Consumer Markets And Consumer Buying Behavior 545y1h

Chapter 5 Consumer Markets and Consumer Buying Behavior

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Consumer Buying Behavior 

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Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households who buy goods and services for personal consumption. All these consumers make up the consumer market. The central question for marketers is: 

“How do consumers respond to various marketing efforts the company might use?”

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Model of Buyer Behavior (Fig. 5.1) Marketing and Other Stimuli

Buyer’s Black Box

Marketing

Buyer Characteristics Product Choice Buyer Decision Process Brand Choice Dealer Choice

Product Price Place Promotion

Other Economic Technological Political Cultural

Buyer Responses

Purchase Timing Purchase Amount

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Factors Influencing Consumer Behavior (Fig. 5.2) Cultural Social Culture Culture SubSubculture culture Social Social class class

Personal

PsychoAge and Reference logical life-cycle groups Occupation Motivation Perception Economic Family situation Learning Beliefs and Lifestyle attitudes Roles Personality and and status self-concept

Buyer

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Factors Affecting Consumer Behavior: Culture Culture is the Most Basic Cause of a Person's Wants and Behavior. Subculture • Group of people with shared value systems based on common life experiences. • Hispanic Consumers • African American Consumers • Asian American Consumers • Mature Consumers

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Factors Affecting Consumer Behavior: Culture Culture is the Set of Values, Perceptions, Wants & Behavior Learned by a Member of Society from Family. Social Class • Society’s relatively permanent & ordered divisions whose share similar values, interests, and behaviors. • Measured by: Occupation, Income, Education, Wealth and Other Variables. 6

Factors Affecting Consumer Behavior: Social Groups Groups ••hip hip ••Reference Reference Family Family (most (most important) important) ••Husband, Husband, wife, wife, kids kids ••Influencer, Influencer, buyer, buyer, Roles Roles and and Status Status

Social Social Factors Factors Family Buying Influence Children can exert a strong influence on family buying decisions. Johnson & Johnson reminds customer’s of its commitment to the American Family.

What other companies use children to influence family buying decisions?

Click or pre ss spa cebar to return

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Factors Affecting Consumer Behavior: Personal Personal Personal Influences Influences Age Ageand and Life Life Cycle CycleStage Stage

Occupation Occupation

Economic Economic Situation Situation

Personality & Personality & Self-Concept Self-Concept

Lifestyle LifestyleIdentification Identification

Activities Activities

Interests Interests

Opinions Opinions 8

SRI Values and Lifestyles (VALS) (Fig. 5.3) High Resources

Actualizers Actualizers

High Innovation

Fulfilleds Fulfilleds

Achievers Achievers

Experiencers Experiencers

Believers Believers

Strivers Strivers

Makers Makers

Low Resources

Strugglers Strugglers

Low Innovation 9

Factors Affecting Consumer Behavior: Psychological Motivation

Beliefs and Attitudes

Psychological Factors Affecting Buyers Choices

Perception

Learning 10

Maslow’s Hierarchy of Needs (Fig. 5.4) Self Actualization

(Self-development)

Esteem Needs (self-esteem) Social Needs (sense of belonging, love)

Safety Needs

(security, protection)

Physiological Needs (hunger, thirst)

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Types of Buying Decision Behavior (Fig. 5.5) Significant differences between brands Few differences between brands

High Involvement

Low Involvement

Complex Buying Behavior

VarietySeeking Behavior

DissonanceReducing Buying Behavior

Habitual Buying Behavior

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Buyer Decision Process (Fig. 5.6) Purchas e Evaluation Decisio Postpurchase n of Behavior Alternatives Informatio n Search Need Recognitio

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Buyer Decision Process Step 1. Need Recognition State Where the Buyer’s Needs are Fulfilled and the Buyer is Satisfied.

Buyer Recognizes a Problem or a Need.

Needs Arising From: Internal Stimuli – Hunger External StimuliFriends 14

Process Step 2. Information Search Personal Personal Sources Sources Commercial Commercial Sources Sources Public Public Sources Sources Experiential Experiential Sources Sources

•Family, friends, neighbors •Most effective source of information •Advertising, salespeople •Receives most information from these sources •Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product 15

Process Step 4. Evaluation of Alternatives Consumer May Use Careful Calculations & Logical Thinking Consumers May Buy on Impulse and Rely on Intuition Consumers May Make Buying Decisions on Their Own. Consumers May Make Buying Decisions Only After Consulting Others.

Marketers Must Study Buyers to Find Out How They Evaluate Brand

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The Buyer Decision Process Step 5. Purchase Decision Purchase Intention

Desire to buy the most preferred brand

Attitude s of Others

Unexpecte d Situational Factors

Purchase Decision 17

Process Step 6. Postpurchase Behavior

Consumer’s Expectations of Product’s Performance. Product’s Perceived Performance.

Dissatisfied Customer

Cognitive Dissonance

Satisfied Customer!

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Discussion Connections 

Form small groups to discuss a specific major purchase that one of you has made recently. 

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What type of buying decision was it? (slide #12) Discuss the Buyer Decision Process and what major factors influenced your decisions.

Stages in the Adoption Process Awareness: Consumer is aware of product, but lacks information. Interest: Consumer seeks Information about new product. Evaluation: Consumer considers trying new product. Trial: Consumer tries new product on a small scale. Adoption: Consumer decides to make regular use of product. 20

Early Majority

Innovators

Percentage of Adopters

Adopter Categories (Fig. 5.7)

Early Adopters

34%

Late Majority

34%

16%

13.5% 2.5%

Early

Laggards

Time of Adoption Late

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Influence of Product Characteristics on Rate of Adoption Communicability Can results be easily observed or described to others?

Relative Advantage Is the innovation superior to existing products?

Compatibility

Divisibility

Can the innovation be used on a trial basis?

Complexity

Does the innovation fit the values and experience of the target market?

Is the innovation difficult to understand or use? 22

Review of Concept Connections 

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Define the consumer market and construct a simple model of consumer buyer behavior. Name the four major factors that influence consumer buyer behavior. List and understand the stages in the buyer decision process. Describe the adoption and diffusion process for new products.

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