Buying Behavior
Definition :
The decision process and acts of people involved in
buying and using products.
How does the buyer make purchasing decision?
What factors influence consumer purchases?
Need to analyze buying behavior
What, Where, When & How – Marketing Mix.
Helps predict how consumers will respond to
marketing strategies.
Great impact on the success of firms marketing
strategy.
Types of consumer buying behavior
Routine Response/Programmed Behavior
Limited Decision Making
Extensive Decision Making
Impulse Buying
Routine Response / Programmed
Behavior
Frequently purchased low cost items.
Low involvement required.
Little search and decision effort
Purchased almost automatically.
Limited Decision Making
Occasional buying.
When information is needed for a unfamiliar brand in
a familiar product category.
Requires a moderate amount of time for information
gathering.
Loyalty to a brand
Extensive Decision Making
Complex process- requires high involvement
unfamiliar, expensive, infrequently bought products.
High degree of economic/performance/psychological
risk.
Lot of time spent seeking information and deciding.
Impulse Buying
Basis - purchase of the same product does not always
elicit the same Buying Behavior.
Reason determines the extent of decision-making.
Examples- impulse buying
THIS or THIS ??
going for the dinner- reason can be an anniversary
celebration, or a meal with a couple of friends.
Influencing factors:
Cultural Factors
Social Factors
Psychological Factors
The marketer must be aware of these factors in order to
develop a appropriate marketing mix for its target market.
Cultural Factors
Cultural factors exert the broadest and deepest
influence
a) Culture
b) Subculture,
c) Social class
are particularly important in buying behavior.
Social Factors
Consumer’s wants, learning, motives etc. are
influenced by family, reference groups, social class
A) Roles and Status
B) Family
C) Reference group
Psychological Factors
A person’s buying choices are influenced by 4 major
psychological factors
1. Motivation
2. Perception
3. Learning
4. Beliefs & attitudes
Evaluation of Alternatives
Purchase Decision
Post-purchase Behavior
5 Stage Model of
the Consumer
Buying Process
Need Recognition
Information Search
Need Recognition (awareness of need)
The buying process starts when the buyer
recognizes a problem or need.
The need can be triggered by internal ,external,
marketing stimuli.
Ex.- person’s normal needs-hunger/ thrust –rises
to threshold level and becomes a drive.
Information search
An aroused consumer will be inclined to search for
more information
Internal search- memory.
External search- if he needs more information.
Friends and relatives (word of mouth); Marketer
dominated sources; comparison shopping; public
sources etc.
Contd..
Helps buyer find possible alternatives- i.e- the evoked
set.
Hungry- want to go out and eat,
evoked set is
Chinese food
Indian food etc.
Evaluation of Alternatives-
Competitor brand information
Consumer evaluation process
1. The consumer is trying to satisfy the needs.
2. The consumer is looking for certain benefits from
the product solution.
3. The consumer sees each product as a bundle of
attributes for delivering the benefits sought to
satisfy these needs
Contd..
Attributes of interests to buyer :
Cameras : picture, sharpness, size ,price
Hotels: Location ,cleanliness, atmosphere, price
If not satisfied with your choice then return to the
search phase.
Purchase decision-
In evaluation stage the consumer form preferences
among the brands
In this phase-Choose buying alternative
includes product, package, store, method of purchase ,
Incentives offered, out of stock, budget etc.
Post-Purchase Evaluation-outcome:
Satisfaction or Dissatisfaction.
Have you made the right decision?
This can be reduced by warranties, after sales
communication etc.
Ex: After eating an Indian meal, may think that really
you wanted a Chinese meal instead of Indian.
that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. Marketing concept stresses on creating a Marketing Mix.
Can you think of another restaurant? Look in the yellow pages etc.