2.

1 Consumer buying behavior

Chapter 2 2.2 Factors influencing consumer buying decision
Understanding 2.3 Consumer decision making process
Consumer Behaviour 2.4 Types of consumer buying decisions
2.1 Consumer Buying Behaviour
The buying behavior of final consumers, individuals and households, who buy goods and
services for personal consumption
Includes factors that influence purchase decisions and product use.

Making
Purchase
Decisions

Consumer
Behaviour
Use and
Dispose
the
products
2.2 Factors Influencing Cultural
Consumer Buying Factors
Decision

Individual Consumer
Buying
Social
Factors Decision Factors

Psychological
Factors
2.2 CULTURAL Culture is the learned values, perceptions,
FACTORS wants, and behavior from family and other
important institutions
The most defining element of a culture is its
values—the enduring beliefs shared by a society
that a specific mode of conduct is personally or
socially preferable to another mode of conduct.
 Reference Group Opinion Leaders Family Members

• a group that • an individual who • family is the most

influences an influences the important social
individual’s opinions of institution which
purchasing others. strongly
behavior • Political figures, influencing
• Consumers learn Reputable icons, values, attitudes,
from observing social media self-concept—
how members of influencers, and buying
their reference movie stars, behavior.
groups consume, sports figures, • Decision-making
2.2 SOCIAL and they use the
same criteria to
and other
celebrities
roles among
family members
FACTORS make their own
consumer
tend to vary
significantly,
decisions. depending on
the type of item
purchased.
2.2 Individual Factors
A person’s buying decisions are also
influenced by personal characteristics
that are unique to everyone, such as
gender, age, life-cycle stage and also
includes personality, self-concept, and
lifestyle.
Age and life-cycle stage
 People change the goods and services
they buy over their lifetimes.
 Tastes in food, clothes, furniture, and
recreation are often age-related.
Buying is also shaped by the stage of
the family life cycle.
 2.2 Individual Factors (cont’d)
Personality and self-concept
Personality refers to the unique
psychological characteristics that
lead to consistent and lasting
responses to the consumer’s
environment.
Self-concept is how consumers
perceive themselves in terms of
attitudes, perceptions, beliefs,
and self-evaluations.
2.2 Individual Factors (cont’d)
• Lifestyle is a person’s pattern of living as expressed in his or her
activities, interests, and opinions (AIO).
2.2 Psychological Factors
An individual’s buying decisions are further influenced by
psychological factors: perception, motivation and learning. These
factors are what consumers use to interact with their world.

Motivation is the driving force that causes a

Motivation person to take action to satisfy specific needs.

The process by which people select, organize, and

Perception interpret stimuli into a meaningful and coherent
picture.

Learning is a process that creates changes in behavior,

Learning immediate or expected, through experience and
practice.
  When buying products, particularly new or
expensive items, consumers generally follow
2.3 CONSUMER the consumer decision-making process as
DECISION shown below.
MAKING  These five steps represent a general process
that can be used as a guide for studying how
PROCESS consumers make decisions.
3.3 Consumer decision making process
STEP 1: Need Recognition
Occurs when the buyer recognizes a problem or need
triggered by:
Internal stimuli: persons’ normal need. E.g. hunger / Thirst
External stimuli: stem from sources outside one's self. E.g.
advertisement on TV, design of a package, the color of a car,
cologne worn by a stranger
Marketing manager’s objective is to get consumers to
recognize an imbalance between their present status and
their preferred state – using advertising and promotions to
provide this stimulus. – Survey buyer preference to know
their wants and needs to tailor the products/ services.
2.3 Consumer decision making process
STEP 2: Information Search
An information search can occur internally, externally,
or both.
• Internal information search is the process of
recalling past information stored in the memory.
• External information search is the process of seeking
information in the outside environment.
Sources of External Information:
Personal sources—family and friends
Commercial sources—advertising, Internet
Public sources—mass media, consumer, organizations
Experiential sources—handling, examining, using the
product
 STEP 3: Evaluation of Alternatives
How the consumer processes information to arrive at
brand choices
Evaluation involves the development of a set of
criteria. These standards help the consumer evaluate
2.3 Consumer and compare alternatives.

decision making Evoked set (consideration set) is the group of brands

resulting from an information search, from which a
process buyer can choose. From this set, buyer will further
evaluate the alternatives to make a choice. E.g. choose
only three out of ten brands of laptop before making
the choice.
Consumers often set cut-offs (the minimum or
maximum levels) of an attribute that determine
whether a product will be considered as a viable
choice.
Adding new brands to an evoked set affects the
consumer's evaluation of the existing brands in that
set.
 STEP 4: Purchase Decision

Consumer reached to the point of

deciding either to buy or not buy.
Specifically, consumers must
decide:

Whether to buy or not? If yes,

What to buy (product type and
brand)?
 When to buy ?
Where to buy (type of retailer,
2.3 Consumer specific retailer, online or in-
decision making store) ?
process How to pay ?
2.3 Consumer decision making process
STEP 5: Post-Purchase Decision
 When buying products, consumers
expect certain outcomes from the
purchase. How well these
expectations are met determines
whether the consumer is satisfied
or dissatisfied with the purchase.
 When consumer recognize
inconsistency between their
values or opinions and their
behavior, they tend to feel an
inner tension called cognitive
dissonance.
 2.4 TYPES OF Routine response Limited decision Extensive decision
CONSUMER behavior making making

BUYING DECISIONS
• The type of decision • The type of decision The most complex type
making exhibited by making that requires a of consumer decision
consumers buying moderate amount of making, used when
frequently purchased, time for gathering buying an unfamiliar,
low-cost goods and information and expensive product or
services; requires little deliberating about an an infrequently
search and decision unfamiliar brand in a bought item; requires
time. familiar product use of several criteria
category. for evaluating options
and much time for
seeking information.

The End of Chapter 2