Marketing Management

Unit II: BUYER BEHAVIOUR

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The most important thing is to forecast where customers are moving, and to be in front of them.

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Introduction and DEFINITION

The aim of marketing is to meet and satisfy target customers needs and wants Consumer Behaviour studies how individuals, groups, and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires

whirlpool anthropologist- he went to peoples home observed how they used their appliances and talked with all household members found out kids and men were using in women working families Kodak Advanta- high- tech which began to loose its appeal and simplicity began to edge out
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Consumer Buying Behavior

Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption.
The central question for marketers is: How do consumers respond to various marketing efforts the company might use?

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Some consumer behavior roles The initiator who determines that some need or want is not being met and authorizes a purchase to rectify the situation- initiator A person who by some intentional or unintentional word or action influences the purchase decision, purchase or use of the product or service- influencer The individual who actually makes the purchase transactions- buyer The person who is directly involved in the consumption or use of the product- User
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Model of Buying Behavior

Marketing Other stimuli stimuli
Economic Product Technological Price Political Place Promotion

Buyers Buyers decision characteristics process

Cultural Social Personal Psychological Problem recognition Information search Evaluation Decision Postpurchase behavior

Buyers decisions
Product choice Brand choice Dealer choice Purchase timing Purchase amount
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The major factors influencing buying behaviour

Cultural factors Culture Subculture Social class Social factors Reference groups Family Social roles and statuses Personal factors Age and stages in life cycle Occupation and economic circumstances Life style Personality Self- concept Psychological factors Motivation Perception Learning Beliefs and attitudes
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Factors Influencing Consumer Behavior

Cultural Social
Culture Subculture Social class Reference groups Family

Personal
Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept

Psychological
Motivation Perception Learning Beliefs and attitudes

Buyer

Roles and status

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Cultural Factors
Culture Subculture Social Class

Buyer

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Culture

The fundamental determinant of a persons wants and behaviors acquired through socialization processes with family and other key institutions.

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Factors Affecting Consumer Behavior: Culture

Culture is the Most Basic Cause of a Person's Wants and Behavior.
Subculture
Group of people with shared value systems based on common life experiences. African American Consumers Asian American Consumers Mature Consumers

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Social Class

3 classes Low class- consumers usually buy on impulse and do not even care to read ads much Middle class- purchase carefully, read and compare Upper class US classes

Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers

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Factors Affecting Consumer Behavior: Social Factors

Reference groups- all the groups that have a direct or indirect influence on the persons attitude or behavior Groups have direct influence on a person are called membership groups Primary groups- family, friends, neighbors and coworker (fairly continuously and informally ) Secondary groups- religious, professional and trade union groups ( more formal and less continuous interaction) Reference groups Aspirational groups- are those the person hopes to join Dissociate groups- are those whose values or behaviour an individual rejects Opinion leader- is a person in informal product related communications who offers advice or information on a MBA A & B RRbrand Batch 13 I specific MM 2011 or product

Factors Affecting Consumer Behavior: Social Factors

Family

Family of orientation- parents and siblings Family of procreation- ones spouse and children Role consists of activities that a person is expected to perform each role consists of a status ex: judge and sales person Marketers are aware of the status symbol potential of products and brands

Roles and statuses

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Factors Affecting Consumer Behavior: Personal

Personal Influences Personal Influences
Age and Life Age and Life Cycle Stage Cycle Stage Economic Economic Situation Situation Personality & Personality & Self-Concept Self-Concept

Occupation Occupation

Lifestyle Identification Lifestyle Identification

Activities Activities

Interests Interests

Opinions Opinions

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Factors Affecting Consumer Behavior: Psychological

Motivation

Beliefs and Attitudes

Psychological Factors Affecting Buyers Choices

Perception

Learning
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Psychological - Motive
A motive is a need that has a sufficient level of intensity. Creating a tension state that drives the person to act. Satisfying the need reduces the felt tension.

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Psychological - Perception
The process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.

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Psychological - Learning

Changes in an individuals behavior arising from experience.

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Psychological - Attitude

An attitude describes a persons relatively consistent evaluations, feelings, and tendencies toward an object or idea.

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Maslows Hierarchy of Needs

5
Selfactualization
(self-development and realization)

4 Esteem needs
(self-esteem, recognition)

Social needs 3 (sense of belonging, love)

Safety needs (security, protection)

Psychological needs (food, water, shelter) I MBA A & B RR MM 2011 Batch

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Consumer Buying Decision Process

Understand

Buying roles Buying behavior Buying decision process

Initiator Influencer Decider Buyer User

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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

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Consumer Buying Decision Process

Understand

Buying roles Buying behavior Buying decision process

Problem recognition Information search Evaluation of alternatives Purchase decision Post purchase behavior

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Four Types of Buying Behavior

High Involvement Significant differences between brands Few differences between brands

Low Involvement

Complex Buying Behavior DissonanceReducing Buying Behavior

VarietySeeking Behavior Habitual Buying Behavior

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Buyer Decision Process

Purchase Decision Evaluation of Alternatives Information Search Problem/ Need Recognition 26 Post Purchase Behavior

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Buyer Decision Process

Problem Recognition

Triggered by internal or external stimuli

Information Search

Heightened attention- more receptive Active information search

Sources- personal sources commercial sources public sources- mass media, consumer rating org. Experiential sources- handling, examining, using the product

Evaluation of Alternatives

Satisfy their need Certain benefits Bundle of attributes (hotels- location, cleanliness, atmosphere, price)

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Buyer Decision Process ( cond)

Purchase decision

Attitudes of others Unanticipated situational factors Post purchase satisfaction Post purchase actions Post purchase use and Disposal

Post Purchase Behaviour

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Decision Making Sets

Total Set Awareness Set

Consideration Set

Choice Set

Decision

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Decision Making Sets

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Steps Between Evaluation of Alternatives and a Purchase Decision

Evaluation of alternatives Attitude of others Purchase intention Unanticipated situational factors

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Purchase decision

How Customers Use or Dispose of Products

Rent it
Loan it To be (re)sold To be used Direct to consumer

Get rid of it temporarily

Give it away

Trade it
Product Get rid of it permanently

Use for original purpose Convert to new purpose Store it

Sell it Throw it away

Keep it

Through middleman
To intermediary

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