1. Consumer Behavior & Psychology

2. Definition
Consumer buyer behavior refers to the buying behavior of final consumers- individuals and households that buy goods for consumption- Kotler
All these final consumers make up the consumer market
It can also be defined as the study of consumers and the processes they use to choose, use (consume), and dispose of products and services.

3. Model of Consumer Behaviour
How do consumers respond to various marketing efforts the company might use?

4. Characteristics Affecting Consumer behavior

5. Cultural Factors
Culture- set of basic values, perceptions and behavior learned by a member of society from family and other institutions
Subculture- a group of people with shared value systems based on common life experiences
Social class- relatively permanent and ordered divisions in a society whose members share similar values and behavior

6. Social Factors
Groups- 2 or more people interact to achieve mutual goals. Reference groups serve as points of comparison and influence buyer behavior. Opinion leaders drive trends and influence mass opinion
Family- buying roles have changed with evolving consumer lifestyles. Wives, children play a larger role.
Roles & Status- a person plays different roles in their lives and is accorded a status based on these roles.

7. Personal Factors
Age & life-cycle stage- impact of the family life cycle needs to be considered.
Occupation
Economic situation
Lifestyle- depicts a persons pattern of living. Lifestyle profiling helps to understand persons method of interaction with the world
Personality & self concept- can be used to describe certain characteristics like sociability, aggressiveness, etc.

8. Psychological Factors
Motivation- a need that is sufficiently pressing to direct the person to seek satisfaction
Perception- process by which people select, organize & interpret information to form a meaningful picture
Learning – changes in an individuals behavior arising from experience
Beliefs & Attitudes- belief is a descriptive thought that a person has about something. Attitude describes a persons consistent tendency towards and object/idea. Attitudes are difficult to change

9. Types of Buying Decision Behaviour

11. Complex Buying Behaviour
eg: Electronics
Type of Product
Expensive
Risky
Purchased infrequently
Highly self-expressive
Brand
Must understand the information gathering and evaluation behaviour of buyers
Need to help buyers learn about the product –class, attributes and relative importance
Describe benefits – Print media
Motivate stores sales people and buyers acquaintance to influence the final brand choice

12. Dissonance-reducing Buying Behaviour
Type of product
Expensive
Risky
Purchased infrequently
Highly self-expressive
Brand
Provide a good price
Offer convenience
Mitigate dissonance - provide after sales communication with evidence and support to help consumers feel good about there product
eg; Carpets, Furniture

13. Habitual Buying Behaviour
Type of product
In expensive
Frequently Purchased
Familiar/ loyal
Brand
Provide a good price
Offer Promotions
Create top of mind – use colors symbols (TV led advertising)
eg; personnel care products

14. Variety Seeking Buying Behaviour
Type of product
In expensive
Frequently Purchased
Familiar
Large choice/variety
Brand
Market Leader – create habitual behaviour
Dominating shelf space
Stocking up
Reminder advertisements
Challengers
Offers lower price/special deals
Coupons, samples
Advertising that presence reason for trying something new
eg; confectionary

15. The Buyer Decision Process

16. The Buyer Decision Process for New Products
Consumer go through five stages in the process of
adopting a new product:
Awareness
Interest
Evaluation
Trial
Adoption

17. Zero Moment of Truth

18. Individual Differences in Innovativeness
Marketing efforts in innovation

19. Influence of Product Characteristics on Rate of Adoption
Relative advantage
Compatibility
Complexity
Divisibility
Communicability

20. Business Buyer Behavior

21. Major types of Buying situations
Straight re-buy- buyer routinely reorders without any modification
Modified re-buy- buyer may modify product specs, prices, terms, etc.
New task- purchases a product or service for the first time
Systems selling- buying a packaged solution from a single seller

22. Participants in the Business buying
Users- Members who will actually use the product
Influencers- people who affect the buying decision. Will provide information to evaluate alternatives
Buyers- people with authority to select buyer and arrange terms of purchase
Deciders – have the power to select/approve the vendor
Gatekeepers- control the flow of information to others

23. Major influences on business buyer behavior

24. Stages of the business buying process