Product Mix and Brand Strategy

TOPIC 6: CONSUMER BUYING BEHAVIOR:
Buying behavior is the decision processes and acts of people involved in buying and using
products. A marketer needs to understand why consumers make the purchases that they make?
, what factors influence consumer purchases?
When the degree of consumer involvement is combined with knowledge of whether consumers
perceive many or few differences between brands, it becomes possible to identify four
distinctive types of buying behavior
Complex buyer behavior Often marked by consumer confusion, this behavior is demonstrated
when consumers are highly involved in a purchase and perceive significant differences among
brands. The involvement may arise from uncertainty of the products quality or a high price or
a number of other factors related to whether the products image and the needs are congruent to
a consumers self image, values and needs. The more socially the product is visible, the greater
the involvement. Once in this situation the consumer will attempt to learn about the product
and then assimilate the information into believes about the products quality and possible
benefits. Marketers are presented with an opportunity to influence the purchase decision at the
stage where consumers seek information about a product’s attributes and differential value.
The purchase decision-making process can therefore be seen to pass through the stages of
‘awareness’, ‘trial’ and ‘repeat buying’.
Dissonance-reducing buyer behavior ‘Dissonance’ describes the after-sales feelings of the
consumer who believes that there has been some sort of shortfall between the purchase
expectation and the purchase delivery. Dissonance-reducing behavior is demonstrated where
consumers are highly involved with the purchase, perhaps because it is something expensive
which they would seldom buy, and where they perceive there to be few differences between
brands. In order to address this type of behavior, marketers need to concentrate their efforts on
before- and after-sales communications to ensure that consumers feel confident about their
choice of brand.
Variety-seeking buyer behavior this is characterized by low consumer involvement and the
perception of significant brand differences. This type of consumer will switch brands regularly
within the same product category. Such behavior is not driven by dissatisfaction with the brand,
but rather by a desire to sample other brands. In order to be successful in such markets,
marketers need to encourage habitual buying by ensuring that target brands or products
dominate the shelf space, that distribution strategies minimize stock outs, and that
communications and promotional activities constantly provide reminders and reinforcements.
Habitual buyer behavior This behavior occurs where there is low consumer involvement and
few perceived differences between brands. This behavior tends to be associated with low-cost,
frequently purchased products, such as flour. Visibility and availability are the vital elements
in managing habitual buyers
Consumer buying motives

One of the most recognized theories of human needs is marslows hierarchy of needs. Marslows
suggest that the individual will seek to progress through the needs hierarchy by satisfying needs
at each level. These needs include;
• Physiological needs. These are basic to our existence. They include water,etc. many
organizations try to satisfy these needs e.g. restaurants
• Safety needs; consumers also strive for security, organizations such as banks and
building societies seek to satisfy such needs e.g insurance
• Belonging needs; individuals need friendship, affection and acceptance of their peers.
Organizations offer opportunity to satisfy these needs in a number of ways;
- Retailers sell the latest fashion enabling the consumer to wear the right
clothes to fit in with peers
- Dating clubs enable individuals to meet new people
- Gym offer individuals to get the perfect body so they might gain acceptance
from the peers
• Esteem needs. Individuals may feel the need to display their success. They want
recognition from others. To satisfy these needs an individual may purchase prestigious
brands, eat at more expensive restaurants or buy an expensive car to prove their success
• Self actualization. This involves the need to be independent and achieve a sense of
accomplishment. It’s to do with inner feelings of fulfillment
The consumer decision process
Need recognition; if an individual recognizes a need such as safety, physiological that
individual becomes a potential customer. The individual must then go through the mentor of
post purchase process if they are to become a customer
Identification of alternatives. At this stage an individual will search for information. This
may be done very quickly or may be lengthy and complex.
Evaluation of alternatives; the individual will compare the potential products using the
information collected at the previous stage of the process. Often evaluation may be subjective
based on brand preferences or believes in certain products
Purchase decision; once a decision has been made, the individual will take action though the
action will be affected by such factors as store opening times, transport availability etc.
Post purchase behavior. Individuals often analyze their feelings and opinions about a
purchase e.g. did I buy the right car? Does it meet my needs?
Sometimes the individual may feel dissatisfied. The negative feeling is called cognitive
dissonance behaviour which can result in the individual never purchasing the product again
and also advising friends not to purchase it. Its for this reason some organizations maintain
some kind of relationship with consumers after sale
Participants in consumer decision process
• Initiator- this is the suggestor of the idea
• Influencer- any person having an impact on the final decision
• Decider- the person who actually makes the decision
• Buyer- one who makes the purchase
• User- one who consumes the product
Factors influencing consumer buying decision process
Cultural factors
Cultural factors have a significant impact on customer behavior. Culture is the most basic cause
of a person’s wants and behavior. Growing up, children learn basic values, perception and
wants from the family and other important groups. Marketers are always trying to spot “cultural
shifts” which might point to new products that might be wanted by customers or to increased
demand. For example, the cultural shift towards greater concern about health and fitness has
created opportunities (and now industries) servicing customers who wish to buy Low calorie
foods, health club memberships and exercise equipment
Social factors
Family background, reference groups, social role and status affect consumer’s behaviour.
Reference groups such as church, colleagues or families influences individual attitudes. The
individual will normally purchase only products acceptable to the reference groups. In this
instance it’s important for organizations to understand how family members interact and how
decisions are made so that the best marketing mix strategies can be used
Personal factors
The consumer may be influenced by personal characteristics such as age, occupation, ones taste
and preferences, lifestyle, economic situation e.g. a company director is more likely to buy
expensive clothes and visit exclusive restaurants than a school teacher
Psychological factors
Individuals have needs and will seek to satisfy these needs often through their buying
behaviour. An individual has many needs at any one time and these needs may constantly
change.
Organization buying process (Discuss i.e do your own research)

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TOPIC 6: CONSUMER BUYING BEHAVIOR:

Consumer buying motives

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