Consumer Buying Behaviour ProcessDr. Poonam Madan

The Consumer Buying Decision ProcessHow do consumers make purchase decisions?

How do firms use this information to develop new products and marketing programs?

Model of Consumer BehaviorStimulus Response ModelMarketing and other stimuli enter the buyers black box and produce certain choice / purchase responses.Marketers must figure out what is inside of the buyers black box and how stimuli are changed to responses.?

Stimulus Respose Model The starting point for understanding consumer behavior is the stimulus-response ModelThe marketers task is to understand what happens in the consumers consciousness between the arrival of the outside marketing stimuli and the ultimate purchase decisions.

Model of Consumer BehaviorCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-*

A Model of Consumer Behavior

Model of Buyer BehaviorMarketing and Other Stimuli

MarketingProductPricePlacePromotionOtherEconomicTechnologicalPoliticalCulturalBuyers Black Box

Buyer CharacteristicsBuyer Decision Process

Buyer Responses

Product ChoiceBrand Choice

Purchase TimingPurchase Amount

Model of Consumer Behavior

Model of Consumer Behavior

Marketing andOther Stimuli

Buyers Black Box

Buyers Response

ProductPricePlacePromotionEconomicTechnologicalPoliticalCulturalCharacteristics Affecting Consumer BehaviorBuyers Decision ProcessProduct ChoiceBrand ChoiceDealer ChoicePurchase TimingPurchase Amount

Model of Consumer BehaviourKotler et al, 2006 chapter 6IN TRANSFORM OUT Activities engagedin to attract buyers Focus on this

The Consumer Decision ProcessThe CDP represents a road map of consumers minds that marketers and managers can use to help guide product mix, communications, and sales strategies

Variables involved in understanding consumer behaviourStimulus ads, products, hungerpangsResponse physical/mental reaction to the stimulusIntervening variables mood, knowledge, attitude, values, situations, etc.

Basic Model of Consumer Buying Decision ProcessAccording to Kotler and Armstrong, the basic model of consumer decision making process comprises three major components, viz., marketing and other stimuli (these act as influences), the buyers black box (these are related to the consumer) and the buyer responses (this is the response part).

Model of Consumer BehaviorStimulus Response ModelMarketing and other stimuli enter the buyers black box and produce certain choice/purchase responses.Marketers must figure out what is inside of the buyers black box and how stimuli are changed to responses.

Model of Buyer Behavior

Marketing and other stimuliA consumer is confronted with a stimulus in the environment. This stimulus could be of two kinds; a) One that is presented by the marketer through the marketing mix or the 4Ps, product, price, place and promotion; -product: attributes, features, appearance, packaging etc. -price: cost, value, esteem (prestige) -place: location and convenience, accessibility -promotion: advertising, sales promotion, personal selling, publicity, direct marketing. b) The other that is presented by the environment, and could be economic, technological, political and cultural.

Buyers black box:The stimuli that is presented to the consumer by the marketer and the environment is then dealt with by the buyers black box. The buyers black box, comprises two sub components, viz., the buyers characteristics and the buyer decision process.

The buyers characteristics could be personal, psychological, cultural and social.

These characteristics affect the buying decision process, which comprises five steps: Problem RecognitionInformation Search3. Alternative Evaluation4. Purchase Decision5. Post-purchase behavior

Buyer Decision Process PostpurchaseBehaviorPurchaseDecisionInformationSearchNeed RecognitionEvaluationof Alternatives

The Consumer Decision-Making ProcessDoes this process look familiar?How does it differ for low versus high risk products?Has anyone done it differently?Which is the most critical stage?Problem RecognitionInformation SearchEvaluation of AlternativesProduct ChoicePost-purchase EvaluationBill realizes thathe is fed up withhis puny b/w TVBill takes the TVhome and becomesa couch potatoBill talks to afew of his friendsabout a new TVBill goes shoppingto compare TVsof different brandsBill chooses onemodel/brand for itsfeatures and price

Buyer responses:While in the black box, the buyer also takes a decision with respect to the product, brand, dealer, timing and amount.

Our aim Awareness Action Desire Interest

Consumer Involvement in the Buying Decision Initiator Influencer Decider Buyer User Buying Decision

The starting point for understanding consumer behavior is the stimulus-response model shown in Figure 6.1.Marketing and environmental stimuli enter the consumers consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. The marketers task is to understand what happens in the consumers consciousness between the arrival of the outside marketing stimuli and the ultimate purchase decisions. Four key psychological processesmotivation, perception, learning, and memoryfundamentally influence consumer responses.*The starting point for understanding consumer behavior is the stimulus-response model shown in Figure 6.1. Marketing and environmental stimuli enter the consumers consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. The marketers task is to understand what happens in theconsumers consciousness between the arrival of the outside marketing stimuli and the ultimate purchase decisions. Four key psychological processesmotivation, perception, learning, and memoryfundamentally influence consumer responses*Consumer BehaviorConsumer behavior refers to the buying behavior of final consumers -- individuals and households who buy goods and services for personal consumption.Model of Consumer BehaviorMarketers control the stimuli or inputs consisting of the four Ps: Product, Place, Price, and Promotion. Environmental and situational influences, though perhaps beyond the control of the marketer, also influence many consumer choices. But what happens between the marketing stimuli input and the buyers response or output? That black box processing is the central question for marketers.Teaching Tip: You may wish to discuss the buyers black box in more detail at this stage. Students sometimes become involved in the controversy regarding the presence or absence of consciousness in consumers. Consider using a two-side in-class discussion: Side A: Experimental psychologists argue that what we call consciousness is merely a set of complex learned responses -- an ordinary physiological function. Side B: Sociologists and social psychologists argue that consciousness is greater than the sum of its physiological parts. For marketers, the issue is sometimes linked to free will: Do marketers create needs by conditioning consumers? Do marketers offer need-fulfillers to needs consumers create in their black box?Model of Consumer BehaviorThis CTR corresponds to Figure 5-1 on p. 135 and to the material on pp. 134-135. *consumer decision making process p147**initiator