3/8/2015

I t ’s good and
good for you

Chapter Five

Consumer Markets and Consumer

Buyer Behavior

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Chapter 5- slide 1
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Consumer Markets and Consumer

Buyer Behavior
Topic Outline
• Model of Consumer Behavior
• Characteristics Affecting Consumer
Behavior
• Types of Buying Decision Behavior
• The Buyer Decision Process
• The Buyer Decision Process for New
Products

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Model of Consumer Behavior

Consumer buyer behavior : The buying behavior of
final consumers, individuals and households,
who buy goods and services for personal
consumption
Consumer market :
* All the individuals and households that buy or acquire
goods and services for personal consumption final
consumers.
* All of the personal consumption of final consumers

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Model of Consumer Behavior

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Model of Consumer Behavior

The Environment:
Marketing stimuli consist of the four Ps: Product, Price, Place, and Promotion.
Other stimuli include major forces and events in the buyer’s environment:
Economic, Technological, Political, and Cultural. All these inputs enter the
buyer’s black box, where they are turned into a set of buyer responses:
Buyers Black Box:
This shows that marketing and other stimuli enter the consumer’s “black
box” and produce certain responses. Marketers must figure out what is in
the buyer’s black box.
Buyers Responses:
The buyer’s brand and company relationship behavior and what he or she
buys, when, where, and how often

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Characteristics Affecting
Consumer Behavior
Factors Influencing Consumer Behavior

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Characteristics Affecting
Consumer Behavior

Culture is the learned values, perceptions,

wants, and behavior from family and other
important institutions

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Characteristics Affecting
Consumer Behavior
Subculture are groups of people within a culture
with shared value systems based on common life
experiences
and situations
• Hispanic American
• African American
• Asian American
• Mature consumers

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Characteristics Affecting
Consumer Behavior
Social classes are society’s relatively
permanent and ordered divisions whose
members share similar values, interests,
and behaviors
• Measured by a combination of occupation,
income, education, wealth, and other
variables

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Characteristics Affecting
Consumer Behavior
Groups and Social Networks

Membership Aspirational Reference

Groups Groups Groups
• Groups with • Groups an • Groups that
direct individual form a
influence wishes to comparison
and to belong to or reference
which a in forming
person attitudes or
belongs behavior

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Characteristics Affecting
Consumer Behavior
Groups and Social Networks
Member ship Groups: Groups that have a direct influence
and to which a person belongs are called membership
groups.
Aspirational(Self-Improving): People often are influenced
by reference groups to which they do not belong.
Reference groups: serve as direct (face-to-face) or indirect
points of comparison or reference in forming a person’s
attitudes or behavior.

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Characteristics Affecting
Consumer Behavior
Groups and Social Networks
• Word-of-mouth influence
and buzz marketing
– Opinion leaders are people
within a reference group
who exert social influence
on others
– Also called influentials or
leading adopters
– Marketers identify them to
use as brand ambassadors
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Characteristics Affecting
Consumer Behavior
Groups and Social Networks
• Online Social Networks are
online communities where
people socialize or exchange
information and opinions
• Include blogs, social
networking sites (facebook),
virtual worlds (second life)

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Characteristics Affecting
Consumer Behavior
Social Factors
• Family is the most important consumer-buying
organization in society
• Social roles and status are the groups, family,
clubs, and organizations that a person belongs
to that can define role and social status

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Characteristics Affecting
Consumer Behavior
Personal Factors
Age and life-cycle stage
Occupation affects the goods and services
bought by consumers
Economic situation includes trends in:

Personal Interest
Savings
income rates

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Characteristics Affecting
Consumer Behavior
Personal Factors
Lifestyle is a person’s
pattern of living as
expressed in his or her
psychographics
• Measures a consumer’s
AIOs (activities, interests,
opinions) to capture
information about a
person’s pattern of acting
and interacting in the
environment
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Characteristics Affecting
Consumer Behavior
Personal Factors

• Personality and self-concept

• Personality refers to the unique psychological characteristics that lead to
consistent and lasting responses to the consumer’s environment
• Personality is usually described in terms of traits such as self-confidence,
dominance, sociability, autonomy, defensiveness, adaptability, and
aggressiveness. Personality can be useful in analyzing consumer behavior
for certain product or brand choices.
• Self-concept is made up of one's self schemes, and interacts with self-
esteem, self-knowledge, and the social self to form the self as whole. It
includes the past, present, and future selves

