Comsumer behavior and marketing communication

Consumer Behavior and
Marketing Communication

Dr. Akansha Jain email: dr.akanshajain@gmail.com blog – http://drakanshajain.blogspot.in 1

A CUSTOMER IS THE MOST IMPORTANT
VISITOR ON OUR PREMISES,
HE IS NOT DEPENDENT ON US,
WE ARE DEPENDENT ON HIM.
HE IS NOT AN INTERRUPTION ON OUR
WORK, HE IS THE PURPOSE OF IT.
HE IS NOT AN OUTSIDER ON OUR BUSINESS
HE IS A PART OF IT.
WE ARE NOT DOING HIM A FAVOUR BY
SERVING HIM,
HE IS DOING US A FAVOUR BY GIVING US
THE OPPORTUNITY TO DO SO.
MAHATMA GANDHI


Introduction
Study of consumer behaviour is the study
of how individuals make decisions to
spend their available resources like time,
money & effort on consumption related
items.
It is the study of the processes involved
when individuals or groups select,
purchase, use or dispose of products,
services, ideas, concepts or experiences to
satisfy consumer needs & desires.


Customer behaviour study is based on
consumer buying behaviour, with the
customer playing the three distinct roles of
user, payer and buyer.


Authors definition
Consumer behavior is defined as the
behavior that consumer display in searching
for, purchasing, using , evaluating and
disposing of products and services that they
expect will satisfy their needs
- Schiffman
The decision process and physical activity
individual engage in when evaluating,
acquiring, using or disposing of goods and
services. -
Loudon & Della Bitta

Consumer behavior roles:

Initiator: Individual who determines that
some needs or want is not being met and
authorizes to rectify the situation.
Influencer: Individual who intentionally
or unintentionally influence the purchase
decision.
Buyer: Individual who actually make the
purchase transaction.
User: Individual who directly consume
the product.

Importance of studying
consumer behavior
•Consumer is the king.
•Consumers do not always act or react as the
theory suggest.
•Consumer preferences are changing and become
highly diversified.
•Consumer dislikes identical product and prefer
differential products.
•Segmenting the market to cater the special needs
of consumers.
•Rapid introduction of new products with
technological advancement
•To sell products that might not sell easily


Methods of studying consumer
behavior
Observational approach
In home observation
Interviews and surveys
Focus group
Field experimentation
Consumption research products


Understanding Consumer
A consumer is defined as a person who
buys goods and services and makes use of
public utilities as well as natural resources
like air and water. In its most basic sense,
it refers to those who use goods and
services for the satisfaction of their
personal wants thus excluding buyers
who purchase for resale.


Understanding Consumer
A person who has indicated his or her
willingness to obtain goods and/or
services from a supplier with the
intention of paying for them.
Someone who has purchased goods
and/or services for personal consumption


Principles of consumer
behavior
Consumer is sovereign
Consumer is global
Consumers are different
Consumer has rights


Types of consumers

•Personal consumers
•Organizational consumers


Personal Consumer
The person who buys goods and services
for its own use , for use of household or
as to gift a friend . The products are
brought for final use by individuals who
are referred to as end users , ultimate
consumers or personal consumers.


Organizational Consumers
They include profit and not for profit
businesses, govt agencies and institutions
which must buy products, equipments and
services in order to run their
organizations.


Market Segmentation


The process of dividing
a potential market into
distinct subsets of
consumers and
Market
selecting one or more
Segmentation
segments as a target
market to be reached
with a distinct
marketing mix.


Market Segments


Geographic segmentation

The market is segmented according to
geographic criteria i.e. nations, states,
regions, countries, cities,
neighborhoods, or zip codes


Demographic Segmentation

Demographic segmentation consists of
dividing the market into groups based on
variables such as age, gender, family
size, income, occupation, education,
religion, race and nationality


Psychographic Segmentation

Psychographics is the science of using
psychology and demographics to better
understand consumers.
According to Psychographic segmentation,
consumers are divided according to their
lifestyle, personality, values.


Behavioral Segmentation

In behavioral segmentation, consumers
are divided into groups according to their
knowledge of, attitude towards, use
of or response to a product. It is
actually based on the behavior of the
consumer


Why Segment?
More precise
More accurate
Market definition of
marketing
segmentation customers needs
objectives
and wants

Improved
resource
allocation

Better marketing
results


Consumer purchases are influenced
strongly by four factors.
Cultural Factor
Social Factor
Personal Factor
Psychological Factor.


