Buyer Behavior MODELS OF BUYER BEHAVIOUR
A model is often viewed as a n abstract
representation of a process or relationship,which
allows us to make a sense of the world and also help
us to predict the likely course of events. The buying
process is portrayed as a highly complex one, in
which a variety of personal and environmental
factors influence the decisions the buyer makes. A
simple starting point of understanding buyer’s
behaviour is to take a basic model of consumer
response.
The inputs to the decision process are the range of
psychological, sociological, economic and situational
factors. The outcome is the decision: whether or not
to purchase; whether to purchase now or to defer;
where to buy from etc. In between the input and
output is the decision making process which
determines how the buyer translates complex
information into decisions and the process differs for
each consumer.
The basic model of buyer behaviour, however does
not explain how a decision is made. For this a
number of models have been developed. If a model is
to have value to the marketing managers , it should
be capable of use as a predictive tool, given a set of
conditions on which the model is based. Hence, a
number of researchers have sought to develop models
that explain how buying decisions are made in
specific situations and from this to predict the likely
consequences of changes to marketing strategy.
Branding
BROAD PROBLEM AREA
The consumer decision-making, regarding purchase
and utilization of different products and services, is
influenced by many internal as well as external
factors. Among the external factors, the most
important and significant are the attributes of the
product itself, the brand and the package in which it
is incased. Attributes are those descriptive features
that characterize a product or service- what a
consumer thinks the product or service is or has and
what is involved with its purchase or consumption.
Product-related attributes are the functions of the
product or service. Non-product-related attributes are
the external aspects of the product or service that
relate to its purchase or consumption, like the price
information, packaging or product appearance, user
imagery (i.e. what type of person uses the product or
service) and usage imagery (i.e. where and in what
types of situations the product or service is used)
(Keller, 1993).
Consumer buying behavior is affected by many
socio-cultural factors like social class, demographics,
personality, and beliefs etc. However, besides these,
the product itself also makes their decision for them
because of the message it transmits, the visual impact
it makes, the significant colors and logo of the brand,
the brand image and awareness, and the price. Price
is a particularly important attribute association
because consumers often have strong beliefs about
the price and value of the brand and may organize
their product category knowledge in terms of the
price tiers of different brands, (Blattberg and
Wisniewski, 1989).
In this research project our emphasis will be on the
non-product related attributes of a product, that affect
the consumer buying behavior and the decisions they
make while selecting a product. How the brand name
and logo, brand awareness, brand association and the
packaging of a product have an impact on what the
people buy for the fulfillment of their needs and
whether these factors...
Sustainability And Its Impact On Brand Value
Sustainability and its Impact on Brand Value
One of the latest buzz words found in management
journals, websites, and corporate documents is
“sustainability.” Some people even want to recognize
it in a company’s balance sheet as an asset. Okay,
let’s not go that far.
It is undeniable that sustainability is a new way of
doing business; in the same way “re-engineering” or
“just in time” were in the late 1980s. Sustainability is
not an asset that can be bought or sold; rather it’s
becoming an integral part of many a company’s
philosophy. Just as company management practices
influence business value, so do sustainability
initiatives. Therefore, the question is: How does it
create value?
Moral motivations to invest in sustainability are not
in dispute: climate change, poverty, you name it. But
what companies don’t know yet is what level of
investment they should make and what is the
measurable benefit of investing. When the benefit is
not clear enough to justify investments on
economical grounds, managers easily turn to
initiatives that guarantee short-term results and
everyone’s jobs, especially with recession knocking
on the door.
There are some direct benefits, such as: compliance
with an increasingly rigorous legislation; cost savings
derived from optimization of production lines and
supply chains to reduce energy consumption;
reduction in CO2 emissions; desire for more ethical
products; and simply satisfying an emerging and
cynical green consumer. But most importantly,
incorporating sustainability as a business practice will
not only increase companies’ brand value, but also
guarantee a long life for the business.
Relationship between sustainability and brand value
Although it’s hard to
find consistency among definitions of sustainability,
it is common sense that it incorporates companies’
relationships with the natural environment, social
causes, and corporate governance. In boardrooms,
this translates...
For the required course the topic of my Research is as follows:
-“Celebrity Endorsement in Advertisement is a key to
Marketing Success”. This topic has been selected under the
guidance of our Research Director Azmat Ansari.
