Essentials of Marketing

Session 8

Consumer Markets & Consumer Buying Behaviour

 Consumer Markets & Consumer Buying Behaviour

Consumer Buying Behaviour (B2C markets)

Buying behaviour of final consumers

ie: Individual &/or household purchases for personal consumption
Consumer Markets & Consumer Buying Behaviour

Consumer Buying Process (General)

What
Where
How and How Much
When
Why
Consumer Markets & Consumer Buying Behaviour

Consumer Market/s

Humongous size
+
Numerous variables
+
Diverse degrees of variation amongst each variable
 Consumer Markets & Consumer Buying Behaviour

Model of Consumer Buyer Behaviour

Environment Buyer Black Box Buyer Response

Marketing Others Choice/s

4/7 Ps Macro Elements Buyer characteristics Product

Brand
Buyer decision process Dealer
Purchase timing
Purchase amount
 Consumer Markets & Consumer Buying Behaviour

Influencing factors of Consumer Market/s

Culture
+
Social influences
+
Personal factors
+
Psychological stimuli
 Consumer Markets & Consumer Buying Behaviour

CULTURAL SOCIAL PERSONAL PSYCHOLOGICAL B

Culture Reference Groups Age, Life-cycle, Motivation, U

Occupation, Perception,
Sub-culture Family Economic Situation, Learning, Y
Lifestyles, Beliefs & Attitudes
Personality and E
Social Class Roles and Status Self Concept
R
 Consumer Markets & Consumer Buying Behaviour
Cultural factors

Culture
Set of basic values, perceptions, wants and behaviours,
learned by a member of a society,
from family and other important institutions

Sub-Culture
Group of people,
With shared value systems,
Based on common life-experiences and situations

Social Class
Relatively permanent and ordered divisions in a society
Whose members share similar values, interests and behaviours
Consumer Markets & Consumer Buying Behaviour
Social factors

Groups

Family

Social Roles & Status

 Consumer Markets & Consumer Buying Behaviour
Social factors

Groups
Two / more people who interact to accomplish individual or mutual goals

Type of Groups
Membership
Reference
Aspirational
 Consumer Markets & Consumer Buying Behaviour
Social factors

Family
Blood relations with defined hierarchy and roles

Importance
Important consumer buying organisation
Roles and influence patterns on buying (Involvement + Decision Process)
 Consumer Markets & Consumer Buying Behaviour
Social factors

Roles & Status

Role
Set of activities people are expected to perform according top persons around them

Status
Reflection of general esteem given to a ‘role’ by society

Importance
Important in consumer choice
 Consumer Markets & Consumer Buying Behaviour
Personal factors

Age & Life-cycle

Age :
Numerical value of maturity

Life-cycle :
Stages that one passes through as one matures over time
Importance
Important in consumer choice w.r.t. taste, lifestyle related appropriateness
 Consumer Markets & Consumer Buying Behaviour
Personal factors

Occupation
Importance
Important in consumer requirements / expectations

Economic situation
Importance
Important in consumer choice, trends, STP of company/brand etc.
 Consumer Markets & Consumer Buying Behaviour
Personal factors

Lifestyles
A person’s pattern of living as expressed in her/his Activities – Interests - Opinions

Activities
Work, Hobbies, Shopping, Sports, Social events
Interests
Food, Fashion, Family, Recreation
Opinions
Self, Social issues, Business, Products
Consumer Markets & Consumer Buying Behaviour
Personal factors

VALS lifestyles classification

 Consumer Markets & Consumer Buying Behaviour
Personal factors

Personality & Self Concept

Personality :
Unique psychological characteristics, leading to relatively consistent and lasting
responses to one’s own environment

Self Concept :
Image reflecting their individual identity
 Consumer Markets & Consumer Buying Behaviour
Personal factors
Brand Personality
Sincerity

Excitement

Competence

Sophistication

Ruggedness
Consumer Markets & Consumer Buying Behaviour
Psychological factors

Motivation

Perception

Learning

Beliefs and Attitudes

 Consumer Markets & Consumer Buying Behaviour
Psychological factors

Motivation
Need that is sufficiently pressing to dive and direct the person to seek satisfaction
PTN : Maslow’s hierarchy of needs

Perception
Process by which people Select - Organise - Interpret information, to form a
meaningful picture
PTN : Selective Attention + Selective Distortion + Selective Retention
: Subliminal Advertising
 Consumer Markets & Consumer Buying Behaviour
Psychological factors

Learning
Changes in an individual’s behaviour arising from experience
PTN : Drive – Stimuli – Cue – Response – Re-inforcement

Beliefs and Attitudes

 Descriptive thought that one holds about something;
 Person;s consistently favourable / un-favourable evaluation/feeling/tendency,

towards an object
 Consumer Markets & Consumer Buying Behaviour

Henry Assael’s four types of buying behaviour

Significant difference Complex Variety-seeking

b/w brands Buying behaviour Buying behaviour

Few differences Dissonance-reducing Habitual

b/w brands Buying behaviour Buying behaviour
Consumer Markets & Consumer Buying Behaviour
Consumer Buying Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-Purchase Behaviour
 Consumer Markets & Consumer Buying Behaviour

Buyer Decision Process for New Products

New Product
A good/service/idea, perceived by some potential customers, as new

Adoption Process
Mental process,
through which an individual passes,
from first hearing about an innovation to final adoption
 Consumer Markets & Consumer Buying Behaviour

Stages in the Adoption Process

Awareness
Interest
Evaluation
Trial
Adoption
Consumer Markets & Consumer Buying Behaviour

Individual Differences in Innovativeness

 Consumer Markets & Consumer Buying Behaviour

Influence of product characteristics on rate of adoption

Relative advantage

Compatibility

Complexity

Divisibility

Communicability
Essentials of Marketing

Session 8

Concluded