Mm_ Buyer’s Behaviour

Buyer’s Behavior Definition “All psychological, social, and physical behavior of the potential customers as they become aware of evaluate, purchase, consume and tell others about products and services” “It is the study of processes involved when individuals or groups select,purchase,use or dispose of products,services,ideas, concepts or experiences to satisfy consumer needs and desires”

Why customer buy the product recommendation of family or friend

55%

TV commercial

53% 48%

store display

46%

free sample in the mail

45%

fillers,newspapeers coupons

0

10

20

30

40

50 3-D Bar 1

60

The Concept……….. • Study of consumer behavior assumes that consumers are the actors in the market place. • Consumer play different buying roles in the market: • Initiator • Influencer • Gatekeeper ( Parents) • Decider • Buyer • User • Preparer • Maintainer • Disposer

Factors influencing buyer’s behavior • Cultural influence • culture refers to values, ideas, attitudes and other meaningful symbols created by people to shape human behaviors . • Values, beliefs, preferences, tastes handed down generation to generation. • Cultural is different from country to country, area to area.

Factors influencing buyer’s behavior • Social Influence • Group often influence individual purchase • Reference groups- people or institutions whose opinion are valued, to whom a person looks for guidance. ( family, friends and celebrities) • Social classes - upper-upper class,lower-uper class,upper-midle

Factors influencing buyer’s behavior • Opinion Leaders• The process of influencing others • Opinion via word of mouth • Information from media to opinion leaders to other members • Celebrities,experts,salesman,delear can be opinion leaders

Factors influencing buyer’s behavior • Family influence • Structure of the family is changed • Autonomic role- individual decision • Husband dominant role • Wife-dominant role • Syncratic role • Children role in purchasing

Factors influencing buyer’s behavior

• Personal determinants • Needs and motives • Maslow’s Hierarchy of needs : • Physiological needs( Basic needs)- food, water, shelter, clothing • Safety needs-( security, protection) insurance, medicines, retirement investments • Social/Belongingness needs-( Desire to accepted by people) beauty aids, good clothing, cars • Esteem needs-(sense of achievement, accomplishment) quality clothing, jewelries, hobbies Self- Actualization needs-( to show unique talents and capabilities) education, cultural

Factors influencing buyer’s behavior • Perceptions• Perceptions through sight, hearing, touch, taste, and smell. • Perceptions regarding size, color, weight, shape. • Attitudes• Consumers decision to purchase the product is strongly based on his attitudes about the product.( Brand preference)

Factors influencing buyer’s behavior • Learning • Customer learns from his experience. • The marketer should develop the habit of purchasing. • Self concept theory( self image) • Persons multifaceted picture of himself plays imp. role in buying behavior. • Family, social and cultural influences affect self concept.

Buyer’s decision process • Step-1 • Problem Identification/Need Recognition • • • • •

No problem arise, no purchasing decision Marketer has to create need for their product Difference between actual state and desired state Need arise through TV ad, magazines etc. ( MRF, Tata Sky plus, close up ,bike)

Buyer’s decision process • Step-2 • Development of decision criteria • Consultation with friend, relatives about products • Opinion leader

• Step-3 • Search for alternatives • Searching for alternatives through media, magzines,newspapers,etc • Personal sources, public sources. commercial sources

Buyer’s decision process • Step-4 • Evaluation of alternatives • Weightage given on the parameters ( taste drive) • Resale value • After sales services

• Step-5 • Decision • Decision of buying can be changed because of various reasons.

Buyer’s decision process • Step-6 • Post purchase evaluation • Satisfied or unsatisfied customer • Customer anxieties called Cognitive Dissonance.( Imbalance between knowlodge,attidtdes and beliefs) • Rejected alternatives provides desirable features that chosen alternatives do not provide.

Industrial buying behavior Vs Domestic buying behavior • Buying motives • Domestic buyers purchase product for own consumption. • Industrial buyer purchase product for adding value to the product which is then sold to another customer. • Organization purchase the product to improve their own efficiency and work environment. ( Office machines) • Orgasitional motives are more rational than psychological. • Domestic buyers motives more psychological than rational.

Industrial buying behavior Vs Domestic buying behavior • Size of buyer • Orgasitional buyers are few but the quantity they purchase in bulk. • Domestic buyers are large in numbers but the quantity is very less. • Okrgasitional buyer budget of purchase is in lakh of rupees. • Domestic buyers budget never exceed a few thousand Rs.

Industrial buying behavior Vs Domestic buying behavior • Risk in purchases • Risk in orgasitional purchases are higher than domestic purchase. • Previous experience with supplier, vender, supplier standing in the industry are some factors that help organization to reduce the risk.

• Purchase decisions • The cost and risk of industrial purchase is high so these decisions are taken jointly by involving many individuals. • Individuals can take decision in domestic purchase.

Industrial buying behavior Vs Domestic buying behavior • Concentration of buyers • Orgasitional buyers are concentrated in same geographical area. • Domestic buyers are spread everywhere.

• Adherence to specification • Orgasitional buyers they are stick to their product specification because it affect their efficency,priduct quality, after sales service, market share and ROI. • Domestic buyers do not so rigid to their specification.

Customer values and satisfaction “Customer’s perceived value is the bundle of economic, functional and psychological benefits that customer expects from a given market offering.” The idea of value of maximation Total customer benefits • Emotional/self expressive benefit • Service benefits • Performance benefit • Brand/company benefits • Product benefit

Classification of customer values • Functional values- ( Physical performance) • Social values- ( gifts, entertainment products, washing soap)

• Emotional values- ( Health care products) • Conditional values • Products are used in particular conditions( coffee, sunscreen lotions, warm clothes in cold area) • Universal values ( satisfying the needs of customer) • Personal values ( satisfying wants of customer)

Customer satisfaction • Customer purchase the product with some expectations. • Compare the performance of the product with satisfaction. • Performance match with expectation- satisfied • Performance exceeds with expectation- delighted • Performance fall below with expectationdissatisfied • Satisfied customer- brand loyal, rentation of customer

Customer delight • Every customer has some expectations from the product. • When the product satisfied beyond his expectation he delighted. • He became brand ambassador of that product.