Chapter 5

Consumer Markets and Consumer Buying Behavior

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
Marketing
Product Price Place Promotion

Buyers Black Box

Buyer Characteristics Buyer Decision Process

Buyer Responses
Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount

Other

Economic Technological Political Cultural

Factors Influencing Consumer Behavior (Fig. 5.2)

Cultural Social
Culture Subculture Social class Reference groups Family

Personal
Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept

Psychological
Motivation Perception Learning Beliefs and attitudes

Buyer

Roles and status

Factors Affecting Consumer Behavior: Culture

Culture is the Most Basic Cause of a Person's Wants and Behavior.
Subculture
Group of people with shared value systems based on common life experiences. Hispanic Consumers African American Consumers Asian American Consumers Mature Consumers
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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
Societys relatively permanent & ordered divisions whose members share similar values, interests, and behaviors. Measured by: Occupation, Income, Education, Wealth and Other Variables.

Factors Affecting Consumer Behavior: Social

Groups Membership Reference

Family (most important) Husband, wife, kids Influencer, buyer, user

Social Factors

Family Buying Influence

Roles and Status

Children can exert a strong influence on family buying decisions. Johnson & Johnson reminds customers of its commitment to the American Family.

What other companies use children to influence family buying decisions?

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Factors Affecting Consumer Behavior: Personal

Personal Personal Influences Influences
Age Age and and Life Life Cycle Cycle Stage Stage Economic Economic Situation Situation Personality Personality & & Self-Concept Self-Concept

Occupation Occupation

Lifestyle Lifestyle Identification Identification

Activities Activities

Interests Interests

Opinions Opinions
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SRI Values and Lifestyles (VALS) (Fig. 5.3)

High Resources Actualizers High Innovation

Fulfilleds

Achievers

Experiencers

Believers

Strivers

Makers

Strugglers

Low Resources

Low Innovation

Factors Affecting Consumer Behavior: Psychological

Motivation

Beliefs and Attitudes

Psychological Factors Affecting Buyers Choices

Perception

Learning
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Maslows Hierarchy of Needs (Fig. 5.4)

(Self-development)

Self Actualization

Esteem Needs (self-esteem)

(sense of belonging, love)

Social Needs

(security, protection)

Safety Needs

Physiological Needs
(hunger, thirst)
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Types of Buying Decision Behavior (Fig. 5.5)

High Involvement Significant differences between brands Few differences between brands Low Involvement

Complex Buying Behavior

DissonanceReducing Buying Behavior

VarietySeeking Behavior Habitual Buying Behavior

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Buyer Decision Process (Fig. 5.6)

Purchase Decision
Evaluation of Alternatives Information Search Need Recognition Postpurchase Behavior

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Buyer Decision Process Step 1. Need Recognition

State Where the Buyers Needs are Fulfilled and the Buyer is Satisfied. Buyer Recognizes a Problem or a Need. Needs Arising From:

Internal Stimuli

Hunger
External Stimuli-

Friends
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The Buyer Decision Process Step 2. Information Search

Personal Sources
Commercial Sources Public Sources Experiential Sources
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

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The Buyer Decision Process

Consumer May Use Careful Calculations & Logical Thinking Consumers May Buy on Impulse and Rely on Intuition Consumers May Make Buying Decisions on Their Own. Consumers May Make Buying Decisions Only After Consulting Others.

Step 4. Evaluation of Alternatives

Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives

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The Buyer Decision Process

Step 5. Purchase Decision
Desire to buy the most preferred brand

Purchase Intention

Attitudes of Others

Unexpected Situational Factors

Purchase Decision
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The Buyer Decision Process

Satisfied Customer!

Step 6. Postpurchase Behavior

Dissatisfied Customer

Cognitive Dissonance
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Consumers Expectations of Products Performance. Products Perceived Performance.

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.

Stages in the Adoption Process

Awareness: Consumer is aware of product, but lacks information. Interest: Consumer seeks Information about new product. Evaluation: Consumer considers trying new product. Trial: Consumer tries new product on a small scale. Adoption: Consumer decides to make regular use of product.
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Adopter Categories (Fig. 5.7)

Percentage of Adopters Early Majority Late Majority

Innovators

Early Adopters
13.5%

34%

34% 16%

Laggards

2.5%

Time of Adoption Late

Early

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Influence of Product Characteristics on Rate of Adoption

Communicability
Can results be easily observed or described to others?

Relative Advantage
Is the innovation superior to existing products?

Can the innovation be used on a trial basis? Is the innovation difficult to understand or use?

Divisibility

Complexity

Does the innovation fit the values and experience of the target market?

Compatibility

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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.
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