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Buyer Behavior MODELS OF BUYER BEHAVIOUR because consumers often have strong beliefs about

A model is often viewed as a n abstract the price and value of the brand and may organize
representation of a process or relationship,which their product category knowledge in terms of the
allows us to make a sense of the world and also help price tiers of different brands, (Blattberg and
us to predict the likely course of events. The buying Wisniewski, 1989).
process is portrayed as a highly complex one, in In this research project our emphasis will be on the
which a variety of personal and environmental non-product related attributes of a product, that affect
factors influence the decisions the buyer makes. A the consumer buying behavior and the decisions they
simple starting point of understanding buyer’s make while selecting a product. How the brand name
behaviour is to take a basic model of consumer and logo, brand awareness, brand association and the
response. packaging of a product have an impact on what the
The inputs to the decision process are the range of people buy for the fulfillment of their needs and
psychological, sociological, economic and situational whether these factors...
factors. The outcome is the decision: whether or not
to purchase; whether to purchase now or to defer; Sustainability And Its Impact On Brand Value
where to buy from etc. In between the input and
output is the decision making process which Sustainability and its Impact on Brand Value
determines how the buyer translates complex One of the latest buzz words found in management
information into decisions and the process differs for journals, websites, and corporate documents is
each consumer. “sustainability.” Some people even want to recognize
The basic model of buyer behaviour, however does it in a company’s balance sheet as an asset. Okay,
not explain how a decision is made. For this a let’s not go that far.
number of models have been developed. If a model is It is undeniable that sustainability is a new way of
to have value to the marketing managers , it should doing business; in the same way “re-engineering” or
be capable of use as a predictive tool, given a set of “just in time” were in the late 1980s. Sustainability is
conditions on which the model is based. Hence, a not an asset that can be bought or sold; rather it’s
number of researchers have sought to develop models becoming an integral part of many a company’s
that explain how buying decisions are made in philosophy. Just as company management practices
specific situations and from this to predict the likely influence business value, so do sustainability
consequences of changes to marketing strategy. initiatives. Therefore, the question is: How does it
create value?
Branding Moral motivations to invest in sustainability are not
in dispute: climate change, poverty, you name it. But
BROAD PROBLEM AREA what companies don’t know yet is what level of
The consumer decision-making, regarding purchase investment they should make and what is the
and utilization of different products and services, is measurable benefit of investing. When the benefit is
influenced by many internal as well as external not clear enough to justify investments on
factors. Among the external factors, the most economical grounds, managers easily turn to
important and significant are the attributes of the initiatives that guarantee short-term results and
product itself, the brand and the package in which it everyone’s jobs, especially with recession knocking
is incased. Attributes are those descriptive features on the door.
that characterize a product or service- what a There are some direct benefits, such as: compliance
consumer thinks the product or service is or has and with an increasingly rigorous legislation; cost savings
what is involved with its purchase or consumption. derived from optimization of production lines and
Product-related attributes are the functions of the supply chains to reduce energy consumption;
product or service. Non-product-related attributes are reduction in CO2 emissions; desire for more ethical
the external aspects of the product or service that products; and simply satisfying an emerging and
relate to its purchase or consumption, like the price cynical green consumer. But most importantly,
information, packaging or product appearance, user incorporating sustainability as a business practice will
imagery (i.e. what type of person uses the product or not only increase companies’ brand value, but also
service) and usage imagery (i.e. where and in what guarantee a long life for the business.
types of situations the product or service is used) Relationship between sustainability and brand value
(Keller, 1993). Although it’s hard to
Consumer buying behavior is affected by many find consistency among definitions of sustainability,
socio-cultural factors like social class, demographics, it is common sense that it incorporates companies’
personality, and beliefs etc. However, besides these, relationships with the natural environment, social
