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    WEEK4

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    Zen Sage
    The document discusses factors that influence consumer behavior including culture, social factors, personal factors, and psychological factors. It also covers consumer buyer behavior and the consumer decision making process which involves need recognition, information search, alternative evaluation, purchase, and post-purchase evaluation.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    WEEK4

    Uploaded by

    Zen Sage
    14 views34 pages
    The document discusses factors that influence consumer behavior including culture, social factors, personal factors, and psychological factors. It also covers consumer buyer behavior and the consumer decision making process which involves need recognition, information search, alternative evaluation, purchase, and post-purchase evaluation.

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    © © All Rights Reserved

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    The document discusses factors that influence consumer behavior including culture, social factors, personal factors, and psychological factors. It also covers consumer buyer behavior and the consumer decision making process which involves need recognition, information search, alternative evaluation, purchase, and post-purchase evaluation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    14 views34 pages

    WEEK4

    Uploaded by

    Zen Sage
    The document discusses factors that influence consumer behavior including culture, social factors, personal factors, and psychological factors. It also covers consumer buyer behavior and the consumer decision making process which involves need recognition, information search, alternative evaluation, purchase, and post-purchase evaluation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 34

    WEEK4

    Buyer Behavior
    • Marketing is concerned with identification
    and satisfaction of needs.
    • It is important that marketers understand the
    needs and the factors that influence these
    needs and how customers go about satisfying
    these needs .
    • two kinds of buyers exist :
    - Consumer buyers
    - Organizational buyers
    Buyer Behavior
    • Consumer buyer behavior refers to the buying
    behavior of final consumers –individuals and
    households who buy goods and services for
    personal consumption .
    • All these final consumers make up the
    consumer market .
    Factors Affecting Consumer Behaviour
    Factors Affecting Consumer Behaviour

    • Culture - Culture is widely defined as the


    programming of the mind that distinguishes
    one society from another (Hofstede, 1960).
    – It is learned and shared by a group
    – Children are exposed to values shared by the
    group
    – Marketers try to spot differences or cultural shifts
    that may lead to new products needed
    Factors Affecting Consumer Behavior
    • Social factors - also influence consumers
    behaviour i.e. family, social class, roles,
    – These are learnt and shared by a group
    – Children are exposed to values shared by the
    group
    – Marketers try to spot differences or shifts that
    may lead to new products needed
    Gender, Roles
    Family
    Family

    C
    A
    B

    D E
    Factors Affecting Consumer Behavior

    • Personal factors - also influence consumers


    behaviour
    Factors Affecting Consumer Behavior

    • Psychological factors - also influence


    consumers behaviour i.e.
    – Motivation
    – Perception: (selective attention, selective
    distortion and selective retention)
    – Learning
    – Beliefs
    – Attitudes
    Factors Affecting Consumer Behavior
    • Consumer buyer behavior refers to the buying
    behavior of final consumers –individuals and
    households who buy goods and services for
    personal consumption . All of these final
    consumers make up the consumer market .
    Buyer Decision Process

    • Consumers viewed as systematic decision


    makers
    • Most decision making is sequential and logical
    Buyer Decision Process

    • Consumers viewed as systematic decision


    makers
    • Most decision making is sequential and logical
    Buyer Decision
    Process
    1 . Need recognition
    o when consumers recognise the state of
    deprivation
    o This can be influenced by advertising which
    points out & activate needs that will motivate
    consumption
    o companies advertising products tied to seasons/
    festivals
    o companies have to bear in mind benefits
    customers seek
    o Its not Christmas without lobsters, turkey , etc
    Buyer Decision
    Process

    2. Information search
    o Search for information about available
    options
    o consumers refer to internal sources (past
    experience & knowledge) and external
    (detailed adverts, instore info)
    o numerous opportunities for advertiser to
    influence the final decision
    o repeated advertising can result in brands
    being in the evoked set
    o ensure product meets evaluative criteria
    Buyer Decision
    Process

