Consumer Buying

Behavior
 Learning Objectives
• Understand the major factors
influencing consumer behavior
• Know and recognize the types of
buying decision behavior
• Understand the stages in the buying
decision process
• Understanding Cognitive Dissonance
• The S curve
 Consumer Market
Consists of all the
individuals and households
who buy or acquire goods
and services for personal
consumption.
 Consumer Behavior
• Study of how individuals, groups and
organizations to select, buy, use and
dispose of goods, services, ideas or
experiences to satisfy their needs
and wants.
Understanding Customers
Roger’s S curve-Theory Of
Diffusion
 THE BUYER
• ROLES OF THE BUYER
INITIATOR
INFLUENCER
PAYER
DECIDER
BUYER
USER
 Types of Buying
Behavior
• Routine Response
• Limited Decision / Modified
Rebuy
• Extension Decision
• Impulse Buying
• Lexicographic Decision
 Characteristics
1.High Involvement Products:
• Complex nature of the product
• High Price
• Large differences between Alternatives
• High Perceived Risk
• Reflects Self-concept of the buyer

2. Low Involvement Products

• Similar Alternatives in the product class
• Non-reflection of buyer’s self-concept
• Frequent brand switching behaviour
 Types of Buying Decisions

High Low
Involvement Involvement
Significant Complex Variety-
differences
between Buying Seeking
brands Behavior Behavior
Few
differences Dissonance- Habitual
between Reducing Buying Buying
brands
Behavior Behavior
Stimulus and Consumer
Mind

Buy

Stimul Consum Respon

us er Mind se

Not Buy
Consumer Buying Decision
Process
PROBLEM RECOGNITION

INFORMATION GATHERING
EVALUATION OF
ALTERNATIVES
PURCHASE DECISION

ACQUISITIONS
POST _ PURCHASE
EVALUATIONS
 Adoption Process
1. Total Set
2. Awareness set
3. Consideration set
4. Decision Set
5. Purchase set
 Factors Influencing
Consumer Behavior
• Personal
• Psychologic
al
• Social
• Cultural
 Personal Factors
• Age
• Life-Cycle Stage
Stages in Family Life-Cycle
1. Single
2. Newly Married Couples
3. Full Nest I
4. Full Nest II
5. Full Nest III
6. Empty Nest I
7. Empty Nest II
8. Solitary Survivor
9. Solitary Survivor, Retired
 Personal Factors
• Age
• Life-Cycle Stage
• Occupation
• Economic Circumstances
• Life Style
 Psychological Factors
• “Wants”
– Based on a want or desire to
have something. Not a
necessity.
 Psychological Factors
Motivation:
– Freud
• Id
• Ego
• Super Ego
– Maslow
• Hierarchy of Needs
 Psychological Factors
• Motivation
• Perception
– The process by which an individual
selects, organizes, and interprets inputs
to create a meaningful picture of the
world.
• Selective Exposure
• Selective Distortion
• Selective Retention
 Psychological Factors
• Motivation
• Perception
• Learning
– Changes in an individual’s behavior
arising form experience
 Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs
– Descriptive thoughts that a person holds
about something
 Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs
• Attitudes
– Enduring favorable or unfavorable
cognitive evaluations emotional feelings
and action tendencies
 Functional Factors
• “Needs”
– Need over wants. Delivers to a
real “need” to have something.
 Social Class

Relatively homogenous, enduring

divisions in a society,
hierarchically ordered with
members sharing similar values,
interests, and behaviors.
 American Social Classes
• Upper Upper 1%
• Lower Upper 2%
• Upper Middle 12%
• Middle 32%
• Working 38%
• Upper Lower 9%
• Lower Lower 7%
 Group Influences
Brand Choice
Strong Weak
Product Choice

Public Luxuries Private Luxuries

Strong Golf Clubs TV Video Games
Snow Skis Ice Makers
Sail Boat Trash Compactors
Public Necessities Private
Weak Wrist Watch Necessities
Automobiles Mattresses
Dress Clothes Floor Lamps
Family Influence on Buying
Behavior

• Husband-Dominant
• Wife-Dominant
• Equal
 Culture & Subcultures
• Cultures
– The accumulation of values, knowledge,
beliefs, customs, objects, and concepts that a
society uses to cope with its environment
• Subcultures
– Groups of individuals who have similar value
and behavior patterns within the group but
differ from those in other groups.
 Examples of Buying Motives:
Psychological or Functional?
• A senior wants to impress his
date at the prom .
His primary motive is …?

Psychological
 Examples of Buying Motives:
Psychological or Functional?
• A girl wants to remember her
grandmother on her birthday.
Her primary motive is…?

Psychological
 Examples of Buying Motives:
Psychological or Functional?
• A homemaker needs a new washing
machine and has had good
experiences with Sears.
Her primary motive is …?

Functional
 Examples of Buying Motives:
Psychological or Functional?
• A teacher wants to buy a practical
car to be used for family
transportation.
Her/His primary motive is …?

Functional
 Examples of Buying Motives:
Psychological or Functional?
• A career woman always buys Liz
Claiborne clothes.
Her primary motive is…?

Psychological
 Examples of Buying Motives:
Psychological or Functional?
• An overweight 40 year old man
wants to loose weight so that he can
reduce his blood pressure.
His primary motive is…?

Functional
 Examples of Buying Motives:
Psychological or Functional?
• A homeowner needs to mow their
lawn.
Their primary motive is…?

Functional