Study of Consumer Behaviour Is Important

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Study of Consumer Buying behaviour

Consumer behaviour reflects consumer decision with respect to: To acquisition, consumption and disposition Of goods and services and ideas By human decision making (over time) # Consumer behavior can be defined as processes a person goes through when purchasing and using products and services, including the mental and social processes.

Study of consumer behaviour is important Customer acquisition Cost of Customer retention serving a customer

Repeat buying

A SIMPLE MODEL OF CONSUMER BEHAVIOUR


Input
Mkting Stimuli Other Stimuli

Process
Black Box
Buyer Characteristics Buyer Decision Process

Output
Buyers response

Product Price Place Promotion

Econ. Tech. Political Culture

Product choice Brand choice Dealer choice Purchase timing and amt.

Factors Influencing Buying Decisions


Cultural Factors Social Factors

Individual Factors

Psychological Factors
Social
Reference Grps.

CONSUMER DECISIONMAKING PROCESS

BUY /
DONT BUY

Cultural Culture

Personal
Age & Life cycle stage

Psychologicall
Motivation Perception Learning Beliefs and attitudes

Subculture
Social Class

Family
Role and Status

Occupation
Economic sit. Lifestyle Personality & Self Concept

Four Types of Buying Behavior


High Involvement Significant Differences between Brands Complex buying behavior Low Involvement Variety-seeking buying behavior

Few Differences between Brands

Dissonance-reducing buying behavior

Habitual buying behavior

External Influences

Consumer Decision Making

Post decision behaviour

Firms Marketing Efforts Product Price Promotion Distribution


Socio-Cultural Env. 1. Family

Psychological Issues 1. 2. 3. 4. 5. Motivation Perception Learning Personality Attitudes

Trial Purchase Repeat Purchase

Need Recog.

2.
3. 4. 5.

Informal sources
Non Commercial Sources Social Class Culture

Pre-purchase Search
Evaluation of alternatives

Post Purchase Evaluation

Experience

INPUT

PROCESS

OUTPUT

A Simple Model of Consumer Decision Making

Consumer Buying DecisionMaking Process


Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Postpurchase Behavior

The Buying Decision Process


Customer Delight: Giving more to the customer than he expects will lead to a situation called customer delight
Outrage
1. 2. Do Nothing Do Not buy the same Brand/ product

Delight

In case of dissatisfaction, the consumer adopts the following courses of action:

3.
4. 5.

Tell friends, neighbours, family members


Lodge a complaint with the company Fiel a suit in the court of law

All of these would depend in the intensity of the problem and the consumer himself.

Customer Delight
Steps taken by customer if delighted Do nothing Buy the product regularly Tell your family and friends about the experience. Influence people to buy the product. Never switch to any brand across categories.

Successive Sets Involved in Customer Decision Making

Types of Consumer Buying Decisions Examples?


Routine Response Behavior

Limited Decision Making

Extensive Decision Making

Less Involvement

More Involvement

Marketing Implications of Involvement


High-involvement purchases require: extensive promotion to target market and good advertisement Low-involvement purchases require: instore promotion and eye-catching package design

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