Consumer Markets & Buying Behavior

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  • 8/14/2019 Consumer Markets & Buying Behavior


    Consumer Markets &Buying Behavior

    Principles of Marketing

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    Consumer BuyingDecision?

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    Consumer Buying Decision Process

    .1 Need Recognition

    .2 Identification of alternatives

    .3 Evaluation of alternatives

    .4 &Purchase related decisions

    .5 Postpurchase behavior

    Situational Factors

    When ?Where?

    Why?Conditions under which consumers


    Commercial Sources

    Social Sources

    Social and Group ForcesCulture

    SubcultureSocial ClassReference Group

    &Family Households

    Psychological Fac torsMotivationPerception



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    Social & Group Forces

    Social influences not only affect thePsychological factors but also theconsumer buying decision process.

    These forces are:

    - Culture - Subculture - Social Class - Reference Group - Family & Households

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    Set of symbols &artifacts created bya society and

    handed down fromgeneration togeneration asdeterminants andregulators ofhuman behavior.

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    u ura ren s a ec ngthe buying behavior of

    Pakistani consumers? Changing gender roles Coping with Inflation Status consciousness / show off Influx of population from rural to urban

    areas Changing cultural values Fast food/ready to eat food acceptance Sophistication of lifestyle Healthy Lifestyle

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    Subcultures are groups in a culture thatexhibit characteristic behavior patternssufficient to distinguish them from othergroups within the same culture

    - is distinguished on basis of race,nationality, religion and urban-ruralidentification.

    - For example: Kailash, Urdu speaking

    population, pashtuns etc.

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    Social Class

    Ranking within a society determined by themembers of the society.

    1.The Upper Class: old families with inherited wealthor corporate executives or business owners.2.The Upper Middle Class: moderately successful

    business owners or professionals, well educated.3.Middle Class: Managerial position holders or

    government job holders, professionally educated.

    4.Lower Middle Class: Office workers, teachers,technicians, small business owners.(white collarworkers)

    5.Upper Lower class: Blue collar working class,semiskilled.

    6.Lower- Lower class: Unskilled workers orchronically unemployed, uneducated, low or no

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    Reference Groups

    A persons reference group consistsof all the groups that have a direct

    (face to face) or indirect influence onthe persons attitude or behavior.

    e.g. friends and households, coworkers,peers, membership or associative groupsetc.

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    Psychological Factors



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    is a process of receiving, organizing andassigning meaning to information or stimulidetected by our five senses.

    - Since consumers are exposed to tremendousamount of information, Selective PerceptionTechniques are used :

    - 1. Selective Attention: People are more likely to notice

    stimuli that either relates to a current need or relates to theiranticipation or whose deviations are large as compared tonormal stimuli.

    2. Selective Distortion: is the tendency to twistinformation into personal meanings and interpret information

    that fits our established beliefs.

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    Learning involves changes in anindividuals behavior arising from

    experience & observation.

    - Learning theory teaches marketers thatthey can build up demand for a product by

    associating it with strong drives,motivating cues and providing positivereinforcement.

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    Personality & Self-ConceptTheory

    an individuals pattern of traits thatinfluence behavioral responses. Thesetraits can be self-confident, introvert,

    dominant, social, adaptable, flexible etc

    - Self Concept is self image or how yousee yourself.

    - Ideal Self Concept is how you would liketo see yourself.

    - Others- self concept is how you thinkothers see you

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    Attitude is a learned tendency torespond to an object in a consistently

    favorable or unfavorable way.Attitudes are:- Learned- Have direction and intensity

    -Tend to be stable and generalizable

    Belief is a descriptive thought that a

    person holds about something.

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    - Commercial Sources: Advertising, salespeople,

    dealers, packaging, displays etc.-- Personal Sources: Family, friends, neighbors,

    acquaintances etc-

    - Public sources: Mass Media, Consumer ratingorganizations.-- Experiential sources: Handling, examining,

    using the product etc.

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    Consumer Buying DecisionProcess

    1. Need Recognition: The consumer ismoved to action by a need, desire orproblem.

    - The stimulus can be internal orexternal.

    - Need can also be triggered bydepletion of an existing product ordissatisfaction of with a current product.

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    Consumer Buying DecisionProcess

    2. Identification of alternatives: After needrecognition, consumers identify thealternatives capable of need


    - Identification of product is followed byidentification of brand, based on personal

    experience or extensive external search.

    - Some or all information sources areutilized.

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    3.Evaluation of Alternatives: Thealternatives are evaluated by theconsumer based on single ormultiple criteria.

    Consumer Buying DecisionProcess

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    Situational Influences

    A temporary force associated with theimmediate purchase environment thataffects behavior.

    - Time- Surroundings

    - Terms of Purchase- Consumer Moods and motives

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    4. Purchase Decision: Consumers formpreferences among the brands in thechoice set and also form an intention to

    make the purchase.

    Two factors intervene here: - Attitude of Others: Negative response

    of others and consumers motivation tocomply with other persons wishes.

    - Unanticipated situational factors: suchas attitude of sales person.

    Consumer Buying DecisionProcess

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    5. Post-Purchase Behavior: Consumersexperience level of satisfaction or dissatisfactionafter purchase.

    - Post-Purchase satisfaction: is a function ofcloseness between buyers expectations andproducts perceived performance. The resultingfeelings can be satisfaction, disappointment,Delight.

    -- Post-Purchase Actions: Satisfaction leads to

    repeat purchase. Dissatisfied consumers will

    return or abandon the product. (WOM)

    Consumer Buying DecisionProcess