the product itself also makes their decision for them causes, and corporate governance. In boardrooms,
because of the message it transmits, the visual impact this translates...
it makes, the significant colors and logo of the brand,
the brand image and awareness, and the price. Price For the required course the topic of my Research is as follows:
is a particularly important attribute association -“Celebrity Endorsement in Advertisement is a key to
Marketing Success”. This topic has been selected under the The consumer-decision process model begins with the
guidance of our Research Director Azmat Ansari. recognition by the consumer that there is a problem or a need.
Problems and needs can be triggered by either internal or
A celebrity is a person who is widely recognized famous in external stimuli. An internal trigger of a problem or need
a society and commands a degree of public and media could include hunger, and external triggers could include in-
attention. An advertisement is tool for promoting Products and store displays, intentional use of scents or publicity.
Services. By advertising the goods and services are introduced
to general public, customers, and consumers. Through it a At this stage relevant internal psychological processes such as
message is given about the brand, price, quality, variety, and perception, learning and motivation could influence the
features of a product. consumer, especially if he or she has an internal drive to
satisfy a need....
With respect to the topic this research report the purpose of
study is to investigate the impact of Celebrity endorsement in Branding is one of the most important factors influencing
Advertisement on customer behavior (buying patterns). In this a product’s success or failure in the market and it can
report it is judge that how is customer behavior effect by have a significant influence on the perception of the
celebrity endorsement; both the positive and negative impacts general public towards the company owning the brand.
are observed. Brand loyalty not only represents the brand of the
All the literature related to the selected topic has been company but also the company itself. This study has
reviewed through internet different websites, Marketing been conducted to know the brand awareness and brand
Management book of Philip Kotler, reference material. loyalty of consumers towards hair shampoos. The study
Moreover Pakistan Advertising Institute is also visited for highlights that the major sources of awareness for hair
reviewing the literature. shampoos are television advertisements, and friends
and relatives. The study further highlights that the
important factors influencing brand loyalty towards hair
Consumer Behaviour shampoos are product quality (dandruff removal, shine
and silkiness, and ingredients), availability of the
Explain how consumers form evaluations of brands. Show preferred brand and brand image.
how marketers seek to influence this process using examples
from the marketing activities of an organisation of your choice
he Management of PROCTER & GAMBLE once
stated : ” Our business is based on understanding
Introduction the consumer and providing the kind of products
Evaluation is the process of judging or determining whether an that the consumer wants. We place enormous
activity or product meet a specified criteria. According to emphasis on our product development area and our
Cambridge Advanced Learner’s Dictionary, to evaluate is ‘to marketing area, and on our people knowing the
judge or calculate the quality, importance, amount or value of consumer.” The human mind is the most complex
something. When consumers evaluate a brand, they are trying entity in the whole universe as it is very
to get an overall picture of the brand, which will allow the unpredictable how a person would behave in or
consumer to take a stand as to what they think of that brand. react in a particular situation.
Some criteria of evaluation of brands may include price, brand
image, taste, functional characteristics, style and sometimes A person’s behavior changes from place to place
the way the consumer “feel” about a product. and situation to situation or, say it is very
Consumer evaluation of brands involved both cognitive and inconsistent. The person when has a need, is willing
psychological processes in selecting a course of action from and able to satisfy the need is called a
multiple alternatives. The consumer decision-making process CONSUMER. The consumer would go different ways
model (fig 1) will provide useful insights as to how consumer to satisfy it’s needs depending on his social, cultural,
form evaluations of brands and how marketers seek to family, economic and educational background.
influence this process. Consumer is the principle a priori of business. The
efficiency with which a free market system of
Fig 1: The customer decision-making process and its five enterprise operates, depends upon the extent of
stages consumer understanding possessed by the business
Source: guuui.com, 2007 community. A business community that is ignorant
of consumer preferences cannot possibly fulfill it’s
obligations in a meaningful and responsive manner.

