What is Marketing? - Vancouver Island University · PPT file · Web view · 2010-01-29* Chapter 6, page 204 ... page 223-24 * * Chapter 6, page 204 * OUTLINE Consumer Buyer Behaviour

Copyright © 2007 Pearson Education Canada6-1

Chapter SixConsumer and Business Buyer

Behaviourwith Duane Weaver

OUTLINE• Consumer Buyer Behaviour defined• Model of Buyer Behaviour• Consumer Influences

– Culture & Sub-culture– Social Class– Personal Factors– Psychological (lifestyle, motivation, perception,

learning, beliefs and attitudes)• Business Influences



Consumer Buying Behaviour• Refers to the buying behaviour of people who

buy goods and services for personal use.

• The central question for marketers is:“How do consumers respond to various

marketing efforts the company might use?”


Model of Buyer Behaviour• Marketing and environmental stimuli enter the

buyer’s Black Box.• Black Box consists of the buyer’s

characteristics and buying processes.• Black Box in turn prompts buyers responses.

– Product and brand choice.– Dealer choice.– Payment timing and amount.


Consumer Buyer Influences• Cultural factors.

» Culture, subculture, social class.

• Social factors.» Reference groups, family, roles, status.

• Personal factors.» Age, lifecycle, occupation, income.

• Psychological factors.» Motivation, perception, learning, beliefs,

attitudes.


Culture• Cultural is the most basic cause of a

person's wants and behaviour. • Culture is learned from family, church,

school, peers, colleagues.• Culture includes basic values,

perceptions, wants and behaviours.


Sub-Culture• Groups of people with shared value

systems based on common life experiences.

• Major groups:– Native Canadians.– French-Canadians.– Ethnic consumers.– Internet users.


Social Class• Relatively permanent, ordered divisions.• Members share similar values, interests

and behaviours.• Determined by a combination of:

– Occupation.– Income.– Education.– Wealth.– Other variables.


Major Canadian Classes• Upper Class (3-5%)

– Upper Uppers (< 1%)– Lower Uppers (2-4%)

• Middle Class (40 -50%)– Upper Middles– Average Middles

• Working Class (33%)

• Lower Class (20%)– Upper Lowers– Lower Lowers


Social Factors• Groups.

– Reference groups, aspirational groups.– Importance of opinion leader.

• Family.– Most important consumer buying organization.

• Roles and status.– Expect activities and esteem given by society to

those roles.


Personal Factors• Occupation.

» What we do affects what we need and how much we have to spend.

» Trend towards more part-time employment and multiple jobs.

• Economic situation.» Affects real spending and consumer confidence in

borrowing.• Age and family life-cycle stage.

» Consumer needs change over time.» Difference between chronological and perceived age.

• Lifestyle.» A person’s pattern of living as expressed in his or her

activities, interests and opinions.» Also known as psychographics, can capture more detail

than personality or social class.


Lifestyle and Psychographics

• SRI Consulting Values and Lifestyles typology (VALS) can be used to classify people into one of eight groups.

• Forrester’s Technographics scheme segments people into ten groups.


Personality and Self-Concept• Personality refers to the unique psychological

characteristics that lead to relatively consistent and lasting responses to one’s own environment.

• Generally defined in terms of traits.

• Self-concept suggests that people’s possessions contribute to and reflect their identities.


Psychological Factors• Motivation.• Perception.• Learning.• Beliefs.• Attitudes.


Maslow’s Hierarchy of Needs (Motivation)

SELF-ACTUALIZATION

SELF ESTEEM

LOVE & BELONGING

SAFETY & SECURITY

PHYSIOLOGICAL Highest Priority

UltimateGoal


• Information inputs. – The sensations received through the sense organs.

• Perception.– The process of selecting, organizing and interpreting

information inputs to produce meaning.

• Selective attention. – Selecting some inputs to attend to while ignoring others.

• Selective distortion.– Changing or twisting of information when it is inconsistent

with personal feelings or beliefs.

• Selective retention.– Remembering information that supports personal feelings and

beliefs and forgetting inputs that do not.

Perception


Learning• A relatively permanent change in behaviour

due to experience.

• Interplay of drives, stimuli, cues, responses and reinforcement.

• Strongly influenced by the consequences of an individual’s behaviour.– Behaviours with satisfying results tend to be repeated.– Behaviours with unsatisfying results tend not to be repeated.


Beliefs and Attitudes• Belief

– Descriptive thought that a person holds about something.

• Attitude – Describes a person’s consistently favourable or

unfavourable evaluations, feelings and tendencies toward an object or idea.


Consumer Buyer Decisions• Need recognition – Realize requirement.

• Information search – Assess various products.

• Evaluation of alternatives – Determine relative • value of each.

• Purchase decision – Select best value.

• Post purchase behaviour – Assess degree of satisfaction.


Post Purchase Behaviour• Consumer satisfaction is a function of

consumer expectations and perceived product performance.– If performance is below expectation, dissatisfaction

results.– If performance meets expectations, satisfaction

results.– If performance exceeds expectations, delight

results.


• The consumer compares performance against expectations for the product.

• Level of satisfaction will influence repeat purchase.

• Is it better to over-promise and under-deliver, or under-promise and over-deliver?

Post Purchase Behaviour


• Buyer discomfort caused by post-purchase conflict.

• Affects major purchases; anxiety of not knowing if the right choice was made.

• Customer follow-up programs help to reduce this problem.

Cognitive Dissonance


New Product Adoption Stages• Awareness – become aware of new product.• Interest – seek information about product.• Evaluation – decide whether trial makes

sense.• Trial – try product on small scale.• Adoption – decide to purchase product.


Product Adopter Categories• Innovators are the first adopters of new

products (2.5% of buyers).– They are venturesome – they try new ideas at

some risk.• Early adopters are guided by respect (13.5%).

– They are opinion leaders in their communities and adopt new ideas early but carefully.


Business Markets• Market structure.

– Fewer but larger buyers, concentrated.• Derived demand.

– Based on purchases by consumers.• Nature of the buying unit.

– Multiple decision-makers, rational.• The decision process.

– More complex, formalized, dependent.


Buying Situations• Straight rebuy.

– The buyer routinely reorders something without any modifications.

• Modified rebuy.– The buyer on reorder want to modify specifications,

price, terms or suppliers.• New task buy.

– The buyer purchases a product or service for the first time.


Business Buying Process• New or first-time purchase – new task.

– Problem recognition.– General need description.– Product specification.– Supplier search.– Proposal solicitation.– Supplier selection.– Order-routine specification.– Performance review.


Business Buying Centre• Decision-making unit of a buying

organization is called its buying centre.• Buying centre members:

– Users.– Deciders.– Influencers.– Buyers.– Gatekeepers.


THANKS!

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What is Marketing? - Vancouver Island University · PPT file · Web view · 2010-01-29* Chapter 6, page 204 ... page 223-24 * * Chapter 6, page 204 * OUTLINE Consumer Buyer Behaviour