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Consumer Markets and Consumer

Buying Behavior

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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?”
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Model of Buyer Behavior
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

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Buyer Decision Process

Purchase
Decision
Evaluation Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition
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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
Hunger
Satisfied. Need.
External Stimuli-
Friends

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The 1st step involves a quick and largely
unconscious scan of memory for
stored information and experience
re: the problem
Largely in the form of beliefs and attitudes
Step 2. Information Search
The Buyer Decision Process
The Buyer Decision Process
Step 3 Extended 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

Experiential Sources •Handling the product


•Examining the product
•Using the product

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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
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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
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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

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Factors Influencing
Consumer Behavior
Cultural
Social Personal
Age and Psycho-
life-cycle logical
Culture Referen
ce Occupati Motivati
groups on on
Sub- Economic Percepti Buyer
situation on
culture Family
Lifestyle Learning
Personali Beliefs
Social Roles ty and
class and and attitudes
status self-conc
ept

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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

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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.

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Roles and Status
Family (most important)
Social Factors •Husband, wife, kids
•Influencer, buyer, user
Groups
•Membership
•Reference
Behavior: Social
Factors Affecting Consumer
Factors Affecting Consumer
Behavior: Personal

Personal Influences

Personality
Age and Life Economic &
Occupation
Cycle Stage Situation Self-Concep
t
Lifestyle Identification

Activities Interests Opinions

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Factors Affecting Consumer
Behavior: Psychological
Motivation

Psychological
Factors
Beliefs and Perception
Affecting
Attitudes Buyers
Choices

Learning
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Involvement
Involvement is…
the amount of time and effort a buyer invests in the
search, evaluation, and decision processes of
consumer behavior.
Exhibit 6.2
Continuum of Consumer Buying
Decisions
Types of Buying Decision
Behavior
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

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Factors Determining the Level of
Consumer Involvement

Previous Experience

Interest

Perceived Risk of
Negative Consequences

Situation

Social Visibility
Marketing Implications
of Involvement

High-involvement Extensive and informative


purchases require: promotion to target market

In-store promotion,
eye-catching package
Low-involvement
design, and good displays.
purchases require: Coupons, cents-off,
2-for-1 offers
A Simple Model of Consumer Decision Making
External Influences
Sociocultural Environment
Firm’s Marketing Efforts
1. Family
Input 1. Product
2. Informal sources
2. Promotion
3. Other noncommercial sources
3. Price
4. Social class
4. Channels of distribution
5. Subculture and culture
Consumer Decision Making
Psychological Field
1. Motivation
Need Recognition 2. Perception
3. Learning
Process Prepurchase Search 4. Personality
5. Attitudes
Evaluation of Alternatives
Experience

Postdecision Behavior

Output Purchase
1. Trial Postpurchase Evaluation
2. Repeat purchase
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