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Unit 2
Unit 2
Unit 2
Marketing Management
“Consumer buying behaviour is the process involved when individuals or groups select,
use, or dispose products, services, ideas or experiences (exchange) to satisfy needs and
desires.”
Philip Kotler
Consumer buying behaviour includes two important types of elements i.e. tangible
elements such as the concrete product or service, but also intangible elements as mental
processes and systems of beliefs, values and self-realization.
“Consumer behavior consists of the actions a person takes in purchasing and using
products and services, including the mental and social processes that come before and
after these actions.”
According to Professor Theodore Levitt of the Harvard Business School, the study of
Consumer Behaviour is one of the most important in business education, because the
purpose of a business is to create and keep customers.
Customers are created and maintained through marketing strategies. And the quality of
marketing strategies depends on knowing, serving, and influencing consumers.
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Need Recognition
Difference between an actual state and a desired state
• Hunger • TV advertising
• Thirst
• Magazine ad
• A person’s normal needs
• Radio slogan
Degree of Importance
(Which attributes matter most to me?)
Brand Beliefs
(What do I believe about each available brand?)
Evaluation Procedures
(Choosing a product (and brand) based on one
or more attributes.)
Purchase Intention
(Desire to buy the most preferred brand)
Unexpected
Attitudes of situational
others factors
Purchase Decision
Product’s Perceived
Performance
Satisfied
Customer! Dissatisfied Customer
Cognitive Dissonance
Those influences or considerations which provide the impulse to buy, induce action
or determine choice in purchase of goods or services.
Primary
Related to basic needs of human being which motivate the buyer to take a purchase
decision.
• Hunger
• Thirst
• Sleep
• Shelter
• Entertainment
Secondary
Influenced by society.
• Product Motives (The impulses , desires and considerations that make buy the
product.)
• Patronage Motives (The impulses , desires and considerations that make buy it from
a particular firm/ shop.)
Examples :Particular Place, Special Discount, Present Price, Decoration, Behaviour etc.
Example: Consumers change preference for certain body spray for variations although
satisfied with the current brand.
Culture is the learned values, perceptions, wants, and behavior from family and
other important institutions.
Subcultures are subgroups within the larger, or national culture with unique values,
ideas, and attitudes, based on common life experiences.
A group of people who have approximately equal social position as viewed by others
in society. It can be related to occupation, education, & community participation
where a person lives.
Reference Groups
Family
Social Factors
• Family Influence
Consumer Socialization
• Influencer • User
• Decision Maker
Personal Influences
Lifestyle Identification
Activities Opinions
Interests
John Howard came out with the first truly integrative model of buyer behaviour. The
model relies on four major components –
Stimulus Inputs
Hypothetical Constructs
Response Outputs
Exogenous Variables
Limited problem solving - This is a more advance stage, choice criteria are well
defined but the buyer is still undecided about which set of brands will best serve him.
Thus the consumer still experiences uncertainty about which brand is best.
Routinized response behaviour - Buyers have well defined choice criteria and also
have strong predispositions toward the brand. Little confusion exists in the consumer's
mind and consumer is ready to purchase a particular brand with little evaluation of
alternatives.
The input variables consist of informational cues about the attributes of a product or
brand( i.e. quality, price, distinctiveness, service and availability). This informational
cues may be significative if they influence the consumer directly through the brand's
attributes.
or symbolic if they derive from the same factors as they are portrayed in the mass
media and by salespeople, influencing the consumer in a indirect way. these two
sources are commercial .
A third set of informational cues may come from the buyer's social environment,
including the family, reference groups and social class - which are influences that are
internalized by the consumer before they can affect the decision process.
The first deals with the way the individual perceives and responds to the information
from the input variables, accounting for stimulus ambiguity and perceptual bias.
The second deals with the stages from the buyer motives to his satisfaction in a
buying situation.
The motives are general or specific goals impelling to action, impinging upon the buyer
intention are also the attitudes about the existing brand alternatives in the buyer's
evoked set, which result in an arrangement of an order of preference regarding brands.
Brand comprehension and the degree of confidence that the buyer has about it, choice
criteria and buying intentions, converge upon the intention to buy.
The five output variables in the right hand portion of the model are buyer's observable
responses to stimulus inputs.
The purchase is the actual, overt act of buying and is the sequential result of the
attention (buyers total response to information intake), the brand comprehension,
brand attitude ( referring to the evaluation of satisfying potential of the brand) and the
buyer intention ( a verbal statement made in the light of the above externalizing factors
that the preferred brand will be bought the next time the buying is necessitated.
The model also includes some exogenous variables which are not defined but are taken
as constant.
These influence all or some of the constructs explained above and through them, the
output.
Some exogenous variables are importance of the purchase, personality traits, financial
status etc.
The model concentrates on the communication process that occurs between a brand
and a consumer.
It uses a flow of events through different stages that are identified as fields.
The first subfield deals with the firm’s marketing environment and communication
efforts that affect consumer attitudes, the competitive environment, and
characteristics of target market.
Subfield two specifies the consumer characteristics e.g., experience, personality, and
how he perceives the promotional idea toward the product in this stage the
consumer forms his attitude toward the firm’s product based on his interpretation of
the message.
Field 2: search and evaluation
The consumer will start to search for other firm’s brand and evaluate the firm’s brand
in comparison with alternate brands.
In this case the firm motivates the consumer to purchase its brands.
Field 3: The act of the purchase
The result of motivation will arise by convincing the consumer to purchase the
firm products from a specific retailer.
Field 4: Feed back
This model analyses the feedback of both the firm and the consumer after
purchasing the product.
The firm will benefit from its sales data as a feedback, and the consumer will
use his experience with the product affects the individuals attitude and
predisposition’s concerning future messages from the firm.