CONSUMER BUYING BEHAVIOR
• Consumer Buying Process : Consist of four major steps
• 1) Problem recognition
• 2) Information search and evaluation (alternative , if any)
• 3) Purchasing process
• 4) Post purchase behavior
like:
• A model consumer buying process is shown below.
Consumer buying process and factors affecting the same
• Problem recognition:
• Consumers are faced with following decision questions :What to buy,
how much to buy, where to buy, when to buy and how to buy.
• (amazon/year end/specific card discount etc.)
• Consumer’s problem solving approaches: 3 types.
• Routine problem solving (RPS)-purchasing familiar products of
known brand ( four wheeler petrol –Toyota), consumers being
brand loyal, regularly purchase that products .
• Limited problem solving: when consumers purchase familiar
products from a new brand(four wheeler petrol -………….),, it
requires moderate time and information .
• Extensive problem solving: When consumers make a purchase of
unfamiliar product & brand(four wheeler petrol or EV -………..), it
requires more information and longer time .
Type of consumer problem solving approach
Consumer buying Routine problem Limited problem Extensive problem
stage solving solving solving
Purchase Minimum Moderate More
involvement level
Problem Automatic Semiautomatic Complex
recognition
Information search Less Limited More
and evaluation
Purchase Habitual, brand Resistance to If satisfied then loyal
orientation (post loyal repurchase, otherwise compliant on
purchase) brand dissatisfaction
switching if
dissatisfied
• Information Search
• After problem recognition and identification of need to purchase , consumer
obtains information and evaluates it to make a right optimal decision.
This is classified as follows :
Internal and External
• Pre purchase or ongoing based upon purpose of search
• External or internal based upon its source
• If search is for better purchase decision in present times, it is as pre
purchase .
• If search is to create a data bank for future , it is ongoing search.
• Consumer may feel there is limited information and go for external search.
• In internal search, information is from sources like friends, sales person,
advertisements etc.
• Purchasing process
• Based upon evaluation of information, consumer actually makes a purchase
of product or service.
• Post-purchase behavior
• Consumer decision to purchase a particular product or service is not final
step in the consumer buying behavior as using the product or services,
consumer have favorable or unfavorable experience based upon
product/service characteristics and after sales service.
Determinants of Consumer Behavior
• External factors
• Culture which encompass knowledge, belief, art, morals, laws, customs
By understanding the characteristics and behavioral patterns of a
specific segment, it is possible for marketing organization to
refine their marketing mix .
( scooter without gear/ car with SUV comfort)
There are various ways of categorizing various social classes.
One of them is for example upper; lower upper, upper middle,
middle class, working class, upper lower, lower class etc.
The importance of social stratification for the marketing
organization: differences in values, attitudes and behaviors
of each of this social class.
(costly product but comfort)
Individual factors
•Personality and self concept are the two psychological aspects
affecting consumer buying behavior.
•Self concept (self image) deals with how individual perceive
themselves .
•Consumer act as problem solvers who use information to satisfy
their consumption goals.
•Consumer’s learning is important component of their behavior.
• Analyzing Market Opportunity
• Selecting Target Market
• The scanning and evaluating of market opportunities helps in identifying
different consumer segments with different and exceptional wants and
needs.
• Example − Consumer studies show that many existing and potential
shampoo users did not want to buy shampoo packs priced at Rs 60 or more.
They prefer a low price packet/sachet containing sufficient quantity for one
or two washes. This resulted in companies introducing shampoo sachets at
a minimal price.
• Marketing-Mix Decisions
• Once the unfulfilled needs and wants are identified, the marketer has to
determine the precise mix of four P’s, i.e., Product, Price, Place, and
Promotion.
• Product
• Decisions taken for the product are related to size, shape, and features.
The marketer also has to decide about packaging, important aspects of
service, warranties, conditions, and accessories.
• Example − Nestle first introduced Maggi noodles in masala and capsicum
flavors. Subsequently, keeping consumer preferences,introduced Garlic,
Sambar, Atta Maggi, Soupy noodles, and other flavours.
• Price
• Marketers must decide what price to be charged for a product or service, to
stay competitive in a tough market.
• Rs.1 pack instead Rs. 60 sampoo pack
• Place
• where and how to offer the products and services at the final
stage.
• Are the products to be sold through all the retail outlets or only through the
selected ones?
• Should the marketer use only the existing outlets that sell the competing
brands? Or, should they indulge in new elite outlets selling only the
marketer’s brands?
• Is the location of the retail outlets important from the customers’ point of
view?
• Should the company think of direct marketing and selling?
• (eureka forbs direct selling )
•
Promotion
•popular promotion techniques include advertising, personal
selling, sales promotion, publicity, and direct marketing and
selling.
•Should it be advertising alone or should it be combined with sales promotion
techniques? The company has to know its target consumers, their location,
their taste and preferences, which media do they have access to, lifestyles, etc.
( big basket or amazon or airlines ticket etc.)
•………………………………………
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