2. Consumer Buying Behavior
By Prof. Raghavendran Venugopal2
Consumer Buying Behavior refers to
the buying behavior of final consumers
(individuals & households) who buy
goods and services for personal
consumption.
Study consumer behavior to answer:
“How do consumers respond to
marketing efforts the company might
use?”
3. Model of Consumer Behavior
By Prof. Raghavendran Venugopal3
Marketing and
Other Stimuli
Buyer’s Black Box
Buyer’s Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Characteristics
Affecting
Consumer
Behavior
Buyer’s
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Purchase
Timing
Purchase
Amount
5. Factors Affecting Consumer Behavior:
Culture
Most basic cause of a person's wants and
behavior.
Values
Perceptions
Social Class
• People within a social class
tend to exhibit similar buying
behavior.
• Occupation
• Income
• Education
• Wealth
Subculture
• Groups of people with shared
value systems based on
common life experiences.
• Hispanic Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers
6. Factors Affecting Consumer Behavior: Social
By Prof. Raghavendran Venugopal6
Groups
•Membership
•Reference
Family
•Husband, wife, kids
•Influencer, buyer, user
Roles and Status
Social Factors
7. Factors Affecting Consumer Behavior:
Personal
By Prof. Raghavendran Venugopal7
Personal Influences
Age and Family Life Cycle
Stage
Occupation
Economic Situation
Lifestyle Identification
Activities Opinions
Interests
Personality & Self-Concept
10. Maslow’s Hierarchy of Needs
By Prof. Raghavendran Venugopal10
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Self
Actualization
(Self-development)
11. Types of Buying Behavior
Decisions
By Prof. Raghavendran Venugopal11
Complex
Buying
Behavior
Dissonance-
Reducing Buying
Behavior
Variety-
Seeking
Behavior
Habitual
Buying
Behavior
High
Involvement
Significant
differences
between
brands
Few
differences
between
brands
Low
Involvement
12. Stages in The Buyer Decision
Process
By Prof. Raghavendran Venugopal12
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
13. The Buyer Decision Process
Step 1. Need Recognition
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the
environment
Internal Stimuli
• Hunger
• Thirst
• A person’s normal
needs
Need Recognition
Difference between an actual state and a desired state
By Prof. Raghavendran Venugopal13
14. Step 2. Information Search
By Prof. Raghavendran Venugopal14
•Family, friends, neighbors
•Most influential source of
information
•Advertising, salespeople
•Receives most information
from these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
15. 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.By Prof. Raghavendran Venugopal15
16. Step 4. Purchase Decision
By Prof. Raghavendran Venugopal16
Purchase Intention
Desire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors
17. Step 5. Post purchase Behavior
Consumer’s Expectations of
Product’s Performance
Dissatisfied
Customer
Satisfied
Customer!
Product’s Perceived
Performance
Cognitive DissonanceBy Prof. Raghavendran Venugopal17
18. Stages in the Adoption
Process
By Prof. Raghavendran Venugopal18
Awareness
Interest
Evaluation
Trial
Adoption
19. Adoption of Innovations
By Prof. Raghavendran Venugopal19
PercentageofAdopters
Time of Adoption
Early Late
Innovators
Early
Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
20. Business Markets & Buying
Behavior
By Prof. Raghavendran Venugopal20
Characteristics of Business Buyers
Fewer buyers
Larger buyers
Geographically concentrated buyers
Derived Demand
Inelastic demand
Fluctuating demand
Professional Purchase
21. Buying Decisions of Business
Buyers
By Prof. Raghavendran Venugopal21
Straight Rebuy
Modified Rebuy
New Task
22. Business Markets Buying
process
By Prof. Raghavendran Venugopal22
Problem
Recognition
Need
General
explanation
Product
Specification
Supplier
Search
Product
Solicitation
Supplier
Selection
Order
Routine
Specification
Performance
Appraisal
23. Seminar time: 7th May
By Prof. Raghavendran Venugopal23
TEAM 5 should give seminar on Consumer
Protection and its act, with INDIAN Context
24. Assignment time 8th May
By Prof. Raghavendran Venugopal24
Define Consumer Buying Behavior.
Explain the Simple Model of CBB.
Explain the Different Buying Behavior Decisions
Enumerate with neat sketch of Stages of Buying
Decisions process.
What is adoption process, explain the stages
involved in it.
Differentiate between Consumer and
Organizational Buying behavior.