Unit 2

Marketing Management

Unit-1 KMB106 Dr. Harit Kumar

 CONSUMER BUYING BEHAVIOUR

 “Consumer buying behaviour is the process involved when individuals or groups select,
use, or dispose products, services, ideas or experiences (exchange) to satisfy needs and
desires.”
Philip Kotler

 Consumer buying behaviour includes two important types of elements i.e. tangible
elements such as the concrete product or service, but also intangible elements as mental
processes and systems of beliefs, values and self-realization.

 A consumer buying behaviour is influenced by cultural, social and personal factors.

Unit-1 KMB106 Dr. Harit Kumar

 Consumer Behavior

“Consumer behavior consists of the actions a person takes in purchasing and using
products and services, including the mental and social processes that come before and
after these actions.”

According to Professor Theodore Levitt of the Harvard Business School, the study of
Consumer Behaviour is one of the most important in business education, because the
purpose of a business is to create and keep customers.

Customers are created and maintained through marketing strategies. And the quality of
marketing strategies depends on knowing, serving, and influencing consumers.

Unit-1 KMB106 Dr. Harit Kumar

 The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post purchase Behavior

Unit-1 KMB106 Dr. Harit Kumar

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 needs
• Radio slogan

•Stimuli in the environment

Unit-1 KMB106 Dr. Harit Kumar

 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

Unit-1 KMB106 Dr. Harit Kumar

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.)

Unit-1 KMB106 Dr. Harit Kumar

The Buyer Decision Process
Step 4. Purchase Decision
Purchase decisions can be one of the three viz. no buying, buying later and buy now

Purchase Intention
(Desire to buy the most preferred brand)

Unexpected
Attitudes of situational
others factors

Purchase Decision

Unit-1 KMB106 Dr. Harit Kumar

The Buyer Decision Process
Step 5. Post purchase Behavior
Consumer’s Expectations of
Product’s Performance

Product’s Perceived
Performance

Satisfied
Customer! Dissatisfied Customer

Cognitive Dissonance

Unit-1 KMB106 Dr. Harit Kumar

 Buying motives

 Those influences or considerations which provide the impulse to buy, induce action
or determine choice in purchase of goods or services.

 In simple words it is the reason why a consumer purchases a good.

Unit-1 KMB106 Dr. Harit Kumar

 Different buying motives

 Primary

Related to basic needs of human being which motivate the buyer to take a purchase
decision.

• Hunger
• Thirst
• Sleep
• Shelter
• Entertainment

Unit-1 KMB106 Dr. Harit Kumar

 Different buying motives

Secondary
Influenced by society.

• Product Motives (The impulses , desires and considerations that make buy the
product.)

Examples: Pleasure, Affection, Fear, Comfort/Convenience, Safety, Knowledge,

Durability etc.

• Patronage Motives (The impulses , desires and considerations that make buy it from
a particular firm/ shop.)

Examples :Particular Place, Special Discount, Present Price, Decoration, Behaviour etc.

Unit-1 KMB106 Dr. Harit Kumar

Unit-1 KMB106 Dr. Harit Kumar
Unit-1 KMB106 Dr. Harit Kumar
 TYPES OF BUYING BEHAVIOUR

There are 4 types of buying behaviour :

1. Complex Buying Behaviour
 Customers seek extensive decisions as they are unfamiliar with the product or
purchase infrequently.
 Products are typically expensive.
 Spend time to look for information.
Example: House, Car, Computer

2. Dissonance Buying Behaviour

 Highly involved in the purchase but not able to see the differences among brand
choices.
 Consumers categorize the difference in accordance to price range.
Example; Leather sofa, kitchen cabinet.

Unit-1 KMB106 Dr. Harit Kumar

 3. Habitual Buying Behavior
 Frequently purchased.
 Low costs items.
 Little search and decision effort.

Example: Food, snacks, drinks

4. Variety-seeking buying behaviour

 Low Consumer involvement.
 See large difference among brands

Example: Consumers change preference for certain body spray for variations although
satisfied with the current brand.

Unit-1 KMB106 Dr. Harit Kumar

Unit-1 KMB106 Dr. Harit Kumar
 Culture

Culture is the learned values, perceptions, wants, and behavior from family and
other important institutions.

Examples of core values include:

Importance of family and home life
The way of dressing

Unit-1 KMB106 Dr. Harit Kumar

 Subcultures

Subcultures are subgroups within the larger, or national culture with unique values,
ideas, and attitudes, based on common life experiences.

Subcultures can differ by:

Religion
Place of residence
Subculture influences food preferences, clothing choices,
recreation & career aspirations

Unit-1 KMB106 Dr. Harit Kumar

 Social class

A group of people who have approximately equal social position as viewed by others
in society. It can be related to occupation, education, & community participation
where a person lives.

Unit-1 KMB106 Dr. Harit Kumar

 Factors Affecting Consumer Behavior: Social

Reference Groups

Family
Social Factors

Roles and Status

Unit-1 KMB106 Dr. Harit Kumar

 Reference Groups

Reference groups are people to whom an individual looks as a basis for

self-appraisal or as a source of personal standards.

 Membership Group ( primary, secondary)

 Aspiration Group (like to belong)

 Dissociative Group (like not to belong)

Unit-1 KMB106 Dr. Harit Kumar

 Family

• Family Influence

 Consumer Socialization

 Family Life Cycle

 Family Decision Making

• Information Gatherer • Purchaser

• Influencer • User

• Decision Maker

Unit-1 KMB106 Dr. Harit Kumar

 Roles & Status

 Roles define behavior that members of a group expect of individuals who

hold specific positions within the group.

