Principles Of Marketing: Chapter 5 - Consumer Markets and Buyer Behavior

Principles of Marketing Nineteenth Edition, Global Edition Chapter 5 Consumer Markets and Buyer Behavior Copyright © 2024 Pearson Education Ltd. All...

Principles of Marketing Nineteenth Edition, Global Edition Chapter 5 Consumer Markets and Buyer Behavior Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Learning Objectives 5.1 Define the consumer market and construct a simple model of consumer buyer behavior. 5.2 Explore the four major factors that influence consumer buyer behavior. 5.3 List and define the stages in the buyer decision process and the major types of buying decision behavior. 5.4 Describe the adoption and diffusion process for new products. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Learning Objective 1 Define the consumer market and construct a simple model of consumer buyer behavior. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Consumer Markets and Buyer Behavior Consumer buyer behavior is the buying behavior of final consumers—individuals and households that buy goods and services for personal consumption. Consumer markets are made up of all the individuals and households that buy or acquire goods and services for personal consumption. Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Model of Consumer Behavior Figure 5.1 A Model of Buyer Behavior Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Model of Consumer Behavior Buyer’s Black Box It is very difficult to “see” inside the consumer’s head and figure out the whys of buying behavior (that’s why it is called the black box). Marketers spend a lot of time and dollars trying to figure out what makes customers tick ~ What actually customers want? Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Learning Objective 2 Explore the four major factors that influence consumer buyer behavior. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Figure 5.2 Factors Influencing Consumer Behavior Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Characteristics Affecting Consumer Behavior (1) Cultural Factors Cultural Subculture Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations. Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Characteristics Affecting Consumer Behavior (2) Social Factors Groups, social networks, influencers Family Roles and status Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Characteristics Affecting Consumer Behavior Groups and Social Networks 1) Reference groups 2) Opinion leaders 3) Word-of-mouth influence 4) Influencer marketing 5) Online social networks  Characteristics Affecting Consumer Behavior 1) Reference groups – is a group that serves as direct or indirect point of comparison or reference in forming a person’s attitudes or behavior. 2) Opinion leaders – are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior 3) Word-of-mouth influence (WOM) - can have a powerful impact on consumer buying behavior. The personal words and recommendations of trusted friends, associates, and other consumers tend to be more credible than those coming from commercial sources, such as advertisements or salespeople. 4) Influencer marketing - is enlisting established influencers or creating new influencers to spread the word about a company’s brands. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior 5) Online social networks – are online communities where people socialize or exchange information and opinions. Marketers are working to harness the power of online social networks to promote their products and build closer customer relationships. Social media platforms such as X (formerly known as Twitter), Facebook, LinkedIn, Instagram, Pinterest, etc. are all opportunities for marketing online. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Family Family is the most important consumer- buying organization in society. Role and Status Role and status can be defined by a person’s position in a group. Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Characteristics Affecting Consumer Behavior (3) Personal Factors Age and life-cycle stage Occupation Economic situation Environmental situation Lifestyle Personality and self concept Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Age and Life Stage affect tastes in food, clothes, furniture, ad recreation. Occupation affects the goods and services bought by consumers. Economic situations include trends in spending, personal income, savings, interest rates. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Environmental situations can affect consumer attitudes and buying behaviors. People’s physical, technological, and health circumstances will impact what products they buy, where and how they shop, and much more. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Lifestyle is a person’s pattern of living as expressed in his or her psychographics. - Adventurous (ski, hiking), Party girl (attending ball) Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Personality refers to the unique psychological characteristics that distinguish a person or group. - Introvert vs Extrovert - Type A (stress) vs Type B (relax) Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Brands also have personalities, and consumers are likely to choose brands with personalities that match their own. A brand personality is the specific mix of human traits that may be attributed to a particular brand. Brand personality: Ford’s market- leading F-series pickup truck brand is positioned on toughness—Built Ford Tough— conveying quality, durability, and resilience. Chuckld.photos/Alamy Stock Photo; Michael Wels/Alamy Stock Photo Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Characteristics Affecting Consumer Behavior 4) Psychological Factors Motivation Perception Learning Beliefs and attitudes Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Motivation A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction of the need. Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Figure 5.3 Maslow’s Hierarchy of Needs Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Perception Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world. Perceptual Processes Selective Selective Selective attention distortion retention Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Selective attention is the tendency for people to screen out most of the information to which they are exposed. Selective distortion is the tendency for people to interpret information in a way that will support what they already believe. Selective retention is the tendency to remember good points made about a brand they favor and forget good points made about competing brands. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Learning Learning is the change in an individual’s behavior arising from experience and occurs through the interplay of: Drives Stimuli Cues Responses Reinforcement Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior A drive is a strong internal stimulus that calls for action. A drive becomes a motive when it is directed toward a particular stimulus object. For example, a person’s drive for self- actualization might motivate him or her to look into buying a camera. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Cues are minor stimuli that determine when, where, and how the person responds. For example, the person might spot several camera brands in a shop window, hear of a special sale price, or discuss cameras with a friend. These are all cues that might influence a consumer’s response to his or her interest in buying the product. