MARKETING

MANAGEMENT
Buyer Behaviour
Consumer markets & consumer
buyer behavior
 Model of CB
 Characteristics affecting CB
 Types of buying decision behaviors
 Buyer decision process
 Buyer decision process for NPs
Model of consumer behavior
 Consumer buyer behavior
 Buying behavior of final consumers
 individuals & households who buy goods &
services for personal consumption
 Consumer market
 Refers to all of the personal consumption of
final consumers
Model of consumer behavior
Characteristics affecting CB –
Influencing factors
Characteristics affecting CB
[Culture]
 Culture
 Learned values
 Perceptions
 Wants
 Behavior from family and other important
institutions
Characteristics affecting CB
[Subculture]
 Subcultures
 Groups of people within a culture
 With shared value systems
 Based on common life experiences & situations
 Bengalis
 Gujaratis
 Punjabis
 Mallus
 Tams
Characteristics affecting CB [Social
class]
 Social classes
 Society’s relatively permanent & ordered
divisions whose members share similar
values, interests, and behaviors
 Measured by a combination of occupation,
income, education, wealth, and other
variables
 Characteristics affecting CB
[Groups & social networks]
Membership Aspirational Reference
Groups Groups Groups
• Groups with • Groups an • Groups that
direct individual form a
influence wishes to comparison
and to belong to or
which a reference in
person forming
belongs attitudes or
behavior
Characteristics affecting CB [Groups &
social networks - WOM]
 WOM influence & buzz marketing
 Opinion leaders
 People within a reference group who exert
social influence on others
 Also called influentials or leading adopters
 Marketers identify them to use as brand
ambassadors
Characteristics affecting CB [Groups &
social networks - Online]
 Online Social Networks
 Online communities where people socialize
or exchange information and opinions
 Include blogs, social networking sites
(facebook), virtual worlds (second life)
Characteristics affecting CB [Groups &
social networks – Social factors]
 Family
 Mostimportant consumer-buying
organization in society
 The groups, family, clubs, and
organizations that a person belongs to
define his/her social role and status
Characteristics affecting CB [Groups &
social networks – Personal factors]
 Age & life-cycle stage
 RBC Royal Band stages
 Youth: younger than 18
 Getting started: 18–35

 Builders: 35–50

 Accumulators: 50–60

 Preservers: over 60
Characteristics affecting CB [Groups &
social networks – Personal factors]
 Occupation
 Affects
the goods and services bought by
consumers
 Economic situation includes trends in:

Personal Savings Interest

income rates
Characteristics affecting CB [Groups &
social networks – Personal factors]
 Lifestyle
Person’s pattern of living as expressed
in his or her psychographics
 Measures a consumer’s AIOs
(activities, interests, opinions)
To capture information about a person’s
pattern of acting and interacting in the
environment
Characteristics affecting CB [Groups &
social networks – Personal factors]
 Personality and self-concept
Personality refers to the unique
psychological characteristics that lead
to consistent and lasting responses to
the consumer’s environment
 Characteristics affecting CB

Personal Factors Dominance Autonomy

Defensiveness Adaptability Aggressiveness

Characteristics affecting CB [Groups &
social networks – Psychological factors]

Motivation

Perception

Learning

Beliefs and attitudes

Characteristics affecting CB [Groups & social
networks – Psychological factors - Motivation]

 A motive
Need that is sufficiently pressing to
direct the person to seek satisfaction
 Motivation research
Refers to qualitative research designed
to probe consumers’ hidden,
subconscious motivations
Characteristics affecting CB
[Maslow’s Hierarchy of Needs]
Characteristics affecting CB [Groups & social
networks – Psychological factors - Perception]

 Perception is the process by which people

select, organize, and interpret information
to form a meaningful picture of the world
from three perceptual processes
 Selective attention
 Selective distortion
 Selective retention
Characteristics affecting CB [Groups & social
networks – Psychological factors - Perception]

 Selective attention
 Tendency for people to screen out most of the information
to which they are exposed
 Selective distortion
 Tendency for people to interpret information in a way
that will support what they already believe
 Selective retention
 Tendency to remember good points made about a brand
they favor and forget good points about competing
brands
Characteristics affecting CB [Groups & social
networks – Psychological factors - Learning]

 Learning
 Change in an individual’s behavior arising
from experience and occurs through interplay
of:

Drives Stimuli Cues

Responses Reinforcement
Characteristics affecting CB [Groups & social
networks – Psychological factors – Beliefs]

 Belief is a descriptive thought that a person has

about something based on:
 Knowledge

 Opinion

 Faith
Characteristics affecting CB [Groups & social
networks – Psychological factors - Attitudes]

 Attitudes
Describe a person’s relatively
consistent
Evaluations
Feelings&
Tendencies
Toward an object or idea
Types of buying decision behavior

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior

Types of buying decision behavior
Decision making sets

Total
Set Aware-
Consid-
ness
eration Choice
Set
Set Set Decision
Consumer buying roles

Initiator
Influencer
User

Buying
Decision

Buyer Decider
CDM process
CDM process [Need recognition]

 Occurs when the buyer recognizes a

problem or need triggered by:
Internalstimuli
External stimuli
CDM process [Info search]
 Personal sources
 Family and friends
 Commercial sources
 Advertising, Internet
 Public sources
 Mass media, consumer organizations
 Experiential sources
 Handling, examining, using the product
CDM process [Evaluation of
alternatives]
 How the consumer processes
information to arrive at brand choices
CDM process [Purchase decision]
 The act by the consumer to buy the most
preferred brand
 The purchase decision can be affected by:

 Attitudes
of others
 Unexpected situational factors
CDM process [Post-purchase
decision]
 (Dis)satisfaction consumer feels about
purchase
 Relationship between
 Expectations
& Perception
Larger the gap
 Greater consumer’s (dis)satisfaction
 Cognitive dissonance
 Discomfort caused by post-purchase conflict
CDM process [Post-purchase
decision - CS]
 Customer satisfaction
Key to building profitable relationships
with consumers
Keep & grow consumers
Reap CLtV
 Buyer decision process for NPs
 Adoption process
 Mental process an individual goes through
 From first learning about an innovation to final regular
use
 Stages in the process include

Awareness Interest Evaluation Trial Adoption

Buyer decision process for NPs [ACCORD]

Advantage Compatibility Complexity

Observability Risk Divisibility

Adopter categories
Innovators

Early Majority Late Majority

%age of Adopters

Early
Adopters Laggards
34 34
2.5% 16
13.5

Time of Adoption

Early Late