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Kotler et al., Principles of Marketing, 6 th edition © Pearson Education Limited 2013 Slide 5.1 it’s good and good for you Chapter 5 Consumer markets and consumer buyer behaviour

PoM 6th ed. chapter 05

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Page 1: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.1

it’s good and good for you

Chapter 5Consumer markets and

consumer buyer behaviour

Page 2: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.2

Consumer markets and consumer buyer behaviour

• Model of consumer behaviour• Characteristics affecting consumer

behaviour• Types of buying decision behaviour• The buyer decision process• The buyer decision process for new

products

Topic outline

Page 3: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.3

Consumer buyer behaviour: the buying behaviour of final consumers—individuals and households that buy goods and services for personal consumption.

Consumer market: all the individuals and households that buy or acquire goods and services for personal consumption.

Model of consumer behaviour

Page 4: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.4

Model of consumer behaviour (Continued)

Figure 5.1 Model of buyer behaviour

Page 5: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.5

Characteristics affecting consumer behaviour

Factors influencing consumer behaviour

Figure 5.2 Factors influencing consumer behaviour

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.6

Culture is the learned values, perceptions, wants and behaviours from family and other important institutions.

Characteristics affecting consumer behaviour (Continued)

Page 7: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.7

Characteristics affecting consumer behaviour (Continued)

Subculture are groups of people within a culture with shared value systems based on common life experiences and situations.

• Hispanic American• African American• Asian American• Mature consumers

Page 8: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.8

Social classes are relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviours.

• Measured by a combination of occupation, income, education, wealth and other variables.

Characteristics affecting consumer behaviour (Continued)

Page 9: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.9

Characteristics affecting consumer behaviour (Continued)

Membership groups

• Groups with direct influence and to which a person belongs

Aspirational groups

• Groups an individual wishes to belong to

Reference groups

• Groups that form a comparison or reference in forming attitudes or behaviour

Groups and social networks

Page 10: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.10

Characteristics affecting consumer behaviour (Continued)

• Word-of-mouth influence and buzz marketing– Opinion leaders are people within a

reference group who exert social influence on others.

– Also called influentials or leading adopters.– Marketers identify them to use as brand

ambassadors.

Groups and social networks

Page 11: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.11

Characteristics affecting consumer behaviour (Continued)

• Online social networks are online communities where people socialise or exchange information and opinions.

• Include blogs, social networking sites (Facebook) and virtual worlds (second life).

Groups and social networks

Page 12: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.12

Characteristics affecting consumer behaviour (Continued)

• Family is the most important consumer-buying organisation in society.

• Social roles and status are the groups, family, clubs and organisations that a person belongs to that can define role and social status.

Social factors

Page 13: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.13

Characteristics affecting consumer behaviour (Continued)

• Age and life-cycle stage• RBC Royal Band stages

– Youth: younger than 18– Getting started: 18–35– Builders: 35–50– Accumulators: 50–60– Preservers: over 60

Personal factors

Page 14: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.14

Characteristics affecting consumer behaviour (Continued)

Occupation affects the goods and services bought by consumers.

Economic situation includes trends in:

Personal factors

Personal income Savings Interest

rates

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.15

Characteristics affecting consumer behaviour (Continued)

Lifestyle is a person’s pattern of living as expressed in his or her psychographics.

• Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment.

Personal factors

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.16

Characteristics affecting consumer behaviour (Continued)

• Personality and self-concept– Personality refers to the unique psychological

characteristics that lead to consistent and lasting responses to the consumer’s environment.

Personal factors

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.17

Characteristics affecting consumer behaviour (Continued)

Personal factors Dominance Autonomy

Defensiveness Adaptability Aggressiveness

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.18

Characteristics affecting consumer behaviour (Continued)

Psychological factors

Motivation

Perception

Learning

Beliefs and attitudes

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.19

Characteristics affecting consumer behaviour (Continued)

A motive is a need that is sufficiently pressing to direct the person to seek satisfaction.

Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations.

Psychological factors motivation

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.20

Characteristics affecting consumer behaviour (Continued)

Maslow’s hierarchy of needs

Figure 5.4 Maslow’s hierarchy of needs

Page 21: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.21

Characteristics affecting consumer behaviour (Continued)

Perception is the process by which people select, organise and interpret information to form a meaningful picture of the world from three perceptual processes:– Selective attention– Selective distortion– Selective retention

Psychological factors

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.22

Characteristics affecting consumer behaviour (Continued)

Selective attention is the tendency for people to screen out most of the information to which they are exposed.

Selective distortion is the tendency for people to interpret information in a way that will support what they already believe.

Selective retention is the tendency to remember good points made about a brand they favour and forget good points about competing brands.

Psychological factors

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.23

Characteristics affecting consumer behaviour (Continued)

• Learning is the change in an individual’s behaviour arising from experience and occurs through the interplay of:

Psychological factors

Drives Stimuli Cues

Responses Reinforcement

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.24

Characteristics affecting consumer behaviour (Continued)

Belief is a descriptive thought that a person holds about something based on:

• Knowledge• Opinion• Faith

Psychological factors beliefs and attitudes

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.25

Characteristics affecting consumer behaviour (Continued)

Attitudes describe a person’s consistently favourable or unfavourable evaluations, feelings and tendencies toward an object or idea.

Psychological factors

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.26

Types of buying decision behaviour

Complex buying behaviour

Dissonance-reducing buying behaviour

Habitual buying behaviour

Variety-seeking buying behaviour

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.27

Types of buying decision behaviour (Continued)Four types of buying behaviour

Figure 5.5 Four types of buying behaviourSource: Adapted from Henry Assael, Consumer Behavior and Marketing Action (Boston, MA: Kent Publishing Company, 1987), p. 87. Copyright © 1987by Wadsworth, Inc. Printed by permission of Kent Publishing Company, a division of Wadsworth, Inc.

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.28

The buyer decision processBuyer decision making process

Figure 5.6 Buyer decision process

Page 29: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.29

The buyer decision process (Continued)

• Occurs when the buyer recognises a problem or need triggered by:– Internal stimuli– External stimuli

Need recognition

Page 30: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.30

The buyer decision process (Continued)

• Personal sources—family and friends• Commercial sources—advertising, Internet• Public sources—mass media, consumer

organisations• Experiential sources—handling, examining,

using the product.

Information search sources of information

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.31

The buyer decision process (Continued)

• How the consumer processes information to arrive at brand choices.

Evaluation of alternatives

Page 32: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.32

The buyer decision process (Continued)

• The act by the consumer to buy the most preferred brand.

• The purchase decision can be affected by: – attitudes of others– unexpected situational factors.

Purchase decision

Page 33: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.33

The buyer decision process (Continued)

• The satisfaction or dissatisfaction that the consumer feels about the purchase.

• Relationship between:– Consumer’s expectations– Product’s perceived performance.

• The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction.

• Cognitive dissonance is buyer discomfort caused by postpurchase conflict.

Postpurchase behaviour

Page 34: PoM 6th ed. chapter 05

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

Slide 5.34

The buyer decision process (Continued)

Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value.

Postpurchase decision

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Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

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The buyer decision process for new products

Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use.

• Stages in the process include:

Awareness Interest Evaluation Trial Adoption

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Slide 5.36

The buyer decision process for new products (Continued)

Influence of product characteristics on rate of adoption

Relative advantage Compatibility Complexity

Divisibility Communicability