MKT-202Lecture 5

Consumer Markets and Consumer Buyer Behavior

Consumer market: all the individuals and households that buy or acquire goods and services for personal consumption.

Consumer Buyer behaviour : the buying behaviour of final consumers(individuals and households that buy or acquire goods and services for personal consumption).

Model of Consumer BehaviourMarketing 4Ps and other stimuli enter into buyer’s black box(produce certain response like what, when, how he/she buys)

Marketer wants to know how the stimuli changed into RESPONSES inside the black box (which has two parts: buyer’s character and buyer’s decision process)

Model of Consumer Behaviour

What Influences Consumer Behavior?1. Buyer’s Character

Cultural Factors

Personal Factors

Social Factors

Cultural Factors influence buyer behaviour

Cultural factors: set of basic values, perception, wants and behavior learned by family or important institution

Sub-culture: group of people with shared values, common lie experience. Example: West Bengal, African American

Social class: permanent and ordered division in a society whose members share similar values.

Marketers are always trying to spot cultural shifts in order to imagine new products that might be wanted

Social Factors influence buyer behaviour

Social

Roles

Status

Reference Group

Family

Reference groups: who can influence buyer’s decision. Trusted friends reference is more credible than commercials.

Opinion leader: the person who can influence others for his skills, knowledge.

Roles & Status: a person belong to many groups (family, club, online communication) and the person’s position within each group can be defined in terms of both role and status. A role is the activities a person is expected to perform according to the people around him or her. Status is the general esteem given to a role by society. People often choose products that show their status in society.

Family – family members can strongly influence buyer behaviour. Marketers try to identify the influencer role in a family unit (such as children).

Personal Factors influence buyer behaviour

Age & Life cycle

Occupation

Life Style

Economic Situation

Personality and self concept

Brand Personality

Excitement

SophisticationRuggedness

Competence

Sincerity

Gucci stands for class and sophistication

Psychological Factors influence buyer behaviour

Motivation

Learning

Memory

Perception

Motivation: a need that drive the person to seek satisfactionMaslow’s Hierarchy of Needs

Perception: the process by which people select, organise, interpret informationLearning: changed n an organizational behaviour arising from experience

Through doing and learning, people acquire beliefs and attitudes, which influence their buyer behaviour

Belief: a descriptive thought that a person has about sth, belief based on real knowledge, opinion, faith.

Attitude: a person’s favourable/unfavourable evaluation, feeling.

Memory : All information and experiences individuals encounter as they go through life can end up in their long-term memory.

Types of Buying Decision BehaviorFour Types (considering two variable: involvement of customer and

difference level among brands)

Complex buying behaviour: when consumer is highly involved in a purchase and perceive significant difference among brands. For expensive products.

Ex: a PC buyer pass through a learning process, develop belief about the product, then attitude, then make a purchase choice.

Dissonance reducing buying behaviour : when consumers are highly involved with an expensive , infrequent or risky purchase BUT see little difference among brands.

Ex: people will buy carpet quickly, as difference is not much, but after purchase have post purchase dissonance (after purchase discomfort)

Habitual Buying behaviour: when there is low consumer involvement and little brand difference

Ex: table salt

Variety Seeking Buying behaviour: low consumer involvement but significant brand difference, here consumer do lot of brand switching.

Ex: buy cookies, can buy one, if don’t like, next, time buy another brand.

Buyer Decision Making Process

Stage between Evaluation of alternative and Purchase

Evaluation of alternatives purchase decisionPurchase intentiona. Attitude of others(if sb

important to you think you should buy)

b. Unexpected situational factor(economy took a turn, close competitor

might drop product price)

Buying Decision process for new Productsstages in Adaptation Process

1. awareness

2. interest

3. evaluation

4. trial

5. Adoption