Consumer Behavior - Understanding Consumer Behavior - PDF

2021-01-04 Consumer Markets and Consumer Chapter Five Buyer Behaviour Understanding Consumer Behaviour Object...

2021-01-04 Consumer Markets and Consumer Chapter Five Buyer Behaviour Understanding Consumer Behaviour Objectives Define the consumer market and explain the process of consumer buyer behaviour. Name the four major factors that influence consumer buyer behaviour. List and define the major types of buying decision behaviour and the stages in the buyer decision process. Describe the adoption and diffusion process for new products. 1 2 Model of Consumer Behaviour Consumer buyer behaviour refers to the buying behaviour of final consumers – individuals & households who buy goods/services for personal consumption In understanding how consumers make decisions – we can tailor our Marketing activities! – reach our customers more effectively 3 4 Culture Subcultures set of basic values, perceptions, wants, and groups of people within a culture behaviors shared value systems based on common life – learned from family & other important experiences institutions 5 6 1  2021-01-04 Social classes Groups and Social Networks society’s relatively permanent & ordered divisions Membership Aspirational Reference Groups Groups Groups members share: Groups with Groups an Groups that – similar values, direct individual form a interests, influence and wishes to comparison behaviors to which a belong to or reference combination of: person in forming belongs attitudes or – occupation, behaviour income, education, wealth 7 8 Groups and Social Networks Groups and Social Networks Word-of-mouth influence and buzz Online social networks marketing – online communities where people socialize – Opinion leaders are people within a reference or exchange information and opinions. group – include blogs, social networking sites exert social influence on others. (Facebook), and virtual worlds (Second Life). – Marketers identify them to use as brand ambassadors. 9 10 Social Factors Personal Factors Age and life-cycle stage Most important consumer-buying organization in society? RBC has identified 4 life stages: Family Youth Younger than 18 Social roles and status Getting Started 18-35 groups, clubs, & organizations a person Builders 35-50 belongs to Accumulators 50-60 can define roles & social Preservers Over 60 status 11 12 2  2021-01-04 Personal Factors Occupation affects the goods & services bought by consumers. Economic situation includes trends in the following: Personal Savings income Interest rates 13 14 Personal Factors Lifestyle a person’s pattern of living as expressed in his or her psychographics. – Measures a consumer’s AIOs (activities, interests, opinions) – captures information about a person’s: – pattern of acting – interacting in the environment – Vals Survey 15 16 Personal Factors Personality unique psychological characteristics Relatively enduring pattern of thoughts, emotions, behaviors lead to consistent & lasting responses to the consumer’s environment – Brands also have personalities; consumers are likely to choose brands with personalities that match their own. 17 18 3  2021-01-04 Psychological Factors Motivation Psychological Factors A motive need that is sufficiently pressing to direct the Motivation person to seek satisfaction Perception Motivation research Learning qualitative research Beliefs and attitudes designed to probe consumers’ hidden, subconscious motivations 19 20 Maslow’s Needs Hierarchy Psychological Factors Perception 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 21 22 Psychological Factors Psychological Factors Learning Selective attention change in an individual’s behaviour arising from tendency for people to screen out most of the experience information to which they are exposed. occurs through interplay of the following: Selective distortion tendency for people to interpret information in a way that will support what they already believe. Stimulus Selective retention Drives object Cues Responses Reinforcement tendency to remember good points made about a (Product) brand they favour and forget good points about competing brands. Awareness Test 23 24 4  2021-01-04 Psychological Factors Beliefs and Attitudes Types of Buying Decision Belief Behaviour a descriptive thought that a person has about something based on the following: Complex buying behaviour – Knowledge, Opinion Dissonance-reducing buying behaviour Attitudes describe a person’s relatively consistent Habitual buying behaviour evaluations, feelings, and tendencies toward an object or idea. Variety-seeking buying behaviour 25 26 The Buyer Decision Process Types of Buying Decision Buyer Decision Making Process Behaviour Consider when you were involved in the purchase of a laptop or 4 Types of Buying Behaviour Smartphone. 1. Why did you buy this product or service? 2. What sources of information did you consider before making your purchase decision? 3. What factors were the most important to you when you made your decision? 4. How long did it take you to make a purchase decision? 5. Were you satisfied or dissatisfied with your purchase? 27 28 The Buyer Decision Process The Buyer Decision Process Information Search Sources of Information Need Recognition Personal sources—family and friends Occurs when the buyer recognizes a problem or need triggered by the following: Commercial sources—advertising, Internet – Internal stimuli Public sources—mass media, consumer – External stimuli organizations (perhaps internet too) Experiential sources—handling, examining, using the product 29 30 5  2021-01-04 The Buyer Decision Process The Buyer Decision Process Purchase Decision Evaluation of Alternatives The act by the consumer to buy the most How the consumer processes information to arrive preferred brand at brand choices Purchase intention; then purchase behaviour From a marketers’ perspective: The purchase decision can be affected by – highlight your product’s strengths in the information stage! – Attitudes of others – If those features also benefit the consumer, your product – Unexpected situational factors will stand out! 31 32 The Buyer Decision Process The Buyer Decision Process Post-Purchase Decision The satisfaction or dissatisfaction that the consumer feels Post-Purchase Decision about the purchase Customer satisfaction Relationship between: – Consumer’s expectations a key to building profitable relationships – Product’s perceived performance with consumers – keeping & growing consumers The larger the gap between expectation and performance – reaping their customer lifetime value – greater the consumer’s dissatisfaction Cognitive dissonance – the discomfort caused by a post-purchase conflict 33 34 The Buyer Decision Process for The Buyer Decision Process for New Products New Products Stages of the Adoption Process Individual Differences in Innovativeness Adoption process People differ greatly in their readiness to try new products! the mental process an individual goes through – “consumption pioneers” from 1st learning about an innovation to its – early adopters use Stages in the process include: Awareness Interest Evaluation Trial Adoption 35 36 6  2021-01-04 The Buyer Decision Process for Influence of Product Characteristics New Products on Rate of Adoption Influence of Product Characteristics on Rate of Adoption Relative Relative Compatibility Complexity advantage advantage CD Player MP3 Player VS. Divisibility Communicability 37 38 Influence of Product Characteristics Influence of Product Characteristics on Rate of Adoption on Rate of Adoption Compatibility Complexity Were cellphones compatible with Was it difficult to learn how to load music onto how we communicated before they your MP3 player? Was it difficult to use? were invented? What were we using? 39 40 Influence of Product Characteristics Influence of Product Characteristics on Rate of Adoption on Rate of Adoption Divisibility Communicability Were you able to try an MP3 player or cellphone before Did you see people enjoying the benefits of a cellphone buying it? or MP3 player before you bought one? 41 42 7