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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 (Fig. 5.1)
Marketing and Other Stimuli
MarketingProductPricePlacePromotionOtherEconomicTechnologicalPoliticalCultural
Buyer’s Black Box
Buyer CharacteristicsBuyer Decision Process
Buyer Responses
Product ChoiceBrand ChoiceDealer Choice
Purchase TimingPurchase Amount
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Factors Influencing Consumer Behavior (Fig. 5.2)
Social
Referencegroups
Family
Rolesand
status
Personal
Age andlife-cycle
OccupationEconomicsituationLifestyle
Personalityand
self-concept
Psycho-logical
MotivationPerceptionLearning
Beliefs andattitudes
Buyer
Culture
Sub-culture
Socialclass
Culture
Sub-culture
Socialclass
Cultural
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Factors Affecting Consumer Behavior: Culture
Subculture• Group of people with
shared value systems based on common life experiences.
• Hispanic Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers
Culture is the Most Basic Cause of a Person's Wants and Behavior.
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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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Groups• Membership• Reference
Groups• Membership• Reference
Family (most important)• Husband, wife, kids• Influencer, buyer, user
Family (most important)• Husband, wife, kids• Influencer, buyer, user
Roles and StatusRoles and Status
Social FactorsSocial Factors
Factors Affecting Consumer Behavior: Social
Family Buying Influence
Children can exert astrong influence onfamily buying decisions.Johnson & Johnson remindscustomer’s of its commitmentto the American Family.
What other companies usechildren to influencefamily buying decisions?
Click or pre ss spacebar to return
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Personal InfluencesPersonal Influences
Age and Life Cycle Stage
Age and Life Cycle Stage OccupationOccupation Personality &
Self-ConceptPersonality & Self-Concept
Economic Situation
Economic Situation
ActivitiesActivities InterestsInterests
Lifestyle IdentificationLifestyle Identification
OpinionsOpinions
Factors Affecting Consumer Behavior: Personal
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High Resources High Innovation
AchieversAchievers
ActualizersActualizers
StrugglersStrugglers
StriversStrivers
FulfilledsFulfilleds
BelieversBelievers
ExperiencersExperiencers
MakersMakers
SRI Values and Lifestyles (VALS) (Fig. 5.3)
Low Resources Low Innovation
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Factors Affecting Consumer Behavior: Psychological
PsychologicalFactors
AffectingBuyers Choices
Motivation
Perception
Learning
Beliefs andAttitudes
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Physiological Needs(hunger, thirst)
Safety Needs(security, protection)
Social Needs (sense of belonging,
love)
Esteem Needs (self-esteem)
Self Actualization
(Self-development)
Maslow’s Hierarchy of Needs (Fig. 5.4)
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HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement
Types of Buying Decision Behavior (Fig. 5.5)
ComplexBuying
Behavior
Variety-SeekingBehavior
Dissonance-Reducing Buying
Behavior
HabitualBuying
Behavior
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Buyer Decision Process (Fig. 5.6)
PostpurchaseBehavior
Purchase
Decision
Information
SearchNeed
Recognition
Evaluationof
Alternatives
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Buyer Decision ProcessStep 1. Need Recognition
State Where the Buyer’s Needs are Fulfilled and the Buyer is Satisfied.
Needs Arising From:
Internal Stimuli –
Hunger
External Stimuli-
Friends
Buyer Recognizes
a Problem
or a Need.
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•Family, friends, neighbors•Most effective source of information
•Advertising, salespeople•Receives most information from these sources
•Mass Media•Consumer-rating groups
•Handling the product•Examining the product•Using the product
Personal Sources Personal Sources
Commercial SourcesCommercial Sources
Public SourcesPublic Sources
Experiential SourcesExperiential Sources
The Buyer Decision ProcessStep 2. Information Search
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Consumer May Use Careful Calculations & Logical Thinking
Consumers May Buy on Impulse and Rely on Intuition
Consumers May Make Buying Decisionson Their Own.
Consumers May Make Buying DecisionsOnly After Consulting Others.
Marketers Must Study Buyers to Find Out How They Evaluate Brand
Alternatives
The Buyer Decision ProcessStep 4. Evaluation of Alternatives
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Purchase IntentionDesire to buy the most preferred brand
Purchase Decision
Unexpected
Situational Factors
Attitudes of Others
The Buyer Decision ProcessStep 5. Purchase Decision
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The Buyer Decision ProcessStep 6. Postpurchase Behavior
Consumer’s Expectations of Product’s Performance.
Product’s Perceived Performance.
Dissatisfied Customer
Satisfied Customer!
Cognit
ive D
isso
nan
ce
Discussion Connections
Form small groups to discuss a specific major purchase that one of you has made recently. What type of buying decision was it?
(slide #12) Discuss the Buyer Decision Process
and what major factors influenced your decisions.
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Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks Information about new product.
Evaluation: Consumer considerstrying new product.
Trial: Consumer tries new product on a small scale.
Adoption: Consumer decides to make regular use of product.
Stages in the Adoption Process
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Adopter Categories (Fig. 5.7)
Perc
en
tag
e o
f A
dop
ters
Time of AdoptionEarly Late
Inn
ovato
rs
Early Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
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DivisibilityCan the innovation
be used on a trial basis?
ComplexityIs the innovation
difficult tounderstand or use?
Communicability Can results be easily
observed or described to others?
CompatibilityDoes the innovation
fit the values and experience of the
target market?
Relative AdvantageIs the innovation
superior to existing products?
Influence of Product Characteristics on Rate of Adoption
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Review of Concept Connections
Define the consumer market and construct a simple model of consumer buyer behavior.
Name the four major factors that influence consumer buyer behavior.
List and understand the stages in the buyer decision process.
Describe the adoption and diffusion process for new products.