CONSUMER Topic 7

BEHAVIOUR Marketing Management

CONSUMER BEHAVIOR
Meaning & Importance
Buyer Decision Process
Buying Roles
Comparison between consumer buying behavior and organizational
buying behavior
CONSUMER BEHAVIOR
Objectives of study-
1. To know its relevance with managerial decision making
2. To understand how environmental influences and individual
determinants affects buyer purchasing decisions
3. To know ultimate buyer, industrial buyer and how their
purchasing differs
CONSUMER BEHAVIOR
Definition- A study of the decision process and physical activity
individuals engage in while evaluating ,acquiring ,using , Consuming
and disposing off goods and services.
WHY TO STUDY
CONSUMER BEHAVIOR
To answer the following questions-

1. Who buys the product?

2. What consumers buy?

3. Where they buy?

4. How & How much they buy?

5. When they buy?

6. Why they buy?

WHERE TO APPLY
CONSUMER BEHAVIOR
KNOWLEDGE
1. Market opportunity analysis 2.SEC :A+ & A,
Busy Lifestyle, Not
2. Target market selection motivated for
3. Marketing mix determination Exercise

1.Increasing
Diabetes, Blood
Pressure,
Heart Diseases
among Youth, Fast
Life,No time for
3.Cooking Oil with
Exercise
PuFA,Rs.145 /-Lit.,
available in
Departmental stores, It
is health Insurance
WHERE TO APPLY
CONSUMER BEHAVIOR
KNOWLEDGE
1. Market opportunity analysis
2.Not beautiful but
2. Target market selection beautiful by mind
3. Marketing mix determination

1.Women
feeling low self
esteem on how they
look 3.Dove-Moisturising
soap, High Price,
available in
Departmental store,
Kirana shop, It will
make you feel
beautifull
FACTORS AFFECTING
CONSUMER BEHAVIOR
External Determinants

Individual Determinants
Family Influences Cultural Factors

Purchase Attitude
Personality P
Process

Motivation & Learning

Social Class
 INDIVIDUAL
DETERMINANTS
Attitude-
Individuals favorable or unfavorable feel towards an object, situations

Attitude

There must It has Structure Learned

have an Direction
Object
It has
Intensity
INDIVIDUAL
DETERMINANTS
Strategies for changing attitudes-
1.Link the product with an involving issue- Feviquick

2.Link the product with personal situation-Amul

3.Develop high involvement advertisement- Cadbury

4. Introduce new Belief- Mc Aloo Tikki

INDIVIDUAL
DETERMINANTS
Personality:- Internal and Physical composition of an individual
1. Psychoanalytic Theory: Id-Ego-Super ego
2. Social Theory: Compliant, Aggressive, Detached
INDIVIDUAL
DETERMINANTS
Motivation-

-Inner state that mobilizes bodily energy and

directs it in selective fashion towards goals
usually located in external environment.
Role of motives- Defining Basic strivings

Identifying Goal Objectives

Influencing choice criteria

Directing other influences

EXTERNAL
DETERMINANTS
Culture-
-The complex whole that includes knowledge, belief, art,
law, customs and any other capabilities acquired by man
as a member of society.
-The distinctive way of life of a group of people

Values-Centrally held and enduring beliefs, serve as a

standards. Mc D in Gujarat
EXTERNAL
DETERMINANTS
Social Class-

It is general term whereby people in a society are

ranked by other members of society in to higher
and lower social positions, which produces
hierarchy of respect and prestige.
SITUATION FACTORS
INFLUENCING NEEDS
Family Life Cycle
BUYING PROCESS

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behaviour
1.NEED RECOGNITION
Why Need /Problem arises?
1.Satisfaction Optimization
2. Satisfaction Maintenance
3.Prevention of possible future problems
4.Problem avoidance
5.Conflict resolution
1. NEED RECOGNITION
Other Situations Leading to Need/ problem recognition-
1.Depleted or inadequate stock
2.Discontentment with existing stock
3.Changing financial circumstances
4.Marketing efforts
MASLOW’S HIERARCHY
OF NEEDS Internal
Satisfaction
Self
Act
uali
zati
on –
Esteem
Respect of others
Social – Affection for & from
others