NEED OR PROBLEM RECOGNITION So here comes the need to study CONSUMER


“Problem recognition is the discovery of a discrepancy BEHAVIOUR. Consumer Behavior is broadly defined
between an actual and a desired state of being. Thus problem as “the behavior the consumer displays in
recognition occurs when a need state is felt”. (Minor et al: searching for, purchasing, using and evaluating
1998. p358). products, services, and ideas which they expect will
satisfy their needs.” Consumer Behavior is not only
the study of what people consume, but is also the
study of who the consumers are, why they that it is impossible to serve all personality types
consume, how often they consume, and under what with the same product or brand. A recognition of
conditions they consume. important personality types can help management
“position” it’s towards a profitable segment or
CONSUMER BEHAVIOUR refers to the buying
segments.
behavior of ultimate consumers, those persons who
purchase products for personal or household use,
not for business purpose. Marketers have used personality variables to
segment markets. They endow their products with
There are Psychological Theories that help us to brand personalities that correspond to consumer
understand and predict the effect of all personalities.
external and internal factors on a
consumer. External factors include www.allprojectreports.com/Consumer
Culture, Society, Reference group and %20Behaviour%20-april 16.2010
family etc. Internal factors comprise in
a consumer mind and how consumers : A widely held assumption is that brands purchased by the
learning, memory, attitude, personality, family will continue to be purchased by the children
lifestyle and motivation levels effect when they become adults. However, little consumer
consumer behavior. What would initiate research actually exists on continued parental
a buying process and how a buying influence on young adults’ purchasing decisions.
decision would end is all covered Using data from two surveys of over 500 students in
under the study of consumer behavior. a four-year undergraduate business program, two
This all further helps relate product / studies examined parental influence (the degree to
service, price and promotion etc. with which brands purchased by students corresponded to
consumer behaviour. Thus organisation brands purchased by parents), roommate influence,
can place marketing mix so as to and additional factors such as price perceptions,
propogate their product/services. brand differences, and brand comparisons. Discrete
The present study on SHAMPOO is also trying to choice regression analyses (ordered probit) in both
find Consumer Perception about different features of surveys revealed that correspondence with parental
Shampoos and how Price, Environment, Packaging, brand choice decreased significantly with year in
Quantity, Easy Availability and Variety are affecting university. As parental influence lessened, brand
the sale of Shampoo’s. choice correspondence with roommates increased.
The reduction in parental influence may indicate an
PSYCHOGRAPHIC important marketing opportunity. When a student
In psychographic segmentation buyers are divided leaves home, their brand loyalties shift significantly
into different groups on the basis of lifestyle and \ from that of the family unit.
or personality. People within the same demographic
group can exhibit very different psychographic
profiles. These psychographic bases are often
difficult to measure, but they offer potential rewards onsumer purchases are influenced strongly by or there are
in terms of providing management with a more four factors.
relevant basis for differentiating between segments
of a market.
01. Cultural Factor 02. Social Factor03. PersonalFactor04.
LIFESTYLE
Psychological Factor.01. Cultural Factor :-
People exhibit many more lifestyles than are
suggested by the seven social classes. People’s Cultural factor divided into three sub factors (i) Culture (ii)
product interests are influenced by their lifestyles. In
Sub Culture (iii) Social ClassCulture:-The set of basic values
fact the goods they consume express their lifestyles.
Marketers are increasingly segmenting their markets perceptions, wants, and behaviours learned by a member of
by consumer lifestyles. Companies making cosmetics,
society from family and other important institutions. Culture is
alcoholic beverages, and furniture are always
seeking opportunities in lifestyle segmentation. the most basic cause of a person’s wants andbehaviour. Every
group or society has a culture, and cultural influences on
PERSONALITY
buying behaviour may vary greatly from country to country.
Personality affects the consumption of many goods,
particularly those consumed publicly. An aggressive Sub Culture :A group of people with shared value systems
personality for example, may be reflected in the
choice of ostentatious clothing, furniture, and based on common life experiences and situations.Each culture
automobiles. Preferences are frequently so different contains smaller sub cultures a group of people with shared
value system based on common life experiences and i) Age and life cycle stage (ii) Occupation (iii) Economic
situation (iv) Life Style (v) Personality and self concept.
situations. Sub culture includes nationalities, religions, racial
group and geographic regions. Many sub culture make up Age and Life cycle Stage:-
important market segments and marketers often design
People changes the goods and services they buy over their
products.Social Class:- lifetimes. Tastes in food, clothes, furniture, and recreation are
often age related. Buying is also shaped by the stage of the
Almost every society has some form of social structure, social family life cycle.Occupation :-
classes are society’s relatively permanent and ordered
divisions whose members share similar values, interests A person’s occupation affects the goods and services bought.
andbehaviour. Blue collar workers tend to buy more rugged work clothes,
whereas white-collar workers buy more business suits. A Co.
02. Social Factors :- can even specialize in making products needed by a given
occupational group. Thus, computer software companies will
design different products for brand managers, accountants,
A consumer’s behaviour also is influenced by social factors, engineers, lawyers, and doctors.
such as the (i) Groups (ii) Family (iii) Roles and status
Economic situation :-situation will affect product choice
Groups :-
Life Style :-
Two or more people who interact to accomplish individual or
mutual goals. Life Style is a person’s Pattern of living, understanding these
forces involves measuring consumer’s major AIO dimensions.
A person’s behavious is influenced by many small groups.
Groups that have a direct influence and to which a person shopping, support etc) interest (Food, fashion, family
belongs are called membership groups. recreation) and opinions (about themselves, Business,
Products)
Some are primary groups includes family, friends, neighbours
and coworkers. Some are secondary groups, which are more Personality and Self concept :-
formal and have less regular interaction. These includes
organizations like religious groups, professional association
Each person’s distinct personality influence his or her buying
and trade unions. behaviour. Personality refers to the unique psychological
characteristics that lead to relatively consistent and lasting
Family:- responses to one’s own environment.