    3. Alternative evaluation
    o Alternatives evaluated based on
    the buyers criterion
    o Shortlisting of options
    o Selection of most attractive
    option
    o Marketers must ensure that
    products meet evaluative criteria
    Buyer Decision
    Process

    3. Alternative evaluation
    o Alternatives evaluated based on the
    buyers criterion
    o Shortlisting of options
    o Selection of most attractive option
    o Marketers must ensure that products
    meet evaluative criteria
    Buyer Decision
    Process

    4. Purchase
    o not the final step
    o need to turn trial into repeat
    purchase
    o encourage brand loyalty
    o Competition also trying to get
    customers to try their products
    Buyer Decision
    Process

    5. Post purchase use & evaluation


    o Goal is customer satisfaction
    and ultimately loyalty
    o Favourable post purchase
    experience essential for
    customer satisfaction
    o Marketers can use advertising
    to alleviate cognitive
    dissonance
    o Reinforces your decision
    Sources of information

    • Personal sources : Family ,friends ,neighbours


    , acquaintances .
    • Commercial sources : advertising ,
    salespeople , dealers
    • Public sources : mass media ,consumer-rating
    organizations
    • Experiential sources: handling ,examining ,
    and using the product .
    Adoption Process
    • Adoption process is defined as the mental
    process through which an individual passes
    from first learning about an innovation to
    final adoption .
    • Adoption is the decision by an individual to
    become a regular user of the product .
    • Consumers go through five stages in the
    process of adopting a new product :
    Adoption Process
    • Adoption process is defined as the mental
    process through which an individual passes
    from first learning about an innovation to final
    adoption . Adoption is the decision by an
    individual to become a regular user of the
    product .
    • Consumers go through five stages in the
    process of adopting a new product :
    Adoption Process
    (1) Awareness :The consumer becomes aware
    of the new product but lacks information about
    it .
    (2) Interest : The consumer seeks information
    about the new product .
    (3) Evaluation : The consumer considers
    whether trying the new product makes sense.
    Adoption Process
    (4) Trial : The consumer tries the new product
    on a small scale to improve his or her estimate
    of its value .
    (5) Adoption : The consumer decides to make
    full and regular use of the new product .
    Note: The model suggests that the new-product
    marketer should think of how to help
    consumers move through these stages .
    Factors Affecting Consumer Behavior
    • Consumer buyer behavior refers to the buying
    behavior of final consumers –individuals and
    households who buy goods and services for
    personal consumption . All of these final
    consumers make up the consumer market .
    Consumer buying situations

    • Customers are not always deliberate and


    systematic
    • Decisions are normally based on a buying
    situation.
    • Consumers use 4 main decision making modes
    based on:
    • Involvement – level of importance
    • Experience – prior usage
    Modes of Consumer decision making

    High involvement Low involvement


    Low experience Extended problem Limited problem
    solving solving
    High experience Brand loyalty Habit/variety
    seeking
    Modes of Consumer decision making

    • Extended problem solving- inexperienced in


    the consumption setting, yet highly involved
    decision making.
    Modes of Consumer decision making

    • Limited problem solving – low experience and


    involvement, hence limited search for info.
    - Common mode of decision making
    - New problem but not engaging
    Modes of Consumer decision making

    • Habit/variety seeking– low involvement


    consumer purchases from the category over
    and over (i.e. high experience).
    • Habit – buying single repeatedly as solution
    • Variety – tendency to switch selection among
    various brands in the same category
    Implications?

    • Limited problem solving - trial offers,


    coupons, samples
    • Brand loyalty - appeal to emotions
    • Extended problem solving?
    • Habit/ variety seeking?
    Factors Affecting Consumer Behavior
    • Consumer buyer behavior refers to the buying
    behavior of final consumers –individuals and
    households who buy goods and services for
    personal consumption . All of these final
    consumers make up the consumer market .

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