Safety – Danger avoidance

Physiological – Satisfaction of basic hunger

SOCIAL INFLUENCES ON
NEEDS
The manifestation of needs is influenced by the society in which an
individual lives
 The family influences a child’s perception of the world, & this influence lasts into
adulthood
 Individuals are surrounded by peer groups that act as a guide for behaviour
 Individuals can identify with a social class, and the values of this class can influence
behaviour
 Culture in its widest sense influences our buying behaviour
2.INFORMATION
SEARCH
Q. In which buying situation customer gather more information,
Routine, Modify or Completely novel ?
Sources of Information
 Personal Experience
 Word-of-mouth
 Reference groups
 Newspaper editorials, customer reviews
2.INFORMATION
SEARCH
Determinants of Information search-
1.Product characteristics
House-Washing Machine-Pen
2.Consumer characteristics-
Individual Buyer Vs. Organization Buyer
3.Situation characteristics
BUYING SITUATIONS

Routine rebuy – Routinely buying the same products. E.g. Daily

newspaper, Paste

Modified rebuy – Buyer may be familiar with the class of product,

but this time wants something a little different. E.g. Liquid soap

Completely Novel – No previous experience of Buying. E.g. Buying

a car, Flat, Foreign Trip
PURCHASE
INVOLVEMENT
Product Level of Risk Decision Time
Involvement
Pen
Toothpaste

Two
wheeler
Flat
4. DECISION
Who is actually responsible for making a purchase decision?
Who are influencers?
Outcome of the evaluation process may be:
 Buy now
 Do not buy at all
 Defer the process
 Start the process again
4. DECISION
When will the product be bought?
What will be the date of delivery?
From which retailer?
How many will be bought?
Will any optional accessories will be bought?
How will the purchase be paid?
 5. POST-PURCHASE
EVALUATION
Post purchase what customers exhibit?
Cognitive Dissonance:
 In which customers expectations are out of line with the reality
 Handling dissonance(Customers):
 Return the goods
 Complaining & telling friends about the bad product
 Convincing ourselves, that we did not make a bad decision
 Managing Dissonance(Manager)
 BUYING ROLES
Members of
Initiator
DMU

User Influence
Buying r
Roles

Buyer Decider
 INFLUENCERS
These are people or groups of people whom the
decision-maker refers
Primary reference groups – Major influence on
purchase
Secondary reference groups
Which opinion leader to target to achieve
maximum “trickle down effect”
GATEKEEPERS

They act as a filter

 Restricting the subsequent choice from entering the decision choice set

 E.g. Purchase Managers personal assistant

BUYERS

People who actually undertakes the tasks of buying a product

Low-budget items – Decision is left to the discretion of a buyer

 E.g. Office Stationary
USERS

Individual or set of people who may not be responsible for buying

 E.g. Children

 Employees

 General Public
DECISION-MAKER

Individual carrying the most weight, whether he executes the

purchase himself or instructs others to do so
 Male dominates the decisions related to financial services

 Female ?
 PERSONAL &
ORGANIZATIONAL
Personal BB
Organizational
Only personal needs are met Two set of needs are met:
1. Organizations
2. Individuals
•DMU – Individual influencing factors • DMU also reveal a wider range of
influencers

Individual or Personal purchases may not Organizational purchases are more likely
be formal always to be made according to formalized
routines
Individuals may emphasis on price Organizations emphasis is on reliability
& performance
May have more risk as people involved in More people involved, Lengthy process,
decision-making may not be competent in so minimizes risk
all the fields. E.g. Buying car
2. DESIGNING A
CUSTOMER-DRIVEN
MARKETING STRATEGY
Difference Between
SellingSelling & Marketing Marketing
Selling starts with sellers Marketing starts with buyers
Seller is the centre point of Customers are the centre
business universe point of business universe
Emphasis is on selling surplus Emphasis is on identifying the
available with the corporation needs of the customers
Concentrates on techniques & Concentrates on long term
tricks of selling products relationship
Views business as “goods Views business as “Customer-
producing process” Satisfying Process”
2. DESIGNING A
CUSTOMER-DRIVEN
MARKETING STRATEGY
Difference Between
SellingSelling & Marketing Marketing
Sellers requirement Buyers determines the shape
dominates the “Marketing of “Marketing Mix”
Mix”
Firm makes the product & The product is determined by
then figures out how to sell it the buyer
Emphasis is on staying with Emphasis is on providing
the existing technology & better value to the customers
reducing cost
Distribution function is seen Value adding process
as the extension to the
production
2. DESIGNING A
CUSTOMER-DRIVEN
MARKETING STRATEGY
Difference Between
SellingSelling & Marketing Marketing
Sellers motive dominates the MC is looked as the tool for
marketing communication communicating benefits &
satisfaction of the product
Cost determines the price Consumer determines the
price; price determines cost
No coordination among the Emphasis is on integrated
different functions marketing
Selling views the customers as Marketing views the customer
the last link of the business as the very purpose of the
business
Thank You