 Status: is the relative position of any individual member in a group. Each

role carries a Status.

Unit-1 KMB106 Dr. Harit Kumar

 Factors Affecting Consumer Behavior: Personal

Personal Influences

Age and Life Cycle Occupation

Stage

Economic Situation Personality & Self-Concept

Lifestyle Identification

Activities Opinions

Interests

Unit-1 KMB106 Dr. Harit Kumar

Factors Affecting Consumer Behavior :Psychological

Unit-1 KMB106 Dr. Harit Kumar

 Howard Sheth Model of Consumer Behaviour

 The Howard Sheth theory of buyer behaviour is a sophisticated integration of the

various social, psychological and marketing influences on consumer choice into a
coherent sequence of information processing.

 John Howard came out with the first truly integrative model of buyer behaviour. The
model relies on four major components –

 Stimulus Inputs
 Hypothetical Constructs
 Response Outputs
 Exogenous Variables

Unit-1 KMB106 Dr. Harit Kumar

Unit-1 KMB106 Dr. Harit Kumar
This are the three levels of decison making:
 Extensive problem solving - Early stages of decision making in which the buyer has
little information about brands and has not yet developed well defined and structured
criteria by which to choose among products.

 Limited problem solving - This is a more advance stage, choice criteria are well
defined but the buyer is still undecided about which set of brands will best serve him.
Thus the consumer still experiences uncertainty about which brand is best.

 Routinized response behaviour - Buyers have well defined choice criteria and also
have strong predispositions toward the brand. Little confusion exists in the consumer's
mind and consumer is ready to purchase a particular brand with little evaluation of
alternatives.

Unit-1 KMB106 Dr. Harit Kumar

 The Input Variables

 The input variables consist of informational cues about the attributes of a product or
brand( i.e. quality, price, distinctiveness, service and availability). This informational
cues may be significative if they influence the consumer directly through the brand's
attributes.

 or symbolic if they derive from the same factors as they are portrayed in the mass
media and by salespeople, influencing the consumer in a indirect way. these two
sources are commercial .

 A third set of informational cues may come from the buyer's social environment,
including the family, reference groups and social class - which are influences that are
internalized by the consumer before they can affect the decision process.

Unit-1 KMB106 Dr. Harit Kumar

 Hypothetical Constructs

 Hypothetical constructs have been classified in two groups - perceptual constructs

and learning constructs.

 The first deals with the way the individual perceives and responds to the information
from the input variables, accounting for stimulus ambiguity and perceptual bias.

 The second deals with the stages from the buyer motives to his satisfaction in a
buying situation.

Unit-1 KMB106 Dr. Harit Kumar

 The purchase intention is an outcome of the interplay of buyer motives, choice criteria,
brand comprehension, resultant brand attitude and the confidence associated with the
purchase decision.

 The motives are general or specific goals impelling to action, impinging upon the buyer
intention are also the attitudes about the existing brand alternatives in the buyer's
evoked set, which result in an arrangement of an order of preference regarding brands.
Brand comprehension and the degree of confidence that the buyer has about it, choice
criteria and buying intentions, converge upon the intention to buy.

Unit-1 KMB106 Dr. Harit Kumar

 Output Variables

 The five output variables in the right hand portion of the model are buyer's observable
responses to stimulus inputs.

 They are arranged in order from Attention to Actual Purchase.

 The purchase is the actual, overt act of buying and is the sequential result of the
attention (buyers total response to information intake), the brand comprehension,
brand attitude ( referring to the evaluation of satisfying potential of the brand) and the
buyer intention ( a verbal statement made in the light of the above externalizing factors
that the preferred brand will be bought the next time the buying is necessitated.

Unit-1 KMB106 Dr. Harit Kumar

 Exogenous Variables

 The model also includes some exogenous variables which are not defined but are taken
as constant.

 These influence all or some of the constructs explained above and through them, the
output.

 Some exogenous variables are importance of the purchase, personality traits, financial
status etc.

Unit-1 KMB106 Dr. Harit Kumar

 Nicosia Model of Consumer Behaviour

 Francesco M. Nicosia a leading scholar in the field of consumer behaviour

propounded a comprehensive model in 1966 to analyze consumer's behavioural
process.

 The model concentrates on the communication process that occurs between a brand
and a consumer.

 It uses a flow of events through different stages that are identified as fields.

 The firms marketing communications, consumer's attributes, consumer's decision

process and feed back are the main components that are represented in this
dynamic model.

Unit-1 KMB106 Dr. Harit Kumar

Nicosia Model
Field 1: The consumer attitude based on the firms’ messages.

The first field is divided into two subfields.

 The first subfield deals with the firm’s marketing environment and communication
efforts that affect consumer attitudes, the competitive environment, and
characteristics of target market.

 Subfield two specifies the consumer characteristics e.g., experience, personality, and
how he perceives the promotional idea toward the product in this stage the
consumer forms his attitude toward the firm’s product based on his interpretation of
the message.
 Field 2: search and evaluation

 The consumer will start to search for other firm’s brand and evaluate the firm’s brand
in comparison with alternate brands.

 In this case the firm motivates the consumer to purchase its brands.
 Field 3: The act of the purchase

 The result of motivation will arise by convincing the consumer to purchase the
firm products from a specific retailer.
 Field 4: Feed back

 This model analyses the feedback of both the firm and the consumer after
purchasing the product.

 The firm will benefit from its sales data as a feedback, and the consumer will
use his experience with the product affects the individuals attitude and
predisposition’s concerning future messages from the firm.