Consumer Buying Behaviour

NAME: RAJAT KATHURIA

ROLL NO.: 16FT083
SECTION: E

Agenda

Factors influencing consumer buying behaviour

APPENDIX

Stages in Consumer Decision Making process

Consumer Behaviour

Consumer Behaviour is a branch which deals with the various stages a consumer goes
through before purchasing products or services for his end use

There are infact several factors which influence buying decision of a consumer ranging from
psychological, social, economic and so on

Cultural Factors

Cultural factors can be divided into three sub factors

Culture:- The set of basic values perceptions, wants, and behaviours learned by a
member of society from family and other important institutions.
Every group or society has a culture, and cultural influences on buying behaviour may
vary greatly from country to country
Example A child from a rich family will consider laptop as a necessity as opposed to
someone from a lower class family

Sub Culture :- Each culture contains smaller sub cultures a group of people with shared
value system based on common life experiences and situations. Sub culture includes
nationalities, religions, racial group and geographic regions.
Example More percentage of people from the US consider Laptop as a necessity as
compared to India

Cultural Factors

Social Class:- Almost every society has some form of social structure, social classes are
societys relatively permanent and ordered divisions whose members share similar
values, interests and behaviour.
Example: Upper class people would prefer a laptop with good specification as opposed
to a basic one preferred by lower middle class people

Social factors

Social factors : A consumers behaviour also is influenced by social factors, such as the

Groups:- A persons behaviours is influenced by many small groups. Groups that have a
direct influence and to which a person belongs are called membership groups.

Some are primary groups includes family, friends, neighbours and co workers. Some are
secondary groups, which are more formal and have less regular interaction. These
includes organizations like religious groups, professional association and trade unions.
Example Friends/Co workers will influence the buying decision of the laptop as per
their experience and brand preference

Family:- The family is the most important consumer buying organization society and it
has been researched extensively. Marketers are interested in the roles, and influence of
the husband, wife and children on the purchase of different products and services
Example Family might be biased towards buying a laptop as per their past experience
and would influence the decision maker in this regard

Social factors

Roles and Status:- A person belongs to many groups, family, clubs and organizations.
The persons position in each group can be defined in terms of both role and status.
Example: An engineer would use a better laptop as compared to the receptionist to
justify his role

Personal Factors

Personal Factors:

Age and Life cycle Stage:- People changes the goods and services they buy over their
lifetimes. Tastes in food, clothes, furniture, and recreation are often age related. Buying is
also shaped by the stage of the family life cycle.
Example: A young person could afford to experiment with the laptop brand and features
while an experienced person would always for a good brand & balanced laptop

Occupation:- A persons occupation affects the goods and services bought. Blue collar
workers tend to buy more rugged work clothes, whereas white-collar workers buy more
business suits.
Example A web designer would require laptop as a necessity for his work as opposed
to a housekeeping guy

Economic situation:- A persons economic situation will affect product choice

Example People from upper class are likely to go for a high end laptop as opposed to
lower middle class

Personal Factors

Life Style:- Life Style is a persons Pattern of living, understanding these forces involves
measuring consumers major AIO dimensions. i.e. activities (Work, hobbies, shopping,
support etc.), interest (Food, fashion, family recreation) and opinions (about themselves,
Business, Products)
Example: A person with luxury lifestyle would go for a premium brand laptop (Apple) as
compared to a normal person
Personality and Self concept:- Each persons distinct personality influence his or her
buying behaviour. Personality refers to the unique psychological characteristics that lead
to relatively consistent and lasting responses to ones own environment.
Example A logistican would prefer a popular, well balanced laptop whereas an
Adventurer would prefer a laptop with new and exciting features.

Psychological Factors

4. Psychological Factors

Motivation:- Motive (drive) a need that is sufficiently pressing to direct the person to
seek satisfaction of the need.
Example Buying a laptop makes sense for someone who loves to code and wants to
become a programmer

Perception:- The process by which people select, Organize, and interpret information to
form a meaningful picture of the world.
Example Need for laptop will be perceived differently for a student as compared to a
housewife.

Learning:- Changes in an individuals behaviour arising from experience.

Example Preference towards laptop would change when one grows up

Beliefs and attitudes:- Belief is a descriptive thought that a person holds about
something
Attitude, a Persons consistently favourable or unfavourable evaluations, feelings, and
tendencies towards an object or idea
Example A person having the belief that computers are better than laptops would be
biased against laptops

APPENDIX

Stages in Consumer Decision Making

Process

Stages in Consumer Decision Making

Process

1.Need Recognition
- Customers recognize a problem as a Need or Want
- Most frequent problem: Run out of product
- Also occurs when: Receive new information (about a product / service), or
respond to Stimuli
2. Information Search
- The customer then decides how much information (if any) is required
- A customer can obtain information from several sources:
Personal sources: family, friends, neighbours, etc.
Commercial sources: advertising, salespeople, retailers, dealers etc.
Public sources: newspapers, radio, television, consumer organisations;
specialist
magazines, internet, forums, blogs
Experiential sources: handling, examining, using the product
- Research suggests that customers value and respect personal sources more than
commercial sources (the influence of word of mouth)

Stages in Consumer Decision Making

Process

3. Evaluation Of Alternatives
- Comparison of Features: Brands, Style, Size, Colour, Price, Service, Quality,
Prestige, Sustainability, etc.
- May compare at different stores
- The customer may also have to evaluate the importance of certain information
- High-involvement purchases include those involving high expenditure or
personal risk for example buying a house, a car or making investments.
- Low involvement purchases (e.g. buying a soft drink, choosing some breakfast
cereals in the supermarket) have very simple evaluation processes.

Stages in Consumer Decision Making

Process

4. Purchase Decision
- The actual buying of the product / service
- Factors that can influence the purchase decision include: Budget, Available stock,
Free Samples, Safe Delivery, Online Payment Security
- One Time (Trial) Purchase / Repeat Purchase / Long-Term Commitment?

5. Post-Purchase Evaluation
- The customer seeks reasons to continue to support a purchase decision, or make
a repeat purchase
- Performance Meets Expectations: Neutral Feeling
- Performance Exceeds Expectations: Positive Feeling
Customer feels extremely satisfied and happy, will be more likely to make a repeat
purchase or share their joy with others
- Performance Below Expectations: Negative Feeling
Customer has Buyer's Remorse: Second thoughts or doubts after a purchase. May
seek a refund, or share their grievances with others.