Influences on Consumer Behavior
Culture
Social
Personal
Psychological
Buyer


Cultural Factors
Cultural factors comprise of set of
values and ideologies of a particular
community or group of individuals. It is
the culture of an individual which decides the
way he/she behaves. Cultural factor divided
into three sub factors:
Culture
Sub Culture
Social Class


CULTURE
The sum total of learned beliefs,values,and customs that serve
to direct the consumer behavior of members of a particular
society.


Characteristics of culture
Culture is a learned response.
Culture includes inculcated values.
Culture is a social phenomenon.
Culture is gratifying and continues for a
long time.
Cultures are similar and yet different.
Culture prescribes the ideal standards of
behavior.


Levels of Culture
Level 1:: Cultural differences Group
that cross national boundaries or
can be seen to be present in more
thn 1 country
National
Level 2:: Unique to a particular
country

Level 3:: Basically subcultures- Supranational
can also be Families, shopping
groups, friendship groups


A THEORETICAL MODEL OF
CULTURE’S INFLUENCE ON
BEHAVIOR
PERSONALITY Cognitive
TRAIT Belief
(thought
process) Attitude

SUBJECTIVE
CULTURE Practices Behavioral
Religious intension Behavior
Linguistic
National
Professional Values
Organizational
group Social norms


Cultural factors have a significant effect on an individual’s buying
decision. Every individual has different sets of habits, beliefs and
principles which he/she develops from his family status and
background. What they see from their childhood becomes their
culture. The child growing up in a society leans a basic set of values,
perceptions, preferences and behaviors through a process of
socialization involving the family and other key institutions.

Examples
Females staying in West Bengal or Assam would prefer buying sarees as
compared to Westerns. Similarly a male consumer would prefer a Dhoti
Kurta during auspicious ceremonies in Eastern India as this is what their
culture is. Girls in South India wear skirts and blouses as compared to
girls in north India who are more into Salwar Kameez.
Our culture says that we need to wear traditional attire on marriages and
this is what we have been following since years.
People in North India prefer breads over rice which is a favorite with
people in South India and East India


Sub Culture
Sub-culture is defined as a distinct cultural group that
exists as an identifiable segment within a larger, more
complex society.
Each culture contains smaller sub cultures a group of
people with shared value system based on common life
experiences and situations. Sub culture includes
Nationalities
Religions
Racial group
Geographic regions

Many sub culture make up important market segments and
marketers often design products.


Divisions of Sub-culture
Sub-
Nationality subculture:
Anglo Indians-A person of mixed English and Indian
descent
Parsees-The Parsis came to India sometime around the
10th century A.D. to escape Arab persecution in Persia
which began in the 7th century
Mughals- Muslim empire in India, 1526–1857.The dynasty was
founded by Babur .
Pathans- Pathans came from Afghanistan as vendors and
businessmen.


Sub-
Religious sub-culture : Based on different
faiths and beliefs.
Muslims
Sikhs
Christians
Hindus
Buddhists


Sub-

Geographic & Religious sub-culture;
Ex. South Indians, North Indians,
North-east Indians.
Racial sub-culture: In Caucasians,
Africans, Asian, American & American
Indians.


◦ Social Class:-
Almost every society has some form of social structure,
social classes are society’s relatively permanent and ordered
divisions whose members share similar values, interests and
behavior. Social Classes have several characteristics:-
1) Person with in each social class tend to behave more alike
than persons from two different social classes.
2) Persons are perceived as occupying inferior or superior
positions according to their social class.
3) Person’s social class is indicated by a number of variables,
such as occupation, income, wealth, education , and value
orientation, rather than by any single variable
4) Individuals are able to move from one social class to another
up or down during their lifetime.


