MARKETING

MANAGEMENT
C O N S U M E R M A R K E T A N D B U Y E R B E H AV I O U R
CONSUMER MARKET AND BUYER
BEHAVIOR
TOPIC OUTLINE
a. Model of Consumer Behavior
b. Characteristic Affecting Consumer Behavior
c. Types of Buying Decision Process
d. The Buyer Decision Process
e. The Buyer Decision Process for New Products
MODEL OF CONSUMER BEHAVIOR

CONSUMER BUYING BEHAVIOR refers to the buying of final consumers, individuals and
households who buy goods and services for personal consumption.

CONSUMER MARKET is all the individuals and households that buy or acquire goods and
services for personal consumption.
 MODEL OF CONSUMER BEHAVIOR

Marketing
Buyer

Buyer’s Black Box

The Environment

Buyer’s Response
Product
Characteristic Product choice
Price
Place Brand choice
Promotion Dealer choice
Stimuli
Economic Buying Purchase timing
Technological Decision Purchase amount
Political
Cultural
Process
CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR

CULTURAL

SOCIAL

PERSONAL
Reference Age and Life
Groups

PSYCHOLOGICAL
Culture cycle stage

Family Motivation

BUYER
Occupation
Subculture
Roles and Economic Perception
Status Situation
Social class
Learning
Lifestyle
Beliefs and
attitudes
Personality
and self –
concept
CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR
KEY FACTORS • CULTURE
– Forms a person’s wants and behaviour.
CULTURAL • SUBCULTURE
SOCIAL – Group with shared value system.
PERSONAL
• SOCIAL CLASS
PSYCHOLOGICAL
– Society’s division who shares values, interest and
behaviours.
CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR
KEY FACTORS • Groups
– Membership
CULTURAL – Reference
• Aspirational
SOCIAL
– Opinion Leaders
PERSONAL
• Buzz marketing
PSYCHOLOGICAL • Family
– Many influencers

• Roles and Status

CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR
KEY FACTORS • Buyer’s age and life –cycle stage
• Occupation
CULTURAL • Economic situation
SOCIAL • Lifestyle
PERSONAL – Activities
PSYCHOLOGICAL – Interest
– Opinions
• Personality and Self -Concept
CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR
CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR
KEY FACTORS MOTIVATION

CULTURAL
SOCIAL Psychological
BELIEFS AND
Factor Affecting PERCEPTION
PERSONAL ATTITUDES
Buyers choices

PSYCHOLOGICAL

LEARNING
CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR
• A motive is a need that is sufficiently pressing to direct the person to seek satisfaction.
MASLOW’S THEORY OF MOTIVATION

Self –Actualization needs

Esteem need

Social needs

Safety needs

Psychological needs
CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR
PERCEPTION is the process by which people select, organize and interpret information.
Three perceptual processes:
• Selective attention
– Consumer screen out information.
• Selective distortion
– People interpret to support beliefs.
• Selective retention
– People retain points to support attitudes.
CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR
LEARNING describes changes in an individual’s behaviour arising from experience.
Learning occurs through:
• Drives
– Internal stimulus that calls for action.
• Stimuli
– Objects that move drive to motive.
• Cues
– Minor stimuli that affect response.
• Reinforcement
– Feedback on action.
CHARACTERISTIC AFFECTING
CONSUMER BEHAVIOR
BELIEF
• A descriptive thought about a brand or service.
• Maybe based on real knowledge, opinion or faith.

ATTITUDE
• Describes a person’s evaluations, feelings and tendencies toward an object or idea.
• They are difficult to change.
TYPES OF BUYING DECISION
PROCESS
FIVE STAGES OF BUYERS DECISION PROCESS

Evaluation Post –
Need Information Purchase
of purchase
Recognition Search Decision
alternatives behavior
TYPES OF BUYING DECISION
PROCESS
PROCESS STAGES

INTERNAL STIMULI

NEED RECOGNITION

EXTERNAL STIMULI
NEED RECOGNITION
Normal needs
INFORMATION SEARCH become strong Advertisement
enough to drive Buyer recognizes
EVALUATION OF behaviour. as a problem or a
need arising from:
ALTERNATIVES Friends

PURCHASE DECISION
POST –PURCHASE
BEHAVIOR
TYPES OF BUYING DECISION
PROCESS
PROCESS STAGES • Consumers exhibit heightened attention or
actively search for information.
NEED RECOGNITION • Sources of Information:
INFORMATION SEARCH – Personal

EVALUATION OF – Commercial
ALTERNATIVES – Public
PURCHASE DECISION – Experiential
POST –PURCHASE • Word –of –mouth
BEHAVIOR
TYPES OF BUYING DECISION
PROCESS
PROCESS STAGES

NEED RECOGNITION • Evaluation procedure depends on the consumer

INFORMATION SEARCH and the buying situation.
EVALUATION OF • Uses information to evaluate alternative brand
ALTERNATIVES choices.
PURCHASE DECISION
POST –PURCHASE
BEHAVIOR
TYPES OF BUYING DECISION
PROCESS
PROCESS STAGES • The consumer actually buys the product.
• The consumer’s purchase decision will be to buy the
NEED RECOGNITION most preferred brand.
INFORMATION SEARCH
EVALUATION OF TWO FACTOR intercede between purchase intentions and
ALTERNATIVES the actual decision.
PURCHASE DECISION • Other people’s attitude
POST –PURCHASE • Unexpected situational factors
BEHAVIOR
TYPES OF BUYING DECISION
PROCESS
PROCESS STAGES
• Consumer take further action after purchase based
NEED RECOGNITION on their satisfaction or dissatisfaction.
INFORMATION SEARCH
EVALUATION OF • Cognitive dissonance is very common.
ALTERNATIVES
PURCHASE DECISION
POST –PURCHASE
BEHAVIOR
THE BUYER DECISION PROCESS FOR
NEW PRODUCT

NEW PRODUCT goods, service or idea that is perceived by customers as new.

ADOPTION PROCESS decision by an individual to become a regular user of the product.

THE BUYER DECISION PROCESS FOR
NEW PRODUCT
THE BUYER DECISION PROCESS FOR
NEW PRODUCT
• People differ in their innovativeness or readiness to try new products.
FIVE CATEGORIES OF ADOPTION
THE BUYER DECISION PROCESS FOR
NEW PRODUCT