Consumer Markets & Buying Behavior

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Consumer Markets &Buying Behavior

Principles of Marketing


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Consumer BuyingDecision?


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Consumer Buying Decision Process

.1 Need Recognition

.2 Identification of alternatives

.3 Evaluation of alternatives

.4 &Purchase related decisions

.5 Postpurchase behavior

Situational Factors

When ?Where?

Why?Conditions under which consumers

Information

Commercial Sources

Social Sources

Social and Group ForcesCulture

SubcultureSocial ClassReference Group

&Family Households

Psychological Fac torsMotivationPerception

LearningPersonality

Attitudes


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Social & Group Forces

Social influences not only affect thePsychological factors but also theconsumer buying decision process.

These forces are:

- Culture - Subculture - Social Class - Reference Group - Family & Households


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Culture

Set of symbols &artifacts created bya society and

handed down fromgeneration togeneration asdeterminants andregulators ofhuman behavior.


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u ura ren s a ec ngthe buying behavior of

Pakistani consumers? Changing gender roles Coping with Inflation Status consciousness / show off Influx of population from rural to urban

areas Changing cultural values Fast food/ready to eat food acceptance Sophistication of lifestyle Healthy Lifestyle


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Subculture

Subcultures are groups in a culture thatexhibit characteristic behavior patternssufficient to distinguish them from othergroups within the same culture

- is distinguished on basis of race,nationality, religion and urban-ruralidentification.

- For example: Kailash, Urdu speaking

population, pashtuns etc.


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Social Class

Ranking within a society determined by themembers of the society.

1.The Upper Class: old families with inherited wealthor corporate executives or business owners.2.The Upper Middle Class: moderately successful

business owners or professionals, well educated.3.Middle Class: Managerial position holders or

government job holders, professionally educated.

4.Lower Middle Class: Office workers, teachers,technicians, small business owners.(white collarworkers)

5.Upper Lower class: Blue collar working class,semiskilled.

6.Lower- Lower class: Unskilled workers orchronically unemployed, uneducated, low or no


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Reference Groups

A persons reference group consistsof all the groups that have a direct

(face to face) or indirect influence onthe persons attitude or behavior.

e.g. friends and households, coworkers,peers, membership or associative groupsetc.


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Psychological Factors

Motivation

PerceptionLearningPersonalityAttitudes


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Motivation


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Perception

is a process of receiving, organizing andassigning meaning to information or stimulidetected by our five senses.

- Since consumers are exposed to tremendousamount of information, Selective PerceptionTechniques are used :

- 1. Selective Attention: People are more likely to notice

stimuli that either relates to a current need or relates to theiranticipation or whose deviations are large as compared tonormal stimuli.

2. Selective Distortion: is the tendency to twistinformation into personal meanings and interpret information

that fits our established beliefs.


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Learning

Learning involves changes in anindividuals behavior arising from

experience & observation.

- Learning theory teaches marketers thatthey can build up demand for a product by

associating it with strong drives,motivating cues and providing positivereinforcement.


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Personality & Self-ConceptTheory

an individuals pattern of traits thatinfluence behavioral responses. Thesetraits can be self-confident, introvert,

dominant, social, adaptable, flexible etc

- Self Concept is self image or how yousee yourself.

- Ideal Self Concept is how you would liketo see yourself.

- Others- self concept is how you thinkothers see you


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Attitudes

Attitude is a learned tendency torespond to an object in a consistently

favorable or unfavorable way.Attitudes are:- Learned- Have direction and intensity

-Tend to be stable and generalizable

Belief is a descriptive thought that a

person holds about something.


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Information

Sources:

- Commercial Sources: Advertising, salespeople,

dealers, packaging, displays etc.-- Personal Sources: Family, friends, neighbors,

acquaintances etc-

- Public sources: Mass Media, Consumer ratingorganizations.-- Experiential sources: Handling, examining,

using the product etc.


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Consumer Buying DecisionProcess

1. Need Recognition: The consumer ismoved to action by a need, desire orproblem.

- The stimulus can be internal orexternal.

- Need can also be triggered bydepletion of an existing product ordissatisfaction of with a current product.


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2. Identification of alternatives: After needrecognition, consumers identify thealternatives capable of need

satisfaction.

- Identification of product is followed byidentification of brand, based on personal

experience or extensive external search.

- Some or all information sources areutilized.


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3.Evaluation of Alternatives: Thealternatives are evaluated by theconsumer based on single ormultiple criteria.



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Situational Influences

A temporary force associated with theimmediate purchase environment thataffects behavior.

- Time- Surroundings

- Terms of Purchase- Consumer Moods and motives


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4. Purchase Decision: Consumers formpreferences among the brands in thechoice set and also form an intention to

make the purchase.

Two factors intervene here: - Attitude of Others: Negative response

of others and consumers motivation tocomply with other persons wishes.

- Unanticipated situational factors: suchas attitude of sales person.



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5. Post-Purchase Behavior: Consumersexperience level of satisfaction or dissatisfactionafter purchase.

- Post-Purchase satisfaction: is a function ofcloseness between buyers expectations andproducts perceived performance. The resultingfeelings can be satisfaction, disappointment,Delight.

-- Post-Purchase Actions: Satisfaction leads to

repeat purchase. Dissatisfied consumers will

return or abandon the product. (WOM)


Consumer Markets & Buying Behavior

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