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Understanding Consumer Buying Behavior

The document defines consumer buying behavior and the consumer market. It describes the stimulus-response model of consumer behavior and characteristics like cultural, social, personal, and psychological factors that affect consumer decisions. These include motivation, perception, learning, beliefs, attitudes, and demographics. The five stages of the buyer decision process and adoption process are outlined, as are the categories of innovators to laggards in adopting new products.

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Avnit kumar
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0% found this document useful (0 votes)
56 views21 pages

Understanding Consumer Buying Behavior

The document defines consumer buying behavior and the consumer market. It describes the stimulus-response model of consumer behavior and characteristics like cultural, social, personal, and psychological factors that affect consumer decisions. These include motivation, perception, learning, beliefs, attitudes, and demographics. The five stages of the buyer decision process and adoption process are outlined, as are the categories of innovators to laggards in adopting new products.

Uploaded by

Avnit kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Buyer Behavior

Definitions

 Consumer Buying Behavior


– Buying behavior of individuals and households
that buy products for personal consumption.
 Consumer Market
– All individuals/households who buy products for
personal consumption.
Model of
Consumer Behavior

 Stimulus Response Model


– Marketing and other stimuli enter the buyer’s
“black box” and produce certain choice/purchase
responses.
– Marketers must figure out what is inside of the
buyer’s “black box” and how stimuli are changed
to responses.
Characteristics Affecting Consumer
Behavior

 Cultural  Culture
 Social  Subculture
– Hispanic consumers
 Personal
– African Americans
 Psychological – Asian Americans
– Mature consumers
 Social Class
 Cultural  Groups
– Membership
 Social – Reference
 Personal  Aspirational groups
 Psychological – Opinion leaders
 Buzz marketing
 Family
– Children can influence
 Roles and Status
 Cultural  Age and life cycle
 Occupation
 Social  Economic situation
 Personal  Lifestyle
– Activities, interests, and
 Psychological opinions
– Lifestyle segmentation
 Personality and self-concept
• Brand personality
 Sincerity
 Ruggedness Excitement
 Competence
 Sophistication
 Cultural  Motivation
– Needs provide motives for
 Social consumer behavior
– Motivation research
 Personal
– Maslow’s hierarchy of needs
 Psychological  Perception
– Selective attention, selective
distortion, selective retention
 Learning
– Drives, stimuli, cues,
responses and reinforcement
 Beliefs and attitudes
Maslow’s Hierarchy of Needs

 Self Actualization
 Esteem
 Social
 Safety
 Physiological
The Buyer Decision Process

 Five Stages:
– Need recognition
– Information search
– Evaluation of alternatives
– Purchase decision
– Post-purchase behavior
Process Stages

 Need recognition  Needs can be triggered


by:
 Information search
– Internal stimuli
 Evaluation of  Normal needs become
alternatives strong enough to drive
behavior
 Purchase decision – External stimuli
 Post-purchase  Advertisements
 Friends of friends
behavior
Process Stages

 Need recognition  Consumers exhibit


heightened attention or
 Information actively search for
search information.
 Evaluation of  Sources of information:
alternatives – Personal
 Purchase decision – Commercial
– Public
 Post-purchase – Experiential
behavior
 Word-of-mouth
Process Stages

 Need recognition  Evaluation procedure


depends on the consumer
 Information search and the buying situation.
 Evaluation of  Most buyers evaluate
alternatives multiple attributes, each
of which is weighted
 Purchase decision differently.
 Post-purchase  At the end of the
behavior evaluation stage,
purchase intentions are
formed.
Process Stages

 Need recognition  Two factors intercede


 Information search between purchase
intentions and the
 Evaluation of actual decision:
alternatives – Attitudes of others
 Purchase – Unexpected situational
factors
decision
 Post-purchase
behavior
Process Stages

 Need recognition  Satisfaction is important:


– Delighted consumers
 Information search engage in positive word-of-
mouth.
 Evaluation of
– Unhappy customers tell on
alternatives average 11 other people.
 Purchase decision – It costs more to attract a
new customer than it does
 Post-purchase to retain an existing
customer.
behavior  Cognitive dissonance is
common
Stages in Adoption Process

 Awareness
 Evaluation
 Interest
 Trial
 Adoption
Stages in Adoption Process

 Awareness — Consumers learns the brand name


and product attributes.
 Interest — Consumers relate the product benefits to
their own needs.
 Evaluation — Consumers compare the goods with
existing alternatives.
 Trial — Consumers obtain direct or vicarious
product experience.
 Adoption/Reject—Consumers choose/reject the
innovation as a permanent solution.
Adopter Categories

 Innovators
 Early Adopters
 Early Majority
 Late Majority
 Laggards
Adopter Categories

Innovators

Early Early Late


Adopters Majority Majority Laggards
2.5% 13.5% 34% 34% 16%
Adopter Categories

 Innovators — 2.5% — Venturesome


 Very eager to try new ideas; acceptable if risk is
daring; more cosmopolite social relationship;
communicates with other innovators
 Early Adopters — 13.5% — Respect
– More integrated into local social system; greatest
number of opinion leaders, role models - persons
to check with before adopting a new idea
Adopter Categories

 Early Majority — 34% — Deliberate


– Adopt new ideas just prior to the average time;
seldom hold leadership positions; deliberate for
some time before purchasing
 Late Majority — 34% — Skeptical
– Adopt new ideas just after the average time;
adoption may be economic necessity & from peer
pressure; approach innovation cautiously
Adopter Categories

 Laggards — 16% — Traditional


– Last people to adopt an innovation; most
parochial in outlook; oriented toward the past;
suspicious of the new

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