CONSUMER BUYING BEHAVIOUR

FACTORS IN BUYING DECISION

MARKETING STIMULI PRODUCT OTHER STIMULI BUYERS BUYERS CHARACTERISTICS DECISION PROCESS CULTURAL PROBLEM RECOGNITION INFORMATION SEARCH BUYERS DECISION PRODUCT CHOICE BRAND CHOICE

ECONOMIC

PRICE

TECHNOLOGICAL

SOCIAL

PLACE

POLITICAL

PERSONAL

EVALUATION OF DEALER CHOICE ALTERNATIVES

PROMOTION

CULTURAL

PSYCHOLOGICAL

PURCHASE DECISION POSTPURCHASE

PURCHASE AMOUNT BEHAVIOUR

FACTORS IN BUYING DECISION

CULTURAL

SOCIAL
Culture Sub-Culture Social Class PERSONAL Reference Groups Family Roles and Status Age & Life Cycle Stage Occupation & Economic Circumstances Life-Style Personality & Self-Concept PSYCHOLOGICAL Motivation Perception Learning Beliefs and Attitudes

BUYER

CULTURAL FACTORS
Culture:
Most fundamental determinant of a persons want and behaviour Sets of values, perceptions, preferences involving family and other key institutions

Sub-Culture:
Nationality Groups Religious Groups Racial Groups Geographical Groups

Social Class:
Social stratification Homogenous divisions in society Heirarchically ordered, members have similar values, interests and behaviour

SOCIAL CLASS
7 TYPES:
UPPER-UPPER LOWER-UPPER UPPER-MIDDLE MIDDLE CLASS WORKING CLASS UPPER-LOWER LOWER-LOWER

SOCIAL FACTORS
REFERENCE GROUPS:
Groups that have a direct or indirect influence on a persons attitude or behaviour Could be primary or secondary groups Primary groups include family, friends, neighbours Secondary groups include religious, professional and trade-union groups Aspiration groups: groups to which a person would like to belong Level of influence of groups to buy changes as per the product life cycle
At launch stage, decision to buy product is heavily influenced but brand is not At growth stage, group influence is strong in both, product and brand choice At maturity stage, brand choice is influenced by others At decline stage, group influence is weak in both brand and product choice

SOCIAL FACTORS
FAMILY:
Most influential reference group shaping buying behaviour Family of Orientation: Parents Family of Procreation: Spouse and Children Husband-Wife involvement varies according to product category Marketer needs to identify which member has greater influence in choosing the product

ROLES & STATUS:

Role: Activities a person is expected to perform by other members of a group Status: Esteem accorded to the person in society Each brand has a role and status potential People choose products that define their role and status in society

PERSONAL FACTORS
AGE AND FAMILY LIFE CYCLE:
Bachelor Stage: Young, single, few financial burdens, recreation oriented, buys
basic home equipment, furniture, cars, vacations

Newly Married Couples: Young, no children, highest purchase rate of

durables, appliances, furniture

Full Nest I: Youngest child under 6,buy washers, TV, baby food, toys Full Nest II: Youngest child over 6, financial position better, buy, foods, bikes,
music

Full Nest III: Older married couple with dependent children, difficult to
influence with advertising, buy unnecessary appliances, furniture

Empty Nest I: Older married couple, children living separately, money saved,
interested in travel, recreation, self-education

Empty Nest II: Older, married, no children living at home, head of household
retired, cut in income, buy medical care products

Solitary Survivor in labour force/ retired: Income low, likely to sell home,
need for attention, affection, security

PERSONAL FACTORS
LIFESTYLE:
A persons pattern of living as expressed in activities, interests and opinions Portrays the whole person interacting with his or her environment
Tendencies of 4 groups with greater resources: Actualizers: Successful, active, sophisticated, purchases reflect cultivated tastes for upscale, niche products Fulfillers: Mature, satisfied, comfortable, reflective, favour durability, functionality and value in products

Achievers: Successful, career-oriented, favour established, prestige products

Experiencers: Young, enthusiastic, impulsive, rebellious, spend on clothing, fast-food, music, movies

PERSONAL FACTORS
LIFESTYLE:
Tendencies of 4 groups with fewer resources: Believers: Conservative, conventional and traditional, favour family products and established brands

Strivers: Uncertain, insecure, approval-seeking, resource-constrained, favour stylish products emulating purchase of others with wealth
Makers: Practical, self-sufficient, traditional, family-oriented, favor products with practical or functional purpose Strugglers: Elderly, resigned, passive, resource-constrained, cautious consumers loyal to a few brands

PERSONAL FACTORS
PERSONALITY AND SELF-CONCEPT:
Personality is a set of mean distinguishing psychological characteristics that lead to relatively consistent and enduring responses to environment Traits are : self-confidence, dominance, autonomy, deference, sociability and adaptability Important to know how a person views himself and wants others to view him Helps determine product attributes that would satisfy such needs

PSYCHOLOGICAL FACTORS
MOTIVATION:
When a need is intense, it becomes a motive and the person acts Biogenetic Needs: Arise from physiological states of tension like hunger, thirst, discomfort. Psychogenetic Needs: Arise from psychological states of tension like recognition, esteem or belonging.

LEARNING:
A persons learning is produced through the interplay of drives, stimuli, cues, responses and reinforcement Drive impels action and becomes a motive Marketers can build up demand for a product by associating it with strong drives, using motivation cues and providing positive reinforcement

PSYCHOLOGICAL FACTORS
PERCEPTION:
A process by which an individual selects, organizes and interprets information inputs to create a meaningful picture People can have different perceptions of the same object due to 3 perception processes: Selective Attention: People are exposed to many stimuli every day, all stimuli cannot be attended to and most stimuli are screened out. Marketers need to find what attracts consumers and what gets noticed Selective Distortion: Tendency to distort or twist information into personal meanings and interpret information in a way that fits our preconceptions Selective Retention: An individual is able to remember good points mentioned about a product and forget good points mentioned about the competitor product

THE BUYING PROCESS

5 roles people play in the buying decision:
Initiator: A person who first suggests the idea of buying a particular product or service Influencer: A person whose views are important in making the final decision Decider: A person who decides on any component of the buying decision, when to buy, where to buy, etc Buyer: The actual purchaser User: A person who uses or consumes the product

THE BUYING PROCESS

Five stages in the buying process:

Need Recognition Information Search Evaluation of Alternatives Purchase Decision Post-purchase behavior