Consumer Markets
and
Consumer Buyer
Behavior
Prof. B. B. Mishra
Consumer Buying Behavior
• Consumer Buying Behavior refers to the
buying behavior of final consumers
(individuals & households) who buy
goods and services for personal
consumption.
• Study consumer behavior to answer:
“How do consumers respond to
marketing efforts the company might
use?”
SIMPLE MODEL FOR CONSUMER BEHAVIOUR
r e So
l tu c ia
l
Cu Motives
Attitudes
Needs Consumer
Purchase
Business
Decision Learning
Family
Perception
Personality
Economic
Model of Consumer Behavior
Product Marketing and Economic
Other Stimuli
Price Technological
Place Political
Promotion Cultural
Buyer’s Characteristics
Decision Buyer’s Black Box Affecting
Process Consumer
Behavior
Product Choice Purchase
Buyer’s Response Timing
Brand Choice
Purchase
Dealer Choice Amount
Characteristics Affecting
Consumer Behavior
Culture
Social
Personal
Psychological
Buyer
Factors Affecting Consumer Behavior:
Culture
• Most basic cause of a person's wants and behavior.
• Values
• Perceptions
Subculture Social Class
• Groups of people with shared • People within a social class
value systems based on common tend to exhibit similar buying
life experiences. behavior.
• North Indian Consumers • Occupation
• African American Consumers • Income
• Asian American Consumers • Education
• Mature Consumers • Wealth
Factors Affecting Consumer Behavior:
Social
Groups
• Membership
• Reference
Family
• Husband, wife, kids Social Factors
• Influencer, buyer, user
Roles and Status
Factors Affecting Consumer Behavior:
Personal
Personal Influences
Age and Family Life Cycle
Occupation
Stage
Economic Situation Personality & Self-Concept
Lifestyle Identification
Activities Opinions
Interests
VALS 2
Actualizers Abundant Resources
Principle Oriented Status Oriented Action Oriented
Fulfilleds Achievers Experiencers
Believers Strivers Makers
Strugglers
Minimal Resources
Factors Affecting Consumer Behavior:
Psychological
Motivation
Beliefs and Psychological
Factors Perception
Attitudes
Learning
Maslow’s Hierarchy of Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Types of Buying Decisions
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between
brands Behavior Behavior
Few Dissonance- Habitual
differences Reducing Buying
between
Buying
brands Behavior Behavior
Buyer Decision Process
-Lawson’s model
Purchase
Decision
Evaluation Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition
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
USER
• The individual who consumes or users the service/product.
The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
DECISION MAKING PROCESSES
EXTERNAL INFLUENCES Experiences and Acquisitions SITUATIONS
Culture
Problem
Subculture
Recognition
Demographics
Social Status
Information
Reference Groups
Search
Family
Marketing Activities
SELF-CONCEPT Alternative Evaluation
Desires
and and Selection
LIFESTYLE Needs
INTERNAL INFLUENCES Outlet Selection
Perception and Purchases
Learning
Memory Post-purchase
Motives Processes
Personality
SITUATIONS
Emotions Experiences and Acquisitions
Attitudes
The Buyer Decision Process
Step 1. Need Recognition
Need Recognition
Difference between an actual state and a desired state
Internal Stimuli External Stimuli
• Hunger • TV advertising
• Thirst • Magazine ad
• A person’s normal • Radio slogan
needs
•Stimuli in the
environment
The Buyer Decision Process
Step 2. Information Search
Personal Sources •Family, friends, neighbors
•Most influential source of
information
Commercial Sources •Advertising, salespeople
•Receives most information
from these sources
Public Sources •Mass Media
•Consumer-rating groups
•Handling the product
Experiential Sources •Examining the product
•Using the product
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes Unexpected
of others situational
factors
Purchase Decision
The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived
Performance
Satisfied Dissatisfied
Customer! Customer
Cognitive Dissonance
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
Adoption of Innovations
Percentage of Adopters
Early Majority Late Majority
Innovators
Early
34% 34% Laggards
Adopters
13.5% 16%
2.5% Time of Adoption
Early Late
Influences on the Rate of Adoption
of New Products
Communicability Relative Advantage
Can results be easily Is the innovation
observed or described superior to existing
to others? products?
Product
Divisibility Characteristics Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or
use?
Questions, if any?
Thank You!
