Contents of Class Notes

What is Consumer Buying Behavior?

Stages of Consumer Buying Behavior?

Types of Consumer Buying Behavior.

Categories That Effect Consumer Buying Behavior.

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Personal

Psychological

Social

What is Consumer Buying Behavior?

Definition of Buying Behavior:
Buying Behavior is the decision processes and acts of people involved in buying and using products.
Need to understand:

why consumers make the purchases that they make?

what factors influence consumer purchases?

the changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to
analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the firms success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies
(gives utility to) customers, therefore need to analyze the what, where, when and how consumers
buy.

Marketers can better predict how consumers will respond to marketing strategies.

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Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is
only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do
not always include all 6 stages, determined by the degree of complexity...discussed next.
The 6 stages are:
1. Problem Recognition(awareness of need)--difference between the desired state and the actual
condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know you were
deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you
need a new pair of shoes.
2. Information search-o

Internal search, memory.

External search if you need more information. Friends and relatives (word of mouth).
Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is
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chinese food
indian food

burger king

klondike kates etc

3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or
does not want. Rank/weight alternatives or resume search. May decide that you want to eat
something spicy, indian gets highest rank etc.
If not satisfied with your choice then return to the search phase. Can you think of another
restaurant? Look in the yellow pages etc. Information from different sources may be treated
differently. Marketers try to influence by "framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package, store, method of
purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance,
have you made the right decision. This can be reduced by warranties, after sales communication
etc.
After eating an indian meal, may think that really you wanted a chinese meal instead.
Handout...Pillsbury 1-800#s
1-800 #s gives the consumer a way of communicating with the marketer after purchase. This helps
reduce cognitive dissonance when a marketer can answer any concerns of a new consumer.
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Types of Consumer Buying Behavior
Types of consumer buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of interest in a product in a
particular situation.
Buyers level of involvement determines why he/she is motivated to seek information about a
certain products and brands but virtually ignores others.
High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the
higher the risk the higher the involvement. Types of risk:
Personal risk
Social risk

Economic risk

The four type of consumer buying behavior are:

Routine Response/Programmed Behavior--buying low involvement frequently purchased low
cost items; need very little search and decision effort; purchased almost automatically. Examples
include soft drinks, snack foods, milk etc.
Limited Decision Making--buying product occasionally. When you need to obtain information
about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of
time for information gathering. Examples include Clothes--know product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or

infrequently bought products. High degree of economic/performance/psychological risk.
Examples include cars, homes, computers, education. Spend alot of time seeking information
and deciding.
Information from the companies MM; friends and relatives, store personnel etc. Go through all
six stages of the buying process.

Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying Behavior. Product can shift
from one category to the next.
For example:
Going out for dinner for one person may be extensive decision making (for someone that does not go
out often at all), but limited decision making for someone else. The reason for the dinner, whether it is
an anniversary celebration, or a meal with a couple of friends will also determine the extent of the
decision making.
Categories that Effect the Consumer Buying Decision Process
A consumer, making a purchase decision will be affected by the following three factors:
1. Personal
2. Psychological
3. Social
The marketer must be aware of these factors in order to develop an appropriate MM for its target
market.
Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making.
Young people purchase things for different reasons than older people.
Handout...From choices to checkout...
Highlights the differences between male and female shoppers in the supermarket.
Psychological factors
Psychological factors include:
Motives--

A motive is an internal energizing force that orients a person's activities toward satisfying a need
or achieving a goal.
Actions are effected by a set of motives, not just one. If marketers can identify motives then they
can better develop a marketing mix.
MASLOW hierarchy of needs!!
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Physiological
Safety

Love and Belonging

Esteem

Self Actualization

Need to determine what level of the hierarchy the consumers are at to determine what motivates
their purchases.
Handout...Nutrament Debunked...
Nutrament, a product marketed by Bristol-Myers Squibb originally was targeted at consumers
that needed to receive additional energy from their drinks after exercise etc., a fitness drink. It
was therefore targeted at consumers whose needs were for either love and Belonging or esteem.
The product was not selling well, and was almost terminated. Upon extensive research it was
determined that the product did sell well in inner-city convenience stores. It was determined that
the consumers for the product were actually drug addicts who couldn't not digest a regular meal.
They would purchase Nutrament as a substitute for a meal. Their motivation to purchase was
completely different to the motivation that B-MS had originally thought. These consumers were
at the Physiological level of the hierarchy. BM-S therefore had to redesign its MM to better meet
the needs of this target market.
Motives often operate at a subconscious level therefore are difficult to measure.

