Prepared by

Aliraza afzal

Pimsat institute of heigher education

Consumer behaviorThe actions a person takes in purchasing and using

products and services,including the mental and social processes that

precede and follow these actions. The behavioral sciences help answer questions such

as :Why people choose one product or brand over

another, How they make these choices, and

How companies use this knowledge to provide value to consumers

I. CONSUMER PURCHASE DECISION PROCESS •Behind the visible act of making a purchase lies a decision process that must be investigated. •The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy. :

Five Stages of Consumer Behavior

1.problem recognition, 2.information search, 3.alternative evaluation, 4.purchase decision, and 5.post-purchase behavior

A. Problem Recognition: Perceiving a Need

•Perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. •Can be as simple as noticing an empty milk carton or it can be activated by marketing efforts.

B. Information Search: Seeking Value

The information search stage clarifies the options open to the consumer and may involve

Two steps of information search

Internal search External search

•When past experience or knowledge is insufficient

•The risk of making a wrong purchase decision is high

•The cost of gathering information is low.

•Personal sources, such as friends and family. •Public sources, including various product-rating organizations such as Consumer Reports. •Marketer-dominated sources, such as advertising, company websites, and salespeople

C. Alternative Evaluation: Assessing Value

The information search clarifies the problem for the consumer by

(1)Suggesting criteria to use for the purchase.

(2)Yielding brand names that might meet the criteria.

(3)Developing consumer value perception.

D. Purchase Decision: Buying Value

Possibilities

From whom to buy When to buy

which depends on such considerations

• Terms of sale

• Past experience buying from the seller

• Return policy.

which can be influenced by

• store atmosphere

• time pressure

• pleasantness of the shopping experience.

E. Postpurchase Behavior: Value in Consumption or Use

After buying a product, the consumer compares it with expectations and is either satisfied or dissatisfied.

Satisfaction or dissatisfaction affects

o consumer value perceptions o consumer communications o repeat-purchase behavior.

Many firms work to produce positive postpurchase communications among consumers and contribute to relationship building between sellers and buyers.

Cognitive Dissonance. The feelings of postpurchase psychological tension or anxiety a consumer often experiences

Firms often use ads or follow-up calls from salespeople in this postpurchase stage to try to convince buyers that they made the right decision.

F. Involvement and Problem-Solving Variations

Limited Problem SolvingRoutine Problem Solving

Extended Problem Solving Involvement and Marketing Strategy

•Virtually a habit •involves little effort seeking external information and evaluating alternatives. •Typically used for low-priced, frequently purchased products

•Low and high consumer involvement has important implications for marketing strategy, which differs for products that are market leaders from their challengers.

•Each stage of the consumer purchase decision process is used •Considerable time and effort on o external information search

and in identifying o evaluating alternatives.

•Used in high-involvement purchase situations.

•Involves the use of moderate information-seeking efforts. •Often used when the buyer has little time or effort to spend.

II. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR

A. Motivation and Personality

1. Motivation 2. Personality•is the energizing force that causes behavior that satisfies a need.

•Needs are hierarchical •Once basic physiological needs are met, people seek to satisfy learned needs.

•A person's consistent behavior or responses to recurring situations. •Research suggests that key traits affect brand and product-type preferences. •Cross-cultural analysis also suggests that residents of different countries have a national character, or a distinct set of personality characteristics common among people of a country or society.

B. Perception •The process by which an individual uses information to create a meaningful picture of the world by

• selecting, • organizing • interpreting

•Perception is important because people selectively perceive what they want and it affects how people see risks in a purchase.

C. Learning 1. Behavioral Learning 2. Cognitive learning

•The process of developing automatic responses to a situation built up •through repeated exposure to it.

•Involves making connections between two or more ideas •or simply observing the outcomes of others’ behaviors •and adjusting one's accordingly.

D. Values, Beliefs, and Attitudes

Attitude•A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. •Shaped by our values and beliefs, which are learned

Values•personally or socially preferable modes of conduct or states of existence that are enduring.

Beliefs• consumer's subjective perception of how well a

product or brand performs on different attributes.

III. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR

Sociocultural influences evolve from a formal and informal relationships with other people. Influences Include • Personal influence • Reference groups • The family • Social class • Culture • Subculture

• A. Personal Influence

• B. Reference Groups

•individuals who exert direct or indirect social influence over others

•People influencing each other during face-to-face conversations. •Power of word of mouth has been magnified by the Internet and e-mail

Opinion leaders Word of mouth

•Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups have an important influence on the purchase of luxury products but not of necessities.

• C. Family Influence

• D. Social Class

•Family influences on consumer behavior result from three sources:

• consumer socialization • passage through the family life cycle • decision making within the family.

•The relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior are grouped. •Determinants of social class include • occupation, • source of income (not level of income) • education.

•Social class is a basis for identifying and reaching particularly good prospects for products and services. • Upper classes are targeted by companies for items such as financial investments,

expensive cars, and evening wear. • Middle classes represent a target market for home improvement centers and

automobile parts stores. • Lower classes are targeted for products such as sports and scandal magazines.

• E. Culture and Subculture

•Culture refers to the set of values, ideas and attitudes that are accepted by a homogeneous group of people and transmitted to the next generation. Subcultures - groups within the larger, or national, culture with unique values, ideas, and attitudes. •three largest racial/ethnic subcultures in the U.S • Hispanics, • African-Americans • Asians .

•Each of these groups exhibits sophisticated social and cultural behaviors that affect their buying patterns.

•1. African-American •Buying Patterns African-Americans have the largest spending power of the three subcultures

While price conscious, they are motivated by product quality and choice. Respond to products and advertising that appeal to their African-American pride and heritage as well as address their ethnic features and needs.

•2. Hispanic Buying Patterns •Hispanics represent the largest subculture

About 50% are immigrants The majority are under the age of 25. Sensitivity to the unique needs of Hispanics by firms has paid huge dividends.

•3. Asian Buying Patterns •The Asian is the fastest growing subculture.

About 70% of Asians are immigrants Most are under the age of 30. Asians represent a diverse subculture, including Chinese, Japanese, Filipinos, Koreans, Asian-Indians, people from Southeast Asia, and Pacific Islanders.

THANK YOU

Prepared by

Aliraza afzal

Pimsat institute of heigher education