A celebrity is a person who is widely recognized famous in
a society and commands a degree of public and media
attention. An advertisement is tool for promoting Products and
Services. By advertising the goods and services are introduced
to general public, customers, and consumers. Through it a
message is given about the brand, price, quality, variety, and
features of a product.
With respect to the topic this research report the purpose of
study is to investigate the impact of Celebrity endorsement in
Advertisement on customer behavior (buying patterns). In this
report it is judge that how is customer behavior effect by
celebrity endorsement; both the positive and negative impacts
are observed.
All the literature related to the selected topic has been
reviewed through internet different websites, Marketing
Management book of Philip Kotler, reference material.
Moreover Pakistan Advertising Institute is also visited for
reviewing the literature.
Consumer Behaviour
Explain how consumers form evaluations of brands. Show
how marketers seek to influence this process using examples
from the marketing activities of an organisation of your choice
Introduction
Evaluation is the process of judging or determining whether an
activity or product meet a specified criteria. According to
Cambridge Advanced Learner’s Dictionary, to evaluate is ‘to
judge or calculate the quality, importance, amount or value of
something. When consumers evaluate a brand, they are trying
to get an overall picture of the brand, which will allow the
consumer to take a stand as to what they think of that brand.
Some criteria of evaluation of brands may include price, brand
image, taste, functional characteristics, style and sometimes
the way the consumer “feel” about a product.
Consumer evaluation of brands involved both cognitive and
psychological processes in selecting a course of action from
multiple alternatives. The consumer decision-making process
model (fig 1) will provide useful insights as to how consumer
form evaluations of brands and how marketers seek to
influence this process.
Fig 1: The customer decision-making process and its five
stages
Source: guuui.com, 2007
NEED OR PROBLEM RECOGNITION
“Problem recognition is the discovery of a discrepancy
between an actual and a desired state of being. Thus problem
recognition occurs when a need state is felt”. (Minor et al:
1998. p358).
The consumer-decision process model begins with the
recognition by the consumer that there is a problem or a need.
Problems and needs can be triggered by either internal or
external stimuli. An internal trigger of a problem or need
could include hunger, and external triggers could include in-
store displays, intentional use of scents or publicity.
At this stage relevant internal psychological processes such as
perception, learning and motivation could influence the
consumer, especially if he or she has an internal drive to
satisfy a need....
Branding is one of the most important factors influencing
a product’s success or failure in the market and it can
have a significant influence on the perception of the
general public towards the company owning the brand.
Brand loyalty not only represents the brand of the
company but also the company itself. This study has
been conducted to know the brand awareness and brand
loyalty of consumers towards hair shampoos. The study
highlights that the major sources of awareness for hair
shampoos are television advertisements, and friends
and relatives. The study further highlights that the
important factors influencing brand loyalty towards hair
shampoos are product quality (dandruff removal, shine
and silkiness, and ingredients), availability of the
preferred brand and brand image.
he Management of PROCTER & GAMBLE once
stated : ” Our business is based on understanding
the consumer and providing the kind of products
that the consumer wants. We place enormous
emphasis on our product development area and our
marketing area, and on our people knowing the
consumer.” The human mind is the most complex
entity in the whole universe as it is very
unpredictable how a person would behave in or
react in a particular situation.
A person’s behavior changes from place to place
and situation to situation or, say it is very
inconsistent. The person when has a need, is willing
and able to satisfy the need is called a
CONSUMER. The consumer would go different ways
to satisfy it’s needs depending on his social, cultural,
family, economic and educational background.
Consumer is the principle a priori of business. The
efficiency with which a free market system of
enterprise operates, depends upon the extent of
consumer understanding possessed by the business
community. A business community that is ignorant
of consumer preferences cannot possibly fulfill it’s
obligations in a meaningful and responsive manner.
So here comes the need to study CONSUMER
BEHAVIOUR. Consumer Behavior is broadly defined
as “the behavior the consumer displays in
searching for, purchasing, using and evaluating
products, services, and ideas which they expect will
satisfy their needs.” Consumer Behavior is not only
the study of what people consume, but is also the
study of who the consumers are, why they
consume, how often they consume, and under what
conditions they consume.
CONSUMER BEHAVIOUR refers to the buying
behavior of ultimate consumers, those persons who
purchase products for personal or household use,
not for business purpose.
