Consumer Markets

and
Consumer Buyer Behavior
• Consumer Buying Behavior

• refers to the buying behavior of final consumers

(individuals & households) who buy goods and
services for personal consumption.
• Study consumer behavior to answer:
“How do consumers respond to marketing efforts
the company might use?”
 Model of Consumer Behavior
Product Marketing and Economic
Other Stimuli
Price Technological
Place Political
Promotion Cultural

Buyer’s Characteristics
Decision Buyer’s Black Box Affecting
Process Consumer
Behavior

Product Choice Purchase

Buyer’s Response Timing
Brand Choice
Purchase
Dealer Choice Amount
Characteristics Affecting Consumer Behavior

Culture
Social
Personal
Psychological
Buyer
Factors Affecting Consumer Behavior:Culture

• Most basic cause of a person's wants and behavior.

• Values
• Perceptions

Subculture Social Class

• Groups of people with shared • People within a social class
value systems based on tend to exhibit similar buying
common life experiences. behavior.
• Hispanic Consumers • Occupation
• African American Consumers • Income
• Asian American Consumers • Education
• Mature Consumers • Wealth
Factors Affecting Consumer Behavior:Social

Groups
•Membership
•Reference

Family
•Husband, wife, kids Social Factors
•Influencer, buyer, user

Roles and Status

Factors Affecting Consumer Behavior:Personal

Personal Influences

Age and Family Life Cycle

Occupation
Stage

Economic Situation Personality & Self-Concept

Lifestyle Identification

Activities Opinions

Interests
Factors Affecting Consumer Behavior: Psychological

Motivation

Beliefs and Psychological Perception

Attitudes Factors

Learning
Maslow’s Hierarchy of Needs

Self
Actualization
(Self-development)

Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
 Types of Buying Decisions

High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between
brands Behavior Behavior
Few Dissonance- Habitual
differences Reducing Buying
between
Buying
brands Behavior Behavior
The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior
 The Buyer Decision Process
Step 1. Need Recognition

Need Recognition
Difference between an actual state and a desired state

Internal Stimuli External Stimuli

• Hunger • TV advertising

• Thirst • Magazine ad
• A person’s normal • Radio slogan
needs
•Stimuli in the
environment
 The Buyer Decision Process
Step 2. Information Search

Personal Sources •Family, friends, neighbors

•Most influential 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
 The Buyer Decision Process
Step 3. Evaluation of Alternatives

Product Attributes
Evaluation of Quality, Price, & Features

Degree of Importance
Which attributes matter most to me?

Brand Beliefs
What do I believe about each available brand?

Total Product Satisfaction

Based on what I’m looking for, how satisfied
would I be with each product?

Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
 The Buyer Decision Process
Step 4. Purchase Decision

Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of others situational
factors

Purchase Decision
 The Buyer Decision Process
Step 5. Postpurchase Behavior

Consumer’s Expectations of
Product’s Performance

Product’s Perceived
Performance

Satisfied Dissatisfied
Customer! Customer

Cognitive Dissonance
Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption
Percentage of Adopters Adoption of Innovations

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late
Influences on the Rate of Adoption of New Products

Communicability Relative Advantage

Can results be easily Is the innovation
observed or described superior to existing
to others? products?

Product
Divisibility Characteristics 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?