Consumer Buying Process and Modelss.ppt
- 1. KOTLER’S CONSUMER BUYING BEHAVIOUR MODEL
- 2. Consumer Behaviour Consumer Behaviour It is the study of when, why, how, and It is the study of when, why, how, and where people do or do not buy [Product where people do or do not buy [Product (business)|product). It blends elements (business)|product). It blends elements from psychology, sociology, social from psychology, sociology, social anthropology, and economics anthropology, and economics
- 3. It studies characteristics of individual It studies characteristics of individual consumers such as demographics and consumers such as demographics and behavioural variables in an attempt to behavioural variables in an attempt to understand people's wants. It also tries to understand people's wants. It also tries to assess influences on the consumer from assess influences on the consumer from groups such as family, friends, reference groups such as family, friends, reference groups, and society in general. groups, and society in general.
- 4. NEED RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES TOTAL SET AWARENESS SET CONSIDERATION SET CHOICE SET-DECISION PURCHASE INTENTION ATTITUDE OF OTHERS UNANTICIPATED SITUTATIONAL FACTORS PURCHASE DECISION POST PURCHASE BEHAVIOUR High low Involvement Involvement Significant Consumer Variety Differences buying seeking Between behaviour behaviour For dissonance Habitual Difference reducing buying Between behaviour behaviour Brands Buyer’s Characteristics Cultural •Culture •Subculture •Social class •Social •Reference groups •Family •Roles & Status Personal •Age •Occupation •Economic circumstances •Life style •Personality •Self concept Psychological •Motivation •Technological •Political •Cultural •legal MARKETING AND OTHER STIMULI Desired product Appropriate price Right place Relevant promotion EXTERNAL ENVIRONMENT Economic Technological Political Cultural Legal
- 5. Models of Consumer Behavior of Consumer Behavior 1. 1. Monactic Models Monactic Models Using only one discipline of study. Real Using only one discipline of study. Real buying behavior is affected and influenced buying behavior is affected and influenced by economic,sociological,psychological, by economic,sociological,psychological, environmental and various other factors environmental and various other factors simultaneously. simultaneously.
- 6. ( (A) Elasticity Model A) Elasticity Model This is a pure economic, more precisely, This is a pure economic, more precisely, micro-economic model. As the price micro-economic model. As the price increases, other things remaining constant, increases, other things remaining constant, demand of the commodity will go down. But demand of the commodity will go down. But how much it will go down, depend on the how much it will go down, depend on the nature of the commodity. nature of the commodity.
- 7. (B) Response Hierarchy Model (B) Response Hierarchy Model This model attempts to predict the This model attempts to predict the sequence of mental stages that the sequence of mental stages that the consumer passes through while consumer passes through while purchasing a product. purchasing a product. STAGE AIDA MODEL Cognitive Attention Affective Interest Behavior Desire Action
- 8. (C) The Black Box Model It is also called as It is also called as ‘Stimulus Response Model’ Consumers mind and thought processing is treated like a ‘Black Box’ which cannot be opened to find out its working. Input stimulus Purchase Behavior Product Price Place Promotion The Impregnable Black Box Product Choice Brand Choice Brand Loyalty
- 9. 2.Electic or Multi-variable Models of Consumer Behavior Taking account of all the influences of Taking account of all the influences of economic,sociological,environmental simultaneously economic,sociological,environmental simultaneously much more comprehensive and relevant. Although much more comprehensive and relevant. Although checking the validity of these models becomes checking the validity of these models becomes relatively difficult. relatively difficult. Consumer is taken as a problem solver, the problem Consumer is taken as a problem solver, the problem is ‘to buy or not to buy'. The consumer receives is ‘to buy or not to buy'. The consumer receives information from various sources, which is processed information from various sources, which is processed in central processing unit (mind), influenced by in central processing unit (mind), influenced by external environment like economic,social,cultural external environment like economic,social,cultural and psychological and psychological. .
- 10. (A) The Howard - Sheth Model (A) The Howard - Sheth Model Explains buyer behavior decision process using six Explains buyer behavior decision process using six sets of variables. sets of variables. Behavioural Determinants •Personality •Culture •Social Class •Importance of •Purchase decision Inhibitors •Price of product/brand Availability •Financial status of an individual •Time constraints of an individual Inputs Products, Services Brands Facts Images Feelings Perceptual Reaction •Perceptual Bias •Sensitivity to •Information •Filtering of •Information Processing •Determinants •Purchase Motivation •Available satisfactions •Past experience •Judgmental criteria Outputs Attention •Understanding attitudes •Purchase intentions •Purchase behavior •Purchase decision Actual Purchase Or No purchase Or Delay
- 11. (B) The Engel, Blackwell & Minard Model The basis of this model takes the simple process of consumer behavior , as a decision making process comprising of five major activities over a period of time. Activities: • Need recognition • Search for information • Alternative evaluation • Purchase • outcome
- 12. Input Information Decision Process variables influencing processing decision process Stimuli Marketer Dominated Other External Search Need Recognition Environmental Influences •Culture •Social Class •Personal Influences •Family •Situation Search Internal Search Memory Alternative Evaluation Exposure Attention Comprehension Acceptance Retention Purchase Outcomes Beliefs Attitude Intentions Satisfaction Satisfaction •Individual differences •Consumer resource Motivation & Involvement •Knowledge •Attitudes & Personality •Life style •Demographics The Engel, Blackwell & Minard Model
- 13. (C) The Nicosia Model (C) The Nicosia Model Francesco Nicosio gave a consumer behaviour model based on the technique of computer flow charting with feed back loops. There are four basic fields in the model. It is assumed that neither the seller nor the buyer has had any previous experience directly related to the particular product/brand.
- 14. Firm’s Objectives Consumer’s Attributes (especially Free-disposition) Message Exposure Attitude Search Evaluation Motivation Decision (action) Experience Consumption Storage Purchasing Behaviour Field-I Field-II Field-III Field - IV F-I –From the source of message to the Consumer’s attitude F-II-Search for and evaluation of means to ends (preaction field) F-III- The act of Purchase F-IV-The feed back