19-Sep-22

Connecting with customer: Session 4

Consumer market and buyer behavior Chapter 5

Learning Objectives
1. What is the consumer market and the consumer
behavior model?
2. What are major steps in the consumer buying process?
3. What major factors influence/explain consumer
behavior?
4. How is the business market different from consumer
market?

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1. What is the consumer

market and the consumer
behavior model?

Customers: Types, Roles, and Behaviors

Consist of individuals and

households that buy goods
and services for personal Business to Business: bán sp cho doanh nghiệp
consumption.

BtoB Organization
Payers Users
Mental Activities
Physical Activities
Business to BtoC Households
Consumer: bán sp (consumers) Buyers
cho ng tiêu dùng

Customer Types Roles

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1. Consumer market
Consumer market refers to individuals and households that buy goods and services
for personal consumption.

Frequently asked questions

Who might be our customers?
How many are they?
Why do they buy our product? Why some don’t buy our product?
What make them buy our new product ?
Where to get them in touch with our product?

Potential consumer,
why do you buy?
why don’t you buy?

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Functional benefit Perceived

benefit
Symbolic benefit
PERCEIVED
VALUE

The DIFFERENCE between the

Financial cost prospective customer’s evaluation
Perceived of all the benefits and costs of
Time cost alternative offerings

Energy, psychic

Many factors shape Principle 4: Target consumer

Reality No 4 consumer perception, their
importance varies insight (rational / emotional)

Simple model of consumer behavior

Kích thích

B = f (I, E)
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Complete model of consumer behavior

HIDDEN VISIBLE

2. What are major steps in the

consumer buying process?

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2. Consumers buying process

The consumer
typically passes
through five
stages

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Internal Stimuli External Stimuli

• Hunger, Thirst • Advertising

• Other needs
• Friends and peers
•…..
•Other external stimuli

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The Latency Effect Anticipation, education

“If I had asked customers what they None of these products
wanted, they would have told me a faster addressed a widely
horse.”
recognized problem that
−Henry Ford
any of us had
• Consumers are often unaware they even
have a particular need (latent)

• Consumers may be aware of a need, but

have trouble articulating it (tacit)

• Some of the most successful new

products and brand extensions in history
were not inspired by an articulated need
rõ ràng

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Search for alternatives and information

• Past experience
• Friends and family
Sources of information:
• Website  Personal Sources

• Brochures, catalogs  Company’s Sources

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Evaluation

• Products as bundles of attributes, such as brand

reputation, product features, aesthetic design, price…
• Attributes having different level of importance

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• Purchase may change last minute

• Store location
• Skill of the salesperson
• Availability of credit
•…

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Possible outcomes
• Delight
• Satisfaction
• Dissatisfaction

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Types of Consumer Decisions

• Extended Problem Solving:

• Corresponds to traditional decision-making perspective
• Limited Problem Solving:
• People use simple decision rules to choose among alternatives
• Habitual Decision Making:
• Choices made with little to no conscious effort
• Automaticity: Characteristic of choices made with minimal effort
and without conscious control

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3. What major factors influence

/explain consumer behavior?

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3. Major factors influencing consumer behavior

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Culture
• Culture is an umbrella term which encompasses the social behavior and
norms found in human societies, as well as the knowledge, beliefs, arts,
laws, customs, capabilities, and habits of the individuals in these
groups.
• Humans acquire culture through the learning processes of enculturation
and socialization, which is shown by the diversity of cultures across
societies.
• Cultural norms and values codify acceptable conduct in society; they
serve as a guideline for behavior, dress, language, and demeanor in a
situation, which serves as a template for expectations in a social group.

