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Consumer Markets and

Consumer Buyer
Behavior
Learning Goals
1. Define the consumer market and construct a
model of consumer buyer behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the process
4. Describe the adoption and diffusion process
for new products

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Definitions
 Consumer buyer behavior refers to the
buying behavior of final consumers –
individuals and households who buy
goods and services for personal
consumption
 All of these final consumers combine
to make up the consumer market

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Model of Buyer Behavior
Characteristics Affecting
Consumer Behavior
 Culture
Key Factors  Forms a person’s wants and
behavior
 Subculture
 Cultural  Groups with shared value
systems
 Social
 Social Class
 Personal  Society’s divisions who
share values, interests and
 Psychological behaviors

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Characteristics Affecting
Consumer Behavior
 Groups
Key Factors 


Membership
Reference
 Aspirational
 Cultural  Opinion leaders
 Buzz marketing
 Social
 Family
 Personal  Many influencers
 Psychological  Roles and status

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Characteristics Affecting
Consumer Behavior
 Age and life cycle
Key Factors  Occupation
 Economic situation
 Cultural  Lifestyle
Activities, interests and
 Social opinions
 Personal Lifestyle segmentation

 Personality and self-concept


 Psychological

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Personal Factors
 Family Life Cycle stages throughout which
families pass as they mature over time
 Stages in family life cycle:
1.bachelor stage
2.newly married couples, no children
3.full nest 1; youngest child under 6
4.full nest 2; youngest child 6 or over
5. full nest 3; older married couples with dependent children
6.empty nest 1; older married couples no children with them
7. empty nest 1; older married couples no children at home;retired
8.solitary survivor, working
9.solitary survivor, retired

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Personal Factors

 Personality a person’s unique


characteristics that lead to relatively consistent
and lasting responses to his environment

 Self-concept the self image or general


picture that people have of themselves

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Personal Factors
 Lifestyle a person’s pattern of living as
expressed in his activities, interests and
opinions
 Psychographics technique of measuring lifestyles
and developing lifestyle classifications
 Major dimensions measured are:
 Activities (work, hobbies, social events, entertainment,
shopping, sports,vacation)
 Interests (family, home, job, recreation, fashion, food,
media, achievements)
 Opinions (themselves, social issues, politics, business,
economics, products, future)
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Brand Personality Dimensions

 Sincerity  Excitement
 Ruggedness  Competence

 Sophistication

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Characteristics Affecting Consumer
Behavior
 Motivation
Key Factors
 Perception
 Learning
 Cultural
 Beliefs and attitudes
 Social
 Personal
 Psychological

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Psychological Factors
Motivation
 A motive is a need that is sufficiently
pressing to direct the person to seek
satisfaction
 Motivation research Looks for hidden
and subconscious motivation
 Maslow ordered needs based on how
pressing they are to the consumer

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Maslow’s Hierarchy of Needs
Psychological Factors
Perception
 Perception is the process by which people
select, organize, and interpret information.
 Perception Includes:
 Selective attention
 Consumers screen out information
 Selective distortion
 People interpret to support beliefs
 Selective retention
 People retain points to support attitudes

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Psychological Factors
Learning
 Learning describes changes in an individual’s
behavior arising from experience
 Learning occurs through
 Drives
 Internal stimulus that calls for action
 Stimuli
 Objects that move drive to motive
 Cues
 Minor stimuli that affect response
 Reinforcement
 Feedback on action

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Psychological Factors Beliefs
and Attitudes
 Belief
a descriptive thought about a brand or service
 may be based on real knowledge, opinion, or
faith
 Attitude
 describes a person’s evaluations, feelings and
tendencies toward an object or idea
 They are difficult to change

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Types of Buying
Decision Behavior
The Buying Roles

 5 roles people might play in a buying decision


 Initiatorwho first gives the idea of buying the
product or service
 Influencer whose view or advice influences the
decision
 Decider who decide on any component of buying
decision
 Buyer who makes the actual purchase
 User who uses the product or sevice purchased

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The Buyer Decision Process
The Buyer Decision
Process
 Needs can be triggered
Process Stages by:
 Internal stimuli
 Need recognition
 Normal needs
 Information search become strong
 Evaluation of enough to drive
alternatives behavior
 Purchase decision  External stimuli
 Postpurchase behavior  Advertisements

 Friends of friends
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The Buyer Decision
Process
 Consumers exhibit
Process Stages heightened attention or
actively search for
information
 Need recognition
 Sources of information:
 Information search
 Personal
 Evaluation of
alternatives  Commercial
 Purchase decision  Public
 Postpurchase behavior  Experiential
 Word-of-mouth

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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
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The Buyer Decision
Process
 Evaluation procedure
Process Stages depends on the consumer
and the buying situation.
 Need recognition  Most buyers evaluate
 Information search multiple attributes, each of
 Evaluation of which is weighted
alternatives differently.
 Purchase decision  At the end of the evaluation
 Postpurchase behavior stage, purchase intentions
are formed.

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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 25
The Buyer Decision
Process

Process Stages  Two factors intercede


between purchase
 Need recognition intentions and the actual
decision:
 Information search
 Attitudes of others
 Evaluation of
alternatives  Unexpected
situational factors
 Purchase decision
 Postpurchase behavior

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The Buyer Decision
Process

 Satisfaction is important:
Process Stages  Delighted consumers
engage in positive word-
 Need recognition of-mouth.
 Information search  Unhappy customers tell
 Evaluation of on average 11 other
alternatives people.
 Purchase decision  Cognitive dissonance is
common
 Postpurchase behavior

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Buyer Decision Process for
New Products

 New Products
 Good, service or idea that is perceived by
customers as new.
 Stages in the Adoption Process
 Marketers should help consumers move
through these stages.

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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.

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