Factors Affecting Consumer Behavior: Social

Groups

Family
Social Factors

Roles and
Status


Social Factors
A consumer’s behaviour also is influenced by
social factors such as the
(I) Groups
(II) Family
(III) Roles and status


What is a Group?
Group:
◦ Is defined as two or more persons who share
a set of norms, values or beliefs and have
certain implicit or explicit defined
relationships to one another such that their
behavior are interdependent
Reference Group:
◦ Is a Group whose presumed perspective or
values are being used by an individual as the
basis for current behavior

Types of Groups
Classification of Groups:
◦ Regularity of Contact
Primary Group: Interaction on a regular basis
Secondary Group: Occasional Contact like religious groups,
professional association and trade unions
◦ Extent of Formality:
Formal Group: Well defined structure, roles and authority
levels
Informal Group: Loosely defined structure
◦ Membership Status:
Membership Group: Qualifies certain norms / standards to be
a member
Symbolic Group: Aspires to be a member of the group

Types of Groups
(1)Primary: Daily
interaction

(2)Secondary: Less
regular interaction
a. Direct
Ex: religious groups,
professional association
Types of and trade unions
Groups
(1) Aspirational (+ve)
“Want-to-Be”
b. Indirect
(2) Non-inspirational (-ve)
“DON’T Want to Be”

Family:-
Family members can strongly influence buyer behavior.
Marketers are interested in the roles and influence of the
husband, wife and children on the purchase of different
products and services.
The family of orientation consists of one’s parents. From
parents a persons acquires an orientation towards
religious, politics, economics and a sense of personal
ambitions, self worth and love.
In case of expensive products and services, husband and
wives engage in more joint decision making. The market
needs to determine which member normally has the greater
influence in the purchase of a particular products or
services. either the husband or the wife , or they have
equal influence .

Family consists of:-
Influencer- the person who sense the need
for purchase.
Decider- the person who takes final buying
decision.
User- the person who uses the product.
For example
Husband -dominant: life insurance,
automobiles, television
Wife - dominant: washing machines,
carpeting, non-living room furniture,
kitchenware
Equal: Living -room furniture, vacation,
Housing, outside entertainment.


Dr. Akansha Jain email:
dr.akanshajain@gmail.com blog –
http://drakanshajain.blogspot.in 47

◦ Roles and Status :-
A person belongs to many groups, family, clubs,
organizations.
The person’s position in each group can be
defined in terms of both role and status.
For example. M & “X” plays the role of father,
in his family he plays the role of husband, in his
company, he plays the role of manager, etc. A
Role consists of the activities people are
expected to perform according to the persons
around them.


Factors Affecting Consumer Behavior: Personal

Personal Influences

Age and Family Life Cycle
Occupation
Stage

Economic Situation Personality & Self-Concept

Lifestyle Identification

Activities Opinions

Interests

Personal Factors
(I) Age and life cycle stage
(II) Occupation
(III) Economic situation
(IV) Life Style
(V) Personality and self concept.


◦ Age and Life cycle Stage:-
People changes 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.


The Bachelor Stage (Young and single)

In the bachelor stage of the life cycle, income
is low relative to future earnings, since most
bachelors are just beginning their careers.
However, there are few financial burdens.
They therefore have relatively high
discretionary incomes. They tend to spend
substantial amounts on personal
consumption items, food, clothing,
transportation, certain luxury goods
entertainment, vacations, and possibly
even a car

The Newly Married Couples (Young,
no children)
With marriage, the requirements and
resources change. Household requirements
increase. In addition, in some cases, both
partners may be working. This stage
therefore represents a high expenditure
period. Purchases include durable
goods such as refrigerators and other
appliances, inexpensive durable
furniture, home entertainment items
such as TV sets.

Full Nest 1 (Young, married, with
child)
The arrival of a child creates major
changes. Some wives may stop working
and they suffer a reduction in income. The
financial resources thus change
significantly. Child rearing and educational
responsibilities increase. Money is now
directed to baby furniture, toys,
chest rubs, vitamins, baby foods and
baby medicines.

Full Nest 2 (Older, married, with
children)
The family's financial position starts to
improve because of career progress and
also because many wives return to work.
They present an active market for a wide
variety of food products, bicycles,
music lessons, magazines and also
educational services as children are
growing up.


Full Nest 3 (Older, married, with
dependent children)
Income is high for the family at this stage.
However, they now represent
experienced buyers and tend to be less
interested in new product purchases.
Expenditures continue to be high
due to replacement buying in the
later phases of the stage.


Empty Nest (Older, married, with
no children living with them)
With no children living at home, the
financial position stabilizes.Savings
accumulate. There may be a resurgence in
self-education. Hobbies also become an
important source of satisfaction. More is
spent on luxury appliances, magazines. and
health products. Major expenditures
are on home ownership, home
improvements and also on medical
care.

