Consumer Buying Behavior 2

Consumer Buying
Behavior
The key to a successful marketing campaign
lies in consumer behavior. Marketing to an
audience that you don’t truly understand will
not get you very far; the only way to reach and
connect with a customer, the only way to
influence their purchasing decision is to
understand their buying behavior.
Why Do The Customers Chose To Buy?
We all base our buying decisions on two
main forms of reasoning; rational and
emotional.
Reasons for and against making the

purchase can fall solely into one of the
other category, or they can fall into both.
You need to consider your product or
service, and what the reasons are for
someone buying this from you.
Why Do The Customers Chose To Buy?
Emotional reasons often outweigh
rational reasons. For example, when
choosing between two car servicing
companies, the customer is likely to
return to the company they used
previously despite this company
charging more than the other. This is
because they feel a trust and loyalty to
the company, based on previous quality
of services and customer service.
Buyer behavior refers to the decision and acts
people undertake to buy products or services for
individual or group use. It’s synonymous with
the term “consumer buying behavior,” which
often applies to individual customers in contrast
to businesses.
Buyer behavior is the driving force behind any
marketing process. Understanding why and how
people decide to purchase this or that product
or why they are so loyal to one particular brand
is the number one task for companies that strive
for improving their business model and
acquiring more customers.
According to Frederick Webster- “Consumer
buying behavior is all psychological, social and
physical behavior of potential customers as
they become aware of, evaluate, purchase,
consume and tell other people about products
and services.”
Importance of Understanding
Buyer Behavior
Understanding consumers’ buying behavior is one
of the elements that helps in achieving marketing
goals, without this understanding it makes gaining
more customers difficult. Especially in today’s
competitive world. It also helps when customers will
buy more from business. Their buying behavior is one
of the elements which must be understood for a
better view about the customer profile. Customers
base their buying decisions on both rational and
emotional reasons.
7 Characteristics of
Consumer Behavior
1. Bargaining – A trend of bargaining is often found in
the behavior of buyers. They prefer buying goods by
reducing the price as told by the seller. Indian buyers
too do not frame uniform price policy.
2. Quality vs. Price – Buyers focus on price instead of

the variety of the goods. They therefore, prefer high
price goods. A little bit change has come now
because the consumers have now begun purchase of
quality goods on higher price.
Consumer Behavior
3. Brand or Trademark Consciousness – It is the
characteristic of the behavior of buyer that he appears now
aware of the brand of items and considers these goods
authentic and of higher quality.
4. Changing Consumption Patterns – Owing to widespread

education, increase in income and standard of living as also
desire of more comforts, the pattern of consumption is now
being changed. The low income group and high income
group are increasingly buying fridge, tape recorder, cooler,
sewing machines etc.
Consumer Behavior
5. Role of Women – The role of women is increasing
day to day in the manner of decisions for purchase.
The women do purchase of all kinds particularly in
families where the husbands earn the bread.
6. Credit and Guarantee – New motives for purchase