Family members can strongly influence buyer behaviour. The 04. Psychological Factors :-
family is the most important consumer buying organization
society and it has been researched extensively. Marketers are
interested in the roles, and influence of the husband, wife and • It includes these Factors.
children on the purchase of different products and services. • i) Motivation (ii) Perception (iii) Learning (iv)
Beliefs and attitudes
Roles and Status :-
• Motivation :-
A person belongs to many groups, family, clubs, o Motive (drive) a need that is
organizations. sufficiently pressing to direct the person to
seek satisfaction of the need
The person’s position in each group can be defined in terms of • Perception :-
both role and status. o The process by which people
select, Organize, and interpret information to
For example. M & “X” plays the role of father, in his family form a meaningful picture of the world.
he plays the role of husband, in his company, he plays the role • Learning:-
of manager, etc. A Role consists of the activities people are
expected to perform according to the persons around them. Changes in an individuals behaviour arising from experience.

03. Personal Factors :- Beliefs and attitudes :-

Belief is a descriptive thought that a person holds about


It includes
something
Attitude, a Person’s consistently favourable or unfavourable Everyday, consumers have to decide to buy products and
evaluations, feelings, and tendencies towards an object or idea services more than once. A consumer passes through in
making choices about which products and services to buy,
http://pgdba.blogspot.com/2008/05/ which is the consumer buying decision process. This process
has the five stages; Problem Recognition, Information Search,
Alternative evaluation, Buying decision, Evaluation after
buying decision (Clow and Baack 2004: 61).
INTRODUCTION
During the decision process of buying behavior, in
Global competition and technologic innovations bring recognition of the problem, the consumer begins to search
novelties to marketing approach and today companies focus on information and then evaluates alternatives according to
consumer qualifications in their activities instead of their qualifications (price, quality, image etc.) of product/service or
products or services. Also, companies act based on consumer brand (Purinton, Rosen and Schroeder 1998: 2). When the
qualifications to create niche market and take advantage of consumer has enough information, they make a choice
those opportunities (Fırat et all. 1995:44). between the alternatives and then they buy it. After buying a
product, the consumer compares it with their expectations and
The general aim of all marketing activities is creating new is either satisfied or dissatisfied. If he/she is satisfied, buying
loyal customers (Sheth 2002: 591). In traditional marketing, to behavior is repeated (McQuitty, Finn and Wiley 2000: 7).
provide loyalty of a customer, companies used some classical
methods such as pricing strategies or placing strategies that are Several factors which are individual and environmental
based on products or services (Gommans, Krishnan and factors, affect consumers in buying decision process.
Scheffold 2001: 44). However, today to reach the success, Individual factors are motivation, personality, perception,
companies form their strategic management plan around learning, values, beliefs, attitudes and life style.
consumers and they evaluate their success according to Environmental factors are personal influence, reference group,
performance in the market (Günay 1999: 121 and Auken family influence, social class and culture (Kotler and
2001: 38). Armstrong 1999: 147-152 ).

In this respect, consumer behavior that is affected by some For instance, buying behavior of consumers from same
individual and environmental factors, become the center of culture or social group are similar to each other because they
marketing activities. Therefore, the subject of consumer have similar lifestyles, their learning, perception and
behavior is investigated frequently. The consumer buying motivation are close to each other (Schwartz 1981: 86 and
decision is a complex process and it is under effects of several Staff 1997: 223). Another affecting factor on buying behavior
factors. Although there is not a model that explains all aspects is demographic factors. For example, consumers are different
of consumer behavior, all models state that several individual ages, have different needs and wants, also their perception
and environmental factor affect consumer behavior (İslamoğlu may change according to their ages. Comparing young
2003: 52-53). consumers to adults, it can be seen that when adults pay more
attention to price, in contrast to young consumers who are
Companies segment their markets so they can respond concerned with image in the buying decision process (Autio
more effectively to the needs and wants of groups of 2005: 333-339).
prospective buyers and thus increase its sales and profits. By
the way of market segmentation, aggregating people or In this study, we focused on young consumers market and
organizations in a market according to the similarity of their affecting factors on consumer buying decision. A survey that
needs and the benefits they are looking for in making a was prepared to determine which factors affect brand choice is
purchase. Also, such needs and benefits must be related to conducted among university students. In the survey, mobile
specific, tangible marketing actions the firm can take. These phone has been chosen as an example product, today young
actions may involve separate products or other aspects of people have a mobile phone even if they do not need it.
marketing mix such as price, advertising etc. The process of Family, friends, attitudes, advertising, seller and selling place,
segmenting a market and selecting specific segments as targets brand image/quality and price have been determined as
is the link between the various buyers’ needs and the affecting factors, and effecting degree of these factors are
organizations’ marketing program (Berkowitz et all. 1994: evaluated according to demographic factors of students.
232-233).