Solitary Survivor (Older, single,
retired people)
More economical lifestyle is observed at
this stage. A lower income due to
retirement may be a restrictive factor.
Health care and other services become
important.


Stage Consumption Pattern
Older
( married or
single)

Divorced


◦ Economic situation :-
A person’s economic situation( rich, poor, middle
class, lower middle, upper middle etc) will affect
product choice
◦ Life Style :-
Life Style is a person’s Pattern of living.
Understanding these forces involves measuring
consumer’s major AIO dimensions.
Activities (Work, hobbies, shopping, support)
Interest (Food, fashion, family recreation)
Opinions (about themselves, Business, Products)


◦ Personality and Self concept :-
Each person’s distinct personality influence his or her
buying behavior. Personality refers to the unique
psychological characteristics that lead to relatively
consistent and lasting responses to one’s own
environment.
Freudian Psychoanalysis
Freud thought of human personality as being in three
parts. The Id, the ego and the superego.

◦ Occupation :-
A person’s occupation affects the goods and
services bought. Blue collar workers tend to buy
more rugged work clothes, whereas white-collar
workers buy more business suit

Factors Affecting Consumer Behavior:
Psychological

Motivation

Psychological
Beliefs and Psychological
Factors Perception
Attitudes Factors

Learning

Motivation
Motivation
Motive or (drive) is
need that is sufficiently
pressing to direct the
Perception person to seek
Psychological satisfaction of the need.
Factors
Learning

Beliefs &
Attitudes

Perception
Motivation
The process by which
people select, organize
and interpret
Perception information to from a
Psychological meaningful picture of
Factors world.
Learning

Beliefs &
Attitudes

Learning
Motivation
Changes in an
individual’s behavior
arising from experience.
Perception
Psychological
Factors
Learning

Beliefs and
attitudes

Beliefs
Motivation
A descriptive thought or
conviction that a person
holds about something.
Perception
Psychological
Factors
Learning

Beliefs and
attitude

Motivation
The motivation is the drive that leads the consumer
towards buying a product or service. If the motivation
is high, meaning the need or perception of need is
high, the individual will actively seek to satisfy that
need. This results in the consumer deciding to buy the
product or service.
This factor is directly related to "Maslow's Hierarchy
of Needs" which states that every individual will
actively seek to satisfy physiological needs first,
followed by safety, social, esteem and finally, self-
actualization needs. Businesses that successfully
leverage these needs will motivate consumers to buy
their products.


Maslow’s Hierarchy of Needs

Self
Actualization
(Self-development)

Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)


PERCEPTION

◦ Process by which people select, organize, and
interpret information to form a meaningful
picture of the world.
◦ Perception can be influenced by:
Selective attention
Selective distortion
Selective retention

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Perception
Information about the environment is conveyed
to the brain from eyes, ears and other organs.It is
the range and co-ordination of the human senses
together with the sensitivity, that provide us with
a unique quality and quantity of information about
theenvironment.
Five sets of senses includes
Vision
Hearing
Touch
Taste
Smell

LEARNING

◦ Defined as a relatively permanent change in
behavior due to experience.
◦ Occurs due to an interplay of drives, stimuli,
cues, responses, and reinforcement.
◦ Is strongly influenced by the consequences of
an individual’s behavior.
Behaviors with satisfying results tend to be
repeated.
Behaviors with unsatisfying results tend not to be
repeated.

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Beliefs and attitudes :-
◦ Belief is a descriptive thought that a person
holds about something
◦ Attitude, a Person’s consistently favorable or
unfavorable evaluations, feelings and
tendencies towards an object or idea


SIMPLE MODEL FOR CONSUMER BEHAVIOUR

Motives
Attitudes

Needs Consumer
Purchase
Business

Decision Learning

Family
Perception

Personality

Economic


Diffusion of Innovations


Diffusion Process
The process by which the acceptance of
an innovation is spread by communication
to members of social system over a
period of time.


Adoption Process
The stages through which an individual
consumer passes in arriving at a decision
to try (or not to try), to continue using
(or discontinue using) a new product.


Diffusion of Innovations: Meaning

The concept of diffusion of innovations usually refers
to the spread of ideas from one society to another or
from a focus or institution within a society to other
parts of that society.
Diffusion of innovations between societies is one
of the most important processes in cultural
evolution.
The diffusion of innovations is important because
it is relatively hard to invent (or develop) many
kinds of useful knowledge. It is usually difficult to
invent all the requisite parts in the right order,
foresee the advantage of nascent new technology
etc.

