THEORY AND MODEL Philip Kotler (1995) has developed model of consumer decision making process which is widely used to understanding customers purchasing decision. Kotler (1995) stated that a purchasing decision is determined by the customer’s personal characteristic and evaluation process, along with the external stimulation environment. The detail of theories will be state in the sequel: By theory of Kotler (1995), external stimulation can be divided in two groups. 1. Marketing stimulation which is linked to marketing mix (Price, Place, Product, and Promotion).
Introduction Buying Behavior is the decision processes and involved in purchasing and using goods. Have to be conscious of the idea of reason consumers make the purchases? What factors influence consumer purchases? The changing variables in society. Consumer Buying Behavior make reference to the buying behavior of the final consumer.
A customer purchases products to satisfy their needs or wants which influences a consumer behavior to buy products to meet their need. According to Philip Kotler,”Consumer Behaviour is the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas and experiences to satisfy their needs and wants” Factors Influencing Consumer Behaviour There are different factors which are responsible for influencing Consumer Behaviour. • Economic Factors-Economic factors are the factors which directly affects the financial condition of consumer. Economic factors such as personal income, family income, government policy, discretionary income etc…influencing the consumer behavior in buying a product. • Psychological factors: Psychological factors such as need, motivation, personality, lifestyles etc affects very much in influencing consumer behavior as they purchase only to satisfy their needs.
These insight can be gathered from consumer surveys, both qualitative and quantitative in nature, which can help the company to gather data on the strength and weakness of the brand and product attributes that are associated with frequency of purchase and usage of the product. Moreover these consumer insights help companies optimize their marketing budget, where in case of Pillsbury same advertising that was shown in
Role of Consumer Behavior in Marketing What is consumer behavior in marketing? Consumer Behavior refers to the study of buying tendencies of consumers. An individual who goes for shopping does not necessarily end up buying products. There are several stages a consumer goes through before he finally picks up things available in the market. Various factors, be it cultural, social, personal or psychological influence the buying decision of individuals.
This theory focuses on the fact that consumption relies on income and that there is a tendency to spend less on goods than the increment in income. This theory is criticized on the grounds that there are many factors influencing consumer behaviour, that do not relate to income Psychological theories This believes that people learn from their experience and this will determine how they act in future. This makes sense when seen in conjunction with brand loyalty and repetitive buying. Psychological theories consist of stimulus response theories and cognitive theories. Stimulus response theory assumes that learning is a result of a person’s response to a stimulus, which is then rewarded with satisfaction for the right response.
And factors that effects on demand are Normal Goods, Change in Preferences, Complimentary Goods, Substitutes, Market Size and Price Expectations. Market segmentation is a market strategy that stands for dividing an extensive target market into subsets of consumers. And there are four types of segmentation. Geographic segmentation is divided based on geographic factors such as climate. Demographic segmentation, is where the market is divided based upon the structure of population like segmentation based on age, Psychographic segmentation, is the classification of customers with regard to different characteristics such as the life of style or personality.
Abstract: This study is about a literature review on Consumer Buying Behavior. This article presents a theory developed to explain why consumers make the choices on the products. And it contributes to a deeper understanding of the impact of different factors on consumer buying behavior.It is useful for understanding how they buy the products and what they like what they find from the product etc. This is truth that people buy those products with which they are psychologically attached. This study tells us about new things in the field of consumer buying behavior of consumers pertaining to the local markets.
Some of the factors that influence the consumer buying decision in the FMCG Industry are expressed below. Factor 1: Lifestyle Lifestyle of customers is an import factor influencing the consumer buying behavior. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her environment. It is determined by customer interests, opinions, activities etc and shapes his entire pattern of acting and interacting in the world. Customers link purchase and consumption of FMCG to the upgrades in their ways of life.
This is often referred to as consumer influence rather than putting the consumer at the centre of the organization in a process which is often referred to as consumer dominion. 2.3.2 What Influences Consumer Behavior Marketers must fully understand both the theory and reality of consumer behavior. A consumer’s buying behavior is influenced by cultural, social, and personal factors. Cultural factors exert the broadest and deepest influence. Cultural Factors: Culture element refers to the beliefs, values, and views shared in a society.