Consumer buying behaviour

Needs and wants????

• a need is a human requirement which must be satisfied for survival.

• Anything desired which is not necessarily important for survival is a want.

Process of consumer buying behaviour

Consumer buying behaviour is the study of when, why, how, and where people do or do not buy product or a service.

Process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants.

The general stages in the process are:

Need recognition: identify what do you actually need. e.g. a new PC.

Identification of alternatives: the consumer identifies alternative products and brands and collects in formation about them. E.g. dell , apple etc

Evaluation of the alternatives: weigh up the pros and cons of the alternatives identified .e.g. Price, customer service, software support, printer/scanner package .

Purchase decision: you finally decide which brand to buy, after evaluating the range of brand choices. E.g. Dell.

• Post purchase evaluation: whether the purchased product has satisfied the need or not…….. The consumer seeks reassurance that the choice made was the correct one. e.g use, breakdowns, etc

Influences on consumer buying behaviour

Cultural influences: culture is a set of values, artefacts, religion created by a society and handed down from generation to generation.

Culture determines what people wear, eat, reside and travel.

• e.g. Cultural values in the US are good health, education and freedom.

• E.g. . Cultural values in Muslim countries are pardah, no pork-eating, different festivals etc.

Social influences: includes factors like reference groups ( family , friends, professional societies etc) , social class etc.

Personal influences: include factors like age, occupation , spendable income, saving , lifestyle etc.

Psychological influences: include:

• Motivation: Motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction of the need.

Needs motivate you to act in a particular way…….. Your buying behaviour is determined by the type of need you experience.

• MASLOW hierarchy of needs!! • Physiological • Safety • Love and Belonging • Esteem • Self Actualization businesses need to determine what level of the

hierarchy the consumers are at to determine what motivates their purchases.

Self - actualization

Esteem needs

Social needs

Safety needs

Physiological needs

Maslow’s hierarchy of needs• Maslow identified that there are five levels of needs

experienced by a person.

Physiological needs: are the very basic needs that must be satisfied in order to survive. e.g. need for food, drink , air, rest , activity, shelter etc.

Such needs can be met by food, houses, clothes etc.

Safety needs: include protection from dangerous objects or situations, protection from physical and psychological threats .

such needs can be met by insurance, job training, seatbelts, security cameras etc.

Social needs: need for affection, belonging to a group and acceptance, friendship.

Can be met by gifts, mail\ telephone service putting you in touch with ppl you love and miss .

Esteem needs: need for self-respect, reputation, prestige , achievement and status.

Can be met by luxury cars, travelling firs t class etc

Self-actualization: need for realizing your full potential…. To become everything that one is capable of becoming.

Can be met by health care products, .

• Attitudes and beliefs: attitude is “positive and negative feelings about an object or activity”……. Consumers form attitude towards a brand based on the basis of their beliefs (a descriptive thought about a brand or service) about the brand.

E.g. consumers of Sony products believe that the products offered by Sony are durable…………. This belief \attitude influences buyers to purchase Sony's products.

• Perception: What do you see???? …… the sensations received through sight, taste, hearing, smell and touch helps in creating a perception\ viewpoint.

Organizational buying behaviour

• Organizational buying behaviour refers to the decision making process by which formal organizations establish a need , identify, evaluate, and choose among alternative brands and suppliers.

the process!

Need recognition: e.g stationaryProduct specification: decide upon what kind of

stationary do u need.Supplier search: Shaheen books, saeed book

bank, etcEvalute products relative to specification:Select the appropriate product and Supplier:Evaluate the product and supplier performance:

Types of organizations in a market

• Producer organizations: e.g. BMW, Pepsi, nestle etc.

• Reseller organizations: e.g. Mahek valley, Jan’s arcade, etc.

• Governmental organizations: comprise of national and local governments.

• Institutional organizations: e.g. schools, training centres, charity organizations etc.

Forces Influencing Organizational Buying BehaviorEnvironmental

Forces

OrganizationalForces

GroupForces

IndividualForces

OrganizationalBuying

Behavior

•consumer behaviour,• interest rate, technology, l•legislation, •competition, politics

Objectives, policies, procedures

•Roles, relative influence, use of power• level of conflict.

•Personal characteristics•E.g. age, education, •Position in the organizat-•Ion, personality.

A projected change in business conditions can drastically alter buying plan.

Decision Making unit (DMU)

• DMU is a group of employees, family members, or members of any type of organization responsible for finalizing major decisions, usually involving a purchase.

• It is also called a “ buying center”.

Types of people in the DMU

• Users: people who would ultimately use the product or service.

• Influencers: who try to affect the outcome decision with their opinions.

• Deciders: who have the final decision.

• Buyers: have the formal authority and responsibility to select the supplier and negotiate the terms of the contract.

• Gatekeepers : who control the flow of information to other members of the buying center.