Lecture 5 - Consumer Behavior

8/7/2019 Lecture 5 - Consumer Behavior

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CONSUMER BEHAVIOR

Chapter 4 1

Lecture 5



CONSUMER MARKETS ANDCONSUMER MARKETS ANDCONSUMER BUYING BEHAVIOR CONSUMER BUYING BEHAVIOR

yy Consumer BuyingConsumer BuyingBehaviourBehaviour

The buying behavior of finalconsumers (i.e., individualsand households that buy goods for personalconsumption)

yy Consumer MarketConsumer MarketA ll the individuals andhouseholds

Chapter 4 2



MODEL OF BUYING BEHAVIOR

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3

ProductProductPricePricePlacePlacePromotionPromotion

Marketing andMarketing andother stimuliother stimuli

EconomicEconomicTechnologicalTechnologicalPoliticalPoliticalCulturalCultural Buyer¶s responsesBuyer¶s responses

Buyer¶s black boxBuyer¶s black boxProduct choiceProduct choiceBrand choiceBrand choiceDealer choiceDealer choice

Purchase timingPurchase timingPurchase amountPurchase amountBuyer Buyer

characteristicscharacteristics Buyer Buyer decisiondecisionprocessprocess



CONSUMER BEHAVIOR INFLUENCESCONSUMER BEHAVIOR INFLUENCES

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Cultural

Culture

Sub-culture

Socialclass

Social

Referencegroups

Family

Rolesandstatus

PersonalAge andlife-cycle

OccupationEconomicsituationLifestyle

Personalityandself-concept

Psycho-logical

MotivationPerception

LearningBeliefs and

attitudes

Buyer



CONSUMER BEHAVIOR INFLUENCESCONSUMER BEHAVIOR INFLUENCES : GROUP 1: CULTUREGROUP 1: CULTURE

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Culture ± Set of basic values, perceptions,

wants, and behaviors learned by amember of society or from family andother important institutions

Subculture ± Group of people with shared value

systems based on common lifeexperiences and situations



CONSUMER BEHAVIOR INFLUENCESCONSUMER BEHAVIOR INFLUENCES :GROUP 1: CultureGROUP 1: Culture

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Social Class:Relatively permanent ordered divisionsin a society whose members share similar Values, Interests and Behaviors

NOTE: it is NOT only based on income

and is a combination of occupation,education, wealth and other variables



CONSUMER BEHAVIOR INFLUENCESCONSUMER BEHAVIOR INFLUENCES :

GROUP 2:GROUP 2: SOCIAL FACTORSSOCIAL FACTORS

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Groups� Membership groups± Direct influence� Reference and aspirational groups ± Indirect influence

� Opinion leaders ± exert influence

Family� Most important consumer influence� changing family roles and evolving lifestyles� children may influence strongly

Roles & Status




GROUP 3:GROUP 3: PERSONAL FACTORSPERSONAL FACTORS

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� Age� Life-cycle stage*� Occupation*� Economic situation*� Lifestyle

� Personality� Self-concept



Age & Life Age & Life- -Cycle StagesCycle Stages

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Table 5-2

S ources: Adapted from Patrick E. Murphy and William A.Staples, ³A Modernized Family Life Cycle,´ J ournal of Consumer Research , June 1979:16, © Journal of Consumer Research, Inc., 1979. Also see Leon G. Schiffman and LeslieLazar Kanuk, Consumer Behaviour, Englewood Cliffs, NJ:Prentice Hall, 1994:361-70.

Young Middle-Aged

Single

Single withchildren

Married withoutchildren

Married withchildren

Divorced withchildren

Older

Single

Married withoutchildren

Married with childrenMarried without

dependent childrenDivorced without

children

Divorced with childrenDivorced without

dependent children

Older married

Older unmarried





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Occupation ± May determine goods or services purchased ± Specialized professional products

Economic situation ± Affects product choice ± Indicator for income sensitive products

Lifestyle ± A person¶s pattern of living as expressed by psychographics

Measuring AIO dimensions: Activities, Interests and opinions ± Profiles a person¶s whole pattern of acting and interacting with the

world ± Vals 2



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CONSUMER BEHAVIOR CONSUMER BEHAVIOR INFLUENCESINFLUENCES :






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Personality ± Unique psychological characteristics

leading to relatively consistent andlasting responses to one¶s own

environment ± Traits (confidence, aggressiveness etc) ± Product and brand choices

Self-concept ± Self-image- ³We are what we have´ ± Possessions reflect identity




GROUP 4:GROUP 4: PSYCHOLOGICAL FACTORSPSYCHOLOGICAL FACTORS

y M otivationy Perceptiony Learningy Beliefsy A

ttitudes

Chapter 414





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1) Motivation: Need sufficiently pressing to drive a person toseek satisfaction e.g. Biological needs or Psychological needs

Maslow¶s Theory of Motivation





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2) 2) PerceptionPerception ± Process by which people: ± Select, organize and interpret information in order to form a

meaningful picture of the world ± People form different perceptions of the same information or

stimuli due to 3 processesSelective attentionSelective distortionSelective retention





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3 ) Learning ± Changes in individual behaviour ± Arising from experience ± Most human behaviour is learned

4) Beliefs ± A descriptive thought that a person holds about something

5) Attitudes ± A person¶s consistently favorable or unfavorable evaluations,

feelings towards an object or idea. Hard to change



CONSUMER BUYING ROLES

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Initiator:(How bout buying a stereo? )

Influencer:(I¶ve heard its good! )

Decider:(Hmm, we can afford it, lets get it )

Buyer:(I¶ll buy the Sony one )

User:

( Dad, can I please borrow it for my party tonight )

Note: Its not important for all these people to be different at times!



TYPES OF BUYING BEHAVIOR TYPES OF BUYING BEHAVIOR

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Complex buying

Behaviour

Variety-seeking

behaviour

Dissonancereducing

Behaviour

Habitual buying

behaviour

Low involvementHigh involvement

Significantdifferences

between brands

Few differences between brands

Involvement is high when the product is expensive, risky, purchased infrequently or self expressive

E.g. Cars

E.g. Carpets E.g. Salt

E.g. Cookies



BUYER DECISION PROCESSBUYER DECISION PROCESS

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N eedrecognition

Purchasedecision

Evaluation of alternatives

Post-purchase behaviour

Informationsearch

Heightenedattention/active info:

�Personal Sources (friends,family)

�Commercial Sources (ads,sales people)

�Public Sources (Media,Rating systems)

�Experiments

�Product Attributes�Importance�Brand beliefs�Satisfaction

Attitudes of others

UnexpectedSituations

Satisfaction or CognitiveDissonance?



BUYER DECISION PROCESSBUYER DECISION PROCESSF or New Products

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� Adoption ProcessStages

± Awareness ± Interest ± Evaluation ± Trial

± Adoption

Note; for a product to be termed new, its not importantfor it to be new in the market too, it could be aroundfor years before you realize its there.



INFLUENCE OF PRODUCTINFLUENCE OF PRODUCTCHARACTERISTICS ON RATE OF ADOPTIONCHARACTERISTICS ON RATE OF ADOPTION

Chapter 4

� Relative advantageHow superior is the new product to itscompetitors?

� CompatibilityFit between value and expectations of theconsumers

� ComplexityHow difficult is it to understand?

� DivisibilityOption to try for ltd time

� CommunicabilityCan the results be observed or shared withothers?

Lecture 5 - Consumer Behavior

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