There are Psychological Theories that help us to
understand and predict the effect of all
external and internal factors on a
consumer. External factors include
Culture, Society, Reference group and
family etc. Internal factors comprise in
a consumer mind and how consumers
learning, memory, attitude, personality,
lifestyle and motivation levels effect
consumer behavior. What would initiate
a buying process and how a buying
decision would end is all covered
under the study of consumer behavior.
This all further helps relate product /
service, price and promotion etc. with
consumer behaviour. Thus organisation
can place marketing mix so as to
propogate their product/services.
The present study on SHAMPOO is also trying to
find Consumer Perception about different features of
Shampoos and how Price, Environment, Packaging,
Quantity, Easy Availability and Variety are affecting
the sale of Shampoo’s.
PSYCHOGRAPHIC
In psychographic segmentation buyers are divided
into different groups on the basis of lifestyle and \
or personality. People within the same demographic
group can exhibit very different psychographic
profiles. These psychographic bases are often
difficult to measure, but they offer potential rewards
in terms of providing management with a more
relevant basis for differentiating between segments
of a market.
LIFESTYLE
People exhibit many more lifestyles than are
suggested by the seven social classes. People’s
product interests are influenced by their lifestyles. In
fact the goods they consume express their lifestyles.
Marketers are increasingly segmenting their markets
by consumer lifestyles. Companies making cosmetics,
alcoholic beverages, and furniture are always
seeking opportunities in lifestyle segmentation.
PERSONALITY
Personality affects the consumption of many goods,
particularly those consumed publicly. An aggressive
personality for example, may be reflected in the
choice of ostentatious clothing, furniture, and
automobiles. Preferences are frequently so different
that it is impossible to serve all personality types
with the same product or brand. A recognition of
important personality types can help management
“position” it’s towards a profitable segment or
segments.
Marketers have used personality variables to
segment markets. They endow their products with
brand personalities that correspond to consumer
personalities.
www.allprojectreports.com/Consumer
%20Behaviour%20-april 16.2010
: A widely held assumption is that brands purchased by the
family will continue to be purchased by the children
when they become adults. However, little consumer
research actually exists on continued parental
influence on young adults’ purchasing decisions.
Using data from two surveys of over 500 students in
a four-year undergraduate business program, two
studies examined parental influence (the degree to
which brands purchased by students corresponded to
brands purchased by parents), roommate influence,
and additional factors such as price perceptions,
brand differences, and brand comparisons. Discrete
choice regression analyses (ordered probit) in both
surveys revealed that correspondence with parental
brand choice decreased significantly with year in
university. As parental influence lessened, brand
choice correspondence with roommates increased.
The reduction in parental influence may indicate an
important marketing opportunity. When a student
leaves home, their brand loyalties shift significantly
from that of the family unit.
onsumer purchases are influenced strongly by or there are
four factors.
01. Cultural Factor 02. Social Factor03. PersonalFactor04.
Psychological Factor.01. Cultural Factor :-
Cultural factor divided into three sub factors (i) Culture (ii)
Sub Culture (iii) Social ClassCulture:-The set of basic values
perceptions, wants, and behaviours learned by a member of
society from family and other important institutions. Culture is
the most basic cause of a person’s wants andbehaviour. Every
group or society has a culture, and cultural influences on
buying behaviour may vary greatly from country to country.
Sub Culture :A group of people with shared value systems
based on common life experiences and situations.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 and geographic regions. Many sub culture make up
important market segments and marketers often design
products.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
andbehaviour.
02. Social Factors :-
A consumer’s behaviour also is influenced by social factors,
such as the (i) Groups (ii) Family (iii) Roles and status
Groups :-
Two or more people who interact to accomplish individual or
mutual goals.
A person’s behavious is influenced by many small groups.
Groups that have a direct influence and to which a person
belongs are called membership groups.
Some are primary groups includes family, friends, neighbours
and coworkers. Some are secondary groups, which are more
formal and have less regular interaction. These includes
organizations like religious groups, professional association
and trade unions.
Family:-
Family members can strongly influence buyer behaviour. The
family is the most important consumer buying organization
society and it has been researched extensively. Marketers are
interested in the roles, and influence of the husband, wife and
children on the purchase of different products and services.
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.
03. Personal Factors :-
It includes
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.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 suits. A Co.
can even specialize in making products needed by a given
occupational group. Thus, computer software companies will
design different products for brand managers, accountants,
engineers, lawyers, and doctors.
