CONSUMER Topic 7

Marketing
BEHAVIOUR Management
CONSUMER BEHAVIOR
Meaning & Importance
Buyer Decision Process
Buying Roles
Comparison between consumer buying behavior and
organizational buying behavior
CONSUMER BEHAVIOR
Objectives of study-
1. To know its relevance with managerial decision
making
2. To understand how environmental influences and
individual determinants affects buyer purchasing
decisions
3. To know ultimate buyer, industrial buyer and how
their purchasing differs
CONSUMER BEHAVIOR
Definition- A study of the decision process and
physical activity individuals engage in while
evaluating ,acquiring ,using , Consuming and disposing
off goods and services.
WHY TO STUDY
CONSUMER
BEHAVIOR
To answer the following questions-

1. Who buys the product?

2. What consumers buy?

3. Where they buy?

4. How & How much they buy?

5. When they buy?

6. Why they buy?

WHERE TO APPLY
CONSUMER BEHAVIOR
KNOWLEDGE
1. Market opportunity analysis 2.SEC :A+ & A,
Busy Lifestyle,
2. Target market selection Not motivated
3. Marketing mix determination for Exercise

1.Increasing
Diabetes, Blood
Pressure,
Heart Diseases
among Youth,
Fast Life,No 3.Cooking Oil with
time for PuFA,Rs.145 /-Lit.,
Exercise available in
Departmental
stores, It is health
Insurance
WHERE TO APPLY
CONSUMER BEHAVIOR
KNOWLEDGE
1. Market opportunity analysis
2.Not beautiful
2. Target market selection but beautiful
by mind
3. Marketing mix determination

1.Women
feeling low self
esteem on how
3.Dove-
they look
Moisturising soap,
High Price,
available in
Departmental
store, Kirana shop,
It will make you
 FACTORS AFFECTING
CONSUMER BEHAVIOR
External Determinants

Individual Determinants
Family Influences Cultural Factors

Purchase Attitud
Personality P
Process e

Motivation & Learning

Social Class
 INDIVIDUAL
DETERMINANTS
Attitude-
Individuals favorable or unfavorable feel towards an object,
situations

Attitud
e

There It has Structur Learned

must Direction e
have an
Object It has
Intensity
INDIVIDUAL
DETERMINANTS
Strategies for changing attitudes-
1.Link the product with an involving issue- Feviquick

2.Link the product with personal situation-Amul

3.Develop high involvement advertisement- Mahindra

Holidays

4. Introduce new Belief- Mc Aloo Tikki

INDIVIDUAL
DETERMINANTS
Personality:- Internal and Physical composition
of an individual
1. Psychoanalytic Theory: Id-Ego-Super ego
2. Social Theory: Compliant, Aggressive, Detached
INDIVIDUAL
DETERMINANTS
Motivation-

-Inner state that mobilizes bodily

energy and directs it in selective
fashion towards goals usually located in
external environment.
Role of motives- Defining Basic strivings
Identifying Goal
Objectives
Influencing choice
criteria
Directing other
influences
EXTERNAL
DETERMINANTS
Culture-
-The complex whole that includes knowledge,
belief, art, law, customs and any other
capabilities acquired by man as a member of
society.
-The distinctive way of life of a group of
people

Values-Centrally held and enduring beliefs,

serve as a standards. Mc D in Gujarat
EXTERNAL
DETERMINANTS
Social Class-

It is general term whereby people in a

society are ranked by other members
of society in to higher and lower social
positions, which produces hierarchy of
respect and prestige.
SITUATION FACTORS
INFLUENCING NEEDS
Family Life Cycle
BUYING PROCESS

Need Recognition

Information Search
Evaluation of
Alternatives
Purchase Decision
Postpurchase
Behaviour
1.NEED RECOGNITION
Why Need /Problem arises?
1.Satisfaction Optimization
2. Satisfaction Maintenance
3.Prevention of possible future problems
4.Problem avoidance
5.Conflict resolution
1. NEED
RECOGNITION
Other Situations Leading to Need/ problem recognition-
1.Depleted or inadequate stock
2.Discontentment with existing stock
3.Changing financial circumstances
4.Marketing efforts
MASLOW’S
HIERARCHY OF Internal
NEEDS Satisfaction

Self
Actualiza
tion
Esteem –
Respect of
others
Social – Affection
for & from others