Factors That Affect the Diffusion
of Innovations
The Innovation
The Channels of Communication
The Social System
Time


Product Characteristics That
Influence Diffusion
Relative Advantage
Compatibility
Complexity
Trialability
Observability
Felt Need
Risk


Adopter Categories

A sequence of categories that describes
how early (or late) a consumer adopts a
new product in relation to other
adopters.


Innovators: Description

• 2.5% of population
• Venturesome
• Very eager to try new ideas
• Acceptable if risk is daring
• Communicates with other innovators


Early Adopters: Description

• 13.5% of population
• Respected
• More integrated into the local social system
• The persons to check with before adopting a
new idea
• Category contains greatest number of opinion
leaders
• Are role models


Early Majority: Description
• 34% of population
• Deliberate
• Adopt new ideas just prior to the average time
• Seldom hold leadership positions
• Deliberate for some time before adopting


Late Majority: Description

• Skeptical
• Adopt new ideas just after the average time
• Adopting may be both an economic necessity
and a reaction to peer pressures
• Innovations approached cautiously


Laggards: Description
• Traditional
• The last people to adopt an innovation
• Oriented to the past


Diffusion Process and Marketing
Strategy
Identify diffusion inhibitors and find ways
to compensate for these
Identify innovators and early adopters and
cater to them
Move consumers from awareness to
adoption
Make effective use of word-of-mouth
communications


Consumer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post purchase Behavior email:
Dr. Akansha Jain

Need Recognition
The first stage of the buyer decision in which
the consumer recognizes a problem or need.

Need recognition is
•Triggered by internal or external stimuli
•Must reach an intensity high enough to becomes drive


Information Search
The stage of the buyer decision process
in which the consumer aroused to
search for more information; the consumer may
simply have heightened attention or may go into
active information search.
Information search includes
•Memory (internal) search
•External search: personal, commercial, public, experiential sources of
information
•Word-of-mouth sources are most influential

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The consumer can obtain information
from any of several sources

Personal Sources:
(family, friends, neighbors etc)

Commercial Sources:
(Advertising, Sales people, Dealers etc)

Public Sources:
(Mass Media, Consumer Rating Organization)

Experimental Sources:
(Handling, Examining, Using the product) Dr. Akansha Jain email:

Evaluation of Alternatives
The stage of the buyer decision process in which the
consumer uses information to evaluate alternative
brands in the choice set.

Evaluation of alternatives consists of
•The process of evaluating information to make a decision
•Attributes and importance weights are chosen
•Alternatives compared against the criteria


Purchase Decision

The stage of the buyer decision
process in which the consumer
actually buys the product.


Post-
Post- purchase Behaviour
The stage of the buyer decision process in
which the consumer take further action after
the purchase, based on their satisfaction or
dissatisfaction.
Performance < Expectations ----- Disappointment
Performance = Expectations ----- Satisfaction
Performance > Expectations ----- Delight
Cognitive dissonance:
A buyer’s doubts shortly after a purchase about
whether it was the right decision.

Cognitive dissonance:
◦ Did I make a good decision?
◦ Did I buy the right one? Get a good value?
Marketing minimizes through:
◦ Effective communication
◦ Follow up
◦ Guarantees
◦ Warranties


MODELS OF CONSUMER
BEHAVIOUR
•Economic Model
•Psychological Model
•Pavlovian Model
•Input, Process Output Model-Gandhi: Philip Kotler
•Sociological Model
•HowarthSheth Model
•Engel-Blackwell-Kollat Model
•Model of Family Decision-making
•Nicosia Model
•A Model of Industrial Buying Behavior.

1. Economic Model
Consumers follow the principle of maximum
utility based on the law of diminishing marginal
utility. The consumer wants to spend the
minimum amount for maximizing his gains.
Economic man model is based on:
Price effect: Lesser the price of the product,
more will be the quantity purchased.
Substitution effect: Lesser the price of the
substitute product, lesser will be the utility of the
original product bought.
Income effect: When more income is earned, or
more money is available, more will be the quantity
purchased.

