1. Buyer Behavior
Session 4: Psychological and Social Factors
Zeeshan Kingshuk Huq
Guest Faculty
zeeshan.huq@gmail.com

2. Questions that we shall look answers for
§ Why consumers make the purchases they make
§ What factors influence consumer purchase? What are
their choice criteria?
§ Why people behave as they do
§ What are the mental processes involved
§ Who buys
§ When do they buy
§ Where do they buy from
§ How does a buyer react to a marketing strategy /
campaign
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3. PSYCHOLOGICAL ASPECTS
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4. 4
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5. Four Key Psychological Influencers
§ Motivation
§ Perception
§ Learning, attitudes and beliefs
§ Buying situation
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6. Motivation
§ We are human, and motives are complex
 Your
daughter and you will have two different motives in
going to Bashundhora shopping mall
§ Underlying motive vis-à-vis stated motives à often
different
 Why
do people buy Cartier watch?
- Accurate Time?
- Status?
- Investment?
§ How can we explain the ‘need’s behind our motivations
 Maslow’s
Hierarchy of Needs theory
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7. Maslow’s Hierarchy of Needs
§ Applies to all – purchaser, non purchaser, any human
§ Humans are motivated to satisfy our needs
§ There is an arranged hierarchy by which we seek to
satisfy our needs
§ Once one level of satisfied, we move to the next level
§ Human beings will usually never end of any ‘need’
 Explains
affluent markets having consumer / retail growth
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8. Maslow’s Hierarchy of Needs
Self
actualization
Esteem
Social
Security
Physiological
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9. Perception
§ The way an individual perceives an external stimuli will
influence his/her reaction
§ Causes for difference in perception
 Selective
Attention à only filter a few from the thousands
of stimuli we encounter with
 Selective Distortion à we adjust perception to match
current mind set
 Selective Retention à we do not remember everything,
and we remember things confirming to our beliefs and/or
attitude (and also things which starkly contradicts!)
§ Marketers need to know the way people receive and
perceive stimuli
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10. Learning, attitudes and beliefs
§ Learning causes changes in long term and changes in
how information is processed
§ 3 types of Learning:
 Conditional
Learning à reinforcement is necessary for
individuals to develop attitudes and beliefs
 Social Learning à learning from behavior of others
 Cognitive Learning à use of power of reasoning to
develop attitudes and/or beliefs (important for high
involvement purchase)
§ We need to understand how buyer will ‘learn’ à helps
us design marketing strategy accordingly
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11. Addressing various psychological needs of buyers
§ Case: PVH
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12. SOCIAL FACTORS
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13. Social Factors that influence Buyer Behavior
§ Culture
§ Social class
 Not
necessarily
relevant to income
 Can vary from country
to country
§ Reference groups
 Formal
as well as
informal
 Own as well as nonrelevant
§ Family
 Nuclear
 Extended
 Alternative
§ Personal influence
 Age
 Occupation
 Family
Life Cycle
 Lifestyle
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14. 14
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15. 15
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16. 16
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17. 17
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18. 18
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19. Retail / Consumer local brand
- Choose a brand that is currently at a lower level of ‘need’
- Choose a marketing / positioning based on higher-need
GROUP ASSIGNMENT
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