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CONSUMER BUYING BEHAVIOUR
By By Elisante Ole Gabriel (Tanzania)Elisante Ole Gabriel (Tanzania)
Chartered MarketerChartered [email protected], , www.olegabriel.com
+255-784-455-499+255-784-455-499
5-25-2Consumer Buying BehaviorConsumer Buying Behavior
• Consumer Buying BehaviorConsumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption.
• Study consumer behavior to answer:
““How do consumers respond to How do consumers respond to marketing efforts the company might marketing efforts the company might use?” use?”
5-35-3Model of Consumer BehaviorModel of Consumer BehaviorMarketing andOther Stimuli
Marketing andOther Stimuli
Buyer’s Black BoxBuyer’s Black Box
Buyer’s ResponseBuyer’s Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Characteristics Affecting Consumer Behavior
Buyer’s Decision Process
Product Choice
Brand Choice
Dealer Choice
Purchase Timing
Purchase Amount
5-45-4Characteristics Affecting Consumer BehaviorCharacteristics Affecting Consumer Behavior
BuyerBuyer
Psychological
Personal
Social
Culture
5-55-5Factors Affecting Consumer Behavior:CultureFactors Affecting Consumer Behavior:Culture
Social Class
• People within a social class tend to exhibit similar buying behavior.
• Occupation
• Income
• Education
• Wealth
Social Class
• People within a social class tend to exhibit similar buying behavior.
• Occupation
• Income
• Education
• Wealth
• Most basic cause of a person's wants and behavior.
• Values
• Perceptions
• Most basic cause of a person's wants and behavior.
• Values
• Perceptions
Subculture
• Groups of people with shared value systems based on common life experiences.
• Hispanic Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers
Subculture
• Groups of people with shared value systems based on common life experiences.
• Hispanic Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers
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Factors Affecting Consumer Behavior:Social Factors Affecting Consumer Behavior:Social
Groups
• Membership
• Reference
Groups
• Membership
• Reference
Family• Husband, wife, kids• Influencer, buyer, user
Family• Husband, wife, kids• Influencer, buyer, user
Roles and StatusRoles and Status
Social FactorsSocial Factors
5-75-7Factors Affecting Consumer Behavior:PersonalFactors Affecting Consumer Behavior:Personal
Personal InfluencesPersonal Influences
Age and Family Life CycleStage
Age and Family Life CycleStage OccupationOccupation
Economic SituationEconomic Situation
Lifestyle IdentificationLifestyle Identification
ActivitiesActivities OpinionsOpinions
InterestsInterests
Personality & Self-ConceptPersonality & Self-Concept
5-85-8VALS 2VALS 2
Principle Oriented Status Oriented Action Oriented
AchieversAchievers
ActualizersActualizers
StrugglersStrugglers
StriversStrivers
FulfilledsFulfilleds
BelieversBelievers
ExperiencersExperiencers
MakersMakers
Abundant ResourcesAbundant Resources
Minimal ResourcesMinimal Resources
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Factors Affecting Consumer Behavior:PsychologicalFactors Affecting Consumer Behavior:Psychological
Psychological Factors
MotivationMotivation
PerceptionPerception
LearningLearning
Beliefs and Attitudes
Beliefs and Attitudes
5-105-10Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
Esteem Needs(self-esteem, status)
Social Needs(sense of belonging, love)
Safety Needs(security, protection)
Physiological Needs(hunger, thirst)
Self Actualization
(Self-development)
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Types of Buying DecisionsTypes of Buying Decisions
ComplexBuying
Behavior
Dissonance-Reducing Buying
Behavior
Variety-SeekingBehavior
HabitualBuying
Behavior
HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement
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The Buyer Decision ProcessThe Buyer Decision Process
Need RecognitionNeed Recognition
Information SearchInformation Search
Evaluation of AlternativesEvaluation of Alternatives
Purchase DecisionPurchase Decision
Postpurchase BehaviorPostpurchase Behavior
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The Buyer Decision ProcessStep 1. Need RecognitionThe Buyer Decision ProcessStep 1. Need Recognition
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the environment
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the environment
Internal Stimuli
• Hunger
• Thirst
• A person’s normal needs
Internal Stimuli
• Hunger
• Thirst
• A person’s normal needs
Need RecognitionDifference between an actual state and a desired state
Need RecognitionDifference between an actual state and a desired state
5-145-14The Buyer Decision ProcessStep 2. Information SearchThe Buyer Decision ProcessStep 2. Information Search
•Family, friends, neighbors•Most influential source of information
•Advertising, salespeople•Receives most information
from these sources
•Mass Media•Consumer-rating groups
•Handling the product•Examining the product•Using the product
Personal Sources Personal Sources
Commercial SourcesCommercial Sources
Public SourcesPublic Sources
Experiential SourcesExperiential Sources
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The Buyer Decision ProcessStep 3. Evaluation of AlternativesThe Buyer Decision ProcessStep 3. Evaluation of Alternatives
Product AttributesEvaluation of Quality, Price, & Features
Product AttributesEvaluation of Quality, Price, & Features
Degree of ImportanceWhich attributes matter most to me?
Degree of ImportanceWhich attributes matter most to me?
Brand BeliefsWhat do I believe about each available brand?
Brand BeliefsWhat do I believe about each available brand?
Total Product SatisfactionBased on what I’m looking for, how satisfied
would I be with each product?
Total Product SatisfactionBased on what I’m looking for, how satisfied
would I be with each product?
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
5-165-16The Buyer Decision ProcessStep 4. Purchase DecisionThe Buyer Decision ProcessStep 4. Purchase Decision
Purchase IntentionDesire to buy the most preferred brand
Purchase IntentionDesire to buy the most preferred brand
Purchase DecisionPurchase Decision
Attitudes of others
Unexpected situational factors
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The Buyer Decision ProcessStep 5. Postpurchase BehaviorThe Buyer Decision ProcessStep 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Consumer’s Expectations of
Product’s Performance
Dissatisfied Customer
Dissatisfied Customer
Satisfied Customer!Satisfied Customer!
Product’s Perceived
Performance
Product’s Perceived
Performance
Cognitive Dissonance
5-185-18Stages in the Adoption ProcessStages in the Adoption Process
AwarenessAwareness
InterestInterest
EvaluationEvaluation
TrialTrial
AdoptionAdoption
5-195-19Adoption of InnovationsAdoption of InnovationsP
erce
nta
ge
of
Ad
op
ters
Time of AdoptionEarly Late
Inn
ova
tors
Early Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
5-205-20Influences on the Rate of Adoptionof New ProductsInfluences on the Rate of Adoptionof New Products
DivisibilityCan the innovation
be used on a trial basis?
CompatibilityDoes the innovation
fit the values and experience of the
target market?ComplexityIs the innovation
difficult tounderstand or
use?
Relative AdvantageIs the innovation
superior to existing products?
Communicability Can results be easily
observed or described to others?
ProductCharacteristics