2. Psychological Model
Psychologists have been investigating the
causes which lead to purchases and
decision-making. This has been answered
by A.H. Maslow in his hierarchy of needs.
The behavior of an individual at a
particular time is determined by his
strongest need at that time. This also
shows that needs have a priority. First
they satisfy the basic needs and then go
on for secondary needs

Maslow’s Hierarchy of Needs

Self
Actualization
(Self-development)

Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)


3. Pavlovian Learning Model
This model is named after the Russian
Physiologist Ivan Pavlov. He experimented on
a dog and observed how it responded on
the call of a bell and presenting it with a
piece of meat. The responses were measured
by the amount of saliva secreted by the dog.
Learning is defined as the changes in
behavior which occur by practice and, based
on previous experience. This is important to
marketers as well.

The learning process consists of the following factors:
Drive
This is a strong internal stimuli which impels action. Because of the drive, a
person is stimulated to action to fulfil his desires.
Drives
Can be innate (in-born) which stem from physiological needs, such as
hunger, thirst, pain,cold, etc. Learned drive, such as striving for status or
social approval. Cause are weak stimuli that determine when the buyer will
respond. We have:
Triggering Cues: These activate the decision process for any purchase.
Non-triggering Cues: These influence the decision process but do not
activate it.
These are of two kinds:
Product cues are external stimuli received from the product directly, e.g.,
color of package, weight, style, price, etc.
Informational cues are external stimuli which provide information about the
product, like advertisement, sales promotion, talking to other people,
suggestions of sales personnel, etc.
Response is what the buyer does, i.e., buys or does not buy.


Reinforcement
Thus, when a person has a need to buy, say
clothing, and passes by a showroom and is
attracted by the display of clothing, their color
and style, which acts as a stimulus, and he makes a
purchase. He uses it, and if he likes it, an
enforcement takes place and he is happy and
satisfied with the purchase. He recommends it to
his friends as well, and visits the same shop again.
Learning part, thus is an important part of buyer
behaviour and the marketer tries to create a
good image of the product in the mind of the
consumer for repeat purchases through learning.

4. Input, Process and Output
Model


This is a simple model of consumer behavior,
in which the input for the customer is the
firm’s marketing effort (the product, price,
promotion and place) and the social
environment. The social environment
consists of the family, reference groups,
culture, social class, etc. which influences the
decision-making process. Both these factors
together constitute the input in the mind of
the consumer.

Need recognition
When one is aware of a want, tension is created and one chooses a product to
satisfy his needs. There is also a possibility that a person may be aware of a product
before its need is recognized. This is indicated by the arrows going both ways from
the need to the product and vice-versa.
Product awareness
Product awareness can be had from advertisement or exposure to different types
of media or by the social circle. The awareness and the need leads to the building
of interest. In some cases, the interest may also breakdown and, the decision
process also stops or may be postponed for the time being.
Evaluation
Evaluation may consist of getting more information about the product and
comparing and contrasting it with other products. This can be done theoretically
or by taking a trial. Once the evaluation is completed, the consumer’s interest may
either build up and he has intentions to buy, or he may lose interest and the
decision process may again stop or be postponed.
Intention
Once there is intention to purchase the product, the consumer goes ahead and
acts or purchases the product. Once the product is purchased, it is used to fulfil
the need and, the more the product is used, the more the consumer becomes
aware of the positive and negative points of the product.


Post-purchase behavior
If, after the purchase and use of the product the
customer is satisfied, he is happy and goes in for repeat
purchases or recommends the same to his friends and
acquaintances. If the customer is dissatisfied, he
discontinues further purchase of the product and
builds a negative attitude towards it, which may be
harmful to the company.
The post-purchase behavior is very important for the
marketer and the company because it leads to proper
feedback for improvement and maintaining the quality
and features desired by the product. If the customer is
very happy with the purchase, he forms a good
impression about the product and the company.

Buyer’s Black-box Model
Black-
This model is based on input-process-output
Approach


Buyer’s Black-box Model
Black-
The consumer gets the input from the
marketing effort of the firm (4 Ps) and the
other stimuli. This input is processed in
the mind (Black Box), which constitutes
the characteristics of the buyer and the
process of decision-making. Once the
buyer has decided to buy then, he
responds in terms of his choice of
product, brand, dealer, timing and amount.