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Suppose the consumer buys a Nikon camera. If the experience is rewarding, the consumer will probably use the camera more and more, and his or her response will be reinforced. Then the next time he or she shops for a camera, or for binoculars or some similar product, the probability is greater that he or she will buy a Nikon product. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior Belief and Attitude A belief is a descriptive thought that a person has about something based on: knowledge opinion Faith An attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior E.g. Belief (thinking) - Smoking will cause harm to health Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Characteristics Affecting Consumer Behavior E.g. Attitude (feeling) - So, I did not smoke, and I am healthy. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Learning Objective 3 List and define the stages in the buyer decision process and the major types of buying decision behavior. Copyright © 2024 Pearson Education Ltd. All Rights Reserved. The Buyer Decision Process Figure 5.4 The Buyer Decision Process Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process Need recognition is the first stage of the buyer decision process, in which the consumer recognizes a problem or need triggered by: Internal stimuli External stimuli Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process Information search is the stage of the buyer decision process in which the consumer is motivated to search for more information. Sources of information: –Personal sources –Commercial sources –Public sources –Experiential sources Copyright © 2024 Pearson Education Ltd. All Rights Reserved. The Buyer Decision Process Alternative evaluation is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process Purchase decision is the buyer’s decision about which brand to purchase. The purchase intention may not be the purchase decision due to: Attitudes of others Unexpected situational factors Copyright © 2024 Pearson Education Ltd. All Rights Reserved. The Buyer Decision Process Postpurchase behavior is the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process Cognitive dissonance is buyer discomfort caused by postpurchase conflict. Postpurchase customer satisfaction: Postpurchase customer satisfaction is a key to building profitable customer relationships. Most marketers go beyond merely meeting the customer expectations— they aim to delight customers. Dusit/Shutterstock Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Types of Buying Decision Behavior Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Types of Buying Decision Behavior Figure 5.5 Four Types of Buying Behavior Source: Adapted from Henry Assael, Consumer Behavior and Marketing Action (Boston: Kent Publishing Company, 1987), p. 87. Used with permission of the author. Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Types of Buying Decision Behavior 1) Consumers undertake complex buying behavior when they are highly involved in a purchase and perceive significant differences among brands. Consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self- expressive. ➔ Significant difference - High involvement Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Types of Buying Decision Behavior 2) Dissonance-reducing buying behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands. ➔ Few difference - High involvement Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Types of Buying Decision Behavior 3) Consumers undertake variety- seeking buying behavior in situations characterized by low consumer involvement but significant perceived brand differences. In such cases, consumers often do a lot of brand switching. ➔ Significant difference - Low involvement Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Types of Buying Decision Behavior 4) Habitual buying behavior occurs under conditions of low-consumer involvement and little significant brand difference. ➔ Few difference - Low involvement Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Learning Objective 4 Describe the adoption and diffusion process for new products. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process for New Products The adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process for New Products L’Oréal has invested deeply in technologies that make a customer’s journey as full and fulfilling as possible. The ongoing aim is “to provide services to our consumers to help them discover, try, buy, and experience our brands.” Isaaack/Shutterstock Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process for New Products Stages in the adoption process include: Awareness Interest Evaluation Trial Adoption Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process for New Products a) Awareness: Consumer becomes aware of the new product, but lacks information about it. b) Interest: Consumer seeks information about new products. c) Evaluation: Consumer considers whether trying the new product makes sense. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process for New Products d) Trial: Consumer tries new product on a small scale to improve his or her estimate of its value. e) Adoption: Consumer decides to make full and regular use of the new product. Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process for New Products Individual Differences in Innovativeness (categories of adopters) Innovators Early Adopters Early Mainstream Late Mainstream Lagging Adopters (laggards) Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process for New Products Figure 5.6 Adopter Categories Based on Relative Time of Adoption of Innovations Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process for New Products 1) Innovators (2.5%) are venturesome – they try new ideas at some risk. 2) Early adopters (13.5%) are guided by respect – they are opinion leaders in their communities and adopt new ideas early but carefully. 3) The early mainstream (34%) are deliberate – although they rarely are leaders, they adopt new ideas before the average person Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  The Buyer Decision Process for New Products 4) The late mainstream (34%) are skeptical – they adopt an innovation only after a majority of people have tried it. 5) Laggards (16%) are traditional bound – they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself. Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Analyzing and Using Marketing Information Influence of Product Characteristics on Rate of Adoption Relative Compatibility Complexity advantage Divisibility Communicability Copyright © 2024 Pearson Education Ltd. All Rights Reserved. Influence of Product Characteristics on Rate of Adoption a) Relative advantage – Is the innovation superior to existing products? – Any additional benefits? b) Compatibility – Does the innovation fit the values and experience of the target market? – Fit the customer needs? Copyright © 2024 Pearson Education Ltd. All Rights Reserved.  Influence of Product Characteristics on Rate of Adoption c) Complexity – Is the innovation difficult to understand or use? d) Divisibility – Can the innovation be used on a limited basis? – Lots of usage? e) Communicability – Can results be easily observed (tangible) or described to others? Copyright © 2024 Pearson Education Ltd. All Rights Reserved.