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Social factors refers to

relationship, interactions
among individuals

KOL, Group &

influencers peers
Yếu tố
Social class
(role,
xã hội
Family
status)

ASCH experiment

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Social class
• In all societies there is some form of hierarchy
• Members of a society are divided into a hierarchy of distinct
status classes, so that members of each class have relatively
the same status and members of all other classes have either
more or less status
• Social class membership serves consumers as a frame of
reference (reference group) for the development of their
attitudes and behavior

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Social Class = a consumer’s standing

• The type of clothes a person wears;
• Determined by a complex set of variables
• the restaurants they frequent;
including income, family background and asset • the vacations they take;
ownership, occupation, network and • how they spend their leisure time
relationship, within a particular culture

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Demographic (personal)
characteristics

• Age
• Occupation
• Income
• Education
• Gender
•…

Psychological characteristics

• Need, Motivation
• Belief, value, attitude
• Personality, life style
•…

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Psychographic characteristic: Need

• Biological requirements for human
survival, (Ex. air, food, drink, shelter,
Physio- clothing, warmth, sex, sleep.
logical • If these needs are not satisfied the human
body cannot function optimally.

• The needs that

create social value
and opportunities for
people to have active Needs
and effective role in
• Something that is essential for the
society.
maintenance of mental health.
• Ex. need for love,
Psycho- • It may be generated internally (ex.
companionship, Social need for pleasure), or it may be
friendship and logical generated by interactions between the
belonging
individual and the environment

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Psychographic characteristic: Motivation

Need arousal: is driven by
Need (Tension) discomfort in a person’s
physical and psychological
Drive Strength conditions
A drive (motive) is a need
Drive Direction that is sufficiently pressing
to direct the person to seek
Behavior satisfaction.
Motivation refers to the
Goal processes that cause
people to behave as they
do.
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Psychographic characteristic: Belief, Value, Attitude

• Belief: A descriptive thought that a

person has about something, based on
real knowledge, opinion, or faith
• Value: strong belief that some condition
is preferable to its opposite.
• Attitude: Describes a person’s relatively
consistent evaluations, feelings, and
tendencies toward an object or idea

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Personality refers to the unique psychological characteristics that distinguish a

person or group (a stable set of internal characteristics and tendencies that
determine the behavior of people)

Big Five personality traits –OCEAN model, McCrae & Costa (1987)
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Lifestyle is a person’s pattern of living as expressed in his or her

psychographics.

How would
you describe
this customer?

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To summarize: consumer behavior

ENVIRONMENTAL INDIVIDUAL FACTORS
Need awareness
FACTORS Personal
(Demographic)
Cultural Age
(Subculture) Information search Gender
Custom & norms Income
Basic Values Occupation
Traditions Education
Evaluation of Occupation
…. alternatives ….
Social Psychological
Family Motivation
Groups and peers Purchase decision Perception & learning
Friends Personality, lifestyle
Opinion leaders Belief
Social status Attitude
…. Post purchase ….

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4. How is the business market

different from consumer market?

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4. Different types of business customers

Consist of individuals and
households that buy goods
and services for personal
consumption.

Consist of these buyers in

other countries, including Consumer Buy goods and services
customers, producers, markets for further processing or
resellers, and use in their production
governments processes

International Business
markets markets

Buy goods and

Consist of government
services to resell at a
agencies that buy goods and
profit.
services to produce public
services or transfer the goods Government Reseller
and services to others who markets markets
need them.

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Participants in Business Buying Process

Initiator

Users
Influencers
Decision-
Making Unit of
a Buying
Organization is Buyers
Called Its
Buying Center.

Deciders
Gatekeepers

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Major Influences on Business Buyers

Environmental
Economic Organizational
developments
Objectives
Interpersonal
Supply Individual
Conditions Policies
Authority
Age
Technological Procedures
Status Education Buyers
change Job Position
Organizational
Empathy Personality
Political and regulatory Structure
Risk Attitudes
developments Persuasiveness
Systems
Competitive
Developments

Culture and customs

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Have you the answer to

these questions?
1. What is the consumer market and the consumer
behavior model?
2. What are major steps in the consumer buying process?
3. What major factors influence/explain consumer
behavior?
4. How is the business market different from consumer
market?

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