Safety – Danger
avoidance

Physiological – Satisfaction of
basic hunger
SOCIAL INFLUENCES
ON NEEDS
The manifestation of needs is influenced by the society
in which an individual lives
 The family influences a child’s perception of the world, & this
influence lasts into adulthood
 Individuals are surrounded by peer groups that act as a guide for
behaviour
 Individuals can identify with a social class, and the values of this
class can influence behaviour
 Culture in its widest sense influences our buying behaviour
2.INFORMATION
SEARCH
Q. In which buying situation customer gather
more information, Routine, Modify or Completely
novel ?
Sources of Information
 Personal Experience
 Word-of-mouth
 Reference groups
 Newspaper editorials, customer reviews
2.INFORMATION
SEARCH
Determinants of Information search-
1.Product characteristics
House-Washing Machine-Pen
2.Consumer characteristics-
Individual Buyer Vs. Organization Buyer
3.Situation characteristics
BUYING SITUATIONS

Routine rebuy – Routinely buying the same products.

E.g. Daily newspaper, Paste

Modified rebuy – Buyer may be familiar with the

class of product, but this time wants something a little
different. E.g. Liquid soap

Completely Novel – No previous experience of

Buying. E.g. Buying a car, Flat, Foreign Trip
 PURCHASE
INVOLVEMENT
Product Level of Risk Decision
Involvem Time
ent
Pen
Toothpast
e
Two
wheeler
Flat
4. DECISION
Who is actually responsible for making a purchase
decision?
Who are influencers?
Outcome of the evaluation process may be:
 Buy now
 Do not buy at all
 Defer the process
 Start the process again
4. DECISION
When will the product be bought?
What will be the date of delivery?
From which retailer?
How many will be bought?
Will any optional accessories will be bought?
How will the purchase be paid?
 5. POST-PURCHASE
EVALUATION
Post purchase what customers exhibit?
Cognitive Dissonance:
 In which customers expectations are out of line with the reality
 Handling dissonance(Customers):
 Return the goods
 Complaining & telling friends about the bad product
 Convincing ourselves, that we did not make a bad decision
 Managing Dissonance(Manager)
 BUYING ROLES
Members
Initiator
of DMU

Use Influen
r Buyin cer
g
Roles
Decid
Buyer
er
 INFLUENCERS
These are people or groups of people
whom the decision-maker refers
Primary reference groups – Major
influence on purchase
Secondary reference groups
Which opinion leader to target to achieve
maximum “trickle down effect”
GATEKEEPERS

They act as a filter

 Restricting the subsequent choice from entering the decision choice
set

 E.g. Purchase Managers personal assistant

BUYERS

People who actually undertakes the tasks of buying a

product

Low-budget items – Decision is left to the discretion of

a buyer
 E.g. Office Stationary
USERS

Individual or set of people who may not be responsible

for buying
 E.g. Children

 Employees

 General Public
DECISION-MAKER

Individual carrying the most weight, whether he

executes the purchase himself or instructs others to do
so
 Male dominates the decisions related to financial services

 Female ?
 PERSONAL &
ORGANIZATIONAL
Personal BB
Organizational
Only personal needs are met Two set of needs are met:
1. Organizations
2. Individuals
•DMU – Individual influencing • DMU also reveal a wider range
factors of influencers

Individual or Personal purchases Organizational purchases are

may not be formal always more likely to be made
according to formalized
routines
Individuals may emphasis on Organizations emphasis is on
price reliability & performance
May have more risk as people More people involved, Lengthy
involved in decision-making may process, so minimizes risk
not be competent in all the fields.
2. DESIGNING A
CUSTOMER-DRIVEN
MARKETING STRATEGY
Difference Between Selling & Marketing
Selling Marketing
Selling starts with Marketing starts with
sellers buyers
Seller is the centre Customers are the
point of business centre point of
universe business universe
Emphasis is on selling Emphasis is on
surplus available with identifying the needs
the corporation of the customers
Concentrates on Concentrates on long
techniques & tricks of term relationship
selling products
2. DESIGNING A
CUSTOMER-DRIVEN
MARKETING STRATEGY
Difference Between Selling & Marketing
Selling Marketing
Sellers requirement Buyers determines the
dominates the shape of “Marketing
“Marketing Mix” Mix”
Firm makes the The product is
product & then figures determined by the
out how to sell it buyer
Emphasis is on staying Emphasis is on
with the existing providing better value
technology & reducing to the customers
cost
Distribution function Value adding process
2. DESIGNING A
CUSTOMER-DRIVEN
MARKETING STRATEGY
Difference Between Selling & Marketing
Selling Marketing
Sellers motive MC is looked as the
dominates the tool for
marketing communicating
communication benefits & satisfaction
of the product
Cost determines the Consumer determines
price the price; price
determines cost
No coordination Emphasis is on
among the different integrated marketing
functions
Thank You