Topics to be covered

 After completing the session we

have to learn the following:

 Definition of Buyer Behavior/Consumer B

 Factors that Influence Consumer Behavio

 Buyer Decision Process

 Stages in the Adoption Process

 Adoption of innovations

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Consumer Buying Behavior
 Consumer Buying Behavior refers to
the buying behavior of final
consumers (individuals & households)
who buy goods and services for
personal consumption.
 It is defined as “all psychological,
social & physical behavior of potential
customers as they become aware of,
evaluate, purchase, consume & tell
others about product & services.”
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Factors Affecting Consumer Behavior

Cultural
Social
Personal
Psychological
Buyer

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 Factors Affecting Consumer Behavior: Cultural
3 Factors: Culture, Subculture, Social Class

 1. Culture
 Most basic cause of a person's wants and
behavior:
• Values
• Perceptions
2. Subculture 3. Social Class
• Groups of people with shared • People within a social class
value systems based on common tend to exhibit similar buying
life experiences. behavior.
• nationalities • Occupation
• religion • Income
• Education
• Wealth
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 Factors Affecting Consumer Behavior:
Social
Groups
Membership
•

Reference
•

Family
Husband, wife, kids Social Factors
• •

Influencer, buyer, user

Roles and Status

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 Factors Affecting Consumer Behavior:
Personal
Personal Influences

Age and Family Life Cycle

Occupation
Stage

Economic Situation Personality & Self-Concept

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 Factors Affecting Consumer Behavior:
Psychological

Motivation

Beliefs and Psychological

Factors Perception
Attitudes

Learning

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The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post purchase Behavior

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The Buyer Decision Process
Step 1. Need Recognition

Need Recognition
Difference between an actual state and a desired state

Internal Stimuli External Stimuli

• Hunger • TV advertising

• Thirst • Magazine ad
• A person’s normal • Radio slogan
needs
•Stimuli in the
environment
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The Buyer Decision Process
Step 2. Information Search
•Family, friends, neighbors
Personal Sources •Most influential source of
information

•Advertising, salespeople
Commercial Sources •Receives most information
from these sources

•Mass Media
Public Sources •Consumer-rating groups

•Handling the product

Experiential Sources •Examining the product
•Using the product

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The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features

Degree of Importance
Which attributes matter most to me?

Brand Beliefs
What do I believe about each available brand?

Total Product Satisfaction

Based on what I’m looking for, how satisfied
would I be with each product?

Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
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The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of others situational
factors

Purchase Decision

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The Buyer Decision Process
Step 5. Post purchase Behavior
Consumer’s Expectations of
Product’s Performance

Product’s Perceived
Performance

Satisfied Dissatisfied
Customer! Customer

Return the product/

Bye it again / Take decision not to bye again/
Tell other to Buy Take public actions
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 Buying Decision Process
Post purchase Behavior : The marker’s job does not
end with the purchase. They must monitor following
post purchase behavior
 Post purchase satisfaction: Satisfaction is a
function of the closeness between expectations &
perceived performance. Three situation:
• Disappointed: if performance<expectation
• Satisfied: performance=expectation
• Delighted: performance>expectation
 Post purchase Actions:

 If satisfied

• they will buy it again

• They also tell other to buy that brand
 If dissatisfied:

• Return the product

• Take decision not to buy it again
• May take public actions by complaining the
company, going to lawyer, or to other groups
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Stages in the Adoption Process
Awareness

Interest

Evaluation

Trial

Adoption
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 Buyers' Product Adoption Process
 Awareness: Buyers become aware of the
product
 Interest: Buyers seek information and is
receptive to learning about product
 Evaluation: Buyers consider product benefits
and determines whether to try it
 Trial: Buyers examine, test or try the product
to determine usefulness relative to needs
 Adoption: Buyers purchase the product and
can be expected to use it when the need for
the general type of product arises.
 ## Rate of adoption depends on
consumer traits as well as the product and the
firm's marketing efforts.

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Adoption of Innovations/Diffusion Process
Percentage of Adopters

Early Majority Late Majority
Innovators

Early 
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late

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 Diffusion Process
 The manner in which different members of the
target market often accept and purchase a
product (go through the adoption process)
 Innovators: Techno-savvies first customers
to buy a product, 2.5 % of consumers
 Early Adopters: Tend to be opinion leaders.
Adopt new products but use discretion, 13.5%
 Early Majority: 34% of consumers, first part
of the mass market to buy the product
 Late Majority: Less cosmopolitan and
responsive to change, 34%
 Laggards: Price conscious, suspicious of
change, 16%, do not adopt until the product
has reached maturity.

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