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Chapter 2

Chapter 2 discusses consumer buying behavior, emphasizing its importance for marketers in understanding consumer needs, enhancing product development, and improving customer retention. It outlines the factors influencing consumer decisions, including psychological, personal, social, and cultural elements, and details the stages of the consumer decision-making process. Additionally, it categorizes types of buying behavior and suggests tailored marketing strategies for each type to effectively influence consumer choices.

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rahimmo645
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18 views15 pages

Chapter 2

Chapter 2 discusses consumer buying behavior, emphasizing its importance for marketers in understanding consumer needs, enhancing product development, and improving customer retention. It outlines the factors influencing consumer decisions, including psychological, personal, social, and cultural elements, and details the stages of the consumer decision-making process. Additionally, it categorizes types of buying behavior and suggests tailored marketing strategies for each type to effectively influence consumer choices.

Uploaded by

rahimmo645
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CHAPTER 2

ANALYZING CONSUMER BUYING


BEHAVIOUR
Intended Learning Outcomes (ILOs)
By the end of this lecture, students will be able
to:

 Understand the concept of consumer buying behavior and

 Why Consumer Buying Behavior Important for marketers

 Identify the key factors influencing consumer decisions.

 Analyze the stages of the consumer decision-making process

 Examine different types of consumer buying behavior.


WHAT IS CONSUMER BUYING BEHAVIOR?

 Definition: Consumer buying behavior refers to the


decision-making process and actions of individuals
when purchasing goods and services.
 It is influenced by psychological, social, cultural,
and personal factors that shape decision-making
o
Example: A business launching a new organic
skincare brand in Egypt must understand
consumers' attitudes toward natural ingredients,
pricing expectations, and social influences
before designing its marketing strategy.
WHY CONSUMER BUYING BEHAVIOR
IMPORTANT?
 Identifies Consumer Needs and Preferences
 By analyzing purchasing patterns, businesses can
identify what consumers want and tailor their
offerings accordingly.
 Example: A clothing brand analyzing seasonal
trends to stock appropriate apparel.
 Enhances Product Development
 Helps businesses design products that meet market
demands and address pain points.
 Example: A smartphone company introducing
features based on user feedback, such as better
battery life or enhanced cameras.
 Improves Customer Retention and Loyalty
 Understanding buying behavior enables personalized
experiences, fostering long-term relationships.
 Example: E-commerce platforms offering
personalized recommendations based on browsing
history.
Why Consumer Buying Behavior Important?
• Optimizes Pricing Strategies
Helps determine optimal pricing based on perceived
value and willingness to pay.
Example: Airlines using dynamic pricing based on
demand and booking trends.
• Develops Effective Marketing Campaigns
Enables targeted advertising and promotional
strategies.
Example: Social media ads personalized based on
users' search history and preferences.
• Adapts to Market Trends and Competition
Allows businesses to stay ahead by understanding shifts in
consumer behavior and responding proactively.
Example: Food delivery services adapting to increasing
demand for healthier meal options.
FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR
 Psychological Factors (Perception, Motivation, Learning,
Attitudes)
 Consumers’ perceptions of a brand’s quality and reputation
affect their choices.
 Motivation, based on Maslow’s Hierarchy of Needs,
influences purchases.
 Learning from past experiences and advertisements impacts
future buying decisions.
 Personal Factors (Age, Income, Lifestyle, Occupation)
 Younger consumers may prefer trendy fashion, while older
consumers focus on comfort and quality.
 Social Factors (Family, Reference Groups, Role and statues)
 Family influence plays a crucial role in household purchases
(e.g., buying a family car).
 Friends and influencers( You tubers) impact buying decisions,
especially in digital marketing.
 Cultural Factors (Culture, Subculture, Social Class)
 In Egypt, religious and cultural traditions influence food,
clothing, and shopping habits.
THE CONSUMER DECISION-MAKING PROCESS
 Problem Recognition:
 Identifying a need (e.g., a student realizing they need a
laptop for university).
 Information Search:
 Researching online reviews, asking friends, and visiting
stores.
 Evaluation of Alternatives:
 Comparing different brands based on price, quality, and
features.
 Purchase Decision:
 Selecting the best option and making the transaction.
 Post-Purchase Behavior:
 Customer satisfaction or dissatisfaction leads to repeat
purchases or complaints.
 Example: A customer buying a car in Egypt may visit
multiple dealerships, check social media reviews, and
consult family members before purchasing.
HOW MARKETERS CAN INFLUENCE EACH STAGE
OF THE CONSUMER DECISION-MAKING PROCESS

 Problem Recognition :
 Marketers create awareness through advertisements, influencer
marketing, and content marketing to highlight a need.
 Information Search :
 Providing detailed product information through websites, blogs,
customer reviews, to ensure consumers find relevant details easily.
 Evaluation of Alternatives :
 Brands differentiate themselves with unique selling propositions
(USPs), promotions, free trials, and comparison charts.
 Purchase Decision :
 Marketers use discounts, limited-time offers, easy payment options,
Post-Purchase Behavior :
 Ensuring customer satisfaction through follow-up emails, loyalty
programs, after-sales service, and customer support to encourage
repeat purchases and positive reviews.
Types of Consumer Buying Behavior:
is determined by the level of involvement that a consumer shows in a
purchase decision.
 Complex Buying Behavior:
 High involvement, with significant differences, expensive
products (e.g., buying a car or house).
 Dissonance-Reducing Buying Behavior: Expensive high
involvement with limited brand differences (e.g., choosing
between air conditioners).
 Habitual Buying Behavior: buying based on brand
familiarity.
 Few differences ,low involvement, frequently bought items (e.g.,
toothpaste, milk, news paper, energy drink).
 Variety-Seeking Behavior:
 Significant differences, low involvement. Like trying new
products for change (e.g., switching between snack brands).
 consumers try out new products just out of curiosity or boredom.
Example: Many Egyptian consumers frequently switch
between mobile data providers based on offers and promotions.
MARKETING STRATEGIES FOR DIFFERENT TYPES
OF BUYING BEHAVIORS

 Complex Buying Behavior


(High involvement, significant brand differences)
Example: Buying a luxury car (e.g., Mercedes vs. BMW).
Marketing Strategy: In-depth product information, expert
reviews, test drives.
 Dissonance-Reducing Buying Behavior:
(High involvement, few brand differences)
Example: Purchasing home appliances (e.g., refrigerators).
Marketing Strategy: Offering warranties, after-sales service,
customer reviews, and competitive pricing to reduce post-
purchase regret.
 Habitual Buying Behavior
(Low involvement, little brand difference)
Example: Buying toothpaste or bread.
Marketing Strategy: repetitive advertisements, in-store
promotions, and easy product availability.
 Variety-Seeking Buying Behavior
(Low involvement, significant brand differences)
Example: Choosing snack brands (e.g., Lays vs. Chipsy).
Marketing Strategy: Frequent new product launches, flavor
variations, attractive packaging, and promotional campaigns to
encourage brand switching.

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