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Scanning The marketing

environment &
consumer Behavior
Analysis
By:
Ma’am Syeda Tooba Saleem.
Scanning the Marketing
environment
Consumer behavior
 Consumer behavior is the collection of attitudes,
preferences, beliefs and decisions regarding the
consumers when purchasing a product or service in a
market.
OR
 The study of how individuals, groups, and organizations

select, buy, use, and dispose of goods, services, ideas, or


experiences to satisfy their needs or wants.
Types of Buyer’s buying behavior
Factors affecting buying behavior
Factors affecting buying behavior
 Cultural Factors:
It influence the buying behavior broadly as well as deeply & the
marketers needs to understand the role played by culture, subculture &
social class.
 Culture:
it refers to a set of basic values, Ideas & attitudes which
transmitted or passed down to next generation. Moreover, it
determines what people should wear, eat etc. Example, Wearing a red
dress by the bride on the wedding day in Pakistan.
 Subculture:
It includes nationalities, geographic regions, tribal groups etc.
subcultures are often considered by the marketers for the segmentation
of a market in order to adapt a product or a communication strategy to
the values or the specific needs of this segment.
Factors affecting buying behavior
 Social class:
Social classes are defined as groups more or less
homogenous and ranked against each other according to a form
of social hierarchy. Even if it’s very large groups, we usually find
similar values, lifestyles, interests and behaviors in individuals
belonging to the same social class.
Social Factors:
marketers needs to analyze the social factors which includes
reference groups, family, role & status etc.
 Reference Groups: are the groups with which we interact
directly or indirectly & they influence our buying behavior as
we compare ourselves with them.
1. Direct Membership Groups:
there are two types of direct membership groups which are
Primary membership group & Secondary membership group.
Factors affecting buying behavior
Primary Membership Groups:
Interacts regularly, informally & face to face.
Example: family, friends, neighbors and co-workers etc.
Secondary Membership Groups:
Associates less & in more formal way.
Example: religious groups, professional or trade union groups
etc.
2.Indirect Membership Groups:
are the groups in which they do not belong but get influenced.
There are two types of it & that are aspirational groups & Non-
aspirational (dissociative) groups.
Factors affecting buying behavior
Aspirational Groups:
the individual can also be influenced by a group to which he doesn’t belong
yet but wishes to be part of. It could influence directly on the consumer as
he wishes to belong to this group & will try to buy the same products.
Example: Many firms uses athletes as spokesperson, & these represent what
many people would ideally like to be.
Non-Aspirational Groups:
groups which individuals doesn’t want to be associated or be identified.
They rejects this kind of groups.
3. Opinion Leaders:
people of influence who with in a group due to his/her knowledge, skills or
character.
Example: Lady Diana has strong influence on public.
Factors affecting buying behavior
 Family:
Family plays a very vital role in influencing a buyer’s buying
behavior & it is demarcated into two which are as follows:
1. Family of orientation: which includes parents and siblings. Parents
impacts on the buyer’s preferences, beliefs, values & attitude as
buyer acquires orientation of religion, politics & economics as well
as self-worth, love & sense of personal ambitions.
2. Family of procreation: which includes one’s spouse and children. It
have the more direct influence on everyday buying behavior.

• In traditional joint families grand parents too have great impact on the
major purchase decisions. However, children are now have the major
influence on the purchase decision of parents in buying of expensive
products such as cars, house etc.
Factors affecting buying behavior
 Role & Status:
An individual can have many role & status like head of the house or junior
as well as manager or executive. Each role carry status. Like, having a role
of a head of marketing has a higher status then the role of a father of a
child. Therefore, people often choose products that shows their status in
the society.
However, there are certain basic purchase & information roles in purchase
of a product/service by an or many individual in reference group or in
family which are as follows:

o Initiator: who felt the need/want & suggest/initiates the buying process.
o Influencer: provide opinion that will influence the buyer
o Decision maker: who will decide whether to buy or not.
o Buyer: who will purchase the goods/services.
o User: who will consume/use the goods/services.
Factors affecting buying behavior
 Personal Factors:
decision of buying something is also effected by the
characteristics of the buyers.
 Age & lifecycle stage:
customer don’t buy the same products/services at 20 or 70
years. His lifestyle, hobbies, values, environment, activities &
habits evolve throughout the life. So, people change the way they
purchase as their age increases. Example: baby-teenager-adult.
its also influenced by the family lifecycle stage: from single to
married & married to parents & so on.
Factors affecting buying behavior
 Occupation:
Its also plays an essential role in the buying behavior of a buyer.
For example: shoe makers will design different type of shoes for
the office workers or at the construction site workers. Moreover,
doctor will buy lab coat or stethoscope, whereas electrician will
buy more electric items etc.
 Economic Situation:
Its effects the purchasing power of a consumer a lot which
ultimately influence its buying behavior. Hence, marketers needs to
take step in redesigning or repricing their products based on the
current economic situation.
For example: recession is one of the economic indicator that will
impact on the consumer’s buying behavior.
Factors affecting buying behavior
 Lifestyle:
It is the way a customer live its life. Lifestyle reflected by the
person’s activities, interest, & opinions. Lifestyle of a customer will
effect its purchase behavior. For example: a customer having a
healthy lifestyle will prefer to eat organic foods & go to specific
grocery stores, will do jogging & exercise on daily basis. Therefore,
will buy shoes & specific products etc. accordingly.

 Personality & Self-Concept:


Personality is based on some personality traits such as friendly,
happy-go-lucky, nerdy, introvert, extrovert, shyness, bold, confident
etc. Self-Concept is a person’s self image. How a consumer perceived
themselves in terms of self-evaluation, attitudes, & beliefs.
Karen Horney’s 3 Personality Groups: Complaint, Aggressive, &
Detached.
Factors affecting buying behavior
 Psychological Factor:
Factors affecting buying behavior
Motivation:
Maslow’s Hierarchical Theory
Factors affecting buying behavior
 Perception:
It is the process by which we select, organize, and interpret
information inputs to create a meaningful picture of the
world. It depends not only on physical stimuli, but also on
the stimuli’s relationship to the surrounding environment
and on conditions within each of us.
Example: One person might perceive a fast-talking
salesperson as aggressive and insincere; another, as
intelligent and helpful. Each will respond to the
salesperson differently.
Factors affecting buying behavior
 Learning:
Learning is thru actions. When we act, we learn. Basically, it is the
changes in individual’s behavior from the experience. If you have good
experience with the product you would likely to buy it again next time
& the vice versa. Hence, to change consumer’s behavior towards your
product, you need to educate them or giving away the new information.
Example: Free samples, free vouchers, or repetition of advertising
messages.
 Attitude:

Feeling of like or dislikes towards a product or services is called


consumer attitude. Consumer’s attitude towards a product greatly effect
the success or failure of a firm’s marketing strategy.
Factors affecting buying behavior
Consumer’s buying
decision making process

Brand
Dealer
Quantity
Timing
Payment method
Buying Decision Process
Steps between Evaluation of
Alternatives and Purchase Decision
How Customers
Use or Dispose of Products
Consumer Behavior’s Stimulus
response model
Thank
you!!!!

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