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Consumer Markets and Consumer Buying Behavior

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Consumer Buying Behavior

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

MarketingProductPricePlacePromotionOtherEconomicTechnologicalPoliticalCultural

Buyer’s Black Box

Buyer CharacteristicsBuyer Decision Process

Buyer Responses

Product ChoiceBrand ChoiceDealer Choice

Purchase TimingPurchase Amount

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Factors Influencing Consumer Behavior (Fig. 5.2)

Social

Referencegroups

Family

Rolesand

status

Personal

Age andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Psycho-logical

MotivationPerceptionLearning

Beliefs andattitudes

Buyer

Culture

Sub-culture

Socialclass

Culture

Sub-culture

Socialclass

Cultural

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Factors Affecting Consumer Behavior: Culture

Subculture• Group of people with

shared value systems based on common life experiences.

• Hispanic Consumers

• African American Consumers

• Asian American Consumers

• Mature Consumers

Culture is the Most Basic Cause of a Person's Wants and Behavior.

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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 members share similar values, interests, and behaviors.

• Measured by: Occupation, Income, Education, Wealth and Other Variables.

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Groups• Membership• Reference

Groups• Membership• Reference

Family (most important)• Husband, wife, kids• Influencer, buyer, user

Family (most important)• Husband, wife, kids• Influencer, buyer, user

Roles and StatusRoles and Status

Social FactorsSocial Factors

Factors Affecting Consumer Behavior: Social

Family Buying Influence

Children can exert astrong influence onfamily buying decisions.Johnson & Johnson remindscustomer’s of its commitmentto the American Family.

What other companies usechildren to influencefamily buying decisions?

Click or pre ss spacebar to return

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Personal InfluencesPersonal Influences

Age and Life Cycle Stage

Age and Life Cycle Stage OccupationOccupation Personality &

Self-ConceptPersonality & Self-Concept

Economic Situation

Economic Situation

ActivitiesActivities InterestsInterests

Lifestyle IdentificationLifestyle Identification

OpinionsOpinions

Factors Affecting Consumer Behavior: Personal

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High Resources High Innovation

AchieversAchievers

ActualizersActualizers

StrugglersStrugglers

StriversStrivers

FulfilledsFulfilleds

BelieversBelievers

ExperiencersExperiencers

MakersMakers

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

Low Resources Low Innovation

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Factors Affecting Consumer Behavior: Psychological

PsychologicalFactors

AffectingBuyers Choices

Motivation

Perception

Learning

Beliefs andAttitudes

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Physiological Needs(hunger, thirst)

Safety Needs(security, protection)

Social Needs (sense of belonging,

love)

Esteem Needs (self-esteem)

Self Actualization

(Self-development)

Maslow’s Hierarchy of Needs (Fig. 5.4)

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HighInvolvement

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

LowInvolvement

Types of Buying Decision Behavior (Fig. 5.5)

ComplexBuying

Behavior

Variety-SeekingBehavior

Dissonance-Reducing Buying

Behavior

HabitualBuying

Behavior

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Buyer Decision Process (Fig. 5.6)

PostpurchaseBehavior

Purchase

Decision

Information

SearchNeed

Recognition

Evaluationof

Alternatives

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Buyer Decision ProcessStep 1. Need Recognition

State Where the Buyer’s Needs are Fulfilled and the Buyer is Satisfied.

Needs Arising From:

Internal Stimuli –

Hunger

External Stimuli-

Friends

Buyer Recognizes

a Problem

or a Need.

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•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

Personal Sources Personal Sources

Commercial SourcesCommercial Sources

Public SourcesPublic Sources

Experiential SourcesExperiential Sources

The Buyer Decision ProcessStep 2. Information Search

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Consumer May Use Careful Calculations & Logical Thinking

Consumers May Buy on Impulse and Rely on Intuition

Consumers May Make Buying Decisionson Their Own.

Consumers May Make Buying DecisionsOnly After Consulting Others.

Marketers Must Study Buyers to Find Out How They Evaluate Brand

Alternatives

The Buyer Decision ProcessStep 4. Evaluation of Alternatives

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Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

Unexpected

Situational Factors

Attitudes of Others

The Buyer Decision ProcessStep 5. Purchase Decision

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The Buyer Decision ProcessStep 6. Postpurchase Behavior

Consumer’s Expectations of Product’s Performance.

Product’s Perceived Performance.

Dissatisfied Customer

Satisfied Customer!

Cognit

ive D

isso

nan

ce

Discussion Connections

Form small groups to discuss a specific major purchase that one of you has made recently. What type of buying decision was it?

(slide #12) Discuss the Buyer Decision Process

and what major factors influenced your decisions.

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Awareness: Consumer is aware of

product, but lacks information.

Interest: Consumer seeks Information about new product.

Evaluation: Consumer considerstrying new product.

Trial: Consumer tries new product on a small scale.

Adoption: Consumer decides to make regular use of product.

Stages in the Adoption Process

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Adopter Categories (Fig. 5.7)

Perc

en

tag

e o

f A

dop

ters

Time of AdoptionEarly Late

Inn

ovato

rs

Early Adopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority

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DivisibilityCan the innovation

be used on a trial basis?

ComplexityIs the innovation

difficult tounderstand or use?

Communicability Can results be easily

observed or described to others?

CompatibilityDoes the innovation

fit the values and experience of the

target market?

Relative AdvantageIs the innovation

superior to existing products?

Influence of Product Characteristics on Rate of Adoption

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Review of Concept Connections

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.