Marketing Management, VTU, Module 2 revised
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Consumer buying behavior refers to how individuals and households purchase goods and services for personal use. There are many factors that influence consumer behavior, including psychological, personal, social, and cultural characteristics. The consumer decision making process involves need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Models of this process include stages like awareness, interest, evaluation, trial, and adoption. Business buying behavior differs in that there are fewer but larger business buyers who purchase goods for resale or use in production rather than personal consumption.
Marketing Management, VTU, Module 2 revised
- 1. By Prof. Raghavendran Venugopal Understanding Consumer Buyer Behavior
- 2. Consumer Buying Behavior By Prof. Raghavendran Venugopal2 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?”
- 3. Model of Consumer Behavior By Prof. Raghavendran Venugopal3 Marketing and Other Stimuli Buyer’s Black Box Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Characteristics Affecting Consumer Behavior Buyer’s Decision Process Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount
- 4. Characteristics Affecting Consumer Behavior By Prof. Raghavendran Venugopal4 Buyer Psychological Personal Social Culture
- 5. Factors Affecting Consumer Behavior: Culture Most basic cause of a person's wants and behavior. Values Perceptions Social Class • People within a social class tend to exhibit similar buying behavior. • Occupation • Income • Education • Wealth Subculture • Groups of people with shared value systems based on common life experiences. • Hispanic Consumers • African American Consumers • Asian American Consumers • Mature Consumers
- 6. Factors Affecting Consumer Behavior: Social By Prof. Raghavendran Venugopal6 Groups •Membership •Reference Family •Husband, wife, kids •Influencer, buyer, user Roles and Status Social Factors
- 7. Factors Affecting Consumer Behavior: Personal By Prof. Raghavendran Venugopal7 Personal Influences Age and Family Life Cycle Stage Occupation Economic Situation Lifestyle Identification Activities Opinions Interests Personality & Self-Concept
- 8. Principle Oriented Status Oriented Action Oriented Achievers Actualizers Strugglers Strivers Fulfilleds Believers Experiencers Makers Abundant Resources Minimal Resources 8
- 9. Psychological Factors Motivation Perception Learning Beliefs and Attitudes By Prof. Raghavendran Venugopal9 Factors Affecting Consumer Behavior: Psychological
- 10. Maslow’s Hierarchy of Needs By Prof. Raghavendran Venugopal10 Esteem Needs (self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Self Actualization (Self-development)
- 11. Types of Buying Behavior Decisions By Prof. Raghavendran Venugopal11 Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Behavior Habitual Buying Behavior High Involvement Significant differences between brands Few differences between brands Low Involvement
- 12. Stages in The Buyer Decision Process By Prof. Raghavendran Venugopal12 Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior
- 13. The Buyer Decision Process Step 1. Need Recognition External Stimuli • TV advertising • Magazine ad • Radio slogan •Stimuli in the environment Internal Stimuli • Hunger • Thirst • A person’s normal needs Need Recognition Difference between an actual state and a desired state By Prof. Raghavendran Venugopal13
- 14. Step 2. Information Search By Prof. Raghavendran Venugopal14 •Family, friends, neighbors •Most influential source of information •Advertising, salespeople •Receives most information from these sources •Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product Personal Sources Commercial Sources Public Sources Experiential Sources
- 15. 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.By Prof. Raghavendran Venugopal15
- 16. Step 4. Purchase Decision By Prof. Raghavendran Venugopal16 Purchase Intention Desire to buy the most preferred brand Purchase Decision Attitudes of others Unexpected situational factors
- 17. Step 5. Post purchase Behavior Consumer’s Expectations of Product’s Performance Dissatisfied Customer Satisfied Customer! Product’s Perceived Performance Cognitive DissonanceBy Prof. Raghavendran Venugopal17
- 18. Stages in the Adoption Process By Prof. Raghavendran Venugopal18 Awareness Interest Evaluation Trial Adoption
- 19. Adoption of Innovations By Prof. Raghavendran Venugopal19 PercentageofAdopters Time of Adoption Early Late Innovators Early Adopters Early Majority 2.5% 13.5% 34% 34% 16% Laggards Late Majority
- 20. Business Markets & Buying Behavior By Prof. Raghavendran Venugopal20 Characteristics of Business Buyers Fewer buyers Larger buyers Geographically concentrated buyers Derived Demand Inelastic demand Fluctuating demand Professional Purchase
- 21. Buying Decisions of Business Buyers By Prof. Raghavendran Venugopal21 Straight Rebuy Modified Rebuy New Task
- 22. Business Markets Buying process By Prof. Raghavendran Venugopal22 Problem Recognition Need General explanation Product Specification Supplier Search Product Solicitation Supplier Selection Order Routine Specification Performance Appraisal
- 23. Seminar time: 7th May By Prof. Raghavendran Venugopal23 TEAM 5 should give seminar on Consumer Protection and its act, with INDIAN Context
- 24. Assignment time 8th May By Prof. Raghavendran Venugopal24 Define Consumer Buying Behavior. Explain the Simple Model of CBB. Explain the Different Buying Behavior Decisions Enumerate with neat sketch of Stages of Buying Decisions process. What is adoption process, explain the stages involved in it. Differentiate between Consumer and Organizational Buying behavior.