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CONSUMER BUYING

BEHAVIOUR

Consumer buying behavior refers to


the buying behavior of final
consumers individuals &
households who buy goods and
services for personal consumption
The central question for marketers
is: How do consumers respond
to various marketing efforts the
Thecompany
behavior thatmight
consumers
display in searching for,
use?

purchasing, using, evaluating, and disposing of


products and services that they expect will satisfy their
needs.

Personal Consumer
The individual who buys goods and
services for his or her own use, for
household use, for the use of a family
member, or for a friend.
Organizational Consumer: A business,
government agency, or other institution
(profit or nonprofit) that buys the goods,
services, and/or equipment necessary
for the organization to function.

Five Premises of Consumer


Behavior
Consume behavior is purposeful and
goal oriented
The consumer has free choice
Consumer behavior is a process
Consumer behavior can be influenced
There is a need for consumer
education

A Model of Consumer
Behavior

Personal Characteristics
Affecting Consumer Behavior
Cultural Factors
Social Factors
Personal Factors
Psychological Factors

Factors Influencing
Consumer Behavior

Buyer Decision Process

Need Recognition
For the decision process to begin, a
potential buyer must first
recognize a problem or need
Can be caused by internal or
external stimuli

Information Search
Information can be obtained from:
Personal Sources
Family, friends, neighbors, and
acquaintances
Commercial Sources
Advertising, salespeople, dealers,
packaging, and displays
Public Sources
Restaurant reviews, editorials in the travel
section, consumer-rating organizations

Evaluation of
Alternatives
Products are seen as bundles of
product attributes
Customers rank attributes and
form purchase intentions

Purchase Decision

Post Purchase Behavior


The smaller the gap between customer
expectations and perceived
performance, the greater the
customers satisfaction
Cognitive dissonance is buyer
discomfort caused by post purchase
conflict

Successful Relationships
Customer Value - ratio between
customers perceived benefits and the
resources used to obtain those benefits.

Customer Satisfaction - The individual's


perceived vs. expected performance.
Loyalists, apostles, defectors, terrorists,
hostages, and mercenaries

Customer Retention - Provide value to


retain highly satisfied (and profitable)
customers

Types of Buying Decision


Behavior

Complex buying behavior


Dissonance-reducing buying
behavior
Habitual buying behavior
Variety-seeking buying behavior

Types of Buying Decision


Behavior
Complex Buying Behavior
When consumers are highly motivated in a
purchase and perceive significant
differences among brands
Purchasers are highly motivated when:
Product is expensive
Product is risky
Product is purchased infrequently
Product is highly self-expressive

Dissonance-reducing buying behavior


occurs when consumers are highly involved
with an expensive, infrequent, or risky
purchase, but see little difference among
brands
Post-purchase dissonance occurs when
the consumer notices certain
disadvantages of the product purchased or
hears favorable things about a product not
purchased

Habitual buying behavior occurs


when consumers have low
involvement and there is little
significant brand difference
Variety-seeking buying behavior
occurs when consumers have low
involvement and there are
significant brand differences

The Buyer Decision Process for


New Products
Stages in the Adoption Process
1.
2.
3.
4.
5.

Awareness
Interest
Evaluation
Trial
Adoption

Stages in the Adoption Process


Awareness is when the consumer
becomes aware of the new product
but lacks information
Interest is when the consumer seeks
information about the new product

Stages in the Adoption Process


Evaluation is when the consumer considers
whether trying the new product makes sense
Trial is when the consumer tries the new
product to improve his or her estimate of value
Adoption is when the consumer decides to
make full and regular use of the product