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Characteristics Affecting
Consumer Behavior

Personal
Dominance Autonomy
Factors

Defensiveness Adaptability Aggressiveness

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Characteristics Affecting
Consumer Behavior
Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes

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Characteristics Affecting
Consumer Behavior
Psychological Factors
Motivation

A motive is a need that is sufficiently pressing

to direct the person to seek satisfaction

Motivation research refers to qualitative research

designed to probe(investigation) consumers’
hidden, subconscious motivations

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Characteristics Affecting
Consumer Behavior

Maslow’s
Hierarchy of Needs

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Characteristics Affecting
Consumer Behavior
Psychological Factors
Perception is the process
by which people select,
organize, and interpret
information to form a
meaningful picture of
the world from three
perceptual processes
– Selective attention
– Selective distortion
– Selective retention

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Characteristics Affecting
Consumer Behavior
Psychological Factors

Selective attention is the tendency for people to

screen out most of the information to which they
are exposed
Selective distortion(misrepresentation) is the
tendency for people to interpret information in a
way that will support what they already believe
Selective retention(holding) is the tendency to
remember good points made about a brand they
favor and forget good points about competing
brands
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Characteristics Affecting
Consumer Behavior
Psychological Factors

• Learning is the change in an individual’s

behavior arising from experience and
occurs through interplay of:

Drives(energies) Stimuli(incentives) Cues(signals)

Responses(Replies) Reinforcement(Support)

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Characteristics Affecting
Consumer Behavior
Psychological Factors
Beliefs and Attitudes

Belief(confidence or trust) is a descriptive

thought that a person has about something
based on:
• Knowledge
• Opinion
• Faith(trust)

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Characteristics Affecting
Consumer Behavior
Psychological Factors

Attitudes
describe a person’s relatively consistent
evaluations, feelings, and tendencies
toward an object or idea

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Types of Buying Decision

Behavior
Complex buying behavior

Dissonance(lack of agreement) reducing

buying behavior

Habitual(usual) buying behavior

Variety-seeking buying behavior

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Types of Buying Decision

Behavior
Four Types of Buying Behavior

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The Buyer Decision Process

Buyer Decision Making Process

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The Buyer Decision Process

Need Recognition

• Occurs when the buyer recognizes a

problem or need triggered by:
– Internal stimuli
– External stimuli

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The Buyer Decision Process

Information Search
Sources of Information
• Personal sources—family and friends
• Commercial sources—advertising, Internet
• Public sources—mass media, consumer organizations
• Experiential sources—handling, examining, using the
product

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The Buyer Decision Process

Evaluation of Alternatives

• How the consumer processes information

to arrive at brand choices

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The Buyer Decision Process

Purchase Decision

• The act by the consumer to buy the most

preferred brand
• The purchase decision can be affected by:
– Attitudes of others
– Unexpected situational factors

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The Buyer Decision Process

Post-Purchase Decision
• The satisfaction or dissatisfaction that the
consumer feels about the purchase
• Relationship between:
– Consumer’s expectations
– Product’s perceived(supposition of) performance
• The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction
• Cognitive(reasoning) dissonance is the
discomfort caused by a post-purchase conflict
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The Buyer Decision Process

Post-Purchase Decision

Customer satisfaction is a key to building

profitable relationships with consumers—
to keeping and growing consumers and
reaping(gaining) their customer lifetime
value

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The Buyer Decision Process for

New Products

Adoption process is the mental process an

individual goes through from first learning
about an innovation to final regular use.
• Stages in the process include:

Awareness Interest Evaluation Trial Adoption

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What is Organizational Buying?

The business market versus the consumer market
Organizational buying: the decision- making
process by which formal organizations
establish the need for purchased products and
services and identify, evaluate, and choose
among alternative brands and suppliers.

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Characteristics of the business market

• Fewer buyers • Inelastic(inflexible) demand

• Larger buyers • Fluctuating(changing) demand
• Close supplier-customer • Professional(expert) purchasing
relationship • Several buying
• Geographically concentrated influences(effects)
buyers • Directed(focused) purchasing
• Derived(to take or give something) • Reciprocity (exchange)
demand • Leasing (installments)

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