Customer Buying Behaviour Author U.Archana Source http://www.articlesbase.com/marketing-articles/customer-buying-behaviour-999729.html Permission or License to use Article http://www.articlesbase.com/privacy-policy.php Summary of Article Customers make purchases in order to satisfy needs. The wealth of products and services produced in a country make our economy strong. All the behaviour of human beings during the purchase may be termed as “buyer behaviour”.. In this article there is a view about birth of buying ideas, what is buyer behaviour, How consumer buy, why consumer buy, types, Decision process, Motives, conclusion. INTRODUCTION: Consumer is the king and it is the consumer determines what a business is, therefore a sound marketing programme start with a careful analysis of the habits, attitudes, motives and needs of consumers. In particular a marketer should find answer to the following questions: What are the products they buy? Why they buy them? How they buy them? When they buy them? Where they buy them? How often they buy them? THE BIRTH OF BUYING IDEAS: Mr. A owns scooter. The scooter is causing dissatisfaction because of some defects or troubles in it. He decides to replace it with another scooter. He anticipates the idea of a trouble free and dependable scooter. He decides not to buy a scooter of the same make, because of dissatisfaction and lack of confidence. Thus a thought seed about a new scooter is born in him, the moment he thinks,” I must replace the scooter “the buying ideas come up. With the thought in his mind, he thinks of the benefits. And this leads to further thinking: what sort of a scooter will give the benefits, he wants. The benefits make the desire. He may buy any one of many makes of scooter, which can give the desired benefits. He makes enquiries and observes through talking to his friends. He reads advertisement about the new scooters. He chooses one with all the possible advantages and which is wholly dependable. Mr. A is a prospective customer to a dealer. WHAT IS BUYER BEHAVIOUR? The wealth of products and services produced in a country make our economy strong. Almost all the products, which are available to buyers, have a number of alternative suppliers: substitute products are available to consumers, who make decision to buy products. Therefore a seller most of his time, seeks buyers and tries to please them. In order to be successful, a seller is concerned with. * Who is the customer? * What do consumers buy? * When do consumers buy? * How do consumers buy? * From where do consumers buy? * Why do consumers buy? A buyer makes a purchase of a particular product or a particular brand and this can be termed “product buying motives” and the reason behind the purchase from a particular seller is “patronage motives” When a person gets his pay packet, and if he is educated ,sits down along with his wife and prepares a family budget, by appropriating the amount to different needs. It may happen that after a trip to the market, they might have purchased some items, which are not in the budget, and thus there arises a deviation from the budgeted items and expenditure. All the behaviour of human beings during the purchase may be termed as “buyer behaviour”. HOW CONSUMER BUY? 1. Need/Want/Desire is Recognized In the first step the consumer has determined that for some reason he/she is not satisfied (i.e., consumer’s perceived actual condition) and wants to improve his/her situation (i.e., consumer’s perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the consumer that food or drink is needed. External factors can also trigger consumer’s needs. Marketers are particularly good at this through advertising, in-store displays and even the intentional use of scent (e.g., perfume counters). 2. Search for Information Assuming consumers are motivated to satisfy his or her need, they will next undertake a search for information on possible solutions. The sources used to acquire this information may be as simple as remembering information from past experience (i.e., memory) or the consumer may expend considerable effort to locate information from outside sources (e.g., Internet search, talk with others, etc.). How much effort the consumer directs toward searching depends on such factors as: the importance of satisfying the need, familiarity with available solutions, and the amount of time available to search. 3. Evaluate Options Consumers’ search efforts may result in a set of options from which a choice can be made. It should be noted that there may be two levels to this stage. At level one the consumer may create a set of possible solutions to their needs (i.e., product types) while at level two the consumer may be evaluating particular products (i.e., brands) within each solution. For example, a consumer who needs to replace a television has multiple solutions to choose from such as plasma, LCD and CRT television. 4. Purchase In many cases the solution chosen by the consumer is the same as the product whose evaluation is the highest. However, this may change when it is actually time to make the purchase. The “intended” purchase may be altered at the time of purchase for many reasons such as: the product is out-of-stock, a competitor offers an incentive at the point-of-purchase (e.g., store salesperson mentions a competitor’s offer), the customer lacks the necessary funds (e.g., credit card not working), or members of the consumer’s reference group take a negative view of the purchase (e.g., friend is critical of purchase). 5. After-Purchase Evaluation Once the consumer has made the purchase they are faced with an evaluation of the decision. If the product performs below the consumer’s expectation then he/she will re-evaluate satisfaction with the decision, which at its extreme may result in the consumer returning the product while in less extreme situations the consumer will retain the purchased item but may take a negative view of the product. Such evaluations are more likely to occur in cases of expensive or highly important purchases. To help ease the concerns consumers have with their purchase evaluation, marketers need to be receptive and even encourage consumer contact. Customer service centers and follow-up market research are useful tools in helping to address purchasers’ concerns. Why Consumers Buy: Customers make purchases in order to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet (e.g., food, shelter) while others are not required for basic survival and vary depending on the person. It probably makes more sense to classify needs that are not a necessity as wants or desires. In fact, in many countries where the standard of living is very high, a large portion of the population’s income is spent on wants and desires rather than on basic needs. For example, in planning for a family vacation the mother may make the hotel reservations but others in the family may have input on the hotel choice. Similarly, a father may purchase snacks at the grocery store but his young child may be the one who selected it from the store shelf. So understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases. TYPES OF CONSUMER PURCHASE BEHAVIOR: Consumers are faced with purchase decisions nearly every day. But not all decisions are treated the same. Some decisions are more complex than others and thus require more effort by the consumer. Other decisions are fairly routine and require little effort. In general, consumers face four types of purchase decisions: * Minor New Purchase – these purchases represent something new to a consumer but in the customer’s mind is not a very important purchase in terms of need, money or other reason (e.g., status within a group). * Minor Re-Purchase – these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty). * Major New Purchase – these purchases are the most difficult of all purchases because the product being purchased is important to the consumer but the consumer has little or no previous experience making these decisions. The consumer’s lack of confidence in making this type of decision often (but not always) requires the consumer to engage in an extensive decision-making process.. * Major Re-Purchase - these purchase decisions are also important to the consumer but the consumer feels confident in making these decisions since they have previous experience purchasing the product. For marketers it is important to understand how consumers treat the purchase decisions they face. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major New Purchase), their marketing strategy may vary greatly from a company targeting customers who view the purchase decision as routine. In fact, the same company may face both situations at the same time; for some the product is new, while other customers see the purchase as routine. The implication of buying behavior for marketers is that different buying situations require different marketing efforts Consumer Buying Decision Process: “Nothing is more difficult and therefore, more precious, than to be able to decide is quoted to be the words of Napoleon. This is amply true in the case of consumer too. It is for this reason that the marketers are bound to have a full knowledge of the consumer – buying decision process. However it should be remembered that the actual act of purchasing is only one stage in the process and the process is initiated at the several stages prior to the actual purchase. Secondly even though we find that purchase is one of the final links in the chain of process, not all decision processes lead to purchase. The individual consumer may terminate the process during any stage. Finally not all consumer decisions always include all stages. Persons engaged in extensive decision making usually employ all stages of this decision process. Where as those engaged in limited decisions making and routine response behaviour may omit some stages. The consumer decision process is composed of two parts, the process itself and the factors affecting the process. SURVEY BY THE MARKETING TEAM: A survey conducted by the marketing team of shoppers stop Ltd. Reveals the psychography of the modern shopper. Accordingly the survey classifies customers in to the four segments namely * Convenience Shoppers * Value Shoppers * Image Shoppers * Experience Shoppers Convenience shoppers for instance, are people who consume relatively less amount of time while shopping. Also they look out for the width and depth of the range they purchase and conduct their annual shopping at one shot. Value Shoppers always hunt for value for money; Prefer quality reassurance and benchmark offerings among other related attributes. Image Shoppers are fashion- conscious and look out for the latest trends and labels. On the other hand , Experience Shoppers are attentive and prefer personalized services look out for the right ambience, prefer giving personal advice on clothing at the time of purchase , and prefer not to buy at one sold. MARKETING IMPLICATIONS OF CONSUMER’S DECISION PROCESS: It was during 1960’s that a number of theories to explain the consumer‘s decision process started appearing. The three leading theorists were Howard-sheth , Engel Kollat-Blackwell and Nicosia. Since then a considerable research on the marketing implications of the process has been developed and tested the applications of many elements of marketing. Many of the marketing strategies and tactics will have to be developed in relation to consumer attitudes. Marketing strategies, if effectively used, will go a long way in initiating and developing consumer attitudes in favour of the products. THE IMPORTANT MOTIVES, INFLUENCING THE ULTIMATE BUYING BEHAVIOUR OF CUSTOMERS. 1. Fear : To overcome theft, you may purchase a burglar alarm (out of fear) 2. Desire for money : Purchasing when the price falls down. 3. Vanity : Getting costly items to be admired by others 4. Pride : Possessing luxurious items for high position in the society 5. Love and affection : When you purchase toys, dresses for your sister, it is out of affections. 6. Sex and romance : Spending much on dresses, ornaments etc. 7. Fashion : Imitation motives: Old people dress like young ones. 8. Possession : This refers to collection of stamps, coins etc. 9. Health and Physical : Purchasing health foods, vitamins etc. Well being 10. Comfort and : Purchasing equipments like refrigerator, pressure cookers, mixy convenience etc. ECONOMIC FACTOR AFFECT THE BUYER’S BEHAVIOUR: 1. Disposal personal income: The economists made attempts to establish a relationship between income and spending. Disposal personal income represents potential purchasing power that a buyer has. The change in income has a direct relation on buying habits. 2. Size of family income: The size of family and size of family income affect the spending and saving patterns. Generally large family spend more and short family spend less, in comparison. 3. Income expectations: The expected income to receive in future has a direct relation with the buying behaviour. The expectation of higher or lower income has a direct effect on spending plans. 4. Propensity to consume and to save: This goes to the habit of spending or saving with the disposal income of buyers. If the buyers give importance to present needs, then they dispose of their income. And buyers spend less if they give importance to future needs. 5. Liquidity of Fund: The present buying plans are influenced greatly by liquidity of assets i.e., cash and assets readily convertible into cash, eg bonds, bank balances etc., 6. Consumer Credit: “Buy now and pay later” plays its role effectively in the rapid growth of markets for car, scooter, radio, furniture and the like. Economic model suggests behavioural hypothsis: * Lower the price of the product, higher the sales. * Lower the price of substitute products, lower the sales of this product * Higher the real income, higher the sales of the product. * Higher the promotional expenses, higher the sales. Internal influences of buyers: * psychographics (lifestyle), * personality, motivation, knowledge, * attitudes, * beliefs, and * feelings. * demographics, consumer behaviour concern with consumer need consumer actions in the direction of satisfying needs leads to his behaviour behaviour of every individuals depend on thinking process. EXTERNAL INFLUENCES OF BUYERS: * culture, * sub-culture, * Locality, * royalty, * ethnicity, * family, * social class, * reference groups, * lifestyle, and * market mix factors. CONCLUSION: Competing for the consumer is a never-ending challenge. This is due principally to the uniqueness and competitiveness of each individual market, for they are all different and all require different approaches". Knowledge of the buying motives of consumers is essential for a marketer. The changes in the market are brought by the consumers.
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