Week 4-Buyer Behaviour-Consumers

Buyer Behavior Overview

• Marketing involves identifying and satisfying consumer needs.

• Understanding influencing factors on consumer behavior is essential.

• Two types of buyers exist:

  • Consumer buyers: individuals/households buying for personal use.

  • Organizational buyers: businesses purchasing for operational use.

Consumer Buyer Behavior

• Refers to final consumers buying goods/services for personal consumption.

• Collectively known as the consumer market.

Factors Affecting Consumer Behavior

Cultural Factors

• Defined as programming that distinguishes societies (Hofstede, 1960).

• Learned and shared within groups.

• Marketers monitor cultural shifts for new product opportunities.

Social Factors

• Influenced by family, social class, and roles.

• Values are learned and shared through groups.

• Significance of family and lifestyle in purchasing decisions.

Personal Factors

• Characteristics influencing consumer behavior include:

  • Age and life-cycle stage

  • Occupation

  • Economic situation

  • Lifestyle

  • Personality and self-concept

Psychological Factors

• Key psychological influences include:

  • Motivation

  • Perception (selective attention, distortion, and retention)

  • Learning

  • Beliefs and attitudes

Buyer Decision Process

• Consumers are systematic decision-makers; decision-making is sequential.

• The entire buying process includes:

  1. Need Recognition: Recognizing a need influenced by advertising.

  2. Information Search: Seeking information from internal and external sources.

  3. Evaluation of Alternatives: Assessing options before purchasing.

  4. Purchase Decision: Actual transaction not being the final step; focus on repeat purchases.

  5. Post-Purchase Evaluation: Aims for customer satisfaction; reduces cognitive dissonance.

Sources of Information in Decision Making

• Personal sources: Friends, family, neighbors.

• Commercial sources: Advertisements, salespeople.

• Public sources: Mass media, consumer ratings.

• Experiential sources: Hands-on experience with the product.

Adoption Process

• Mental process from first learning about an innovation to full adoption.

• Stages of adoption include:

  1. Awareness: Acknowledging the product.

  2. Interest: Seeking more information.

  3. Evaluation: Considering product feasibility.

  4. Trial: Testing the product.

  5. Adoption: Commitment to regular usage.

Consumer Buying Situations

• Decisions are based on situational context and can vary:

  • High Involvement: Extended problem-solving.

  • Low Involvement: Limited problem-solving, habitual purchases, or variety-seeking.

Implications for Marketing Strategies

• Understand modes of decision-making for effective marketing approaches:

  • Limited problem solving: Use trial offers and samples.

  • Brand loyalty: Focus on emotional connections.

  • Habit/Variety seeking: Address patterns of repurchase or brand switching.