05 -Consumer Markets and Consumer Buying Behaviour

8/12/2019 05 -Consumer Markets and Consumer Buying Behaviour

1/18


2/18

2

Consumer Buying Behavior(p. 171)

Consumer Buying Behavior refers to thebuying behavior of final consumers -

individuals & households who buy goodsand services for personal consumption.

All these consumers make up theconsumer market.

The central question for marketers is:How do consumers respond to various

marketing efforts the company might use?


3/18

3

Model of Buyer Behavior(Fig. 5.1, pp. 171-172)

Marketing andOther Stimuli

MarketingProductPricePlacePromotion

OtherEconomicTechnologicalPoliticalCultural

Buyers Black Box

Buyer CharacteristicsBuyer Decision Process

Buyer Responses

Product ChoiceBrand ChoiceDealer Choice

Purchase TimingPurchase Amount


4/18

4

Factors InfluencingConsumer Behavior(Fig. 5.2, p. 172)

Social

Referencegroups

Family

Rolesand

status

Personal

Age andlife-cycle

Occupation

Economicsituation

LifestylePersonality

andself-concept

Psycho-logical

Motivation

Perception

Learning

Beliefs andattitudes

Buyer

Culture

Sub-culture

Socialclass

Cultural

Most basicBroadest

Most specificMost individual


5/18

5

Factors Affecting Consumer

Behavior: Cultural Factors

Subculture (pp. 173-176)

Group of people with shared value systems based oncommon life experiences and situations

Represent important market segments

e.g., Hispanic, African-American, Asian-American;

e.g., Gen Y, Gen X, Baby Boomers, Mature

Culture (pp. 172-173)

The most basic cause of a person's wants and behavior.

the set of values, perceptions, wants & behavior learned by a member of

society (learned from family & social institutions)

achievement & success, activity & involvement, efficiency & practicality,progress, material comfort, individualism, freedom, humanitarianism,youthfulness, fitness & health


6/18

6

Factors Affecting Consumer

Behavior: Cultural FactorsSocial Class(pp. 176-177, Table 5.1)

Societys relatively permanent & ordereddivisions

Based on resources, power, prestige

Members of a social class share similar values, interests, andbehaviors(including buying behavior)

Measured by:

Occupation

Wealth and income(both amount andsource)

Education

Housing, neighborhood, possessions, values

In U.S., loosely defined

Lines between social classes are not fixed and rigid

High social class mobilitycan move up or down


7/187

U.S. Social Classes(Table 5.1, p. 177)

1.7%Lower-upper

Upper-upper

7%Lower-lower

Uppermiddle

Middle class(white-collar)

.3%

12%

32% 38%

9%

Upper lower

Workingclass(blue-collar)

Sources: Coleman, Journal of Consumer Research,1983Fussell, Class,1983, 2000

Inheritedwealth


8/188

Reference GroupsMost influence on visible purchasesMembershiphas direct influence (e.g., friends, family)

Aspirationaldoes not belong, but still influenced byOpinion leadersinfluential individuals

(skills, knowledge, personalityoften product/category specific)

Family(most important)Consumption rolesdecider, buyer, user, influencerChanging roles & changing family structures

Factors Affecting ConsumerBehavior: Social Factors(pp. 176-180)


9/18


10/1810

Achievers(14%)

Actualizers(10%)

Strugglers

(10%)

Strivers(14%)

Fulfilleds(10%)

Believers(17%)

Experiencers(13%)

Makers(12%)

SRI Values and Lifestyles

(VALS)(Fig. 5.3, pp. 181-183) Psychographics

Minimal Resources

Principle Oriented Status Oriented Action Oriented

Abundant Resources

http://www.sric-bi.com/VALS


11/1811

Factors Affecting ConsumerBhvr: Psychological Factors(pp. 184-188)

Motivationdriving force behind behavior, resulting fromtension

Motive = a need that is sufficiently pressing to direct a person

to seek satisfactionFreudunconscious motives (p. 186 & Highlight 5.2 on pp. 188-189)

Maslowhierarchy of needs (p. 186 & Figure 5.4 on p. 187)

Perceptionprocess by which we select, organize, andinterpret information to form a meaningful picture of the world

Selective attentionSelective distortion (misinterpret to support existing attitudes)Selective retention


12/1812

Physiological Needs(hunger, thirst, shelter, air, sex)

(security, protection, emotional safety, order, familiarity)

Social Needs(belonging, love, relationships, family, friendship)

Esteem Needs(self-esteem, recognition, admiration, status, prestige)

Self Actualization(self-development, fulfillment,

self-realization)

Maslows Hierarchy of Needs(Fig. 5.4, p. 187)

MostPressing

LeastPressing

Progressup thehierarchy

Safety Needs


13/1813

Associative learning rattitude rbehaviorReinforcement learning rbehavior rattitude

Factors Affecting ConsumerBhvr: Psychological Factors(pp. 188-191)

Learning associative learning(information, imagery - advertising)

reinforcement learning(actual behaviortrial use, sampling)

Beliefs-- what we think

Attitudes-- what we thinkhow we feelbehavior tendencies

Resistant to change


14/18

14

High ConsumerInvolvement *

Significantperceived

differencesbetween

brands

Few

perceiveddifferences

betweenbrands

Low ConsumerInvolvement

Types of Buying Decision

Behavior (Fig. 5.5, pp. 191-193)

ComplexBuying

Behavior

Variety-SeekingBehavior

Dissonance-

Reducing BuyingBehavior

Habitual

BuyingBehavior

Cognitive dissonance (p. 197)(buyers remorse)

* expensive, infrequently purchased, important, risky, and/or self-expressive

Influences the buyers decision processSuggests appropriate marketing strategy


15/18

15

Buyer Decision Process(Fig. 5.6, pp. 193-197)

5PostpurchaseBehavior

4PurchaseDecision

2InformationSearch

1Need

Recognition

3Evaluationof Alternatives

Actual state vs. desired stateTriggered by internal or external stimuli

Personal sourcesmost effectiveCommercial sourcesmost usedPublic sourcesExperiential sources

Sequence influenced bydecision type:Complex

Dissonance-reducingVariety-seeking

Habitual


16/18

16

The Buyer Decision Process:Postpurchase Behavior

(pp. 197-199)

- DissatisfiedCustomer

+ SatisfiedCustomer !

Perception of Product Performance- Expectations

Customer Satisfaction

RetentionPositive w-o-m (tells 3+)

Lost customerNegative w-o-m (tells 11+)

CognitiveDissonance

Create moderately high (realistic, not exaggerated)expectations & exceed them

Encourage complaintscare, respond constructively

(exceeds expectations)


17/18

Discussion ConnectionsForm small groups to discuss a specificmajor purchase that one of you has

made recently. What type of buying decision was it?

(slide #14)

Discuss the Buyer Decision Process (slide#15) and what major factors influencedyour decisions.


18/18

18

Chapter ReviewDescribe the four major categories of factorsthat influence consumer buyer behavior, andthe major influences within each factor.

Understand the major theories discussedunder each influence.

Describe the four major types of buying

decisions and the suggested marketingstrategies for each.

Understand the stages in the buyer decisionprocess and how the type of buying decision

influences the process.

05 -Consumer Markets and Consumer Buying Behaviour

Documents

Transcript of 05 -Consumer Markets and Consumer Buying Behaviour