Chapter 2

Consumer Buying Behavior

Consumer Buying Process

Problem Recognition

Information Search

Alternative Evaluation

Purchase Decision

Post Purchase Evaluation

(1) Problem Recognition

Change in actual state- Stock out situation, Arousal of needs, Post purchase Evaluation

Change in the desired state-Reference Groups, Novelty Seeking Behavior Change in both the states-Change in financial position, Changes in Family

(2) Information Search

Internal Search External Search- Personal Sources, Public Sources

Intensity of External Search

Product Knowledge & Education level Cost-Benefits Motivation to search -Level of involvement : Cost, Importance, Situation -Need for Cognition -Interest in shopping

Role of perception in information search

Perception : The process by which people select, organize, and interpret information to form a meaningful picture of the world.

Perceptual Process
Selecting Information -Selective Exposure: Exposed to many but select only a few -Selective Distortion: Distortion (misinterpretation) of the received message -Selective Retention: Retaining the information that is relevant

Perceptual Process
Perceptual Organization: Organize the received information in a meaningful manner. Interpretation: Interpretation as per the expectations and familiarity with the brand

(3) Alternative Evaluation

Choosing the best alternative. Choices can be classified under three leads: -Evoked Set: Consists of the brands in a product category that the consumer remembers at the time of decision making. -Inept Set: Set of brands which consumer rejects due to bad impressions. -Inert Set: Set of brands for which consumer has neutral feelings.

Changing Consumer Attitudes

Change beliefs about the brand Change customers perception about attributes Draw attention to attributes neglected by the customers Change beliefs about competitors brands

Integration Process
Consumer uses decision rules to evaluate & integrate the options that are under consideration. Decision rules are of two types : -Compensatory Decision Rules: Evaluation of each attribute in terms of its importance. -Non Compensatory Decision Rules: If a brand falls short of the cut off point set by the consumer on a single attribute the brand is rejected.

Non Compensatory Decision Rules

Conjunctive Rule: I will select a car that gives a minimum mileage of 12 kmpl, and is priced less than 4 lacs Disjunctive Rule: I will select a car that gives a minimum mileage of 12 kmpl or is priced less than 4 lacs Lexicographic Rule: Each attribute is given a score & all the brands are evaluated on that particular attribute.

(4) Purchase Decision

Change in consumer situation Variety seeking behavior of consumer

Impulse buying
Marketing communication campaigns Reference groups

(5) Post Purchase Evaluation

Product meets expectations = Satisfied Product does not meets expectations = Dissatisfied Product exceeds expectations = Delighted

Behavioral Learning Theory

Classical Conditioning (Simple consumer behavior)

Operant Conditioning (Complex consumer behavior)

Cognitive Theory
This theory works on the premise that the way a person thinks about or perceives a particular subject will influence his response and behavior.