This document provides an overview of consumer buying behavior. It discusses that consumer behavior is the study of how individuals and groups select, purchase, use, and dispose of goods and services. It then examines the factors that influence consumer behavior, such as cultural, social, and personal factors. Finally, it outlines the consumer decision-making process and different models that have been developed to understand buying behavior.

1. CONSUMER BUYING
BEHAVIOR
UNIT 2

2. CONSUMER BEHAVIOR
Consumer Behavior is the Study of
how Individuals, Groups and
Organizations Select, Buy, Use
and Dispose of Goods, Services,
Ideas or Experiences to Satisfy
Their Needs and Wants

3. • The behavior that consumers
display in searching for,
purchasing, using, evaluating, and
disposing of products and
services that they expect will
satisfy their needs

4. Characteristics of Consumer
Behavior
• The study of consumer behavior
provides us with reasons why and
how consumers differ from one
another in buying, using and
disposing of products

5. Factors Influencing CB

6. Factors Influencing CB
• Cultural Factors
– Culture
– Subculture
– Class
• Social Factors
– Reference Groups
– Family
– Role & Status

7. Contd…
• Personal Factors
– Age, Gender, Income & Stage in Life
Cycle
– Occupation & Economic Circumstances
– Personality & Self-Concept
– Life Style & Values

8. Key Psychological Processes
(Stimulus-Response Model)
Consumer
Characteristics
Cultural
Social
Personal
Consumer
Psychology
Motivation
Perception
Learning
Memory
Buying
Decision
Process
Purchase Decision
Product Choice
Brand Choice
Dealer Choice
Purchase Quantity
Purchase Timing
Payment Method
Marketing
Stimuli
Other
Stimuli

9. Customer’s Perceived Risks
• Functional
• Physical
• Financial
• Social
• Psychological
• Time

10. Types of Buying Decision
Behaviour
• Initial Purchase
– Routinised Response
Behaviour/Habitual Buying Behaviour
– Limited Problem Solving/ Dissonance
Reducing Buying Behaviour
– Extensive Problem Solving/Complex
Buying Behaviour

11. • Repeat Purchases
– Repeated Problem Solving
– Habitual Decision Making
• Impulse Buying
• Variety Seeking

12. Selective Attention
People are more likely to notice
stimuli…
• That relate to current need
• Which are unanticipated
• Deviate largely from normal
stimuli

13. Buying Decision Process
• Problem/Need Recognition
• Information Search
• Evaluation of Alternatives
• Purchase Decision
• Post-purchase Behavior

14. Information Sources
• Personal: Family, Friends etc.
• Commercial: Ads, Web-sites etc.
• Public: Survey, Rating agency
• Experiential: Handling, Examining

15. Buying Motives
• Personal Motives
– Role playing
– Diversion
– Self-gratification
– Learning
– Physical activity
– Sensory stimulation

16. • Social Motives
– Social interaction
– Peer affiliation
– Status & authority
– Pleasure of bargaining

17. Buying Behaviour Models
• Traditional Models
– Economic/ Marshallian Model (Consumer's
buying pattern is based on the idea of getting
the most benefits while minimizing costs)
– Learning Model (Consumer behavior is
governed by the need to satisfy basic and
learned need)
– Psychoanalytic/ Freudian Model (Consumer
behavior is influenced by both conscious and
subconscious mind)
– Sociological/ Veblenian Model (Consumer's
buying pattern is based on his role and influence
in the society)

18. • Contemporary Models
– Howard-Sheth Model (Stimulus-
response model based on input variables,
output variables, hypothetical constructs-
perceptual and learning, exogenous
variables)
– Engel-Kollat-Blackwell Model
(Conscious problem solving and learning
model of consumer behavior-five activities)

19. – Nicosia Model (Explains buyer behavior by
establishing a link between the organization
and its (prospective) consumer)
– Stimulus-Response (Black Box) Model