Nowadays, young consumers are one of the most important www.turkishweekly.net/.../an-investigation-on-affecting-


and strategic target segments for several companies from factors-of-teenagers-brand-choice.html
different markets. The centres of marketing strategies of these april20,2010
companies are young consumers so they try to determine the
factors that affect consumer buying behavior (Ige 2004: 413).
he ideas, associations and images that people have
CONSUMER BUYING BEHAVIOR PROCESS AND of a shampoo brand determine the demand side of
AFFECTING FACTORS the brand equity equation. There are two ways in
which advertising is likely to influence perceived
product performance. First, by guiding the Inconveniently for advertisers, evaders are not
expectations about the shampoo experience - contained within any one demographic segment but
process called product enhancement and second, by are likely to be the smartest people within their
creating a halo of superiority around the brand via group and crucially, tend to be the people with the
a mechanic termed “ Interest – Status”. There are lowest price sensitivity, those who should be most
two key advertising related factors. First, the susceptible to brand messages.
advertisement needs to be remembered. This is
The research offers a worrying glimpse of the
important because its main influence is at the point
future. People are more likely to be evaders if they
of trial. Second, the message should relate in some
have satellite or cable. But all is not lost. Evaders
way to the experience of ‘using’ the product - for
do not respond to distinctive, relevant and original
instance, does it create any expectation of what the
advertising that catches them at the right time. Lord
shampoo would “ feel like to your hair” i.e., how
Leverhulme’s statement that only half the money he
will it take care of your hair and especially to your
spent on advertising was wasted, is beginning to
specifications. But the advertiser should always bear
look blithely optimistic.
in mind that the benefits proclaimed are in line
with what the product can actually deliver.
The real issue is creativity. What type of
Brands can have perceived advantages which are advertisements prevent evaders from avoiding. There
unrelated to the physical or sensual aspects of the is a strong correlation between likeability and
product delivery and relate more with the emotional awareness. More likeable ads are more effective at
appeal of the brand and the sense of belonging generating awareness. Ads should be enjoyable, to
which comes from being a buyer of the brand. In help brands build bonds with consumers. Individual
many respects this is an extension of the brand advertisers and agencies must identify and
presence, except that the presence is converted into understand the motivation of ad evaders and tailor
a relevant advantage only if it fits with the their creative and media solutions accordingly.
consumer’s emotional needs i.e. making a brand
worthy of its price tag. Planners must attempt to get psychological insights
Is advertising in Shampoo market ethical ? In a into the consumer that goes beyond number -
profession where the task of advertisers is to crunching. There are qualitative differences in how
suspend the consumer’s disbelief, there cannot be a people use and relate to media and these have
possibly straight answer. “ Use of Shampoo does enormous implications on media strategies. There is
not impair or damage hair”, “ Soaps make your dry, a hypothesis that the recall of brands would be
lifeless and lusterless”, are the statements we hear higher if they were advertised on programmes that
in shampoo advertisements. Research has proved enjoyed higher level of viewers.
that the consumer is quite willing to suspend his
disbelief and appreciate the hyperbole for what it is
worth. The consumer perfectly understands that this
is a mere exaggeration to make a point.
However, this issue becomes murkier when there is
an obvious attempt to mislead the consumer into
believing that the product delivers a benefit that is
actually not. This, by any sensible definition, is
definitely unethical. But exaggeration is an aspect of
advertising. When does it become misleading ? Is
Sunsilk or Organics which use filmstars or very well
known high strata celebrities who probably never
touch an Indian Shampoo, ethical ?
To my mind, is there anything unethical about these
advertisements. The role of advertising is to extol
the real or perceived virtues of a product. And just
like there is a poetic license, there is a certain
advertising license that the consumer is willing to
grant within limits.
There is a distinct segment of population who
actively seek to avoid advertising. These people
view as few as half the commercials seen by non -
evaders. They expect ad - breaks to contain boring
and irrelevant material and have thus developed
strategies of avoidance.