Consumer behavior,Consumer Buying Behavior, Factors affecting consumer buying behavior, Customer buying role, Customer buying decision process.

1. CONSUMER BEHAVIOR

2. Why does Staples
sell Starbucks
coffee?

3. RESEARCH
 Out of 11000 products launched by 77
companies, only 56% are present five years
later – Kuczmaski & Associates
 Only 8% of new product concepts offered by
112 leading companies reached the market.
Out of this 83% failed to reach marketing
objectives

4. BASED ON CONCEPTS FROM
 Psychology
 Sociology
 Anthropology
 Marketing
 Economics

5.  Analyzing market opportunities
 Selecting target market
 Marketing mix decisions
 Use in social and Non profit marketing

6. IMPORTANCE
Significance in daily life
Application to Decision making

7. CONSUMER
PERCEPTION/
SENSATION
COGNITION
AFFECT
BELIEFS
SOCIAL AND
OTHER INFLUENCE
INFO
SEARCH
CHOICES
PREFERENCES
COMMUNICATION
MARKET
RESEARCH
STRATEGY
INFLUENCES ON AND OF CONSUMER BEHAVIOR

8. Factors affecting Consumer
Behavior

9. A: Social
Factors
• Reference
Group
• Family
• Role &
status
B: Cultural
Factor
• Culture
• Sub-culture
• Social Culture
C: Economic Factor
• Disposable
Income
• Size of Family
• Consumption &
saving
• Credit Available
• Additional income
D: Personal
Factors
• Age & life
cycle
• Occupation &
lifestyle
• Personality &
self Concept
E:
Psychological
Factors
• Motivation
• Perception
• Learning
• Attitude

10. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-12
Social Factors
Groups
Membership groups have a direct influence and to which a person
belongs.
These are usually related to its social origin, age, place of residence, work,
hobbies, leisure, etc..
Aspirational groups are groups to which an individual wishes to belong.
This group will have a direct influence on the consumer who, wishing to
belong to this group and look like its members, will try to buy the same
products.
Reference groups are groups that form a comparison or reference in
forming attitudes or behavior
They influence the image that the individual has of himself as well as his
behavior
These provide to the individual some points of comparison more or less
direct about his behavior, lifestyle, desires or consumer habits.
• Eg: cigarettes, beer and cars

11. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-13
Social Factors
Groups
Opinion leaders are people within a reference
group with special skills, knowledge,
personality, or other characteristics that can
exert social influence on others
• Buzz marketing enlists opinion leaders to
spread the word
• Social networking is a new form of buzz
marketing
• MySpace.com
• Facebook.com

12.  Social roles and status are the groups, family, clubs, and
organizations to which a person belongs that can define role
and social status
 The position of an individual within his family, his work, his country
club, his group of friends, etc.. – All this can be defined in terms of
role and social status.
 A social role is a set of attitudes and activities that an individual is
supposed to have and do according to his profession and his position
at work, his position in the family, his gender, etc.. – and expectations
of the people around him.
 Social status meanwhile reflects the rank and the importance of this
role in society or in social groups. Some are more valued than
others.

13. FAMILY:
 Forms an environment of
socialization in which an
individual will evolve, shape his
personality, acquire values.
 Develops attitudes and opinions
on various subjects such as
politics, society, social relations
or himself and his desires.
 also on his consumer habits, his
perception of brands and the
products he buys.
 We all kept, for many of us and
for some products and brands,
the same buying habits and
consumption patterns that the
ones we had known in our family.

14. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-8
Culture is the learned
values, perceptions,
wants, and behavior
from family and other
important institutions

15. I. CULTURAL FACTORS
 Culture and societal environment:
 Throughout his existence, an individual
will be influenced by his family, his
friends, his cultural environment or
society that will “teach” him values,
preferences as well as common
behaviors to their own culture.
 For a brand, it is important to understand
and take into account the cultural factors
inherent to each market or to each
situation in order to adapt its product and
its marketing strategy.
 Nationalities, religions, ethnic
groups, age groups, gender of
the individual, etc..
 Eg: Age- chayawanprash, kesri jeevan
for those who are near to retirement
 Gender: Pulsar- Definitely Male

