Types of Consumer Buying BehaviourDr. Poonam Madan

ConsiderPeople who buy Harley Davidson motorcyclesPeople who buy MercedesWhat is the buying behavior of these two types of people? Would the same marketing strategy work for both groups?

7O framework to define the marketWho constitutes the market?OccupantsWhat does the market buy?ObjectsWhy does the market buy?ObjectivesWho participates in the buying?OrganizationsHow does the market buy?OperationsWhen does the market buy?OccasionsWhere does the market buy?Outlets

Types of Buying-Decision BehaviorDifference between brandsSignificantDifferencesComplex buying behaviorLowFew DifferencesDissonance-reducing buying behaviorHabitual buying behaviorVariety-seeking buying behaviorHighInvolvement Level

Types of Buying Behavior

Types of consumer buying behavior are determined by:

Level of Involvement in purchase decisionBuyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk: Personal risk Social risk Economic risk

Low-Involvement Purchases

Moderating EffectsLow-involvementVariety seeking

Types of Buying Decision BehaviorComplex buying behaviorDissonance-reducing buying behaviorHabitual buying behaviorVariety-seeking buying behavior

Types of buyer behaviourComplex buyer behaviour e.g. Intel Pentium ProcessorDissonance-reducing behaviour (brand reduces after-sales discomfort)Habitual buying behaviour e.g. salt - little differenceVariety seeking behaviour - significant brand differences e.g soap powder

Types of Buying Decision BehaviorComplex Buying Behavior

When consumers are highly motivated in a purchase and perceive significant differences among brands

Purchasers are highly motivated when:Product is expensiveProduct is riskyProduct is purchased infrequentlyProduct is highly self-expressive

Complex buying behaviour

This behaviour is characterised by rigorous and detailed involvement by the buyer as various brands of the commodity compete for the buyers attention.

When the buyer intends to purchase an expensive product, accompanied with a massive risk factor and purchased very rarely, this type of behaviour comes into play.

Types of Buying Decision BehaviorDissonance-reducing buying behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands

Types of Buying Behaviour contd...Dissonance reducing buying behaviour

When the product in question is costly or has a risky factor in its purchase but there are different brands that have less or no difference this behaviour comes to play.

Buyers develop a sense of dissonance or feeling a discomfort after they purchase the product because they fear it might be a failure after having spent a lot of money on it.

Types of Buying Decision Behavior

Post-purchase dissonance occurs when the consumer notices certain disadvantages of the product purchased or hears favorable things about a product not purchased

Types of Buying Decision BehaviorHabitual buying behavior occurs when consumers have low involvement and there is little significant brand difference

Types of Buying Behaviour contd... Habitual buying behaviour

This buying behaviour in consumers arises when the products in question have few or no significant differences and the consumer buys the product that he/she has been using for sometime, without having to switch to another brand.

When a consumer is offered with a choice between two substitute products that have identical features, he/she will purchase the one that he/ she had been using earlier as he/ she is accustomed to it.

Types of Buying Decision BehaviorVariety-seeking buying behavior occurs when consumers have low involvement and there are significant brand differences

Types of Buying Behaviour contd...Variety seeking buying behaviour

Such behaviour takes place when the consumer has a variety of product choice that tend to serve the same purpose.

As a result, consumers will buy any given brand at a given time without having to make a choice between them.

Variety-Seeking vs. Habit PersistenceVariety-SeekingOften driven by need for arousalPreference-testing utilityConsumers often overestimate their variety needs

Habit PersistenceDifferent from LoyaltyTypically driven by risk aversion

The elaboration likelihood model, an influential model of attitude formation and change, describes how consumers make evaluations in both low- and high-involvement circumstances. There are two means of persuasion in their model: the central route, in which attitude formation or change stimulates much thought and is based on the consumers diligent, rational consideration of the most important product information; and the peripheral route, in which attitude formation or change provokes much less thought and results from the consumers association of a brand with either positive or negative peripheral cues. Peripheral cues for consumers include a celebrity endorsement, a credible source, or any object that generates positive feelings. Consumers follow the central route only if they possess sufficient motivation, ability, and opportunity. We buy many products under conditions of low involvement and without significant brand differences.*The manner or path by which a consumer moves through the decision-making stages depends on several factors, including the level of involvement and extent of variety seeking, as follows. LOW-INVOLVEMENT CONSUMER DECISION MAKING The expectancy-valuemodel assumes a high level of consumer involvement, or engagement and active processing the consumer undertakes in responding to a marketing stimulus.

VARIETY-SEEKING BUYING BEHAVIOR Some buying situations are characterized by low involvement but significant brand differences. Here consumers often do a lot of brand switching. Think about cookies. The consumer has some beliefs about cookies, chooses a brand without much evaluation, and evaluates the product during consumption. Next time, the consumer may reach for another brand out of a desire for a different taste. Brand switching occurs for the sake of variety, rather than dissatisfaction.*For example a buyer purchasing an LCD tv may be confused as whether to purchase it or go for an LCD tv of a different brandE.g buying products like bread, margarine, sugar e.t.c.A example of this could be cooking fat.