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Consumer Buying Behavior - Omaid
Consumer Buying Behavior - Omaid
EXECUTIVE SUMMARY
The objective of this report is to cover the underlying concept of
Consumer Buying Behavior.
The consumption pattern and the behavior of the consumer have been
changing gradually. Since the last two decades, we have seen many
changes occurring in the attitude, perception, motivation, spending
habits, purchase and post-purchase behavior of the consumer.
TABLE OF CONTENTS
1. AN INTRODUCTION………………………………………………………..… 3
8. ADVERTISING STRATEGIES……………………………………..……… 30
9. CONCLUSION…………….…………………………………………………… 35
10. REFERENCES……….………………………………………….………………
36
AN INTRODUCTION
Definition:
Consumer Buying Behavior is a process by which individuals search
for, select, purchase, use, and dispose of goods and services, in
satisfaction of their needs and wants. It is the decision processes and
acts of people involved in buying and using products.
Need to understand:
Problem
Recognition
Economic Attitudes
Information Product Choice
Product Technological Motivation Search
Brand Choice
Price Political Perceptions Evaluation
of Dealer Choice
Place Cultural Personality Alternatives
Purchase Timing
Promotion Demographic Lifestyle Purchase
Purchase Amount
Natural Knowledge Post
Purchase
Behavior
STAGES OF CONSUMER
BUYING DECISION
PROCESS
There are five stages to the Consumer Buying Decision Process. Actual
purchasing is only one stage of the process. Not all decision processes
lead to a purchase. All consumer decisions do not always include
five stages, determined by the degree of complexity.
1. PROBLEM RECOGNITION:
It is the first stage in decision-making. It is the difference between the
desired state and the actual condition.
In the first step, the consumer has determined that for some reason
he/she is not satisfied and wants to improve his/her situation.
Therefore, it generates an awareness of need. For instance, internal
triggers, such as hunger or thirst, may tell the consumer that food or
drink is needed. External factors can also trigger consumer’s needs.
Marketers are particularly good at this through advertising, in-store
displays and even the intentional use of scent. At this stage the
decision-making process may stop if the consumer is not motivated to
continue. However, if the consumer does have the internal drive to
satisfy the need they will continue to the next step.
2. INFORMATION SEARCH:
As the consumers are motivated to satisfy his or her need, they will
next undertake a search for information on possible solutions. The
3. EVALUATION OF
ALTERNATIVES:
4. PURCHASE:
Product is out-of-stock.
5. POST-PURCHASE EVALUATION:
Once the consumer has made the purchase they are faced with an
evaluation of the decision. The outcome may be satisfaction or
dissatisfaction. If the product performs below the consumer’s
expectation then he/she will re-evaluate satisfaction with the decision,
which at its extreme may result in the consumer returning the product
while in less extreme situations the consumer will retain the purchased
item but may take a negative view of the product. Such evaluations
are more likely to occur in cases of expensive or highly important
purchases. To help ease the concerns consumers have with their
purchase evaluation, marketers need to be receptive and even
encourage consumer contact. Customer service centers and follow-up
market research are useful tools in helping to address consumers’
concerns.
TYPES OF CONSUMER
BUYING BEHAVIOR
Types of consumer buying behavior are determined by:
ROUTINE RESPONSE:
It is 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.
IMPULSE BUYING:
There is no conscious planning.
The purchase of the same product does not always obtain 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.
FACTORS INFLUENCING
CONSUMER BUYING
The number of potential influences on consumer behavior is limitless.
However, marketers are well served to understand the key influences.
By doing so they may be in a position to tailor their marketing efforts
to take advantage of these influences in a way that will satisfy the
consumer and the marketer.
Cultural
Social
Personal
Psychological
CULTURAL FACTORS:
Example:
Will Pakistani turn towards iced tea? No, because tea is a part of the
Pakistani culture, hot with milk.
Geographic regions.
Marketing Implications:
Social Class:
An open group of individuals who have similar social rank. It depends
upon the occupation, education, income, wealth, race, ethnic groups
and possessions. It determines to some extent, types, quality and
quantity of products that a consumer buys or uses.
Family, reference groups and social classes are all social influences on
consumer buying behavior. All operate within a larger culture.
SOCIAL FACTORS:
Consumer wants, learning, motives etc, are influenced by opinion
leaders, reference groups and person's family.
Opinion Leaders:
They are the spokespeople. Marketers try to attract opinion leaders.
