Chapter 5 Consumer Markets Consumer Buying Behavior PDF

Chapter 5 Consumer Markets and Consumer Buying Behavior 1  Consumer Buying Behavior ◼ Consumer Buying Behavior refers to the buying behavior of final consumers - individuals & households who buy goods and services for personal consumptio...

Chapter 5 Consumer Markets and Consumer Buying Behavior 1  Consumer Buying Behavior ◼ Consumer Buying Behavior refers to the buying behavior of final consumers - individuals & households who buy goods and services for personal consumption. ◼ All these consumers make up the consumer market. ◼ The central question for marketers is: ◼ “How do consumers respond to various marketing efforts the company might use?” 2  Model of Buyer Behavior (Fig. 5.1) Marketing and Buyer’s Black Box Buyer Responses Other Stimuli Marketing Buyer Characteristics Product Choice Product Buyer Decision Process Brand Choice Price Dealer Choice Place Promotion Other Purchase Timing Economic Purchase Amount Technological Political Cultural 3  Factors Influencing Consumer Behavior (Fig. 5.2) Cultural Social Personal Age and Psycho- Culture Reference life-cycle logical groups Occupation Motivation Economic Perception Buyer Sub- culture Family situation Learning Lifestyle Beliefs and Roles attitudes Social Personality and and class status self-concept 4  Factors Affecting Consumer Behavior: Culture Culture is the Most Basic Cause of a Person's Wants and Behavior. Subculture Group of people with shared value systems based on common life experiences. Hispanic Consumers African American Consumers Asian American Consumers Mature Consumers 5  Factors Affecting Consumer Behavior: Culture Culture is the Set of Values, Perceptions, Wants & Behavior Learned by a Member of Society from Family. Social Class Society’s relatively permanent & ordered divisions whose members share similar values, interests, and behaviors. Measured by: Occupation, Income, Education, Wealth and Other Variables. 6  Factors Affecting Consumer Behavior: Social Groups Membership Reference Family (most important) Husband, wife, kids Social Factors Influencer, buyer, user Family Buying Influence Children can exert a strong influence on Roles and Status family buying decisions. Johnson & Johnson reminds customer’s of its commitment to the American Family. What other companies use children to influence family buying decisions? 7 Click or pre ss spa cebar to return  Factors Affecting Consumer Behavior: Personal Personal Personal Influences Influences Age Age and and Life Life Economic Economic Personality Personality && Cycle Occupation Occupation Cycle Stage Stage Situation Situation Self-Concept Self-Concept Lifestyle Lifestyle Identification Identification Activities Activities Interests Interests Opinions Opinions 8  SRI Values and Lifestyles (VALS) (Fig. 5.3) Actualizers High Innovation High Resources Fulfilleds Achievers Experiencers Believers Strivers Makers Strugglers Low Resources Low Innovation 9  Factors Affecting Consumer Behavior: Psychological Motivation Psychological Factors Beliefs and Affecting Perception Attitudes Buyers Choices Learning 10 Maslow’s Hierarchy of Needs (Fig. 5.4) Self Actualization (Self-development) Esteem Needs (self-esteem) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) 11  Types of Buying Decision Behavior (Fig. 5.5) High Low Involvement Involvement Significant Complex Variety- differences Buying Seeking between Behavior Behavior brands Few Dissonance- Habitual differences Reducing Buying Buying between Behavior Behavior brands 12  Buyer Decision Process (Fig. 5.6) Purchase Decision Evaluation Postpurchase of Alternatives Behavior Information Search Need Recognition 13  Buyer Decision Process Step 1. Need Recognition Buyer Recognizes Needs Arising State Where the From: Buyer’s Needs a are Fulfilled and Problem Internal Stimuli – the Buyer is or a Need. Hunger Satisfied. External Stimuli- Friends 14 The Buyer Decision Process Step 2. Information Search Personal Sources Family, friends, neighbors Most effective source of information Commercial Sources Advertising, salespeople Receives most information from these sources Public Sources Mass Media Consumer-rating groups Handling the product Experiential Sources Examining the product Using the product 15  The Buyer Decision Process Step 4. Evaluation of Alternatives Consumer May Use Careful Calculations & Logical Thinking Consumers May Buy on Impulse and Rely on Intuition Consumers May Make Buying Decisions on Their Own. Consumers May Make Buying Decisions Only After Consulting Others. Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives 16 The Buyer Decision Process Step 5. Purchase Decision Purchase Intention Desire to buy the most preferred brand Attitudes Unexpected of Others Situational Factors Purchase Decision 17 The Buyer Decision Process Step 6. Postpurchase Behavior Satisfied Customer! Consumer’s Cognitive Dissonance Expectations of Product’s Performance. Product’s Perceived Performance. Dissatisfied Customer 18  Discussion Connections ◼ Form small groups to discuss a specific major purchase that one of you has made recently. ◼ What type of buying decision was it? (slide #12) ◼ Discuss the Buyer Decision Process and what major factors influenced your decisions.  Stages in the Adoption Process Awareness: Consumer is aware of product, but lacks information. Interest: Consumer seeks Information about new product. Evaluation: Consumer considers trying new product. Trial: Consumer tries new product on a small scale. Adoption: Consumer decides to make regular use of product. 20  Adopter Categories (Fig. 5.7) Percentage of Adopters Early Majority Late Majority Innovators Early 34% 34% Laggards Adopters 13.5% 16% 2.5% Time of Adoption Early Late 21  Influence of Product Characteristics on Rate of Adoption Communicability Relative Advantage Can results be easily Is the innovation observed or described to others? superior to existing products? Divisibility Compatibility Can the innovation Does the innovation be used on a fit the values and trial basis? experience of the target market? Complexity Is the innovation difficult to understand or use? 22  Review of Concept Connections ◼ Define the consumer market and construct a simple model of consumer buyer behavior. ◼ Name the four major factors that influence consumer buyer behavior. ◼ List and understand the stages in the buyer decision process. ◼ Describe the adoption and diffusion process for new products. 23