Consumer Behavior, Buying Decision Process, Factors Influencing Buying Process, Consumer & Customer, Online Buying Behavior, Digital Buying Behavior

1. The Consumer Buying Decision
Process
& factors that Influence it
Dr. Ahmad Faraz
MBBS, MBA (USA), PGD Marketing (KL, Malaysia).
Department of Marketing
College of Business Administration (CBA)
University of Dammam

2. The Consumer Buying Decision
Process
& factors that Influence it
Dr. Ahmad Faraz
MBA (USA), PGD Marketing (KL, Malaysia).
Lecturer, Department of Marketing
College of Business Administration
University of Dammam

3. Consumer 1. A person or a group that buy a product for personal use.
Buying 1. To acquire the possession of, or the right to, by paying or promising to pay an
equivalent, especially in money. 2. To hire or obtain the services.
Decision 1. The act of process of deciding; determination of making a judgment.
2. The act of making up one's mind. 3. Something that is decided, a resolution, a judgment.
Influence1. The capacity or power of persons or things to be a compelling on or
produce effects on the actions, behavior, opinions, etc., of others. 2. The action or process of
producing effects on the actions, behavior, opinions, etc., of another or others. 3. A person or
thing that exerts influence.
Ref. www.Dictionary.com
The Consumer Buying Decision
Process
& factors that Influence it.

4. Refresh idea of consumerism
Identify human buying behavior
Understand model of consumer
buying behavior
Recognize influences
Realize digitalization of buying
Analyze our buying process
Mischiefs at the end.
The purpose of this presentation is to:

5. @ How many of you bought something today?
@ How many have seen or heard an ad today?
@ How many of you consumed something today?
@ How many of you engaged in word of mouth about a
product/service today?
The Consumer Buying Decision
Process
& factors that Influence it.

6. Attention
=
Stimulus
Senses = Sight, Smell, Taste, Touch &
Hearing.

7. Attention
=
Stimulus
Senses = Sight, Smell, Taste, Touch &
Hearing.

8. Consumer Behaviour
Study of individuals, groups, organizations.
processes they use to select, secure, and dispose
of products, services, experiences, or ideas
satisfy needs and the impacts that these
processes have on consumer and society.

9. Consumer Buying Behavior refers to the
buying behavior of final consumers
-individuals & households who buy goods and
services for personal consumption.
The central question for marketers is:
“How do consumers respond to various
marketing efforts the company might use?´
Consumer Buying Behavior

12. Basis of Consumer behaviour
study ?Consumer buying decisions also helps us to understand
roles and try to answer questions
- What consumers buy?
- Where they buy?
- How they buy? & how much they buy?
- When they buy?
- Why they buy.

13. Basis of Consumer behaviour
study ?Consumer buying decisions also helps us to understand
roles and try to answer questions
- What consumers buy?
- Where they buy?
- How they buy? & how much they buy?
- When they buy?
- Why they buy.

14. Marketing mixes All other stimuli
Person making decision
Economic Needs
Psychological
Variables
Social
Influence
Purchase
Situation
Consumer decision process
actors influencing consumer behavi
Ref: Carolyn Brown http://www.writingcapital.com Global Research Papers and Term Papers Writing

15. Marketing mixes All other stimuli
Person making decision
Economic needs
• Economy of
purchase
• Convenience
• Efficiency in use
• Dependability
• Income
Consumer decision process
Psychological
variables
• Motivation
• Perception
• Learning
• Attitude
• Trust
• Lifestyle
Social influence
• Family
• Social class
•Reference
groups
• Culture
• Ethnic groups
Purchase
situation
• Purchase reason
• Time
• Surroundings
actors influencing consumer behavi
Person does or does not purchase (response(

16. Maslow Hierarchy of Needs
Source: Maslow's hierarchy of needs proposed by Abraham Maslow in his 1943 paper "A man Motivation". Motivation & Personality 1954

17. Consumer Behavior is difficult to predic
However, in reality many decisions are not made in awareness
of a determined problem by the consumer.
Ref: Sandhusen, Richard L.: Marketing (2000). Cf. S. 218

18. Possible Needs motivating a person to
some action
Ref: Final Consumers and their buying behavior © 2012 by The McGraw-Hill Companies, Inc

19. Lifestyle Dimensions
(and some related demographics)
Ref: Final Consumers and their buying behavior © 2012 by The McGraw-Hill Companies, Inc

20. Psychological Influences within an
Individual
WantsWants
NeedsNeeds
DrivesDrives
Consumers seek benefits to match
needs and wants!