16. Subculture are groups of people
who share the same values ​​based
on a common experience or a
similar lifestyle in general.
 The subcultures are often considered by
the brands for the segmentation of a
market in order to adapt a product or a
communication strategy to the values ​​or
the specific needs of this segment.
 Eg: Hindu bride in Red dress
 Sikh religion doesn’t permit hair
shaving
 South Indians prefer coffee
 North Indians prefer Tea
5-9

17. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-10
Social classes are society’s relatively permanent
and ordered divisions whose members share
similar values, interests, and behaviors
 Social classes are defined as groups more or less
homogenous and ranked against each other
according to a form of social hierarchy.
 Social class is measured by a combination of
occupation, income, education, wealth, and other
variables
 We often assume three general categories among
social classes : lower class, middle class and
upper class.
 People from different social classes tend to have
different desires and consumption patterns
Disparities resulting from the difference in their
purchasing power

18. D: Personal Factors
• Age & life cycle
• Occupation & lifestyle
• Personality & self Concept

19. AGE AND WAY OF LIFE:
 A consumer does not buy the same products or
services at 20 or 70 years. His lifestyle, values​​,
environment, activities, hobbies and consumer habits
evolve throughout his life.
 For example, during his life, a consumer could change
his diet from unhealthy products (fast food, ready
meals, etc..) to a healthier diet, during mid-life with
family before needing to follow a little later a low
cholesterol diet to avoid health problems.
 The factors influencing the buying decision process
may also change. For example, the “social value” of a
brand generally play a more important role in the
decision for a consumer at 25 than at 65 years.

20. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-18
Personal Factors
Lifestyle is a person’s pattern of living as
expressed in his or her psychographics
• Measures a consumer’s AIOs (activities, interests, and
opinions) to capture information about a person’s
pattern of acting and interacting in the environment
• The lifestyle of a consumer will influence on his
behavior and purchasing decisions.
• For example, a consumer with a healthy and
balanced lifestyle will prefer to eat organic products
and go to specific grocery stores, will do some
jogging regularly (and therefore will buy shoes,
clothes and specific products), etc..

21. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-22
Personal Factors
Personality : It materializes into some traits such as confidence,
sociability, autonomy, charisma, ambition, openness to others,
shyness, curiosity, adaptability, etc.. Personality refers to the
unique psychological characteristics that lead to consistent and
lasting responses to the consumer’s environment
Brand personality refers to the specific mix of human
traits that may be attributed to a particular brand
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness

22. Self-Concept :Self-concept refers to people’s possessions that contribute
to and reflect their identities
While the self-concept is the image that the individual has – or would
like to have – of him and he conveys to his entourage.
These two concepts greatly influence the individual in his choices and
his way of being in everyday life. And therefore also his shopping
behavior and purchasing habits as consumer.
In order to attract more customers, many brands are trying to develop
an image and a personality that conveys the traits and values ​​- real
or desired – of consumers they are targeting.
 Eg: cosmetics, designerware, Shopper’s
stop, Raymond with well known celebrity,

23. E: Psychological Factors
• Motivation
• Perception
• Learning
• Attitude

24. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-26
Psychological Factors
Motivation
A motive is a need that is sufficiently pressing to
direct the person to seek satisfaction
 To increase sales and encourage consumers to
purchase, brands should try to create, make
conscious or reinforce a need in the consumer’s
mind so that he develops a purchase motivation.
He will be much more interested in considering and
buy their products.
 They must also, according to research, the type of
product they sell and the consumers they target,
pick out the motivation and the need to which their
product respond in order to make them appear as
the solution to the consumers’ need.
 Eg: credit cards give individuals the power to
influence others and give them higher social status

25. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-27
Psychological Factors
Abraham Maslow’s Hierarchy of Needs
• People are driven by particular needs at
particular times
• Human needs are arranged in a hierarchy from
most pressing to least pressing
• Psychological
• Safety
• Social
• Esteem
• Self-actualization

26. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-28
Psychological Factors
Perception is the process by which people select,
organize, and interpret information to form a
meaningful picture of the world from three
perceptual processes
 Depending to his experiences, beliefs and
personal characteristics, an individual will have a
different perception from another.
 Each person faces every day tens of thousands of
sensory stimuli (visual, auditory, kinesthetic). It
would be impossible for the brain to process all
consciously. That is why it focuses only on some
of them.

27. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-29
Psychological Factors
Selective attention is the tendency for people to screen out
most of the information to which they are exposed
Eg: fast forwarding a video or audio
 Expectation
 Rewarding
Selective distortion is the tendency for people to interpret
information in a way that will support what they already
believe
Selective retention is the tendency to remember good
points made about a brand they favor and to forget good
points about competing brands
Eg: full page ads, contrasting and colorful, repetitions of
brand names in jingles

28. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
5-31
Psychological Factors
Beliefs and Attitudes
Belief is a descriptive thought that a person has
about something based on:
• Knowledge
• Opinion
• Faith
• Experience he acquires,
• Learning and
• his external influences (family, friends, etc..),
• He will develop beliefs that will influence his buying
behavior.

29. CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
Attitudes describe a person’s relatively consistent
evaluations, feelings, and tendencies toward an
object or idea
 While an attitude can be defined as a feeling, an
assessment of an object or idea and the
predisposition to act in a certain way toward that
object. Attitudes allow the individual to develop a
coherent behavior against a class of similar objects
or ideas.
 Beliefs as well as attitudes are generally well-
anchored in the individual’s mind and are
difficult to change.
 For many people, their beliefs and attitudes are
part of their personality and of who they are.
5-32
Psychological Factors
Beliefs and Attitudes

30. LEARNING:
 Learning is through action. When we act, we learn. It
implies a change in the behavior resulting from the
experience. The learning changes the behavior of an
individual as he acquires information and experience.
 For example, if you are sick after drinking milk, you
had a negative experience, you associate the milk
with this state of discomfort and you “learn” that
you should not drink milk. Therefore, you don’t buy
milk anymore.
 Rather, if you had a good experience with the
product, you will have much more desire to buy it
again next time.
 CASE: Mr Mathur’s Trip to Goa

31. C: Economic Factor
• Disposable Income
• Size of Family
• Consumption & saving
• Credit Available
• Additional income

32. CONSUMER PROBLEMS AND RECOGNITION
 Consumer problem:
Discrepancy between ideal and
actual state--e.g., consumer:
 Has insufficient hair
 Is hungry
 Has run out of ink in his or
her inkjet cartridge

33. CONSUMER DECISIONS:
THEORY AND REALITY IN CONSUMER BUYING
INFORMATION
SEARCH
PROBLEM
RECOGNITION
EVALUATION OF
ALTERNATIVES
PURCHASE
POSTPURCHASE
EVALUATION/
BEHAVIORS
Theory
Complications

34. APPROACHES TO SEARCH FOR PROBLEM
SOLUTIONS
INTERNAL
EXTERNAL
Memory
Thinking
Word of mouth, media,
store visits, trial CATALOG

35. OPTIONS IDENTIFIED AND CONSIDERED
UNIVERSAL SET
RETRIEVED SET
EVOKED SET
All possible options
Options that readily
come to mind
Options that will be
considered by the
consumer
Note: Retrieved and
evoked sets will vary
among different
consumers

36. REMINDER
 For low involvement
products, efforts aimed
at affecting internal
search tend to be more
effective—the consumer
is usually not willing to
expend energy on
external search.
 External search is more
likely for higher
involvement products.

37. ELEMENTS OF INFORMATION SEARCH
Sources of information
 Marketers source: like ads, brochures store
displays, website etc
 Non marketers sources: Personal: like friends,
relatives, past experiences etc
 Independent sources:
• Public Information: consumer reports, Govt
publications
• Product or service experts: home appraiser,
pharmacies etc

38. ELEMENTS OF INFORMATION SEARCH (CONTD)
Search strategies
Is the pattern of information acquisition
customers utilize to solve their problems
Customers weigh the cost in terms of physical
and mental efforts against gains from
information

39. ELEMENTS OF INFORMATION SEARCH (CONTD)
Amount of search
Efforts put into processing the information

40. DECISION MAKING ISSUES IN THE AMOUNT
OF SEARCH Involvement level
 Temporary
 Enduring(ongoing
interest)
 Consumer locus of control
 Internal
 External
 Product category complexity
 Consumer knowledge and
Expertise
 Time pressure