are getting their way rapidly because of having credit
and guarantee facility available in the market. Such
facilities are developing the trade and commerce.
Consumer Behavior
7. Complaining – Buyers are gradually being
aware of their rights. They have started
exhibiting their complaints through media and
the representations before the concerned
authorities and the forums. They can lodge their
complaint before consumer forum and thus, can
receive the compensation against the
damage/loss so sustained.
TYPES OF BUYER BEHAVIOR
Buyer behavior is always determined by how
involved a client is in their decision to buy a
product or service and how risky it is. The higher
the product price, the higher the risk, the higher
the customer’s involvement in purchase
decisions.
TYPES OF BUYER BEHAVIOR
BUYER BEHAVIOR PATTERNS
Each consumer may have unique buying habits. Still,
there are typical tendencies, which allows
distinguishing the following buyer behavior patterns:
1. Place of purchase
2. Items purchased
a. Product durability
b. Product availability
c. Product price
d. Buyer’s purchasing power
e. Number of customers for whom the product is intended
BUYER BEHAVIOR PATTERNS
3. Time and frequency of purchase
a. Product type
b. Customer’s lifestyle
c. Product necessity
d. Customer’s traditions and customs
4. Method of purchase
MODEL OF BUYER BEHAVIOR
The buyer behavior model is a structured step-
by-step process. Under the influence of
marketing stimuli (product, price, place, and
promotion) and environmental factors
(economic, technological, political, cultural), a
customer understands the need to make a
purchase.
MODEL OF BUYER BEHAVIOR
There are cases, however, when some stages of the decision-making process
are skipped. For example, the customer already knows a lot about a product
and does not need to search for information. Another situation is when the
buyer might see a product in the store and decide to buy it impulsively.
Besides, there are situations when, after evaluating alternatives, the
customer goes back to the information search step.
BUYER BEHAVIOR ANALYSIS
To offer relevant products and services to the
target audience, marketers should analyze what
and how people buy. Companies adhere to
several ways of monitoring buyer behavior:
1. Using computer software
2. Analyzing customers’ reviews
3. Conducting online surveys
Low-Involvement versus High-Involvement
Buying Decisions
 Low-involvement products aren’t necessarily
purchased on impulse, although they can be. Low-
involvement products are, however, inexpensive and
pose a low risk to the buyer if she makes a mistake
by purchasing them.
 High-involvement products carry a high risk to

buyers if they fail, are complex, or have high price
tags. A car, a house, and an insurance policy are
examples.
Factors Influencing: Personal, Social, Culture and
Psychological Factors of Consumers
1. Personal Factors
The behavior of consumers is also influenced by
personal characteristics such as:
i. The buyer’s age,
ii. Occupation,
iii. Economic situation,
iv. Lifestyle,
v. Personality, and
vi. Self-concept.
Factors Influencing: Personal, Social, Culture and
Psychological Factors of Consumers
2. Social Factors
3. Cultural Factors
4. Psychological Factors
i. Motivation
ii. Perception
iii. Learning
iv. Beliefs and attitudes
Case Study Analysis
LEGO Group is the manufacturer of LEGO toys, one of the most popular brands of toys in the
world. Lego Toys - 'The Story of Playful Learning' describes the success story of the LEGO Group. It
also explains the initiatives the company took to adapt its products to the changes in tastes and
preferences of children over the years. The LEGO Group's brand protection efforts are also
discussed in detail.
Issues:
» Toys for the development of non-academic skills of children
» Quality maintenance for the success of a brand
» Brand protection efforts
In 2005, the Denmark-based LEGO Group was one of the world’s largest manufacturers of toys.
The Group started its operations in 1932, making wooden toys. Later it diversified into making
plastic bricks, which were introduced in the market as Automatic Binding Bricks. LEGO toys (Refer
Exhibit) consisted of small plastic bricks of different shapes and colors, which could be assembled
into various forms.
The introduction of Acrylonitrile Butadiene Styrene, better known as ABS plastics for making
the bricks was a major development as it was non-toxic and more resistant to heat, chemicals,
etc...
Case Study Analysis
Questions for Discussion:
1. Identify the strategies which helped the LEGO Group to remain one of
the prominent toy manufactures in the world even after many decades
of its inception.
2. "The toy market has been declining for some time and is extremely
competitive. To consolidate its position, the LEGO Group chose to sell its
majority holding in the LEGOLAND Parks in order to focus on closer
relations with our customers and consumers, improved marketing, and a
greater emphasis on core products." Do you agree with this statement?

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Consumer Buying

Reasons for and against making the

2. Quality vs. Price – Buyers focus on price instead of

4. Changing Consumption Patterns – Owing to widespread

6. Credit and Guarantee – New motives for purchase

 High-involvement products carry a high risk to

Questions for Discussion:

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