Byer Behav-with Descrip

Topics to be covered  After completing the session we have to learn the following:  Definition of Buyer Behavior/Consumer B  Factors that Influence Consumer Behavio  Buyer Decision Process  Stages in the Adoption Process  Adoption of innovations

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Consumer Buying Behavior 

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Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption. It is defined as “all psychological, social & physical behavior of potential customers as they become aware of, evaluate, purchase, consume & tell others about product & services.” 2

Factors Affecting Consumer Behavior Cultural Social Personal Psychological

Buyer

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Factors Affecting Consumer Behavior: Cultural 3 Factors: Culture, Subculture, Social Class  

1. Culture Most basic cause of a person's wants and behavior: • Values • Perceptions

2. Subculture

3. Social Class

• Groups of people with shared value systems based on common life experiences.

• People within a social class tend to exhibit similar buying behavior.

• nationalities

• Occupation

• religion

• Income • Education • Wealth 4

Factors Affecting Consumer Behavior: Social

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Reference

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Membership

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Groups

Family Husband, wife, kids Influencer, buyer, user

Social Factors

Roles and Status

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Factors Affecting Consumer Behavior: Personal Personal Influences Age and Family Life Cycle Stage Economic Situation

Occupation

Personality & Self-Concept

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Factors Affecting Consumer Behavior: Psychological Motivation

Beliefs and Attitudes

Psychological Factors

Perception

Learning 7

The Buyer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Post purchase Behavior 8

The Buyer Decision Process Step 1. Need Recognition Need Recognition

Difference between an actual state and a desired state

Internal Stimuli

External Stimuli

• Hunger

• TV advertising

• Thirst

• Magazine ad

• A person’s normal needs

• Radio slogan •Stimuli in the environment 9

The Buyer Decision Process Step 2. Information Search Personal Sources

•Family, friends, neighbors •Most influential source of information

Commercial Sources

•Advertising, salespeople •Receives most information from these sources

Public Sources Experiential Sources

•Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product

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The Buyer Decision Process Step 3. Evaluation of Alternatives Product Attributes

Evaluation of Quality, Price, & Features

Degree of Importance

Which attributes matter most to me?

Brand Beliefs

What do I believe about each available brand?

Total Product Satisfaction

Based on what I’m looking for, how satisfied would I be with each product?

Evaluation Procedures

Choosing a product (and brand) based on one or more attributes. 11

The Buyer Decision Process Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand

Attitudes of others

Unexpected situational factors

Purchase Decision 12

The Buyer Decision Process Step 5. Post purchase Behavior Consumer’s Expectations of Product’s Performance Product’s Perceived Performance

Satisfied Customer!

Bye it again / Tell other to Buy

Dissatisfied Customer Return the product/ Take decision not to bye again/ Take public actions

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Buying Decision Process Post purchase Behavior : The marker’s job does not end with the purchase. They must monitor following post purchase behavior  Post purchase satisfaction: Satisfaction is a function of the closeness between expectations & perceived performance. Three situation: • Disappointed: if performance<expectation • Satisfied: performance=expectation • Delighted: performance>expectation  Post purchase Actions:  If satisfied • they will buy it again • They also tell other to buy that brand  If dissatisfied: • Return the product • Take decision not to buy it again • May take public actions by complaining the company, going to lawyer, or to other groups 14

Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption 15

Buyers' Product Adoption Process 

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Awareness: Buyers become aware of the product Interest: Buyers seek information and is receptive to learning about product Evaluation: Buyers consider product benefits and determines whether to try it Trial: Buyers examine, test or try the product to determine usefulness relative to needs Adoption: Buyers purchase the product and can be expected to use it when the need for the general type of product arises. ## Rate of adoption depends on consumer traits as well as the product and the firm's marketing efforts. 16

Early Majority Innovators

Percentage of Adopters

Adoption of Innovations/Diffusion Process

Early  Adopters

34%

Late Majority

16%

13.5% 2.5%

Early

Laggards

34%

Time of Adoption

Late

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Diffusion Process 

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The manner in which different members of the target market often accept and purchase a product (go through the adoption process) Innovators: Techno-savvies first customers to buy a product, 2.5 % of consumers Early Adopters: Tend to be opinion leaders. Adopt new products but use discretion, 13.5% Early Majority: 34% of consumers, first part of the mass market to buy the product Late Majority: Less cosmopolitan and responsive to change, 34% Laggards: Price conscious, suspicious of change, 16%, do not adopt until the product has reached maturity. 18