Question

1. List 2 factors influencing the consumer buying behavior and provide one example for each – (10 pts).

2. Explain the four types of buying behavior and share one example for each – (40 pts).

3. You want to buy a car; hence you experience a process for making up your mind. Explain each of the stages you encounter during your decision making for the best car purchase – (50 pts).

Answer 1

Factors influencing the consumer buying behavior

1. Personal Factors

Personal factors are those factors that are personal to the conusmers which include age and life-cycle stage, occupation, economic circumstances, lifestyle, personality and self concept.These factors vary from person to person that results in a different set of perceptions, attitudes and behavior towards certain goods and services.Personal Factors play an important role in affecting consumer buying behaviour.

• Age: Age refers to the life cycle stage in which he falls. The people buy different products in different stages of the life cycle.The consumer buying behavior is greatly influenced by his age.It is obvious that the consumers change the purchase of goods and services with the passage of time. For example A bachelor would prefer spending on items like beer,clothes,parties,bikes etc.
• Occupation: An individual’s nature of job has a direct influence on the products and brands he choose.For example an Manager of an organization will try to purchase business suits, whereas a low level worker will purchase rugged work clothes.
• Lifestyle:The lifestyle of a consumer will influence on his behavior and purchasing decisions. For example, a consumer with a healthy and balanced lifestyle will prefer to eat organic products and go to specific grocery stores, will do some jogging regularly (and therefore will buy shoes, clothes and specific products), etc

2.Social factors

Social factors affect consumer behavior significantly. Every individual has someone around influencing their buying decisions. The important social factors are: reference groups, family, role and status.

• Reference Groups:A reference group is a group with which an individual likes to get associated. All the members of the reference group share common buying behavior and have a strong influence over each other. Reference groups have the power of affecting lifestyles, manners and self-expressions of consumers. for example Pepsi felt represented as the spirit of teenagers of the time

• Family: The family members play a crucial role in designing one’s preferences and behavior. A new Television, for example, is likely to be a joint decision, while a week’s groceries might be selected by a single member of the family.

• Roles and Status: Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. A women plays the role of a daugther to her parents but in her workplace her role is the one of Marketing manager. Each of these roles has an effect on the behaviors of consumers.

Four types of buying behavior

Consumer buying behavior is the sum total of a consumer's attitudes, preferences, intentions, and decisions regarding the consumer's behavior in the marketplace when purchasing a product or service.

• Complex buying behavior:  Complex buying behaviour occurs when the consumer is highly involved with the purchase and when there are significant differences between brands. They are highly involved in the purchase process and consumers’ research before committing to invest. Consumers will research thoroughly before committing to invest. For example purchase of a new home or a new car.
• Dissonance-reducing buying behavior: Dissonance in marketing causes a conflict or tension within a consumer considering a product purchase. This is usually an uncomfortable feeling for the consumer and usually leads to the buyer taking her money elsewhere or experiencing remorse over the purchase. Consumers will be forced to buy goods that do not have too many choices and therefore consumers will be left with limited decision making. For example purchase of a diamond ring

• Habitual buying behavior: Habitual buying behaviour occurs under condition of low consumer involvement and little significant brand difference like purchase of goods of daily needs.Consumers do not research or need information regarding purchase of such products.  for example the purchase of milk or bread in the nearby store .

• Variety seeking buying behavior: Variety-seeking buyer behavior is the buying tendency of those consumers that do not have a high involvement with a product when there is a significant difference between brands. the consumers seek variety. for example p[urchase of cookies, soap, etc.

Stages during decision making for the best car purchase

The stages of decision making processes are the need of recognition, information research, evaluation of alternatives, purchase and postpurchase behaviour.

• Need recognition: Need recognition is the first step in consumer buying behavior and is also called problem identification. It occurs when a consumer discovers an unmet need that must be fulfilled. Need recognition occurs when a consumer identifies a need and thinks of a product that might meet this need. In case of purchasing a best car ones need varies from safety, fuel efficiency, after sales service,price range etc.
• Information search: Information Search is a stage in the Consumer Decision Process during which a consumer searches for internal or external information. It is the stage where consumers gather information. Internal search comprises searching one's memory or experiance to access information about solutions to an existing problem.The customer starts searching for information that will help him or her better understand their situation and identify what will fix their issues. In case of a car one  has to do research and decide which type of car is suitable. If the person is a mature man who concern about the safety of family he will choose a car with better safety and reliability.
• Evaluation of alternatives: Once the initial information search is complete, customers start reflecting on what they learned or discovered. They begin to evaluate their options to determine which is the best solution for their problem. Consumers evaluate all of their products or brand options on a scale of attributes which have the ability to deliver the benefit that they are seeking. The purchaser will compare the choosen car with other brands and find out more details about this car or think about other alternatives like second hand purchase. The purchaser also evaluates prices, features, and reviews.

• Purchase Decision: The purchase decision is the fourth stage in the consumer decision process and when the purchase actually takes place.The consumer may form an intention to buy the most preferred brand because he has evaluated all the alternatives and identified the value that it will bring him. After making comparison by other products, this man confirms to buy the car which meets all his requirements.Consequently, this car will completely meet the man satisfaction

• Post-Purchase Evaluation: This stagecan be defined as how the customer feels about a purchase will significantly influence whether he will purchase the product again or consider other products within the brand.The customer will consider if the solution accurately and fully meets their needs. They will decide if it was worth the cost and if the brand delivered on their promises. They will feel either satisfaction or buyer’s remorse. After selling the products, company normally will ask consumer about how is the satisfaction of consumer about the car and asks whether he will suggest the car to other people.Consumer satisfaction will increase the sales of the company.