Consumers Behaviour
Consumers Behaviour
Consumer- definition
Customers are the most important
people for any organisation. They are
the resource upon which the success of
the business depends
The marketing strategy must determine
who the consumers are, what they are
seeking, how they make choices, and
how they can be influenced
Consumer
Is a person who buys a product or
service for their own use not for resale
Consumers buy for themselves and
their families
Businesses buy goods for processing
and/or reselling. In these transactions
we use the term customers or buyers
not customers
What is the difference
between consumer and
customer?
A customer- purchases and pays for
the product or service
A consumer- is the ultimate user of
product or service, the consumer may
not pay for the product or service
decision-making process
How do customers buy?
Research suggests that customers go
through a five-stage decision-making
process in any purchase. This is
summarised in the diagram below:
This model is important for anyone
making marketing decisions. It forces the
marketer to consider the whole buying
process rather than just the purchase
decision
The model implies that customers pass
through all stages in every purchase.
However, in more routine purchases,
customers often skip or reverse some of
the stages
For example, a student buying a
favourite hamburger would recognise
the need (hunger) and go right to the
purchase decision, skipping information
search and evaluation. However, the
model is very useful when it comes to
understanding any purchase that
requires some thought and deliberation
Consumers’ needs
It is the job of marketers to understand
the needs of their consumers. In doing
so they can develop goods or services
which meet their needs more precisely
than their competitors.
Needs and wants
A distinction is frequently made between
needs and wants. Our needs make up our
survival kit while our wants are the desires
we have for need together with all our
additional requirements. Most people strive
for better conditions for themselves, their
family, and sometimes also their
community, their nation and the whole
world.
People want better clothing, better
living conditions, improved transport
and many other products. Our wants are
infinite. This is just as true for the
relatively wealthy as it is for the poor.
Needs vary according to a person's age,
physical environment, health and many
other factors.
In practice it is impossible to draw the
line at which absolute needs are met.
Maslow’s hierarchy of
needs
Maslow's hierarchy of needs is often
depicted as a pyramid consisting of five
levels: the four lower levels are grouped
together as deficiency needs associated
with physiological needs, while the top
level is termed growth needs
associated with psychological needs.
Deficiency needs must be met first.
Once these are met, seeking to satisfy
growth needs drives personal growth
The higher needs in this hierarchy only
come into focus when the lower needs
in the pyramid are satisfied. Once an
individual has moved upwards to the
next level, needs in the lower level will
no longer be prioritized.
1. Biological and Physiological needs -
air, food, drink, shelter, warmth, sex, sleep,
etc.
2. Safety needs - protection from
elements, security, order, law, limits,
stability, etc.
3. Belongingness and Love needs - work
group, family, affection, relationships, etc.
4. Esteem needs - self-esteem,
achievement, mastery, independence,
status, dominance, prestige, managerial
responsibility, etc.
5. Self-Actualization needs - realising
personal potential, self-fulfillment, seeking
personal growth and peak experiences.
Buyers’ behaviour
A well-developed and tested model of
buyer behaviour is known as the
stimulus-response model, which is
summarised in the diagram below:
In the above model, marketing and other stimuli
enter the customers “black box” and produce
certain responses.
Marketing management must try to work out
what goes on the in the mind of the customer –
the “black box”.
The Buyer’s characteristics influence how he or
she perceives the stimuli; the decision-making
process determines what buying behaviour is
undertaken.
Characteristics that affect customer behaviour
The first stage of understanding buyer behaviour
is to focus on the factors that determine he
“buyer characteristics” in the “black box”. These
can be summarised as follows:
buyer behaviour - new
products
Research suggests that customers go through five
stages in the process of adopting a new product or
service: these are summarised below:
(1) Awareness - the customer becomes aware of the
new product, but lacks information about it
(2) Interest - the customer seeks information about
the new product
(3) Evaluation - the customer considers whether
trying the new product makes sense
(4) Trial - the customer tries the new product on a
limited or small scale to assess the value of the
product
(5) Adoption - the customer decides to make full
and/or regular use of the new product
A marketing team looking to
successfully introduce a new product or
service should think about how to help
customers move through the five
stages.
Research also suggests that customers
can be divided into groups according to
the speed with which they adopt new
products.
