Customer buying behavior

Need Recognition

Utilitarian need: Buying for specific purpose e.g job.

( shop in deliberate and efficient manner)
Hedonic need: Buying for pleasure ( Desire
excitement, Stimulation, Status and power)
Stimulation: Use background music, visual displays
and demonstration
Status and power: Attention and respect
Successful retailers satisfy both needs.
Conflicting need: Consumer having multiple needs
but conflict because of external situations.
Cross shopping: The pattern of buying both
premium and low price brand is cross shopping.
 Information search

Internal: Names, Images, Past experience.

External: Information provided by other people.
Amount of information search:
Characteristics of customer
Market buying situation
Time pressure under which purchase is made.
When the competition increases information search
tends to increase
 Reducing information search

Limit search by providing credit and have informed

sales people.
Everyday low pricing: Assure customer that they
wont find a product less in price on other stores.
 Evaluation of alternatives

Performance on relevant attributes

Importance of these attributes for customers.
Belief about the performance.
Belief can be changed on improving the attributes on
which importance is less.
 Types of buying decision

Extended problem solving: Purchase decision

process in which customer devote considerable time
and effort to analyze their alternatives. Risk and
uncertainty is high.
Limited problem solving: It involves moderate
amount of search and effort. Customer engages if he
has some prior experience with the purchase.
Customer rely on personal knowledge and external
information
Habitual decision making: It involves little or no
conscious effort. When need arises customer
automatically responds to it.
 Social Factors

Family
Reference groups: One or more people whom a
person uses as a basis for comparison of beliefs.
Groups having a direct influence are called
membership groups
primary groups with whom the person interacts
fairly continuously and informally, such as family,
friends, neighbors, and coworkers.
People also belong to secondary groups, such as
religious, professional, and trade-union groups,
which tend to be more formal and require less
continuous interaction.
Aspirational groups are those a person hopes to
join.
Dissociative groups are those whose values or
behavior an individual rejects.
Conformity: These pressures are created by the
societies to gain acceptance