21. Other Social Influences
Reference GroupsReference Groups
Opinion LeadersOpinion Leaders
CultureCulture

22. Family is big social Influence on
Buying BehaviorHusband dominant Wife dominant
MutuallyChildren dominant

23. Attitudes Relate to Buying
Attitude: A
Point of View
Belief: An
Opinion
Changing
Negative
Attitudes
Key IssuesKey Issues
Building
Consumer
Trust
Meeting
Expectations Is
Important
“Green”
attitudes and
beliefs
Ethical Issues
May Arise

24. Consumer Decision Making Process
Need
Recogniti
on
Perceiving a
need
Informatio
n Search
Seeking
value
Alternative
Evaluation
Assessing
value
Purchase
Decision
Buying value
Post
purchase
Behavior
Value in
Usage and
consumption

25. Consumer Decision Making Process
Need
Recogniti
on
Perceiving a
need
Informatio
n Search
Seeking
value
Alternative
Evaluation
Assessing
value
Purchase
Decision
Buying value
Post
purchase
Behavior
Value in
Usage and
consumption

26. Buyer Response
Buying attitudes and preferences
Purchase behavior: what the buyer buys,
when, where and how much
Brand & company relationship marketing
Buyer’s Black
Box
Buyer’s characteristics
Buyer’s decision process
The Environment
Marketing Stimuli
Other
Product Economic
Price Technological
Place Social
Promotion Cultural
The model of buyer behavior
It’s very difficult to “see” inside
the consumer’s head & figure out
the whys of buying behavior
(that’s why it’s called the black box).

27. Rethinking the Consumer Buying
Process
How the web has changed everything

28. Do
you?
everyday.
It’s the way people
buy now

29. Social Media Influence
Source: Facebook - Googlepictures
40% of consumers used Facebook to learn about new products.
In 2010 it was 17%

30. The
most
influenti
al new
product
source?
Source: Facebook - Google
Social Media Influence

31. Google calls this the ZERO MOMENT OF
TRUTH Consumer make buying decision ONLINE
BEFORE calling or entering the store.
Source: www.zeromomentofruth.com

32. Simple Buying Process
Source: www.zeromomentofruth.com

33. Digitalized Buying Process
Source: www.zeromomentoftruth.com

34. Online Buying Decisions
- 503 Chinese consumers.
- Chinese are shopping more online than 2 years ago
- Use Internet to look for new products and brands, information
- Comparing products and brands and making purchases
- Reason, convenience, time saving and competitive price
- Income and marital status
- Age, education and internet usage have impact
- Gender
Ref. Gong Wen, Maddox Lynda Journal of American academy of Business, Cambridge 17.1 (Sep 2011): 43-50.
China's Internet penetration rate was 31.8% in June 2010, exceeding the world's average of 28.7% (CNNIC, 2010;
Gao, 2010; Internetworldstats.com, 2010). Although significantly lower than the U.S. (71.2%) (eMarketer.com,
2010) and other developed countries (Internetworldstates.com, 2010), China's sheer size translates to 420 million
Internet users (CNNIC, 2010), the world's highest.

35. Digitalized Buying Process
A recent survey found the Internet has surpassed TV as the
medium perceived as most essential in people’s lives.
Choice = What you can remove from your life Internet or TV?
49% chose to drop television,
48% chose the Internet.
Ref: Nielsen Online. Reports Topline U.S. Web Data for February 2010,” Nielsen Online, March 15, 2009,
In 2001, 26% choose TV & 72% for eliminating Internet.

36. Presence in dot com
“If you’re not visible online when
people are doing their homework,
believe me, they’ll find others who are”
Jim Lecinski
Managing Director
Google.

37. Rundown@ All buying decision are not always rational.
@ Our awareness will enable us to make better consumer
decisions.
@ Consumer choose to pay attention to things they NEED to pay
attention but stimulus characteristics like NOVALTY capture
consumer attention.
@ Today we (consumers ) are being influenced by 10+ sources.
@ Differentiation of Quality and Value.
@ Perception of Worth and Utility.
@ Refrain from making Impulsive buying decisions.
@ Web buying id efficient but from trusted sources and brands.
@ Culture & family are strong influences on our buying decisions.

38. References & Acknowledgement
Dr. Marwan N. Al-Qur’an , Ph.D (Department of Marketing, CBA, University of Dammam.)
WIKIPEDIA c– The Free Encyclopedia.
The Principles of Marketing – Kotler & Armstrong – 14th
Edition, 2012.