Economic situation :-situation 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.
shopping, support etc) interest (Food, fashion, family
recreation) and opinions (about themselves, Business,
Products)
Personality and Self concept :-
Each person’s distinct personality influence his or her buying
behaviour. Personality refers to the unique psychological
characteristics that lead to relatively consistent and lasting
responses to one’s own environment.
04. Psychological Factors :-
• It includes these Factors.
• i) Motivation (ii) Perception (iii) Learning (iv)
Beliefs and attitudes
• Motivation :-
o Motive (drive) a need that is
sufficiently pressing to direct the person to
seek satisfaction of the need
• Perception :-
o The process by which people
select, Organize, and interpret information to
form a meaningful picture of the world.
• Learning:-
Changes in an individuals behaviour arising from experience.
Beliefs and attitudes :-
Belief is a descriptive thought that a person holds about
something
Attitude, a Person’s consistently favourable or unfavourable
evaluations, feelings, and tendencies towards an object or idea
http://pgdba.blogspot.com/2008/05/
INTRODUCTION
Global competition and technologic innovations bring
novelties to marketing approach and today companies focus on
consumer qualifications in their activities instead of their
products or services. Also, companies act based on consumer
qualifications to create niche market and take advantage of
those opportunities (Fırat et all. 1995:44).
The general aim of all marketing activities is creating new
loyal customers (Sheth 2002: 591). In traditional marketing, to
provide loyalty of a customer, companies used some classical
methods such as pricing strategies or placing strategies that are
based on products or services (Gommans, Krishnan and
Scheffold 2001: 44). However, today to reach the success,
companies form their strategic management plan around
consumers and they evaluate their success according to
performance in the market (Günay 1999: 121 and Auken
2001: 38).
In this respect, consumer behavior that is affected by some
individual and environmental factors, become the center of
marketing activities. Therefore, the subject of consumer
behavior is investigated frequently. The consumer buying
decision is a complex process and it is under effects of several
factors. Although there is not a model that explains all aspects
of consumer behavior, all models state that several individual
and environmental factor affect consumer behavior (İslamoğlu
2003: 52-53).
Companies segment their markets so they can respond
more effectively to the needs and wants of groups of
prospective buyers and thus increase its sales and profits. By
the way of market segmentation, aggregating people or
organizations in a market according to the similarity of their
needs and the benefits they are looking for in making a
purchase. Also, such needs and benefits must be related to
specific, tangible marketing actions the firm can take. These
actions may involve separate products or other aspects of
marketing mix such as price, advertising etc. The process of
segmenting a market and selecting specific segments as targets
is the link between the various buyers’ needs and the
organizations’ marketing program (Berkowitz et all. 1994:
232-233).
Nowadays, young consumers are one of the most important
and strategic target segments for several companies from
different markets. The centres of marketing strategies of these
companies are young consumers so they try to determine the
factors that affect consumer buying behavior (Ige 2004: 413).
CONSUMER BUYING BEHAVIOR PROCESS AND
AFFECTING FACTORS
Everyday, consumers have to decide to buy products and
services more than once. A consumer passes through in
making choices about which products and services to buy,
which is the consumer buying decision process. This process
has the five stages; Problem Recognition, Information Search,
Alternative evaluation, Buying decision, Evaluation after
buying decision (Clow and Baack 2004: 61).
During the decision process of buying behavior, in
recognition of the problem, the consumer begins to search
information and then evaluates alternatives according to
qualifications (price, quality, image etc.) of product/service or
brand (Purinton, Rosen and Schroeder 1998: 2). When the
consumer has enough information, they make a choice
between the alternatives and then they buy it. After buying a
product, the consumer compares it with their expectations and
is either satisfied or dissatisfied. If he/she is satisfied, buying
behavior is repeated (McQuitty, Finn and Wiley 2000: 7).
Several factors which are individual and environmental
factors, affect consumers in buying decision process.
Individual factors are motivation, personality, perception,
learning, values, beliefs, attitudes and life style.
Environmental factors are personal influence, reference group,
family influence, social class and culture (Kotler and
Armstrong 1999: 147-152 ).
