Please think about it

• What is Consumer Behavior?

• Why should we study this chapter in Marketing
Management?
• What influences the customer Behavior most
• As a marketer what should we do to influence
consumer behavior most?
• Who makes purchasing decision?
• Does buyers follows a standard buying process
 Answer1-Consumer Buying
Behavior
• Study of Processes a consumer uses to
make purchase decisions,
• as well as how they uses and dispose
of purchased goods or services;
• also includes factors that influences
purchase decision and product use
• How do customer react to companies
marketing mix
Why Understanding Customer is Important
• marketing concept …"satisfy consumer needs for
profit/value" so....

• to segment, target & construct our marketing mix &

promotions well, we must understand consumers &
their behavior
• we can study actual purchases then find ways to
encourage them to buying & then buy &buy again !!!
• To understand customer decision behavior and try to
stimulate & influence this behavior to get better
responses from the customer
 Q3

• What influences The

Customer Behavior
most
 Answer 3

• Understand the major factors influencing

consumer behavior
• Know and recognize the types of buying
decision behavior
• Understand the stages in the buying
decision process
• Who all participated in decision making
 Factors Influencing
Consumer Behavior
Cultural
Social

Reference Personal
Culture groups Psycho-
Culture Age and logical
life-cycle
Occupation
Motivation
Sub- Family Buyer
Sub- Economic
Perception
culture
culture situation Learning
Roles Lifestyle Beliefs and
Social and attitudes
Social status Personality
class
class and
self-concept
•Buying Behavior
• Is Purchasing a car is different from a
chocolate.
Buyi
 Buyer Decision Process
Purchase
Decision
Evaluation Postpurchase
of Alternatives Behavior
Information
Search

Need Recognition

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 1: Problem Recognition
• Result of an imbalance b/t actual and
desired states
– What is a need?
– What is a want?
• How to recognize unfilled wants?
 The Buyer Decision Process
Step 2. Information Search
Sources
PersonalSources
Personal •Family, friends, neighbors
•Most effective source of
information
Sources
CommercialSources
Commercial •Advertising, salespeople
•Receives most information from
these sources
Sources
PublicSources
Public •Mass Media
•Consumer-rating groups

Sources
ExperientialSources •Handling the product
Experiential
•Examining the product
•Using the product
 The Buyer Decision Process
Step 3. Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking

Consumers May Buy on Impulse and

Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.

Consumers May Make Buying Decisions

Only After Consulting Others.

Marketers Must Study Buyers to Find Out How

They Evaluate Brand Alternatives
 What drives Search?
Perceived Risk

• Performance risk
• Financial risk
• Physical risk
• Social risk
• Time loss risk
 Step 4: Purchase
• To buy or not to buy…
 5: Post Purchase Behavior
• Cognitive dissonance:
– Did I make a good decision?
– Did I buy the right one? Get a good value?
• Marketing minimizes through:
– Effective communication
– Follow up
– Guarantees
– Warranties
Postpurchase Behavior
Cognitive Dissonance

?
Did I make a good decision?

Did I buy the right product?

Did I get a good value?

Can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
Overdeliveries & welcome
letters
Factors Influencing Consumer
Behavior
• Personal
• Psychological
• Social
• Cultural
Cultural
Culture
Culture

Sub-
Sub-
culture
culture

Social
Social
class
class
 Culture
• Culture is the fundamental cause of a
Person's Wants and Behavior.
 Factors Affecting Consumer
Behavior:
Subculture
• Group 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 Class
• Society’s relatively permanent
& ordered divisions whose
members share similar values,
interests, and behaviors.
• Measured by: Occupation,
Income, Education, Wealth and
Other Variables.

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23
Roles
Roles and
and Status
Status
Family
Family (most
(most important)
important)
Social
Social Factors
Factors ••Husband,
Husband, wife,
wife, kids
kids
••Influencer,
Influencer, buyer,
buyer, user
user
Groups
Groups
••Membership
Membership
••Reference
Reference
Social
Factors Affecting Consumer Behavior:
 Factors Affecting Consumer Behavior:
Personal
Personal Influences
Personal Influences

Age
Age and
and Life
Life Economic
Economic Personality &
Personality &
Occupation
Occupation Situation Self-Concept
Cycle
Cycle Stage
Stage Situation Self-Concept

Lifestyle Identification
Lifestyle Identification

Activities
Activities Interests
Interests Opinions
Opinions

Marketing for Hospitality and Tourism, 3e

©2003 Pearson Education,
Inc.
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Philip Kotler, John Bowen, James Makens