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