Consumer Buying Process
-
Upload
higgsboson304 -
Category
Documents
-
view
515 -
download
1
Transcript of Consumer Buying Process
CONSUMER BUYING CONSUMER BUYING PROCESSPROCESS
contentscontents Introduction to consumer buying processBuyer-an enigmaTypes of buyersThe indian consumerWhat does a customer buy?Buyer motivationRoles in consumer buyingActual consumer buying processBuying situations Influence on consumer buyingTools to study buyer behaviourconclusion
INTRODUCTIONINTRODUCTION
What is Consumer Buying Process?
Why we need Consumer Buying Process?
BuyerBuyer - - An EnigmaAn Enigma
Buyer’s mind –a Black box Influence of Media especially
electronic media
ssss
stimulus
Company controlledProduct
PriceAdvertising
Displaydistribution
social
Word of mouthReference group
cConsumer
Mind(Black box)
Response
NN
Buy
No buy
Types of BuyersTypes of Buyers
2.Timid/Reserved/shy buyer
3.Silent buyer4. Price or quality conscious buyer.5. Suspicious buyer6. Clever/intelligent buyer7. Bargain buyer8. over-cautious buyer.9. Timid/reserved/ buyer10. Undecided buyer11. Argumentative buyer12. Rude/ ill-mannered buyer.13. Impatient buyer14. Slow-thinking buyer
1.Friendly buyer
Indian Consumers:-Indian Consumers:-Indian consumer come from different
social, cultural, religious and geographical background.
Impact of Internet on Indian Consumers.
Who uses Internet and for what ?Change in Consumer’s lifestyle and its
impact.
What Does the customer What Does the customer Buy?Buy?
After examining the different products/services, bought by a customer, we Categorize it into two groups viz:-
High involvement products
Low involvement products.
High involvement products have the following characteristics
High price Complex Features Large difference between alternatives High perceived Risk Reflect self-concept of buyers
Low involvement products:- Does not reflect buyers self-concept Alternative within the same product class are similar Frequent brand switching behaviour
Buyers MotivationsBuyers Motivations ECONOMIC FACTORS
PSYCHOLOGICAL FACTORS
SELFACTUALIZATION
ESTEEM
AFFILIATION
SECURITY NEEDS
BASIC NEEDS
• MASLOW’S HIERARCHY OF NEEDS THEORY
i. HERZBERG’S TWO FACTOR THEORY
ii. McCLELLAND’S THEORY OF ACHIEVEMENT MOTIVATION
a. MOTIVATION
b. LEARNING THEORYLearning: involves changes in an individual’s behaviour arising from experience.
E.g: Suppose you buy an IBM computer
c. PERCEPTIONSIs the process by which an individual selects, organizes, and interprets information inputs to create a meaning picture of the world.
Perceptual processes:
SELECTIVE ATTENTION SELECTIVE DISTORTION SELECTIVE RETENTION
SELECTIVE ATTENTION:It means that marketers have to work hard to
attract consumer’s notice.
Some real challenge for marketers: People are more likely to notice stimuli
that relate to a current need. E.g: hairfall problem.
People are more likely to notice stimuli that they anticipate. E.g: Marriage
People are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli. E.g: Discount offers
SELECTIVE DISTORTION:It’s the tendency to twist information into personal
meanings and interpret information in a way that will fit our preconceptions.
E.g: Advertisements – making a cutomer guess the objects or messages to come ( IDEA)
SELECTIVE RETENTION:Selective Retention explains why marketers use drama and repetition in sending messages to their target market.
E.g: Advertisements – making a customer guess the objects or messages to come ( IDEA).
d. Beliefs and AttitudesA belief is a descriptive thought that a person holds about something.These beliefs make up product and brand images, and people act on their images.One of the real challenge for the marketers to change such beliefs.E.g: Anne French – Kareena Kapoor
An attitude is a person’s enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea.E.g: National Fluid Milk Processor Education Program – “Where’s your mustache?”
ROLES IN CONSUMER ROLES IN CONSUMER DECISION - MAKINGDECISION - MAKING
1. INITIATOR
2. INFLUENCER
3. DECIDER
4. BUYER
5. USER
CONSUMER BUYING CONSUMER BUYING PROCESSPROCESS
→HIGH INVOLVEMENT PRODUCT
NEED RECOGNITION OR PROBLEM IDENTIFICATION
DEVELOPMENT OF DECISION CRITERIA
SEARCH FOR ALTERNATIVES
EVALUATION OF ALTERNATIVES
DECISION
VIDEO 1
→LOW INVOLVEMENT PRODUCT
PROBLEM / NEED RECOGNITION
EVALUATION OF ALTERNATIVES
DECISION
Video 2
THEORY OF COGNITIVE DISSONANCE
Leon festinger proposed this theoryPost purchase consumer behaviourDissonance gets heighted when: plenty of choices each alternative equally attractive buying situation is highpriced-high
risk situation the product reflects his/her self
concept
Buying Situations:-
Various factors that come into account while buying product are as follows:-
(a) Awareness about competing brand in a product group.
(b) Customer has a decision criteria.
(c) Customer is able to evaluate and decide on his choice.
Situations:-Routinized Response Behavior or Straight
Rebuy.Limited Problem Solving or Modified RebuyExtensive Problem Solving or New Task
Influences on Buyer Influences on Buyer BehaviorBehavior
Buyer decisions are strongly influenced by certain variables such as
Cultural InfluencesSocial influencesOpinion LeadershipDemographic influencesSelf conceptPsychographic variablesLifestylePersonality
TOOLS TO STUDY BUYER TOOLS TO STUDY BUYER BEHAVIOUR BEHAVIOUR
It is important for the marketer to regularly study buyer behaviour. The different tools available to him or her are:-
SurveyProjective techniquesFocus group discussions
Why do we need to study consumer buying process???The very existence of
organizations/business companies is due to the existance of customers/consumers
Basic objective of the studying consumer behavior is that the firm needs to know who buys their product. How they buy? When and where they buy? Why they buy? How they respond to marketing stimuli
Thank you