41. ALTERNATIVE EVALUATIONHow does he/she use the information to arrive
at a choice?

42. EVALUATION TYPE
 Compensatory model: Decision based on
overall value of alternatives (good attribute
can outweigh bad ones)
 Non-compensatory: Absolutely must meet
at least one important criterion (e.g., car
must have automatic transmission)
 Hybrid: Combination of the two (e.g., one
non-compensatory measure, then
compensatory tradeoffs on other attributes
 Abandoned strategy: Consumer finds initial
criteria unrealistic and proceeds to less
desirable solution
IMPORTANT
LESS
IMPORTANT

43. COMPENSATORY MODEL
 Customer arrives at choice by considering all
the attributes and benefits of a product or
service.
 simple additive rule:
 Weighted additive rule: based on relative
importance of each attribute like quality,
customer support, Price etc

44. NON-COMPENSATORY MODEL
Conjunctive model:
 Setting the minimum cutoff for each attribute.
 Each alternative is examined against the
minimum cutoff of all attributes
Ex. I want a saree whose price is below 5000,
should be pink in color and should be of
specific material

45. Disjunctive model:
 Entails tradeoff between aspects of choice
alternatives
 It considers sheer presence or absence of
attributes rather than the degree/amount in
which these attributes are present
 Should serve the same purpose
Ex: trade off between copy speed and dual
copying capability

46. PURCHASE
 Choice identification: (identifies most
preferred choice)
 Purchase intent: (determination that one will
buy the product)
 Implementation : (paying seeking and
obtaining transfer of ownership)

47. POST PURCHASE EXPERIENCE
 Decision confirmation:
 Experience evaluation:
 Satisfaction/dissatisfaction:
 Exit
 Voice
 loyalty

48. ATTITUDE CHANGE VIA COGNITIONS
(INFLUENCING BELIEFS)
- Changing consumer’s beliefs about the attributes of a brand
 Providing information about the brand
 Change existing beliefs
 Difficult
 Advertiser’s motives are suspect
 Change importance of attributes
 Add beliefs
Did you know that….?
 Change ideal (fashion)

49. LANGUAGE PROBLEMS
 “Please leave your values at the desk” - Paris hotel
 “Drop your trousers here for best results” - Bangkok
laundry
 “The manager has personally passed all water served
here” - Acapulco restaurant
 “Because of the impropriety of entertaining guests of
the opposite sex in the bedroom, it is suggested that
the lobby be used for the purpose.” - Zurich hotel
 Ladies are requested not to have children in the bar.”-
Norway bar

50. “COME ALIVE WITH PEPSI”
 “Come alive out of the grave” - Germany
 “Pepsi brings your ancestors back from the
grave” - China

51. BUYER BEHAVIOUR
Consumer
4Ps
Marketing
Environment
Buyer
Characteristics
Buyer
Decision Process
Buyer
Decision

52. MARKETING STIMULI
4 Ps
Product Price Place Promotion

53. OTHER STIMULI
Marketing
Environment
Economic Technological Political Cultural

54. BUYER CHARACTERISTICS
 Cultural
 Social
 Personal
 Psychological

55. BUYER’S DECISION PROCESS
 Problem Recognition
 Information Search
 Evaluation of Alternatives
 Purchase Decision
 Consumption
 Postpurchase behaviour

56. BUYER’S DECISION
 Product Choice
 Brand Choice
 Dealer Choice
 Purchase Timing
 Purchase Amount

57. PERSONAL FACTORS
 Family Life Cycle
 Occupation and Economic circumstances
 Lifestyle
 Personality and self - concept

58. PSYCHOLOGICAL FACTORS
 Motivation
 Perception
 Learning
 Beliefs and Attitudes

59. BUYING ROLES
 Initiator: sows the seed in customers’ mind
to buy a product.
 May be a part of the customer’s family
 A friend
 A colleague
 Or a salesperson

60.  Influencer:
 Influences the decision process
 Can be a expert

61.  Decider: the person who actually takes the
decision
 The decision can b joint also

62.  Buyer: actually buys the product
 This can be the decider himself or herself or
the initiator

63.  User: who actually consumes the product
 Can be the entire family or just one person

64. BUYING BEHAVIOUR
 Complex
 Dissonance - Reducing
 Habitual
 Variety seeking

65. BUYING PROCESS
 Problem Recognition
 Information Search
 Evaluation Alternatives
 Purchase Decision

66. POST - PURCHASE BEHAVIOUR
 Satisfaction
 Actions
 Use and Disposal