MKT420 Chapter Five i

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Consumer Markets and Consumer

Buyer Behavior

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After studying this chapter, you should be able to:

1. Define the consumer market and construct asimple model of consumer buyer behavior

2. Name the four major factors that influence

consumer buyer behavior3. List and understand the major types of buying

decision behavior and the stages in the buyerdecision process

4. Describe the adoption and diffusion process fornew products

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1. Model of Consumer Behavior

2. Characteristics Affecting Consumer

Behavior3. Types of Buying Decision Behavior

4. The Buyer Decision Process

5. The Buyer Decision Process for New

Products6. Consumer Behavior Across

International Borders

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Consumer buyer behavior refers to thebuying behavior of final consumers

individuals and households who buygoods and services for personalconsumption

Consumer market refers to all of thepersonal consumption of final consumers

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4Ps and other

stimuli, economic,

Technology etc

Buyer characteristics,

Buyer decision

Process

Product choice

Brand choice

Dealer choice

Purchase timing/amount

MARKETING AND

OTHER STIMULI

BUYERS BLACK

BOX

BUYER RESPONSES


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Cultural Factors Buyers culture

Buyers subculture

Buyers social class

Social Factors Reference groups

Family

Roles and status

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Personal Factors Age and life-cycle

stage

Occupation

Economic situation

Lifestyle

Personality and self-

concept

PsychologicalFactors Motivation

Perception Learning

Beliefs andattitudes

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Culture is the learned values,perceptions, wants, andbehavior from family and otherimportant institutions

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Subculture are groups of people within aculture with shared value systems basedon common life experiences andsituations

Hispanic African American Asian Mature consumers

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Social classesare societys relativelypermanent and ordered divisions whose

members share similar values,interests, and behaviors

Social class is measured by a combinationof occupation, income, education,wealth, and other variables

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The major social classes Upper class Middle class Working class Lower class


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Social Factors

Groups

Membership groups have a direct influence and towhich a person belongs

Aspirational groups are groups to which an individualwishes to belong

Reference groups are groups that form a comparisonor reference in forming attitudes or behavior

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Social FactorsGroups

Opinion leadersare people within a referencegroup with special skills, knowledge, personality,or other characteristics that can exert social

influence on others Buzz marketing enlists opinion leaders to spread

the word

Social networking isa new form of buzzmarketing MySpace.com Facebook.com

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Social Factors

Family is the most important consumer-buyingorganization in society

Social roles and status are the groups, family,

clubs, and organizations to which a personbelongs that can define role and socialstatus

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Personal Factors

Age and life-cycle stage RBC Royal Band stages:

Youthyounger than 18 Getting started18-35

Builders35-50 Accumulators50-60 Preserversover 60

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Personal Factors

Occupation affects the goods and servicesbought by consumers

Economic situation includes trends in:

Personal income Savings

Interest rates

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Personal Factors

Lifestyle is a persons pattern of living asexpressed in his or her psychographics

Measures a consumers AIOs (activities,interests, and opinions) to capture information

about a persons pattern of acting andinteracting in the environment

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Personal Factors

SRI Consultings Values and Lifestyle(VALS) typology

Classifies people according to how theyspend money and time Primary motivations

Resources

* Refer page 132

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Personal Factors

Primary motivations divided by threemajor types: Ideals guided by knowledge and principles

Achievement look for products and services

that demonstrate success Self-expression desire social or physical

activity, variety and risk.

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Personal Factors

Resources High resources

Innovators exhibit all primary motivations

Low resources

Survivors do not exhibit strong primary motivation

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Personal FactorsPersonality and Self-Concept

Personality refers to the unique psychologicalcharacteristics that lead to consistent andlasting responses to the consumersenvironment

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Personal FactorsPersonality and Self-Concept

Brand personality refers to the specific mix of humantraits that may be attributed to a particular brand Sincerity Excitement Competence Sophistication

Ruggedness

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Personal Factors

Personality and Self-Concept

Self-concept refers to peoples possessions thatcontribute to and reflect their identities

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Psychological Factors

Motivation Perception

Learning

Beliefs and attitudes

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Psychological FactorsMotivation

A motive is a need that is sufficientlypressing to direct the person to seeksatisfaction

Motivation research refers to qualitativeresearch designed to probe consumershidden, subconscious motivations

