Introduction to Buyer Behavior

Buyer behavior refers to the actions and decision processes of people who purchase and use products and services. Understanding buyer behavior is fundamental to marketing success, as it enables marketers to develop effective strategies that resonate with target customers.

The Consumer Decision-Making Process

Stage 1: Problem Recognition

The buying process begins when the buyer recognizes a problem or need, triggered by internal or external stimuli.

Stage 2: Information Search

Consumers search for information about products that might satisfy their needs through:

  • Personal sources (family, friends)
  • Commercial sources (advertising, salespeople)
  • Public sources (media, reviews)
  • Experiential sources (handling, examining)

Stage 3: Evaluation of Alternatives

Consumers evaluate different products and brands based on attributes and benefits.

Stage 4: Purchase Decision

The consumer decides which brand to buy, influenced by attitudes of others and unexpected situational factors.

Stage 5: Post-Purchase Behavior

After purchase, the consumer experiences satisfaction or dissatisfaction, affecting future behavior.

Major Buyer Behavior Models

1. Howard-Sheth Model

A comprehensive model that identifies four major sets of variables:

  • Inputs: Stimuli from marketing and social environment
  • Perceptual Constructs: How information is perceived and processed
  • Learning Constructs: Goals, criteria, attitudes, confidence
  • Outputs: Purchase behavior

2. Engel-Kollat-Blackwell Model

Focuses on decision-process stages and influencing factors:

  • Information input
  • Information processing
  • Decision process
  • Environmental influences
  • Individual differences

3. Nicosia Model

Views consumer behavior as a circular process involving:

  • Firm's attributes and consumer's attributes
  • Search and evaluation
  • Act of purchase
  • Feedback

Factors Influencing Consumer Behavior

Cultural Factors

  • Culture
  • Subculture
  • Social class

Social Factors

  • Reference groups
  • Family
  • Roles and status

Personal Factors

  • Age and life-cycle stage
  • Occupation
  • Economic situation
  • Lifestyle
  • Personality and self-concept

Psychological Factors

  • Motivation
  • Perception
  • Learning
  • Beliefs and attitudes

Types of Buying Behavior

  • Complex Buying: High involvement, significant brand differences
  • Dissonance-Reducing: High involvement, few brand differences
  • Habitual Buying: Low involvement, few brand differences
  • Variety-Seeking: Low involvement, significant brand differences

Conclusion

Understanding buyer behavior models helps marketers develop strategies that effectively influence purchase decisions. By identifying and addressing the factors that shape consumer choices, companies can better serve their customers and achieve marketing objectives.

Special Thanks to Mr. Kavit Kaul, JBIMS batch of 2009 for sharing his marketing notes.