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?”
 Model of Consumer Behavior
Product Economic
Price Technological
Place Stimuli
OtherStimuli
Other Political
and
Marketingand
Marketing
Promotion Cultural

Buyer’s Decision Characteristics

Process Affecting
Buyer’s Black
Buyer’s Box
Black Box Consumer
Behavior

Product Choice Purchase

Timing
Brand Choice Response
Buyer’sResponse
Buyer’s Purchase
Dealer Choice Amount
Characteristics Affecting
Consumer Behavior
Culture
Social
Personal
Psychological
Buyer
Buyer
 VALS
Actualizers
Actualizers

Fulfilleds
Fulfilleds Achievers
Achievers Experiencers
Experiencers

Believers
Believers Strivers
Strivers Makers
Makers

Principle Oriented Status Oriented Action Oriented

Strugglers
Strugglers
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
Behavior Behavior
Significant
differences Buying Seeking
between Complex Variety-
brands

Behavior Behavior
Few
differences
Reducing Buying Buying
between Dissonance- Habitual
brands
Postpurchase
Postpurchase Behavior
Behavior
Purchase
Purchase Decision
Decision
Evaluation
Evaluation of
of Alternatives
Alternatives
Information
Information Search
Search
Need
Need Recognition
Recognition
The Buyer Decision Process
 The Buyer Decision Process
Step 1. Need Recognition

Need Recognition

Internal
InternalStimuli
Stimuli External
ExternalStimuli
Stimuli
••Hunger
Hunger ••TV advertising
TV advertising
••Thirst
Thirst ••Magazine
Magazineadvertisements
advertisements
••AAperson’s
person’snormal
normal ••Radio
Radioadvertising
advertising
needs
needs
••Stimuli
Stimuliin
inthe
theenvironment
environment
The Buyer Decision Process
Step 2. Information Search

Personal Sources
PersonalSources •Family, friends, neighbors
•Most influential source of
information
Commercial Sources
CommercialSources •Advertising, salespeople
•Receives most information
from these sources

Public Sources
PublicSources •Mass Media
•Consumer-rating groups

Sources
ExperientialSources
Experiential •Handling the product
•Examining the product
•Using the product
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

Degree
Degreeof
ofImportance
Importance
Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?

Brand
BrandBeliefs
Beliefs
What
Whatdo
doI Ibelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?

Total
TotalProduct
ProductSatisfaction
Satisfaction
Based
Basedon
onwhat
whatI’mI’mlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldI Ibe
bewith
witheach
eachproduct?
product?
Evaluation
EvaluationProcedures
Procedures
Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.
 4.
4. Purchase
Purchase Decision
Decision

5.
5. Postpurchase
Postpurchase Behavior
Behavior
 Overall Model of Consumer Behaviour
External Influences Decision Processes
Culture
Subculture
Demographics Problem Recognition
Social status
Reference groups Information Search
Family Self-Concept
Marketing Activities
& Alt Eval & Selection
Internal Influences Learning
Perception Outlet select &
Learning Purchase
Memory
Motives Postpurchase
Personalit Processes
yEmotions
Attitudes
 Types of Market
• What are Markets?
A market is where buyers and sellers:
• meet to exchange goods and services
• usually in exchange for money

The market may be in one specific place

or
not exist physically at all
 An Invisible Market?
Markets can exist:
• over telephone lines
• online
• in emails
As long as what happens involves buyers and
sellers in a business transaction
 Consumer Markets

consumers interact with sellers

to buy goods and services
sellers can be retailers using high street shops or
out-of-town stores
sellers can use other sales media
New Ideas for Selling to Consumers
Alternatives to conventional retailing:
• Mail order (including catalogue shopping)
• Online, Web-based selling
(‘e-tailing’)
• Direct producer-to-consumer selling
 Industrial Markets
The business world’s equivalent
of consumer markets:
business organisations sell to other businesses
not to a final consumer
these other businesses use what they’ve bought
to make new products
 Commodity Markets
Buying and selling products from the primary
sector of industry
What’s Traded on Commodity Markets?

Goods traded on commodity markets include:

• coffee
• cocoa
• oil
• precious metals
• diamonds
 Capital Markets
Businesses need capital
in order to operate:
• small firms may borrow or sell shares to family
and friends
• larger companies use the stock market to sell
shares
• this is known as ‘equity’ capital
Model of Business
Buyer Behavior