The “innovators” (those who adopt new
products first) are usually relatively
young, lively, intelligent, socially and
geographically mobile. They are often of
a high socioeconomic group . Conversely,
the “laggards” (those who adopt last, if
at all) tend to be older, less intelligent,
less well-off and lower on the
socioeconomic scale.
It follows from the above model that
when a business launches a new product
or service, the customers who buy first
are likely to be significantly different from
those who buy the product much later.
Participants in buying
process
1. Initiator- is a person who first suggests or
think of the idea of buying particular
product
2.Influencer – is a person who has some
influence on the final buying decision
3.Decider-is a person who determines any
part of the whole buying decision ex: what
to buy, how to buy, where to buy…
4.Buyer- is a person who purchases. Buyer
can be decider at the same time
5. User- is a person who uses or
consumes service or product
CHARACTERISTICS OF
ORGANIZATIONAL BUYING
Market characteristic
Demand for industrial
products and services
is derived
Few customers
typically exist and
their purchase orders
are large
Product and services
characterstics
Products or services
are technical in nature
and purchased on the
basis of specifications
Buying process
characteristics
Multiple buying
influences exist
Ngotiations beween
buyers and sellers is
commonplace
Online buying over the
Internet is widespread
Marketing Mix
characteristics
Advrtising and other
forms of promotion are
technical in nature
Price is often
negotiated
Organisational Buyer
Behaviour
Organizational
buying behavior
Decision-making
process that
organizations use
to establish the need
for products and
services
to and identify,
evaluate, and choose
among alternative
brands and
suppliers.
Stages in the
Organizational
Buying Process
Same five stages as
the consumer
buying decision
process
Sources of product
information
A customer can obtain information from several
sources:
• Personal sources: family, friends, neighbours
etc
• Commercial sources: advertising; salespeople;
retailers; dealers; packaging; point-of-sale
displays
• Public sources: newspapers, radio, television,
consumer organisations; specialist magazines
• Experiential sources: handling, examining,
using the product
The usefulness and influence of these
sources of information will vary by
product and by customer. Research
suggests that customers value and
respect personal sources more than
commercial sources .The challenge for
the marketing team is to identify which
information sources are most influential
in their target markets.
AIDA and DAGMAR models
AIDA- one of the models that analyse
the customers journey from ignorance
to purchase
Developed in 1898 by St Elmo Lewis
Describes the process a salesperson
must lead to potential customer
through from ignorance of the product
to eventual purchase
AIDA is a sequential model showing
steps that marketing communication
should lead potential buyers through.
Promotions seeks to:
Atract attention
Create interest
Develope desire
Prompt action
Attention
Grab the attention of the audience
Inform potential buyers about the
product
At this stage the advertising is the key
integredient in the promotional mix
The promotional objective is to get the
product seen and talked about
Interest
Create and stimulate buyers interest
This is achived bycraeting an
understanding of the benefits of the
product in relation to the needs of
cutomer
Promotional message focuses on how
the product meets those needs
Desire
Create desire
Introduce a favourable attitude to the
products
Arouse a desire for the product above
any desire for competitors product
Action
To prompt customer action
Personal selling and sales promotion
play a major role at this stage
AIDA and promotional task
A- establish customers awarness.
Inform customers about the
product
I-crate buyers interest. Stimulate
interest in the product
D- create desire
A-sell the product
AIDA and the promotional
mix
AIDA stage
Attention
Interest
Promotional Mix
Advertising
PR
Sponsorship
Desire
Action
Sales promotion
Direct mail
Point of sale promotion
Direct respone
advertising
Personal selling
DAGMAR
Defining advertising goals for
maesured advertising results
A model of marketing communications
developed by Colley in 1961
Developed for measurment advertising
effectiveness
Promotion is used to move the
consumers through the spectrum
The DAGRAM spectrum
Unawerness of the product
Awarness as a result of the advertising
– the audience konw about the brand
Comprehension- understanding of the
product
Conviction- development the
preference of the brand
Action –move thowards purchase
The role of advertising and
each steps
To move people from unawerness to
awerness- the advert aims to make
customers aware of the product’s
existence
Comprehension- information provided
by the advertisments
Conviction- the aim is to convince
customers
Action- sales promotion to move
customers to purchase
Comperison of models
AIDA
Atention
Interest
Desire
Action
DAGMAR
Unawarness
Awarness
Comprehension
Conviction
Action
THE END
AGATA CHMIELECKA
ALEKSANDRA MAJDA