Stimulus Model 522d41

Consumer Buying Behaviour Process Dr. Poonam Madan

The Consumer Buying Decision Process

How do consumers make purchase decisions? How do firms use this information to develop new products and marketing programs?

Model of Consumer Behavior • Stimulus Response Model – Marketing and other stimuli enter the buyer’s “black box” and produce certain choice / purchase responses. – Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses.

?

Stimulus Respose Model •

•

The starting point for understanding consumer behavior is the stimulusresponse Model The marketer’s task is to understand what happens in the consumer’s consciousness between the arrival of the outside marketing stimuli and the ultimate purchase decisions.

Model of Consumer Behavior

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

6-5

A Model of Consumer Behavior

Model of Buyer Behavior Marketing and Other Stimuli

Buyer’s Black Box

Marketing

Buyer Characteristics Product Choice Buyer Decision Process Brand Choice

Product Price Place Promotion

Other Economic Technological Political Cultural

Buyer Responses

Purchase Timing Purchase Amount

Model of Consumer Behavior

Model of Consumer Behavior Product Price

Marketing Marketing and and Other Other Stimuli Stimuli

Economic Technological

Place

Political

Promotion

Cultural

Buyer’s Decision Process

Product Choice Brand Choice Dealer Choice

Buyer’s Buyer’s Black Black Box Box

Buyer’s Buyer’s Response Response

Characteristics Affecting Consumer Behavior

Purchase Timing Purchase Amount

Model of Consumer Behaviour Activities engaged in to attract buyers

IN

Kotler et al, 2006 chapter 6

Focus on this

TRANSFORM

OUT

The Consumer Decision Process The CDP represents a road map of consumers’ minds that marketers and managers can use to help guide product mix, communications, and sales strategies

Variables involved in understanding consumer behaviour • Stimulus – ads, products, hungerpangs • Response – physical/mental reaction to the stimulus • Intervening variables – mood, knowledge, attitude, values, situations, etc.

Basic Model of Consumer Buying Decision Process • According to Kotler and Armstrong, the basic model of consumer decision making process comprises three major components, viz., marketing and other stimuli (these act as influences), the buyer’s black box (these are related to the consumer) and the buyer responses (this is the response part).

Model of Consumer Behavior • Stimulus Response Model – Marketing and other stimuli enter the buyer’s “black box” and produce certain choice/purchase responses. – Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses.

Model of Buyer Behavior

Marketing and other stimuli A consumer is confronted with a stimulus in the environment. This stimulus could be of two kinds; a) One that is presented by the marketer through the marketing mix or the 4Ps, product, price, place and promotion; – – – –

-product: attributes, features, appearance, packaging etc. -price: cost, value, esteem (prestige) -place: location and convenience, accessibility -promotion: advertising, sales promotion, personal selling, publicity, direct marketing.

• b) The other that is presented by the environment, and could be economic, technological, political and cultural.

Buyer’s black box: • The stimuli that is presented to the consumer by the marketer and the environment is then dealt with by the buyer’s black box. • The buyer’s black box, comprises two sub components, viz., – the buyer’s characteristics and – the buyer decision process.

• The buyers characteristics could be – personal, – psychological, – cultural and – social.

These characteristics affect the buying decision process, which comprises five steps: 1. Problem Recognition 2. Information Search 3. Alternative Evaluation 4. Purchase Decision 5. Post-purchase behavior

Buyer Decision Process Purchas e Evaluation Decisio Postpurchase n of Behavior Alternatives Informatio n Search Need Recognitio n

The Consumer Decision-Making Process Bill realizes that Problem Recognition • Does this he is fed up with his puny b/w TV

Information Search

Bill talks to a few of his friends about a new TV

•

Evaluation of Alternatives

Bill goes shopping to compare TVs of different brands

•

Product Choice

Bill chooses one model/brand for its features and price

•

Post-purchase Evaluation

Bill takes the TV home and becomes a couch potato

process look familiar? How does it differ for low versus high risk products? Has anyone done it differently? Which is the most critical stage?

Buyer responses: • While in the black box, the buyer also takes a decision with respect to the product, brand, dealer, timing and amount.

Our aim …

Awareness

Interest

Action

Desire

Consumer Involvement in the Buying Decision

Influencer Initiator Decider

Buying Decision



Buyer