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Unit 2

The document discusses consumer buying behavior, highlighting the psychological factors that influence decisions, such as selective attention, distortion, and retention. It also covers business buyer behavior, including types of buying situations and the buying center's role in decision-making. Additionally, it addresses market segmentation, targeting strategies, and the importance of competitive advantage in positioning products.

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mishrashrishti2004
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9 views37 pages

Unit 2

The document discusses consumer buying behavior, highlighting the psychological factors that influence decisions, such as selective attention, distortion, and retention. It also covers business buyer behavior, including types of buying situations and the buying center's role in decision-making. Additionally, it addresses market segmentation, targeting strategies, and the importance of competitive advantage in positioning products.

Uploaded by

mishrashrishti2004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Unit 2

Connecting with Customers


Consumer Buying Behaviour

❑ Consumer buyer behavior is the buying behavior of final


consumers—individuals and households that buy goods and services
for personal consumption.
❑ Consumer markets are made up of all the individuals and
households that buy or acquire goods and services for personal
consumption.
Black Box Model of Consumer Behaviour
Factors Affecting Consumer Behaviour
Psychological Factors Affecting Consumer Behaviour
Psychological Factors Affecting Consumer Behaviour
Perceptual Processes

● Selective attention - is the tendency for people to screen out most of the
information to which they are exposed.

● Selective distortion - is the tendency for people to interpret information in a


way that will support what they already believe.

● Selective retention - is the tendency to remember good points made about a


brand they favour and forget good points made about competing brands.
Psychological Factors Affecting Consumer Behaviour
Learning is the change in an individual’s behaviour arising from experience and
occurs through the interplay of:
● Drives
● Stimuli
● Cues
● Responses
● Reinforcement
Buying Roles – End Consumer
Buying Decision Behaviour
Customer Journey
Buyer Decision Process for New Products

• Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption
Innovation Adoption
Influence of Product Characteristics on Rate of Adoption

Relative
Advantage

Communicability Compatibility

Rate of
Adoption

Divisibility Complexity
Business Markets and Buyer Behaviour

●Business buyer behaviour refers to the buying behaviour of the organizations that buy goods
and services for use in the production of other products and services that are sold, rented, or
supplied to others.

●The business buying process is the process where business buyers determine which products
and services are needed to purchase, and then find, evaluate, and choose among alternative
brands.
Business Markets – Market Structure and Demand

● Fewer but larger buyers

● Derived Demand

● Inelastic Demand

● Fluctuating Demand
Types of Business Buyer Decisions
Supplier development is the systematic development of networks of supplier-
partners to ensure an appropriate and dependable supply of products and
materials for use in making products or reselling them to others.
Types of Business Buying Situations
●Straight rebuy is a buying situation in which the buyer routinely reorders something without any

modifications.

●Modified rebuy is a buying situation in which the buyer wants to modify product specifications,

prices, terms, or suppliers.

●New task is a buying situation in which the buyer purchases a product or service for the first

time.

●Systems selling is buying a complete solution to a problem from a single seller.


Participants in the Business Buying Process
●Buying Center consists of all the individuals and units that play a role in the business purchase

decision-making process.

Users Influencers Buyers

Deciders Gatekeepers
Institutional and Government Markets
Customer Driven Marketing Strategy
Segmenting Consumer Markets
Segmenting Consumer Markets
Segmenting Consumer Markets
Segmenting International Markets

• Geographic location

• Economic factors

• Political and legal factors

• Cultural factors

• Intermarket Segmentation
Requirements for Effective Segmentation

• Measurable

• Accessible

• Substantial

• Differentiable

• Actionable
Market Targeting – Evaluating Market Segments

• Segment size and growth

• Segment structural attractiveness

• Company objectives and resources


Market Targeting – Meaning
Factors Affecting the Choice of Market Targeting Strategies
● Company resources

● Product variability

● Product life-cycle stage

● Market variability

● Competitor’s marketing strategies


Market Targeting Strategies
Positioning
• Product position is the way the product is defined by consumers on
important attributes.
Choosing a Differentiation and Positioning Strategy

• Identifying a set of possible competitive advantages to build a position

• Choosing the right competitive advantages

• Selecting an overall positioning strategy

• Communicating and delivering the chosen position to the market


Competitive Advantage
A competitive advantage should be:
● Important
● Distinctive
● Superior
● Communicable
● Preemptive
● Affordable
● Profitable

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