Buyer Behavior
Consumer
Ultimate user of consumer goods, ideas or services
Buyer or decision maker
Consumer Market
Market that consists of individuals and households who buy or acquire goods and services for personal consumption
Dynamic and often changing
Consumer behavior
Interaction between affect and cognition, behavior and environment in which humans exchange the aspects of their life
Basically the behavior or a consumer
Internal Influences
Psychological and personal influences on consumers decision making
External influences
social and cultural influences on the decision making process
Consumer Decision making process
The process by which individual select from a. range of products brands and ideas
The decision process may involve complex cognitive or mental activity, a simple learned response, or an uninvolved and uninformed choice that may even appear to be stochastic or probabilistic
Consumer decision making models
Models of consumer decision making try to understand how consumers behave in certain situations.
EKB Model
Sheth Model
Bettman model
Explains how families purchase goods
5 steps
Problem recognition
Information search
Evaluation of alternatives
Purchase Decision
Post Purchase evaluation
Consumer sees a significant difference between his or her current state ofaffairs and some desired or ideal state. (buyer recognizes need)
Internal stimuli (your hungry and want to eat)
External stimuli (you see a billboard which makes you crave food therefore wanting to eat)
Commercial sources (market driven)
consumer checks his or her memory and surveys the environment to identify what options are out there that might solve the problem.
Examples are advertisements on newspapers, tv, radio, internet
The role of marketers during the information search step of the consumer decision- making process is to make the information that consumers want and need about their product easily accessible.
Personal Sources
Examples of these are family and friends
Public sources
Examples are third part reviews such as specialized magazines, internet blogs and reviews, youtube review videos.
Experiential sources
Based on personal experience
Processing the information to make purchase decision
Depends on...
Individual consumer
Buying situation
Marketers understand this therefore they shape the way consumers evaluate their alternatives
Consumer narrows down the results of the search by comparing pros and cons
Evaluative criteria
Characteristics a consumer values and compares within products before making a purchase
Consumer decides which criteria are more important to him
marketers often play a role in educating consumers about which product characteristics they should use as evaluative criteria
Decision and action
Products matches the evaluative criteria therefore consumer purchases it
Can be influenced by heuristics
Price = Value
Brand Loyalty
Prized goal for marketers
Consumers take further action on the purchase made based on their satisfaction
Cognitive dissonance
Post purchase regret
Word of mouth communication during this step is very important
Involvement
Amount of effort consumers put into decision making
Perceived risk
As a rule, we are more involved in the decision-miling process for products that we think are risky in some way.
High risk
Low risk
product is expensive, complex or hard to understand
computer, sports car, speakers
click to edit
Different types of risk are
Financial
Social
Emotional
Physical
Functional