For instance, buying behavior of consumers from same
culture or social group are similar to each other because they
have similar lifestyles, their learning, perception and
motivation are close to each other (Schwartz 1981: 86 and
Staff 1997: 223). Another affecting factor on buying behavior
is demographic factors. For example, consumers are different
ages, have different needs and wants, also their perception
may change according to their ages. Comparing young
consumers to adults, it can be seen that when adults pay more
attention to price, in contrast to young consumers who are
concerned with image in the buying decision process (Autio
2005: 333-339).
In this study, we focused on young consumers market and
affecting factors on consumer buying decision. A survey that
was prepared to determine which factors affect brand choice is
conducted among university students. In the survey, mobile
phone has been chosen as an example product, today young
people have a mobile phone even if they do not need it.
Family, friends, attitudes, advertising, seller and selling place,
brand image/quality and price have been determined as
affecting factors, and effecting degree of these factors are
evaluated according to demographic factors of students.
www.turkishweekly.net/.../an-investigation-on-affecting-
factors-of-teenagers-brand-choice.html
april20,2010
he ideas, associations and images that people have
of a shampoo brand determine the demand side of
the brand equity equation. There are two ways in
which advertising is likely to influence perceived
product performance. First, by guiding the Inconveniently for advertisers, evaders are not
expectations about the shampoo experience - contained within any one demographic segment but
process called product enhancement and second, by are likely to be the smartest people within their
creating a halo of superiority around the brand via group and crucially, tend to be the people with the
a mechanic termed “ Interest – Status”. There are lowest price sensitivity, those who should be most
two key advertising related factors. First, the susceptible to brand messages.
advertisement needs to be remembered. This is
The research offers a worrying glimpse of the
important because its main influence is at the point
future. People are more likely to be evaders if they
of trial. Second, the message should relate in some
have satellite or cable. But all is not lost. Evaders
way to the experience of ‘using’ the product - for
do not respond to distinctive, relevant and original
instance, does it create any expectation of what the
advertising that catches them at the right time. Lord
shampoo would “ feel like to your hair” i.e., how
Leverhulme’s statement that only half the money he
will it take care of your hair and especially to your
spent on advertising was wasted, is beginning to
specifications. But the advertiser should always bear
look blithely optimistic.
in mind that the benefits proclaimed are in line
with what the product can actually deliver.
The real issue is creativity. What type of
Brands can have perceived advantages which are advertisements prevent evaders from avoiding. There
unrelated to the physical or sensual aspects of the is a strong correlation between likeability and
product delivery and relate more with the emotional awareness. More likeable ads are more effective at
appeal of the brand and the sense of belonging generating awareness. Ads should be enjoyable, to
which comes from being a buyer of the brand. In help brands build bonds with consumers. Individual
many respects this is an extension of the brand advertisers and agencies must identify and
presence, except that the presence is converted into understand the motivation of ad evaders and tailor
a relevant advantage only if it fits with the their creative and media solutions accordingly.
consumer’s emotional needs i.e. making a brand
worthy of its price tag. Planners must attempt to get psychological insights
Is advertising in Shampoo market ethical ? In a into the consumer that goes beyond number -
profession where the task of advertisers is to crunching. There are qualitative differences in how
suspend the consumer’s disbelief, there cannot be a people use and relate to media and these have
possibly straight answer. “ Use of Shampoo does enormous implications on media strategies. There is
not impair or damage hair”, “ Soaps make your dry, a hypothesis that the recall of brands would be
lifeless and lusterless”, are the statements we hear higher if they were advertised on programmes that
in shampoo advertisements. Research has proved enjoyed higher level of viewers.
that the consumer is quite willing to suspend his
disbelief and appreciate the hyperbole for what it is
worth. The consumer perfectly understands that this
is a mere exaggeration to make a point.
However, this issue becomes murkier when there is
an obvious attempt to mislead the consumer into
believing that the product delivers a benefit that is
actually not. This, by any sensible definition, is
definitely unethical. But exaggeration is an aspect of
advertising. When does it become misleading ? Is
Sunsilk or Organics which use filmstars or very well
known high strata celebrities who probably never
touch an Indian Shampoo, ethical ?
To my mind, is there anything unethical about these
advertisements. The role of advertising is to extol
the real or perceived virtues of a product. And just
like there is a poetic license, there is a certain
advertising license that the consumer is willing to
grant within limits.
There is a distinct segment of population who
actively seek to avoid advertising. These people
view as few as half the commercials seen by non -
evaders. They expect ad - breaks to contain boring
and irrelevant material and have thus developed
strategies of avoidance.