Principles of Marketing
SESSION:10-15
Model of Consumer Behavior
Factors Influencing
Consumer Behavior
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Cultural factors
Social factors
Personal factors
Psychological factors
Culture
Culture is the fundamental determinant
of a person’s wants and behaviors
acquired through socialization
processes with family and other key
institutions.
Subcultures
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Nationalities
Religions
Racial groups
Geographic regions
Fast Facts About
American Culture
• The average American:
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chews 300 sticks of gum a year
goes to the movies 9 times a year
takes 4 trips per year
attends a sporting event 7 times each year
Social Classes
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Upper uppers
Lower uppers
Upper middles
Middle
Working
Upper lowers
Lower lowers
Characteristics of Social Classes
• Within a class, people tend to behave
alike
• Social class conveys perceptions of
inferior or superior position
• Class may be indicated by a cluster of
variables (occupation, income, wealth)
• Class designation is mobile over time
Social Factors
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Reference groups
Family
Social roles
Statuses
Reference Groups
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Membership groups
Primary groups
Secondary groups
Aspirational groups
Disassociative groups
Family Distinctions
Affecting Buying Decisions
• Family of Orientation
• Family of Procreation
Personal Factors
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Age
Life cycle stage
Occupation
Wealth
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Personality
Values
Lifestyle
Self-concept
Brand Personality
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Sincerity
Excitement
Competence
Sophistication
Ruggedness
Lifestyle Influences
• Multi-tasking
• Time-starved
• Money-constrained
Psychological Factors
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Motivation
Perception
Learning
Beliefs & Attitude
Motivation
Freud’s
Theory
Maslow’s
Hierarchy
of Needs
Herzberg’s
Two-Factor
Theory
Behavior
is guided by
subconscious
motivations
Behavior
is driven by
lowest,
unmet need
Behavior is
guided by
motivating
and hygiene
factors
Maslow’s Hierarchy of Needs
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Physiological needs
Safety needs
Social needs
Esteem needs
Self-actualization needs
Perception
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Selective attention
Selective retention
Selective distortion
Subliminal perception
Learning
• When people act, they learn
• Four sources of learning: Reading,
seeing, Hearing & experiencing
• . Applying learning theory, marketers
can build up demand for a product by
associating it with strong drives, using
motivating cues, and providing positive
reinforcement
Beliefs and Attitudes
• A belief is a descriptive thought that a
person holds about something.
• Beliefs may be based on knowledge,
opinion, or faith, and they may or may
not carry an emotional charge
• for example, that the impact of country
of origin varies with the type of product
• An attitude is a person’s enduring favorable
or unfavorable evaluations, emotional
feelings, and action tendencies toward some
object or idea.
• People have attitudes toward almost
everything: religion, politics, clothes, music,
food. Attitudes put them into a frame of mind
of liking or disliking an object, moving toward
or away from it
• they are very difficult to change
• well advised to fit its product into existing
attitudes rather than to try to change people’s
attitudes
Consumer Buying Process
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Problem recognition
Information search
Evaluation
Purchase decision
Postpurchase behavior
1. Need or Problem Recognition:
• Consumers perceive a need and becomes
motivated to solve the problem
• Is caused by the difference between the
consumer’s ideal state and the actual state of
mind
Sources of problem/Need recognition:
• Out of stock
• Dissatisfaction with the current product
• New needs/want
Sources of problem/Need recognition:
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Related products purchase
New products
2. Information Search: Search and gather
products/services that will fulfill the need or satisfy
the want
a. Internal Search: Search for information stored in
memory to recall past experiences and/or
knowledge regarding various purchase alternatives
b. External Search:
Personal Sources: Friends, relatives and co-workers
Commercial sources: Information from advertisement, sales
people, Internet etc
Public Sources: Articles in magazines, newspapers and
report on TV
Personal experience: Examining and testing the product
3. Evaluation of Alternatives:
High-Involvement Purchases: Those involving
high expenditure or personal risk need to be
extensively evaluated. Ex: buying a car, House
Low-Involvement Purchases: Involves simple
evaluation process. Ex: buying a soft drink,
choosing a bottle of Jam etc
Alternative brands or products are evaluated
with respect to its benefit, features and price etc
4. Purchase Decision:
• Choosing the product/service that the
consumer thinks is the best fit or ideal
one is done in this stage.
• The actual purchase is made here
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Post-Purchase Evaluation:
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Consumers in this stage uses the product and
check if it does meet the expectation.
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If the product meet the expectation the consumer is
satisfied very much and
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If it is below expectation the consumer is
dissatisfied.
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Satisfaction leads to future purchases of the
product in particular and brand image being built
and dissatisfaction leads to disliking
Business Buying Decisions
Business buying refers to the
decision-making process by which
formal organizations establish the need
for purchased products and services,
and identify, evaluate, and choose
among alternative brands
and
suppliers.
Characteristics of Business
Markets
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Fewer, larger buyers
Close supplier-customer relationships
Professional purchasing
Many buying influences
Multiple sales calls
Derived demand
Inelastic demand
Fluctuating demand
Geographically concentrated buyers
Direct purchasing
Stages in the Business Buying
Process: Buy phases
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Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order-routine specification
Performance review
The Buying Participants
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Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers