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Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Consumer Behaviour
1
The actions a person takes in purchasing and using products and services,
including the mental and social processes that precede and follow these actions
What makes the consumer tick?
What buttons must the marketer press?
Chapter 4: Consumer Buying Behaviour
Consumer Behavior
• Why people choose one product or brand over another
• How they make these choices• How companies use this knowledge to
provide value to consumers
Copyright © 2010 Pearson Education Canada 2
Chapter 4: Consumer Buying Behaviour
purchase decision process
• Behind the visible act of making a purchase lies a decision process that must be investigated
• The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.
Copyright © 2010 Pearson Education Canada 3
Chapter 4: Consumer Buying Behaviour
Consumer purchase decision process
• Certain variables influence behaviour—• We cannot be certain which ones actually
trigger a response– The purchase of a particular brand of product
could be the result of an endorsement by a celebrity of a friend
– It could be based on past experience with the product
– It could be the delivery of a free sample
Copyright © 2010 Pearson Education Canada 4
Chapter 4: Consumer Buying Behaviour
Consumer purchase decision process
• Five Stages of Consumer Behavior
– problem recognition, – information search, – alternative evaluation, – purchase decision, and – post-purchase behavior.
Copyright © 2010 Pearson Education Canada 5
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Purchase Decision Process
6
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-purchase Evaluation
Chapter 4: Consumer Buying Behaviour
Problem recognition: Perceiving a Need
• Problem recognition is caused by a difference between the consumer’s ideal state and actual state. There are various causes of sources of problem recognition
1. Out of stock2. Dissatisfaction3. New needs/wants4. Related products/purchases5. Marketer induced problem recognition6. New products
Copyright © 2010 Pearson Education Canada 7
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Information Search
8
Time and money determine the nature of the purchase decision; the time spent evaluating alternatives.
Routine
Limited
Complex
Does not involve much time or money
More expensive and time consuming
Capital investment; much time and effort
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Post-Purchase Evaluation
9
“Second thoughts” often follow a complex buying decision.
Did I make the right decision?
The unsettled state of mind experienced by an individual after a decision has been made is called cognitive dissonance.
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Influences on Consumer Behaviour
10
Psychological
Personal
Social
Cultural
Consumer
Marketing Mix• Product• Price• Marketing Communications• Distribution
Company• Image• Reputation
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Needs and Motivation Theory
11
Need
Motive
Absence of something useful
Condition prompting action to satisfy a need
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Maslow’s Hierarchyof Needs
Physiological needs(food, water, shelter)Physiological needs(food, water, shelter)1
Safety needs(security, protection)
Safety needs(security, protection)
2
Social needs(sense of belonging,
love from family and friends)
Social needs(sense of belonging,
love from family and friends)3
Esteem needs(self-esteem, status,
recognition)
Esteem needs(self-esteem, status,
recognition)
4
Self-actualization
(self-development,fulfillment, personal growth)
Self-actualization
(self-development,fulfillment, personal growth)
5
Lower level
Higher level
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Personality: a person’s distinguishing psychological characteristics that is influenced by self-perceptions, needs, culture, family and reference groups.
RealSelf: it is
you as you really are
RealSelf: it is
you as you really are
Self-Image: It is
the role you play
Self-Image: It is
the role you play
Looking-Glass
Self: how you think others
see you
Looking-Glass
Self: how you think others
see you
Ideal Self: how you would like to be
Ideal Self: how you would like to be
Self-Concept Components
Personality and Self-Concept
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Attitudes
14
An individual’s feelings, favourable or unfavourable, toward an idea or object (Product or service).
Gaining acceptance is easier if the product idea fits with the attitudes of the target market.
A hearty Angus burger at Harvey’s appeals to a 20-something male with a big appetite! A salad on the side does not!
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
People receive and interpret messages differently.
Massages received depend on three levels of interest and need requirement :
Selective Exposure: we notice only information that interests usSelective Exposure: we notice only information that interests us
Selective Perception: screen out information that conflicts with
previously learned attitudes and beliefs
Selective Perception: screen out information that conflicts with
previously learned attitudes and beliefs
Selective Retention: we remember only what we want to rememberSelective Retention: we remember only what we want to remember
Perceptions
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Lifestyle
16
A person’s pattern of living expressed in terms of activities, interests, opinions and values.
Independent research companies conduct surveys and place people in lifestyle segments.
Each segment is motivated by a unique set of attitudes and beliefs.
Source: Millward Brown Goldfarb
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Technology
17
Technology has changed buying behaviour. Time-pressed “connected” consumers are conducting research online and buying online.
1. Technology makes the transaction process more convenient for consumers.
2. Companies are re-evaluating media alternatives in order to follow their customers; more digital media and less traditional media is the trend.
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Reference Groups
18
A group, class, or category of people to which individuals believe they belong.
Co-workersSports teamsHobby clubsSchoolmates
Reference groups (peers) are a strong influence among young people.
The hip hop community (hip hop musicians) is one of the biggest brand building communities in the world.
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Family
19
Family members influence buying decisions.
1. Major decisions are shared decisions.
2. Major retailers are reconfiguring to appeal more to women.
3. Wal-Mart Supercentres are specifically designed for women 30 to 45 with 2 or 3 children, a husband and a career.
4. Children influence $20 billion in family spending each year in Canada.
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Social Class
20
The division of people in ordered groups based on similar values, lifestyles and behaviours.
Social class is determined by income, occupation, education, and inherited wealth
Upper-UpperLower-Upper
Upper-Middle Lower-MiddleUpper-LowerLower-LowerAs a person moves through
life he/she can move in and out various social classes.
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Cultural Influences
21
Culture refers to “behaviour learned from external sources such as family, the workplace, and education—that help form the value systems an individual lives by.
Gen X, Gen Y, Boomers
Ethnic Groups
French Quebec Marketing strategies must be tailored to the unique needs of different groups.
Chapter 4: Consumer Buying Behaviour
Copyright © 2010 Pearson Education Canada
Regional Influence
22
Location and culture have an influence on attitudes and values. Canada is a diverse country.
AtlanticQuebecOntarioPrairies
B.C.
1. Identify common and unique characteristics in each region (within regions there are urban and rural considerations).
2. National strategies don’t always work.
3. Implement regional strategies if profitable (costs versus benefits).