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Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University


Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University

Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University

The buying decision process is the decision-making process used by consumers regarding market transactions before, during, and after the purchase of a good or service. It can be seen as a particular form of a cost–benefit analysis in the presence of multiple alternatives.

Common examples include shopping and deciding what to eat. Decision-making is a psychological construct. This means that although a decision can not be “seen”, we can infer from observable behaviour that a decision has been made. Therefore, we conclude that a psychological “decision-making” event has occurred. It is a construction that imputes commitment to action. That is, based on observable actions, we assume that people have made a commitment to effect the action.

Nobel laureate Herbert A. Simon sees economic decision-making as a vain attempt to be rational. He claims (in 1947 and 1957) that if a complete analysis is to be done, a decision will be immensely complex. He also says that peoples’ information processing ability is limited. The assumption of a perfectly rational economic actor is unrealistic. Consumers are influenced by emotional and non rational considerations making attempts to be rational only partially successful.

Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University

Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm’s marketing resources and activities.

Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University

Models of buyer decision-making

There are generally three ways of analysing consumer buying decisions:
  • Economic models – largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to maximize their utility. See consumer theory. Game theory can also be used in some circumstances.
  • Psychological models – psychological and cognitive processes such as motivation and need recognition. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences.
  • Consumer behaviour models – practical models used by marketers. They typically blend both economic and psychological models.

Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University

A consumer is a person or organization that uses economic services or commodities.In economic systems consumers are utilities expressed in the decision to trade or not.

Economics and marketing

The consumer is the one who pays something to consume goods and services produced. As such, consumers play a vital role in the economic system of a nation. Without consumer demand, producers would lack one of the key motivations to produce: to sell to consumers. The consumer also forms part of the chain of distribution.

Recently in marketing instead of marketers generating broad demographic profiles and Fisio-graphic profiles of market segments, marketers have started to engage in personalized marketing, permission marketing, and mass customization.Largely due the rise of the Internet, consumers are shifting more and more towards becoming “prosumers”, consumers that are also producers (often of information and media on the social web) or influence the products created (e.g. by customization, crowdfunding or publishing their preferences) or actively participate in the production process or use interactive products.

Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University syllabus:

Objective: To familiarize the students with the basic concepts and principles of marketing and to develop their conceptual and analytical skills to be able to manage marketing operations of a business firm.

Contents:

Unit I-Introduction: Nature and Scope of Marketing; Core Marketing Concepts; Evolution of modern marketing concept; Modern marketing concepts; Marketing Mix; Marketing management process-a strategic perspective; Customer quality, value and satisfaction; Planning and control. Marketing Environment: Significance of scanning marketing environment; Analyzing macro environment of marketing-economic, demographic, socio-cultural, technological, political and legal segments; Impact of micro and macro environment on marketing decisions. Buyer behaviour: Need for studying buyer behaviour; Consumer vs. business buying behaviour; Consumer buying decision process and influences; Industrial buying process. Market Segmentation, Targeting and Positioning: Bases for segmenting a consumer market; Levels of market segmentation; Factors influencing selection of market segments; Criteria for effective market segmentation; Target market selection and strategies; Positioning – concept, bases and process.

Unit II-Product and Pricing Decisions: Product – concept and classification; Major product decisions; New product development; Packaging and labelling; Product support services; Branding decisions; Product life cycle – concept and appropriate strategies adopted at different stages. Pricing- Objectives, Factors affecting price of a product, Pricing policies and strategies. Ethical issues in product and pricing decisions.

Unit III-Distribution Decisions: Channels of distribution – concept and importance; Different types of distribution middlemen and their functions; Channel management, selection, motivation and performance appraisal of distribution middlemen; Distribution logistics – concept, importance and major logistics decisions; Channel integration and systems. Ethical issues in distribution decisions. Retailing and Wholesaling: Types of retail formats; Retail theories; Retailing strategies; Non-Store retailing; Wholesaling-nature and importance, types of wholesalers; Developments in retailing and wholesaling in Indian perspective.

Unit IV-Promotion Decisions: Role of promotion in marketing; Promotion methods; Integrated Marketing Communication – Concept; Communication process and promotion; Determining promotion mix; Factors influencing promotion mix; Developing advertising campaigns. Ethical issues in promotion decisions.

Unit V- Marketing Planning, Organising and Control: Marketing planning process; Different ways of organising marketing department; Sales, cost and profit analysis.

Unit VI-Trends in Marketing: Service Marketing, Social Media Marketing, Green Marketing, Customer Relationship Management, Rural marketing, other emerging trends.

Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University

Two Categories of Buyers

There are two categories of buyers – the individual buyer and the business buyer. While the individual buyer buys things for his own personal and family consumption, the business buyer is a commercial buyer when buys things for manufacturing other products or for reselling or for use in the running his enterprise. This distinction is substantial and it separates the two categories into two different entities. In buying motivation, attitude and purchase behaviour etc., of the two are different. These have been dealt with separately under the chapter: (a) Marketing of Consumer Goods and (b) Marketing of industrial Goods.

  1. Loyal buyers who remain loyal to a source for considerable periods;
  2. Opportunistic buyers who choose between sellers on the basis of who will best further his long-term interests;
  3. Best deal buyers who concentrate on the best deal available at the time;
  4. Creative buyers who tell the seller precisely what they want in terms of the product, service and price;
  5. Advertising buyers who demand advertising support as part of the deal;
  6. Chisellers who constantly demand extra discounts;
  7. Nuts and bolts buyers who select products on the basis of the quality of their construction.

Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University

Characteristics of Buyer Behaviour:

1.Buyer behaviour is very complex.

2.Buyer behaviour is the process by which individuals decide whether, what, when, from whom, where and how much to buy.

3.Buyer behaviour is very dynamic.

4.Consumer behaviour comprises both mental and physical activities of a consumer.

5.It is an integral part of human behaviour.

6.In many cases, it is the sum total of the behaviour of a number of persons.

7.It is influenced by a number of marketing stimuli offered by the marketer.

8.Consumer behaviour is basically social in nature.

9.Consumers act differently at different times.

10.They learn and thereby change their attitudes and behavior.

Consumer buying decision process and influences for Marketing Management MCOM sem 2 Delhi University

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