Buyer Behavior And Market Segmentation

Submitted By:- Vaibhav Gupta

Submitted To:- Dr. R.S. Pundir

International Agriculture Business Management

Anand Agricultural University, Anand, Gujarat

Buyer Behavior

According to Walter and Paul :- buyer behavior is the process whereby

individual decide whether , what , when , where , how and from whom to

purchase goods and services.

According to Boone :- buyer behavior consists of the acts of individuals in

obtaining and using goods and services, including the decision processes that

precede and determine these acts.

Buyer Decision Making Process

The buying process by a consumer is triggered by his specific needs. The

consumer’s decision making process basically involves the following steps.

For both goods and services, these steps remain the same. Though the order of

the steps may differ-

Need Perception

Search For Information

Evaluation Of Alternatives

Purchase And Consumption

Post Purchase Evaluation

Need Perception:- Consumer may feel the need to purchase a product orservice when there is a difference between the actual state and desired state.

For example:- A consumer who is hungry feels the need to buy lunch andsatisfy his hunger.

Search for information:- information can be collected either from internalsource or from external sources.

• Internal sources include information retrieved by the customer from hismemory, pertaining to his previous experiences of buying the product.

• External source include-

Personal sources:- friends, family, relatives etc.

Commercial source:- dealers, salespeople, retailers, advertising, etc.

Experiential:- product trail, observing, handling, examining etc.

Evaluation of alternatives:- search process leads to a set of alternatives that

consumers evaluate in the next stage of the buying process. Consumers use a

set of alternatives to compare and evaluate the services offered by various

goods/ services providers.

Purchase and consumption:- This stage involves deciding the purchase

timing, store selection, mode of purchase, etc. A purchase may be performed or

cancelled due to the following reasons.-

Information about the new product

Changed priorities of the consumer

Unexpected financial setbacks

Non-availability of chosen brand

Post purchase evaluation:- After purchasing and using a product or services,

the customer evaluates it by comparing its performance with his expectation. A

customer is satisfied when the product or service meets or exceeds his

expectations.

Buying Roles

• Initiators:- An initiators is the person who first suggest the idea of buying

something.

• Influencer:- An initiators is the person whose views affect the purchase

decisions and choice of brands.

• Deciders:- A deciders is the person who decides, when, how, from whom to

buy.

• Buyer:- A buyer is the person who makes each payment.

• User:- A user is the person who uses or consumers the product.

External Factors Influencing Buying

Behavior

• Culture

• Subculture

• Social class

• References groups

• family

Market Segmentation

Market:- its means actual and potential customers involving exchange of

goods and services.

Marketing:- marketing is a social and management process by which

individuals and groups obtain what they need and want through creating and

exchanging products and value with others.

According to AMA:- marketing is the performance of business activities

which direct the flow of goods and services from producer to consumer.

Market segmentation:- it is sub dividing of a market into homogeneous

subset of customers, where any subset may conceivably be selected as a

market target to be reached with a distinct marketing mix.

Types Of Market Segmentation

A market can be segmented by various bases and industrial markets are

segmented somewhat from consumer market like-

• Geographic segmentation

• Demographic segmentation

• Psychographic segmentation

• Behavioral segmentation

Geographic segmentation:- In this segmentation customers are segmented on

the geographical basis. It includes:-

District

Division

Country

City

Town

Village, etc

Demographic segmentation:- In this segmentation customers are segmented

on the demographical basis. It includes:-

Age

Sex

Material status

Occupation

Profession

Education, etc

Psychographic segmentation:- In this segmentation customers are segmented

on the physiographical basis. It includes:-

Perception

Culture

Attitudes

Need or Want of Customers

Thought, etc

Behavioral segmentation:- In this segmentation customers are segmented on

the physiographical basis. It includes:-

Loyalty

Brand loyalty

Consumption rate

Buying occasion

Buying principle

Characteristics Of Market Segmentation

• It should be measurable

• The segment should be attractive that is substantial in size

• It should be accessible by communication

• Accessible by distribution channels

• Different in its response to a marketing mix

• It should be durable

• Substantial enough to be profitable

T H A N K Y O U