Chapter 5: Consumer Buying Behavior PDF

# Principles of Marketing ## Chapter 5: Consumer Buying Behavior ### Consumer Buying Behavior refers to the buying behavior of final consumers who purchase goods or services for personal consumption. ### The purpose of studying consumer behavior is to answer the question: >How do consumers res...

# Principles of Marketing ## Chapter 5: Consumer Buying Behavior ### Consumer Buying Behavior refers to the buying behavior of final consumers who purchase goods or services for personal consumption. ### The purpose of studying consumer behavior is to answer the question: >How do consumers respond to a company's marketing efforts? ### Definitions * **Consumer:** Individuals who buy products or services for themselves or their households, and are the ultimate end users of those products. * **Buying behavior:** The decision making process and actions of consumers who are involved in purchasing and using products. * **Consumer buying behavior:** Refers to the buying behavior of the ultimate consumer. ### Stages of the Consumer Buying Process The consumer buying process consists of 5 stages: 1. **Problem Recognition:** The consumer becomes aware of a need when they recognize a difference between their desired state and their actual condition. * For example, hunger stimulates the need to eat. 2. **Information Search:** A successful information search identifies possible alternatives for the consumer and provides an evoked set of products. * For example, if a person is hungry, they might consider: Chinese food, Indian food, or burgers. * Information sources can include *internal sources* such as memory or thinking, or *external sources* like advertisements or word-of-mouth recommendations. 3. **Evaluation of Alternatives:** The consumer must establish criteria for evaluating a product, such as its features or price. * For example, a consumer looking for a spicy meal might select Indian food if they prefer spice. 4. **Purchase Decision:** The consumer chooses a product and decides on the store, method of purchase, and other relevant factors. 5. **Post-Purchase Evaluation:** Consumers will assess their satisfaction or dissatisfaction with a product after the purchase. * For example, after eating an Indian meal, a consumer might realize that they would have preferred a Chinese meal. ### Influences on Consumer Behavior Consumer behavior is influenced by a variety of internal and external factors. #### Internal Influences * **Personal Factors:** * Age * Income * Occupation * Lifestyle * Personality * **Psychological Factors:** * Motivation * Perception * Learning * Beliefs and Attitudes #### External Influences * **Cultural Factors:** * Culture * Sub-culture * Social class * **Social Factors:** * Family * Reference groups * Role and status ### Characteristics Affecting Consumer Behavior * **Buyer** * **Psychological Factors:** * **Personal Factors:** * **Social Factors:** * **Cultural Factors:** ### Factors Affecting Consumer Behavior: *Culture* * Culture is the most basic cause of a person's wants and behavior. It includes: * Values * Perceptions * **Subculture** * Sub-cultures are groups of people who share common value systems and life experiences. Some examples of subcultures include: * Hispanic Consumers * African American Consumers * Asian American Consumers *Mature Consumers * **Social Class:** * People within a social class tend to exhibit similar buying behavior. This is a reflection of the following factors: * Occupation * Income * Education * Wealth ### Factors Affecting Consumer Behavior: *Social* * **Social Factors** are also influenced by: * **Groups:** * Membership * Reference * **Family:** * Husband, wife, kids * Influencer, buyer, user * **Roles and Status** ### Factors Affecting Consumer Behavior: *Personal* * **Personal Influences** * **Age and Family Life Cycle Stage:** * **Economic Situation:** * **Occupation:** * **Personality and Self-Concept:** * **Lifestyle Identification:** * Activities * Interests * Opinions ### Factors Affecting Consumer Behavior: *Psychological* * **Psychological Factors:** * **Motivation:** * **Perception:** * **Beliefs and Attitudes:** * **Learning:** ### The Buyer Decision Process The Buyer Decision Process consists of the following 5 steps: 1. **Need Recognition:** The buyer recognizes a difference between their actual situation and their desired situation. * **Internal Stimuli:** * Hunger * Thirst * A person's normal needs * **External Stimuli:** * TV advertising * Magazine ad * Radio slogan * Stimuli in the environment 2. **Information Search:** The buyer seeks information to address the identified need. * **Personal Sources:** * Family, friends, neighbors (often the most influential sources of information) * **Commercial Sources:** * Advertising, salespeople (from whom they often get the most information) * **Public Sources:** * Mass media * Consumer-rating groups * **Experiential Sources:** * Handling the product * Examining the product * Using the product 3. **Evaluation of Alternatives:** The buyer evaluates different alternatives and makes a selection based on the product's features, price, and quality. * **Product Attributes:** * Evaluation of quality, price, and features * **Degree of Importance:** * Which attributes are most important? * **Brand Beliefs:** * What do I believe about each brand? * **Total Product Satisfaction:** * Based on my needs, how satisfied would I be with each product? * **Evaluation Procedures:** * How will I choose a product (and brand) based on one or more attributes? 4. **Purchase Decision:** The buyer makes a decision and commits to purchasing the product or service. * **Purchase Intentions:** * Do you want to buy the most preferred brand? * **Attitudes of Others:** * How might the opinions of others influence my decision? * **Unexpected Situational Factors:** * What unexpected factors might influence my purchase? 5. **Postpurchase Behavior:** Once the purchase has been made, the buyer experiences the product or service and assesses their satisfaction. * **Consumer Expectations of Product Performance:** * **Product Perceived Performance:** * **Satisfied Customer:** * **Dissatisfied Customer:** * **Cognitive Dissonance:** How can a customer rationalize a purchase decision if they are dissatisfied with the product?