5. Sociological Model
This is concerned with the society. A
consumer is a part of the society and he may
be a member of many groups in a society.
His buying behaviour is influenced by these
groups. Primary groups of family friends and
close associates exert a lot of influence on
his buying. A consumer may be a member of
a political party where his dress norms are
different. As a member of an elite
organization, his dress requirements may be
different, thus he has to buy things that
conform to his lifestyles in different groups.

6. Howarth Sheth Model
This model is slightly complicated and shows
that consumer behavior is complex process
and concepts of learning, perception and
attitudes influence consumer behavior. This
model of decision-making is applicable to
individuals. It has four sets of variables which
are:
Input
Perceptual and learning constructs
Outputs
Exogenous or external variables.

7. Engel-Blackwell-Kollat Model
Engel-Blackwell-
It consists of four components:
Information processing
Central control unit
Decision process
Environmental influences.


8. Model of Family Decision-Decision-
making model, it is important to understand how the
In a family decision-making
family members interact with each other in the context of their consumer
decision-making.There are different consumption roles played by various
members of the family. These roles are as follows:
(i) Influencers
The members who influence the purchase of the product by providing
information to the family members, the son in a family may inform the
members of a new fast food joint. He can influence the family members to
visit the joint for food and entertainment.
(ii) Gate keepers
These members control the flow of information for a product or brand
that they favour and influence the family to buy the product of their
choice. They provide the information favourable to themselves and,
withhold information about other product which they do not favour.
(iii) Deciders
These are the people who have the power or, money and authority to buy.
They play a major role in deciding which product to buy.
(iv) Buyers
Buyers are the people who actually buy. A mother buying ration for the
house etc. Father buying crayons for his children.

9. Nicosia Model
This model is based on four fields


10. A Model of Industrial Buyer
Behavior
The purchases made in an industrial
organization involve many more people of
different backgrounds and it is more
complex.
There are three main features in this model:
There are different individuals involved who
have a different psychological make up.
Conditions leading to joint decision-making
by these individuals.
Differences of opinion on purchases or
conflicts that have to be resolved to reach a
decision.

Consumerism


What is consumerism
Consumerism refers to wide range of
activities of government, business and
independent organisations designed to
protect rights of the consumers.
Consumerism is a process through which
the consumers seek remedy for their
dissatisfaction and frustration with the
help of their all organised or unorganised
efforts and activities.
http://drakanshajain.blogspot.in

Definition
“Consumerism is not limited to
organized effort only but it is a social
movement seeking to augment(increase)
the rights and powers of buyers in relation
to seller”
(Philip Kotler)


Importance of consumerism:-

1. Stop unfair trade practices
2. Provide complete & latest information
3. Discourage anti-social activities
4. Implementation of consumer protection laws
5. Protect against exploitation


Rights of consumers:-
1. Right to be informed
2. Right to safety
3. Freedom to choose
4. Right to consumer education
5. Right to claim against seller
6. Right to secure ecological balance and pollution-
free environment


Consumer protection act in India:-
1. Consumer protection act, 1986.
A) Replacement of defective goods.
B) Repair or removal of defects.
C) Repayment of price.
D) Compensation for loss etc.
2. Drugs & cosmetics act, 1940.
3. Prevention of food adulteration act, 1954.
4. MRTP(monopolies & restrictive trade
practices) act, 1969.
5.Essential commodities act,1955.

Organization buying behavior

Organizational buying is a complex process of
decision-making and communication. It takes time,
involves several members and considerations.


Robinson, Faris and Wind have identified
eight steps in organizational behavior-
behavior-
Need recognition
Definition of characteristic and quantity needed
Development of specification to guide the
procurement
Search for and qualification of potential sources
Acquisition and analysis of proposals
Evaluation of proposals and selection of suppliers
Selection of an order routine
Performance feedback and evaluation.


FACTORS INFLUENCING
ORGANISTAIONAL BUYING


DECISION MAKING PROCESSES

EXTERNAL INFLUENCES Experiences and Acquisitions SITUATIONS
Culture
Problem
Subculture
Recognition
Demographics
Social Status
Information
Reference Groups
Search
Family
Marketing Activities
SELF-CONCEPT Alternative Evaluation
Desire
and and Selection
s
LIFESTYLE Needs
INTERNAL INFLUENCES Outlet Selection
Perception and Purchases
Learning
Memory Post-purchase
Motives Processes
Personality
SITUATIONS
Emotions Experiences and Acquisitions
Attitudes


Comsumer behavior and marketing communication

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