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Abraham Maslows Hierarchy of Needs People are driven by particular needs at

particular times Human needs are arranged in a hierarchy from

most pressing to least pressing Psychological

Safety

Social

Esteem

Self-actualization

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Perception is the process by which people select,organize, and interpret information to form ameaningful picture of the world from threeperceptual processes

Selective attention

Selective distortion

Selective retention

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Selective attention is the tendency for peopleto screen out most of the information to whichthey are exposed

Selective distortion is the tendency for peopleto interpret information in a way that willsupport what they already believe

Selective retention is the tendency toremember good points made about a brandthey favor and to forget good points aboutcompeting brands

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Learning is the changes in an individuals

behavior arising from experience andoccurs through interplay of:

Drives Stimuli Cues Responses Reinforcement

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Psychological FactorsBeliefs and Attitudes

Beliefis a descriptive thought that aperson has about something based on:

Knowledge Opinion Faith

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Attitudes describe a persons relativelyconsistent evaluations, feelings, andtendencies toward an object or idea

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Psychological FactorsBeliefs and Attitudes


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Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior Variety-seeking buying behavior

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Complex Buying Behavior

When consumers are highly motivated in apurchase and perceive significant differencesamong brands

Purchasers are highly motivated when: Product is expensive Product is risky Product is purchased infrequently Product is highly self-expressive

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Dissonance-reducing buying behavioroccurs when consumers are highlyinvolved with an expensive,infrequent, or risky purchase, but seelittle difference among brands

Post-purchase dissonanceoccurs whenthe consumer notices certain

disadvantages of the productpurchased or hears favorable thingsabout a product not purchased

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Habitual buying behavioroccurs whenconsumers have low involvement and

there is little significant branddifference

Variety-seeking buying behavioroccurswhen consumers have low involvementand there are significant branddifferences

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Five stages in the buyer decision process

1. Need recognition

2. Information search3. Evaluation of alternatives

4. Purchase decision

5.

Post-purchase behavior

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Need Recognition

Need recognition occurs when thebuyer recognizes a problem or needtriggered by:

Internal stimuli

External stimuli

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Information Search

Information search is the amount of informationneeded in the buying process and depends on thestrength of the drive, the amount of informationyou start with, the ease of obtaining theinformation, the value placed on the additional

information, and the satisfaction from searching

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Information Search

Sources of information:Personal sourcesfamily and friends

Commercial sourcesadvertising, Internet

Public sourcesmass media, consumer

organizationsExperiential sourceshandling, examining,

using the product

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Evaluation of Alternatives

Evaluation of alternatives is how theconsumer processes information toarrive at brand choices

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Post-Purchase Decision

The post-purchase decision is thesatisfaction or dissatisfaction theconsumer feels about the purchase

Relationship between: Consumers expectations Products perceived performance

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The larger the gap between expectationand performance, the greater theconsumers dissatisfaction

Cognitive dissonance is the discomfortcaused by a post-purchase conflict

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Customer satisfaction is a key tobuilding profitable relationships withconsumersto keeping and growingconsumers and reaping their customer

lifetime value

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New product is a good, service, or ideathat is perceived by some potentialcustomers as new

Adoption process is the mental processan individual goes through from first

learning about an innovation to finalregular use

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Stages in the Adoption Process

1. Awareness2. Interest

3. Evaluation

4. Trial

5. Adoption

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Awareness is when the consumerbecomes aware of the new product butlacks information

Interest is when the consumer seeksinformation about the new product

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Evaluation is when the consumerconsiders whether trying the newproduct makes sense

Trial is when the consumer tries the newproduct to improve his or her estimateof value

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Adoption is when the consumer decidesto make full and regular use of theproduct

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Individual Differences in Innovation

Early adopters are opinion leaders and adopt

new ideas early but cautiouslyEarly majority are deliberate and adopt new

ideas before the average personLate majority are skeptical and adopt new ideas

only after the majority of people have tried it

Laggards are suspicious of changes and adoptnew ideas only when they become tradition

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Influence of Product Characteristics

on Rate of Adoption

Relative advantage is the degree to which aninnovation appears to be superior to existingproducts

Compatibility is the degree to which aninnovation fits the values and experiences ofpotential consumers

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Influence of Product Characteristicson Rate of Adoption

Complexity is the degree to which theinnovation is difficult to understand oruse

Divisibility is the degree to which theinnovation may be tried on a limitedbasis

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Differences can include:

Values

Attitudes Behaviors

The question for marketers is whether toadapt or standardize the marketing

MKT420 Chapter Five i

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