Perception-What do you see?? Perception is the process of selecting, organizing and interpreting
information inputs to produce meaning. IE we chose what info we pay attention to, organize it
and interpret it.
Information inputs are the sensations received through sight, taste, hearing, smell and touch.
Selective Exposure-select inputs to be exposed to our awareness. More likely if it is linked to an
event, satisfies current needs, intensity of input changes (sharp price drop).
Selective Distortion-Changing/twisting current received information, inconsistent with beliefs.
Advertisers that use comparative advertisements (pitching one product against another), have to
be very careful that consumers do not distort the facts and perceive that the advertisement was
for the competitor. A current example...MCI and AT&T...do you ever get confused?
Selective Retention-Remember inputs that support beliefs, forgets those that don't.
Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30
minutes-60% of purchases are unplanned. Exposed to 1,500 advertisement per day. Can't be
expected to be aware of all these inputs, and certainly will not retain many.

Interpreting information is based on what is already familiar, on knowledge that is stored in the
memory.
Handout...South Africa wine....
Problems marketing wine from South Africa. Consumers have strong perceptions of the country,
and hence its products.

Ability and Knowledge-Need to understand individuals capacity to learn. Learning, changes in a person's behavior
caused by information and experience. Therefore to change consumers' behavior about your
product, need to give them new information re: product...free sample etc.
South Africa...open bottle of wine and pour it!! Also educate american consumers about changes
in SA. Need to sell a whole new country.
When making buying decisions, buyers must process information.
Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than those who have
knowledge of a product.
Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they
assume that the greater price indicates greater quality.
Learning is the process through which a relatively permanent change in behavior results from the
consequences of past behavior.

Attitudes-Knowledge and positive and negative feelings about an object or activity-maybe tangible or
intangible, living or non- living.....Drive perceptions
Individual learns attitudes through experience and interaction with other people.
Consumer attitudes toward a firm and its products greatly influence the success or failure of the
firm's marketing strategy.
Handout...Oldsmobile.....
Oldsmobile vs. Lexus, due to consumers attitudes toward Oldsmobile (as discovered by class
exercise) need to disassociate Aurora from the Oldsmobile name.
Exxon Valdez-nearly 20,000 credit cards were returned or cut-up after the tragic oil spill.
Honda "You meet the nicest people on a Honda", dispel the unsavory image of a motorbike rider,
late 1950s. Changing market of the 1990s, baby boomers aging, Hondas market returning to hard
core. To change this they have a new slogan "Come ride with us".
Attitudes and attitude change are influenced by consumers personality and lifestyle.
Consumers screen information that conflicts with their attitudes. Distort information to make it
consistent and selectively retain information that reinforces our attitudes. IE brand loyalty.

There is a difference between attitude and intention to buy (ability to buy).

Personality-all the internal traits and behaviors that make a person unique, uniqueness arrives from a person's
heredity and personal experience. Examples include:
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Workaholism
Compulsiveness

Self confidence

Friendliness

Adaptability

Ambitiousness

Dogmatism

Authoritarianism

Introversion

Extroversion

Aggressiveness

Competitiveness.

Traits effect the way people behave. Marketers try to match the store image to the perceived
image of their customers.
There is a weak association between personality and Buying Behavior, this may be due to
unreliable measures. Nike ads. Consumers buy products that are consistent with their self
concept.

Lifestyles-Recent US trends in lifestyles are a shift towards personal independence and individualism and a
preference for a healthy, natural lifestyle.
Lifestyles are the consistent patterns people follow in their lives.
EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until
1920's. Now an assault by the American Academy of Dermatology.
Handout...Here Comes the Sun to Confound Health Savvy Lotion Makers..

Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference
groups, social class and culture.
Opinion leaders--

Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople
to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)
Can be risky...Michael Jackson...OJ Simpson...Chevy Chase

Roles and Family Influences-Role...things you should do based on the expectations of you from your position within a group.
People have many roles.
Husband, father, employer/ee. Individuals role are continuing to change therefore marketers
must continue to update information.
Family is the most basic group a person belongs to. Marketers must understand:
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that many family decisions are made by the family unit

consumer behavior starts in the family unit

family roles and preferences are the model for children's future family (can
reject/alter/etc)

family buying decisions are a mixture of family interactions and individual decision
making

family acts an interpreter of social and cultural values for the individual.

The Family life cycle: families go through stages, each stage creates different consumer
demands:
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bachelor stage...most of BUAD301

newly married, young, no children...me

full nest I, youngest child under 6

full nest II, youngest child 6 or over

full nest III, older married couples with dependant children

empty nest I, older married couples with no children living with them, head in labor force

empty nest II, older married couples, no children living at home, head retired

solitary survivor, in labor force

solitary survivor, retired

Modernized life cycle includes divorced and no children.

Handout...Two Income Marriages Are Now the Norm

Because 2 income families are becoming more common, the decision maker within the family
unit is changing...also, family has less time for children, and therefore tends to let them influence
purchase decisions in order to alleviate some of the guilt. (Children influence about $130 billion
of goods in a year) Children also have more money to spend themselves.

Reference Groups--

Individual identifies with the group to the extent that he takes on many of the values, attitudes or
behaviors of the group members.
Families, friends, sororities, civic and professional organizations.
Any group that has a positive or negative influence on a persons attitude and behavior.
Membership groups (belong to)
Affinity marketing is focused on the desires of consumers that belong to reference groups.
Marketers get the groups to approve the product and communicate that approval to its members.
Credit Cards etc.!!
Aspiration groups (want to belong to)
Disassociate groups (do not want to belong to)
Honda, tries to disassociate from the "biker" group.
The degree to which a reference group will affect a purchase decision depends on an individuals
susceptibility to reference group influence and the strength of his/her involvement with the
group.

Social Class-an open group of individuals who have similar social rank. US is not a classless society. US
criteria; occupation, education, income, wealth, race, ethnic groups and possessions.
Social class influences many aspects of our lives. IE upper middle class Americans prefer luxury
cars Mercedes.
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Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic names.

Lower-upper class, 1.2%, newer social elite, from current professionals and corporate
elite

Upper-middle class, 12.5%, college graduates, managers and professionals

Middle Americans-middle class, 32%, average pay white collar workers and blue collar
friends

Working class, 38%, average pay blue collar workers

Lower Americans-lower class, 9%, working, not on welfare

Lower-lower class, 7%, on welfare

Social class determines to some extent, the types, quality, quantity of products that a person buys
or uses.
Lower class people tend to stay close to home when shopping, do not engage in much
prepurchase information gathering.
Stores project definite class images.
Family, reference groups and social classes are all social influences on consumer behavior. All
operate within a larger culture.

Culture and Sub-culture--

Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group
of people and transmitted to the next generation.
Culture also determines what is acceptable with product advertising. Culture determines what
people wear, eat, reside and travel. Cultural values in the US are good health, education,
individualism and freedom. In american culture time scarcity is a growing problem. IE change in
meals. Big impact on international marketing.
Handout...Will British warm up to iced tea?
No...but that is my opinion!!...Tea is a part of the British culture, hot with milk.
Different society, different levels of needs, different cultural values.
Culture can be divided into subcultures:
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geographic regions
human characteristics such as age and ethnic background.

IE West Coast, teenage and Asian American.

Culture effects what people buy, how they buy and when they buy.
Understanding Consumer Buying Behavior offers consumers greater satisfaction (Utility). We must
assume that the company has adopted the Marketing Concept and are consumer oriented.