

    showed John Abraham pulling wheelies with this bike in an

    Airport. Must be a powerful bike.

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    The main problem with gladiator


    No auto magazines & no internet surfing

    Awareness through reference group

    The final problem is how they advertise theirproduct

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    Vijay Says

    expensive when it comes to maintenance.

    Reputation is not high in comparison with others.

    Old formula of promotion

    Arvind Says

    Superb bike & purchased fortnight. People want everything ( power, mileage, looks,

    low cost) in their bikes.

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    Sankoobaba Says

    People dont read magazine & surf internet.

    Depend on public opinion.

    Yamaha should work on building brandamong masses.

    Vaibhav says

    Agree with above.

    Should market the product efficiently. Learn on Suzuki market & need a right


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    Aryan Says (purchased)

    Bike is best, class handling, exceptional

    braking, dam fast.

    Bike wasnt marketed properly.

    People usually see Bajaj & Honda

    around them.

    Missing joy of riding Gladi.

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    From above analysis it is very clear that Indian consumers

    buying behavior and their attitude have changed drastically

    in the recent past. One thing is for sure that the pace of

    change in the needs, desires and wants of the Indianconsumers will be even steeper and will further change

    drastically in the near future.