They actually use spokespeople to market their products. Like LUX
uses different film actresses to promote their product.
Reference Groups:
Marketing Implications:
Family is the most basic group a consumer belongs to. Marketers must
understand:
Family roles and preferences are the model for children's future
family (can reject, alter, etc).
PERSONAL FACTORS:
Personality:
All the internal traits and behaviors that make the consumer unique,
uniqueness arrives from consumer's heredity and personal experience.
Examples include:
Adaptability
Friendliness
Extroversion
Nervousness
Stubbornness
Ambitiousness
Self confidence
Aggressiveness
Authoritarianism
Compulsiveness
Competitiveness
Traits affect the consumer buying behavior. Marketers try to match the
store image to the perceived image of their consumers.
Marketing Implications:
Lifestyles:
Lifestyles are the consistent patterns that the consumers follow in their
lives. These are often determined by how consumers spend their time
and money.
This influencing factor relates to the way consumers live through the
activities they engage in and interests they express. In simple terms,
it is what consumers’ value out of life.
Example:
Marketing Implications:
PSYCHOLOGICAL FACTORS:
Motives:
A motive is an internal energizing force that orients the consumer’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.
Marketing Implications:
Perception:
Perception is the process of selecting, organizing and interpreting
information inputs to produce meaning. When consumers chose what
information they pay attention to, organize it and interpret it.
Marketing Implications:
Marketing Implications:
Attitudes:
In simple terms, attitude refers to what the consumer feels or believes
about something.
Marketing Implications:
FACTORS AFFECTING
THE CONSUMER
BUYING BEHAVIOR
Consumer Credit:
“Buy now and pay later” plays its role effectively in the rapid
growth of markets for car, scooter, radio, furniture, etc.
Liquidity of Fund:
The present buying plans are influenced greatly by liquidity of
assets like cash and assets readily convertible into cash,
e.g. bonds, bank balances, etc.
Income Expectations:
The expected income to receive in future has a direct relation
with the consumer buying behavior. The expectation of higher or
lower income has a direct effect on spending plans.
How Zulfeqar
Industries Limited
is Influencing
Consumers
for Buying their
Product
“CAPRI SOAP”
ADVERTISING STRATEGIES
AN OVERVIEW:
For the past few years, the advertising industry in Pakistan has been
changing very rapidly. There were a limited number of television
channels before 2005-06. But since then, the number of television
channels has increased which has lead to an increase in number of
programs broadcasted.
Electronic Medium:
Earlier, most of the advertisement was concentrated on Geo. The
changes occurring in the industry has had their effect on this
concentration and it has now spread out to other channels that include
ARY Digital, Hum, TV One, Aag etc.
Print Medium:
The trend of advertising in dailies is decreasing by time especially in
soap industry. Instead, it is drifting towards magazines. Soaps in the
premium category advertise normally in magazines like She, Women’s
Own, Fashion Collection and Visage. On the other hand, soaps
targeted to popular and discounted segments advertise in low
circulation magazines like Pakeeza and Raabta.
OBJECTIVES:
SELECTION CRITERIA:
Maximum Reach:
In electronic medium, PTV has the maximum reach. Therefore in
future, we would also use PTV to increase the reach to our target
consumers.
High Viewership:
PTV, Geo News, Geo Entertainment, Aaj, Hum, Ary Digital and
TV One all have a higher viewership. Therefore, we will use
these channels for advertisement of our brands.
Target Audience:
Other than the above mentioned channels, for Capri, we will also
use TV channels that have the interest of the youth of today.
These include channels like The Music, MTV Pakistan, Aag etc.
STRATEGIES:
Right place at the right time for the right target consumers with
the right message – to increase brand equity.
Stores advertising
ADVERTISING MEDIUMS:
ATL:
Electronic – Channels which have:
Max reach
Highest viewership
High readership
Maximum retention
Maximum circulation
Selection criteria for magazines should meet the image standards set
for our brands. Placement of the ad is an important issue. Ads will be
placed in between fashion pages in magazines.
BTL:
CONCLUSION
Competing for the consumers is a never-ending challenge. This is due
market, for they are all different and all require different approaches.
made and the dynamics that influences the consumer buying behavior.
product.
REFERENCES
WEBSITES:
www.about.com
www.google.com
www.wikipedia.com
www.learnmarketing.net
www.businessdictionary.com