WEEK4
Buyer Behavior
• Marketing is concerned with identification
and satisfaction of needs.
• It is important that marketers understand the
needs and the factors that influence these
needs and how customers go about satisfying
these needs .
• two kinds of buyers exist :
- Consumer buyers
- Organizational buyers
Buyer Behavior
• Consumer buyer behavior refers to the buying
behavior of final consumers –individuals and
households who buy goods and services for
personal consumption .
• All these final consumers make up the
consumer market .
Factors Affecting Consumer Behaviour
Factors Affecting Consumer Behaviour
• Culture - Culture is widely defined as the
programming of the mind that distinguishes
one society from another (Hofstede, 1960).
– It is learned and shared by a group
– Children are exposed to values shared by the
group
– Marketers try to spot differences or cultural shifts
that may lead to new products needed
Factors Affecting Consumer Behavior
• Social factors - also influence consumers
behaviour i.e. family, social class, roles,
– These are learnt and shared by a group
– Children are exposed to values shared by the
group
– Marketers try to spot differences or shifts that
may lead to new products needed
Gender, Roles
Family
Family
C
A
B
D E
Factors Affecting Consumer Behavior
• Personal factors - also influence consumers
behaviour
Factors Affecting Consumer Behavior
• Psychological factors - also influence
consumers behaviour i.e.
– Motivation
– Perception: (selective attention, selective
distortion and selective retention)
– Learning
– Beliefs
– Attitudes
Factors Affecting Consumer Behavior
• Consumer buyer behavior refers to the buying
behavior of final consumers –individuals and
households who buy goods and services for
personal consumption . All of these final
consumers make up the consumer market .
Buyer Decision Process
• Consumers viewed as systematic decision
makers
• Most decision making is sequential and logical
Buyer Decision Process
• Consumers viewed as systematic decision
makers
• Most decision making is sequential and logical
Buyer Decision
Process
1 . Need recognition
o when consumers recognise the state of
deprivation
o This can be influenced by advertising which
points out & activate needs that will motivate
consumption
o companies advertising products tied to seasons/
festivals
o companies have to bear in mind benefits
customers seek
o Its not Christmas without lobsters, turkey , etc
Buyer Decision
Process
2. Information search
o Search for information about available
options
o consumers refer to internal sources (past
experience & knowledge) and external
(detailed adverts, instore info)
o numerous opportunities for advertiser to
influence the final decision
o repeated advertising can result in brands
being in the evoked set
o ensure product meets evaluative criteria
Buyer Decision
Process
3. Alternative evaluation
o Alternatives evaluated based on
the buyers criterion
o Shortlisting of options
o Selection of most attractive
option
o Marketers must ensure that
products meet evaluative criteria
Buyer Decision
Process
3. Alternative evaluation
o Alternatives evaluated based on the
buyers criterion
o Shortlisting of options
o Selection of most attractive option
o Marketers must ensure that products
meet evaluative criteria
Buyer Decision
Process
4. Purchase
o not the final step
o need to turn trial into repeat
purchase
o encourage brand loyalty
o Competition also trying to get
customers to try their products
Buyer Decision
Process
5. Post purchase use & evaluation
o Goal is customer satisfaction
and ultimately loyalty
o Favourable post purchase
experience essential for
customer satisfaction
o Marketers can use advertising
to alleviate cognitive
dissonance
o Reinforces your decision
Sources of information
• Personal sources : Family ,friends ,neighbours
, acquaintances .
• Commercial sources : advertising ,
salespeople , dealers
• Public sources : mass media ,consumer-rating
organizations
• Experiential sources: handling ,examining ,
and using the product .
Adoption Process
• Adoption process is defined as the mental
process through which an individual passes
from first learning about an innovation to
final adoption .
• Adoption is the decision by an individual to
become a regular user of the product .
• Consumers go through five stages in the
process of adopting a new product :
Adoption Process
• Adoption process is defined as the mental
process through which an individual passes
from first learning about an innovation to final
adoption . Adoption is the decision by an
individual to become a regular user of the
product .
• Consumers go through five stages in the
process of adopting a new product :
Adoption Process
(1) Awareness :The consumer becomes aware
of the new product but lacks information about
it .
(2) Interest : The consumer seeks information
about the new product .
(3) Evaluation : The consumer considers
whether trying the new product makes sense.
Adoption Process
(4) Trial : The consumer tries the new product
on a small scale to improve his or her estimate
of its value .
(5) Adoption : The consumer decides to make
full and regular use of the new product .
Note: The model suggests that the new-product
marketer should think of how to help
consumers move through these stages .
Factors Affecting Consumer Behavior
• Consumer buyer behavior refers to the buying
behavior of final consumers –individuals and
households who buy goods and services for
personal consumption . All of these final
consumers make up the consumer market .
Consumer buying situations
• Customers are not always deliberate and
systematic
• Decisions are normally based on a buying
situation.
• Consumers use 4 main decision making modes
based on:
• Involvement – level of importance
• Experience – prior usage
Modes of Consumer decision making
High involvement Low involvement
Low experience Extended problem Limited problem
solving solving
High experience Brand loyalty Habit/variety
seeking
Modes of Consumer decision making
• Extended problem solving- inexperienced in
the consumption setting, yet highly involved
decision making.
Modes of Consumer decision making
• Limited problem solving – low experience and
involvement, hence limited search for info.
- Common mode of decision making
- New problem but not engaging
Modes of Consumer decision making
• Habit/variety seeking– low involvement
consumer purchases from the category over
and over (i.e. high experience).
• Habit – buying single repeatedly as solution
• Variety – tendency to switch selection among
various brands in the same category
Implications?
• Limited problem solving - trial offers,
coupons, samples
• Brand loyalty - appeal to emotions
• Extended problem solving?
• Habit/ variety seeking?
Factors Affecting Consumer Behavior
• Consumer buyer behavior refers to the buying
behavior of final consumers –individuals and
households who buy goods and services for
personal consumption . All of these final
consumers make up the consumer market .
