Consumer Buying Behavior.ppt 142f

Consumer Buying Behavior

Content… • Consumer Buying Behavior (CBB) • Factors Affecting Consumer Behavior – Cultural – Social – Personal – Psychological • Consumer buying behavior process

Definition of consumer Buying behavior… • Refers to the BUYING BEHAVIOR consumers or market • Consumer market consists of individuals and households who acquire goods and services for consumption.

of final all the buy or personal

All these consumers make up the consumer market. The central question for marketers is: “How do consumers respond to various marketing efforts the company might use?”

Model of consumer behavior Buyer Characteristics

Product Price Place

Promotion

Marketing & Other Stimuli

Buying decision process

Buyer’s Black Box

Buyer Response

Characteristics Affecting CBB… • Cultural Factors – Exert the broadest and deepest influence on consumer behavior. – Marketer needs to understand the role played by the buyer’s culture, subculture, and social class.

Cultural factors

Culture

Subculture

Social Class

• Culture – Growing up in society, a child learns basic values, perceptions, wants, and behaviors from family and other important institutions. – Cultural values are widely held beliefs that state what is desirable and have some influence on behavior. – It also influence our consumption.

• Subculture – Each culture contains smaller subcultures, or group of people with shared value system based on common life experiences and situations. – Includes nationalities, religions, racial groups, and geographic regions.

– Many subcultures make up important market segments. – Marketer usually design their products and services according to the subcultures needs.

• Social Class – Almost all society has some form of social class structure. – Social classes are society’s relatively permanent and ordered divisions whose share similar values, interests, and behaviors. – It is not determined by a single factor (Example: Income) – It is measured by a combination of occupation, income, education, wealth and other variables.

Characteristics Affecting CBB… • Social factors – Consumer’s behavior also influenced by social factors, such as the consumer’s small groups, family, social roles and status.

Social factors

Small groups

Family

Roles & status

• Groups – Groups have direct influence and to which person belongs are called hip groups. – In contrast, reference groups serve as direct (Face- to-face) or indirect points of comparison or refereŶĐe iŶ forŵiŶg persoŶ’s attitudes. – People often are influenced by reference groups to which they do not belong. – Example: Teenager who played soccer hopes to play for the national team.

• Family – Family can strongly influence buyer behavior. – There is roles and influence of the husband, wife, and children on the purchase of different products and services. – Husband-wife involvement varies widely by product category and by stage in the buying process. – Buying roles change with evolving consumer lifestyles.

• Roles and status – A person belongs to many groups – family, clubs, organizations. – The person’s position in each group may be defined in of both roles and status. – A role consists of the activities people are expected to perform according to the persons around them. – Each role carries a status reflecting the general esteem given to it by society.

Characteristics Affecting CBB… • Personal Factors – A buyer’s decisions also are influenced by personal characteristics such as the buyer’s: • • • • • • •

Age Occupation Economic Situation Lifestyle Personality Self-Concept

• Age and life-cycle stage – People change the goods and services they buy over their lifetimes. – Buying is also shaped by the stage of the family life cycles, the stages through which families might as they mature over time. – However, today marketers prefer to focus on alternative, non-traditional stages. (Exp: unmarried couples, single parents, childless parents)

• Occupation

– Occupation affects buying behavior. (white vs blue collar)

• Economic Situation

– Recess in economic will resulting consumers tent to save money rather than spending

• Lifestyle – Involving Activities, Interest and Opinion (AIO)

• Personality and self-concept – Unique psychological characteristics. – Self-confidence, dominance, sociability

Characteristics Affecting CBB… • Psychological Factors – A person’s buying choices are further influened by four major psychological factors.

Psychological Factors

Motivation

Perception

Learning

Beliefs & Attitudes

• Motivation – Can be viewed as an internal force that directs people to act in a particular way to satisfy a particular need. – Arising from the need. – Needs become motive when it is aroused to a sufficient level of intensity. – Motive will direct person to seek satisfaction.

Maslow's hierarchy of needs:

• Perception – Is the process by which people select, organize, and interpret information to form a meaningful picture of the world. – A motivated person is READY to act. – HOW the person acts is influenced by his/her perception of the situation. – All people receive info from 5 senses, – But interpret the info in individual way

• Learning – Desirable changes in an indiv idual’s behav ior arising from experience. – Learning occurs interplay of: • Stimulus – Environment that capable of eliciting a response

• Drive – Is a motivating force that directs behavior

• Response – Reaction to the stimulus and drive

• Reinforcement – Reward or punishment receive as a result of your response

• Beliefs & Attitudes – Belief : a descriptive thought that a person has about something. – Example? – Attitude: person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.

Buyer Decision Process Purchase Decision

Evaluation of Alternatives Information Search Need Recognition

Postpurchase Behavior

BUYER ROLES INITIATOR • First individual who suggests product/service should be evaluated/purchased. INFLUENCER • Provides view and advice which are valued by others and can subsequently influence the final decision. DECIDER • The individual who will take the decision in the buying process at what, how , when and where to buy (store choice), etc. BUYER • The individual who actually makes the purchase • The individual who consumes or s the service/product.

Types of Buying Decision Behavior Significant differences between brands Few differences between brands

High Involvement

Low Involvement

Complex Buying Behavior

VarietySeeking Behavior

DissonanceReducing Buying Behavior

Habitual Buying Behavior