Principles of Marketing- Consumer Markets and Behavior

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Principles of MarketingPrinciples of Marketing

Consumer Markets and

Behavior

Prof. Rushen Chahal

Prof. Rushen Chahal 1


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Ch apter C ontentsCh apter C ontents

1. Understand t h e terms of consumer be h avior

2. Describe t h e c h aracteristics t h at affectsconsumer be h avior

3. Describe t h e types of buying situations

4. Define and explain t h e steps in decision makingprocess



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1. Terms of C onsumer Be h avior 1. Terms of C onsumer Be h avior

C onsumer market refers to customers consumptionin the market

C onsumer buyer be h avior refers to the buyingbehavior of consumersindividuals and groups that buy

goods and services for use



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1. Terms of C onsumer Be h avior 1. Terms of C onsumer Be h avior

M arketing stimuli is important for purchase such as:

4Ps:- allow companies to adjust price, place etc

PEST factors:- mostly consumer cultural factors



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2. Ch aracteristics Affects C onsumer 2. Ch aracteristics Affects C onsumer Be h avior Be h avior

a. C ultural Factors :- involve attitudes, beliefs, values, artifactswithin a society that makes meaning.They include:

i. Culture and subculture includes sports, beauty, religion, technology,leisure, language, law, education, social values etc.

ii. Social class Social class refers to division of a society based on

income, education, status

e.g. upper middle; middle-middle; lower-middle; skilled; working; low



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2. Characteristics Affects Consumer

Behavior

Culture and subculture includes sports, beauty,religion, technology, leisure, language, law,

education, social values etc.

Social class refers to division of a society

e.g. upper middle; middle-middle; lower-middle;skilled; working; low


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Behaviorb. Social Factors :- involve reference groups andfamilies that interact and play a role in buying

i) Reference groups :- Primary (Informal) /Secondary (Formal) Finding opinion leaders

M embership groups have a direct influence

Aspirational groups which an individualwishes to belong to

Disassociative groups are not beneficial


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L esson 4 Prof. Rushen Chahal 8

ii) F amily :- Procreation and involvement inbuying.

- Using F amily Life Cycle ; from young, middle-age, older


Behavior


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2. Ch aracteristics Affects C onsumer Be h avior 2. Ch aracteristics Affects C onsumer Be h avior

iii) Roles:- includes peoples positions and status in life

Initiator: Person who sees and thinks of the idea of buying the productInfluencer: Person whose opinion influences the buying

Decider: Person who makes the buying decision; what, how where,

when

Buyer: Person who pays and buys the product

User: Person who consumes or uses a product or service

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2. Ch aracteristics Affects C onsumer 2. Ch aracteristics Affects C onsumer Be h avior Be h avior

c. Psyc h ological Factors :- involve peoples common values,interest and other attributes like:

i. Personality

ii. Learning

iii. M otivation

iv. Perception

v. Attitudes

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Prof. Rushen Chahal


Behaviori) P ersonality :- involve unique personalcharacteristics that lead to ones responses to an

object

- Self-concept and image. Purpose for buying theproduct/service. WoW factor! (making statements)

- L ifestyle values: Activities, Interests, Opinions(AIO) e.g. kart-racing for outgoing people


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L esson 4 Prof. Rushen Chahal 12


Behaviorii) Learning :- to know and remember something

to use stimulus many times to make consumersremember

to condition people to repeat buying actions


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Prof. Rushen Chahal

iii) M otivation:- Abraham M aslowsHierarchy of Needs

People are driven by certainneeds (motives) at certaintimes.

Physiological (basic) Safety Social Esteem Self-actualization


Behavior


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Prof. Rushen Chahal


Behavior

What needswould this

product fit?


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Prof. Rushen Chahal


Behavioriv) P erception :- analyzes and interpretsaccording to experience, knowledge, moods etc.

Selective attention: decides what to see/hear

Selective perception: decides what to believe

and interpret

Selective retention: decides what to keep and

throw; remember good points only


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Prof. Rushen Chahal


Behavior

advertising

clutters


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2. Ch aracteristics Affects C onsumer Be h avior 2. Ch aracteristics Affects C onsumer Be h avior

v) Att it udes:- describe a persons feelings andevaluation about an object or idea

Cognitive: beliefs resulting in an opinion

Affective: positive or negative emotions

Conative: behavior or actions linked with cognitive

and affective

cognitive

affective

conative

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3. Types of Buying Situation3. Types of Buying Situation

Routine problem solving : A buying situation wherebrands and products are purchased habitually, e.g. daily necessit ies

L imited problem solving : A buying situation wherebuying occurs less frequently. Products will be moreexpensive. Damage can be solved.

Extended problem solving : A buying situation wherebuying occurs very infrequently and extremelyexpensive. e.g. premium goods

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4. T h e Decision Making process4. T h e Decision Making process

F ive stages in the buying decision process

i. Need recognition

ii. Information searc hiii. Evaluation of alternativesiv. Purc h ase decisionv. Post-purc h ase be h avior

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i) Need recognit ion:- occurs when the buyer

recognizes a problem/need made responsible by

internal and external stimulus (factors)

e.g. a problem with moving h ouses

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ii) Informat ion searc h :- is the amount of information gathered.Depending on motivation, ease of obtaining the information, the

value of the information, information alternatives.

-T h ink of informat ion sources from personal; commercial; and public

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iii) Evaluat ion of al t erna t ives:- how the consumer selects

information and arrive at different choices

e.g. use grades and weig ht ings t o measure c h oices

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iv) T h e purc h ase decision:- the act of buying the mostpreferred product/brand. The purchase decision can be

affected by:

- Unexpected factors (credit, installment) and attitudes of

others

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v) Post -purc h ase:- is the customer satisfaction or discomfort(dissonance) about the purchase

- Satisfaction happens when consumers perceived

expectations meet performance. Otherwise dissonance

happens.

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Prof. Rushen Chahal

4 . The Decision M aking process

(Summary)

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Principles of Marketing- Consumer Markets and Behavior