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PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter
Chapter 5
Consumer Markets
and
Consumer Buyer Behavior

Copyright 1999 Prentice Hall

Consumer
Consumer Buying
Buying Behavior
Behavior
Consumer Buying Behavior refers to
the buying behavior of final consumers
(individuals & households) who buy
goods and services for personal
consumption.
Study consumer behavior to answer:
How do consumers respond to
marketing efforts the company might
use?

Copyright 1999 Prentice Hall

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Model
Model of
of Consumer
Consumer Behavior
Behavior
Marketing
Marketing and
and
Other
Other Stimuli
Stimuli

Product
Price

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Economic
Technological

Place

Political

Promotion

Cultural

Buyers
Decision
Process

Product Choice
Brand Choice

Buyers
Buyers Black
Black Box
Box

Buyers
Buyers Response
Response

Characteristics
Affecting
Consumer
Behavior

Purchase
Timing
Purchase
Amount

Dealer Choice

Copyright 1999 Prentice Hall

Characteristics
Characteristics Affecting
Affecting
Consumer
Consumer Behavior
Behavior
Culture
Social
Personal
Psychological

Buyer
Buyer

Copyright 1999 Prentice Hall

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Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Culture
Culture
Most
Most basic
basic cause
cause of
of aa person's
person's wants
wants and
and
behavior.
behavior.
Values
Values
Perceptions
Perceptions
Subculture
Subculture

Social
Social Class
Class

Groups
People
Groupsof
ofpeople
peoplewith
withshared
shared
Peoplewithin
withinaasocial
socialclass
class
value
tend
valuesystems
systemsbased
basedon
oncommon
common
tendto
toexhibit
exhibitsimilar
similarbuying
buying
life
behavior.
lifeexperiences.
experiences.
behavior.
Occupation
Hispanic
HispanicConsumers
Consumers
Occupation
African
Income
AfricanAmerican
AmericanConsumers
Consumers
Income
Asian
AsianAmerican
AmericanConsumers
Consumers
Mature
MatureConsumers
Consumers

Education
Education
Wealth
Wealth

Copyright 1999 Prentice Hall

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Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Social
Social

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Groups
Groups
Membership
Membership
Reference
Reference
Family
Family
Husband,
Husband, wife,
wife, kids
kids
Influencer,
Influencer, buyer,
buyer, user
user

Roles
Roles and
and Status
Status

Copyright 1999 Prentice Hall

Social
Social Factors
Factors

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Personal
Personal

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Personal
Personal Influences
Influences
Age
Age and
and Family
Family Life
Life Cycle
Cycle
Stage
Stage

Occupation
Occupation

Economic
Economic Situation
Situation

Personality
Personality && Self-Concept
Self-Concept

Lifestyle
Lifestyle Identification
Identification
Activities
Activities

Opinions
Opinions
Interests
Interests

Copyright 1999 Prentice Hall

VALS
VALS 22

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Actualizers
Abundant Resources
Resources
Actualizers Abundant

Principle Oriented Status Oriented

Action Oriented

Fulfilleds
Fulfilleds
(Innovator)
(Innovator)

Achievers
Achievers

Experiencers
Experiencers

Believers
Believers

Strivers
Strivers

Makers
Makers

Minimal
Minimal Resources
Resources

Strugglers
Strugglers
Copyright 1999 Prentice Hall

5-9
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VALS
VALS According
According to
to SRI
SRI Intl
Intl
Innovator. These consumers are on the leading edge of change,
have the highest incomes, and such high self-esteem and abundant
resources that they can induldge in any or all self-orientations. They
are located above the rectangle. Image is important to them as an
expression of taste, independence, and character. Their consumer
choices are directed toward the "finer things in life."
Thinkers. These consumers are the high-resource group of those
who are motivated by ideals. They are mature, responsible, welleducated professionals. Their leisure activities center on their homes,
but they are well informed about what goes on in the world and are
open to new ideas and social change. They have high incomes but
are practical consumers and rational decision makers.

Copyright 1999 Prentice Hall

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Vals..ctd..
Vals..ctd..
Believers. These consumers are the low-resource group of those
who are motivated by ideals. They are conservative and predictable
consumers who favor American products and established brands.
Their lives are centered on family, church, community, and the
nation. They have modest incomes.
Achievers. These consumers are the high-resource group of those
who are motivated by achievement. They are successful workoriented people who get their satisfaction from their jobs and
families. They are politically conservative and respect authority and
the status quo. They favor established products and services that
show off their success to their peers.

Copyright 1999 Prentice Hall

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Vals..ctd..
Vals..ctd..
Strivers. These consumers are the low-resource group of those
who are motivated by achievements. They have values very
similar to achievers but have fewer economic, social, and
psychological resources. Style is extremely important to them as
they strive to emulate people they admire.
Experiencers. These consumers are the high-resource group of
those who are motivated by self-expression. They are the
youngest of all the segments, with a median age of 25. They have
a lot of energy, which they pour to physical exercise and social
activities. They are avid consumers, spending heavily on clothing,
fast-foods, music, and other youthful favorites, with particular
emphasis on new products and services.

Copyright 1999 Prentice Hall

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Vals..ctd..
Vals..ctd..
Makers. These consumers are the low-resource group of those
who are motivated by self-expression. They are practical people
who value self-sufficiency. They are focused on the familiarfamily, work, and physical recreation-and have little interest in
the broader world. As consumers, they appreciate practical and
functional products.
Survivors. These consumers have the lowest incomes. They
have too few resources to be included in any consumer selforientation and are thus located below the rectangle. They are
the oldest of all the segments, with a median age of 61. Within
their limited means, they tend to be brand-loyal consumers.

Copyright 1999 Prentice Hall

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological

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Motivation
Motivation

Psychological
Factors

Beliefs
Beliefs and
and
Attitudes
Attitudes

Learning
Learning

Copyright 1999 Prentice Hall

PPerception
erception

Maslows
Maslows Hierarchy
Hierarchy of
of Needs
Needs
Self
Actualization

(Self-development)

Esteem Needs

(self-esteem, status)
Social Needs

(sense of belonging, love)

Safety Needs

(security, protection)

Physiological Needs
(hunger, thirst)

Copyright 1999 Prentice Hall

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Types
Types of
of Buying
Buying Decisions
Decisions

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High
Involvement

Low
Involvement

Significant
differences
between
brands

Complex
Buying
Behavior

VarietySeeking
Behavior

Few
differences
between
brands

DissonanceReducing Buying
Behavior

Habitual
Buying
Behavior

Copyright 1999 Prentice Hall

The
The Buyer
Buyer Decision
Decision Process
Process

Need
Need Recognition
Recognition
Information
Information Search
Search
Evaluation
Evaluation of
of Alternatives
Alternatives
Purchase
Purchase Decision
Decision
Postpurchase
Postpurchase Behavior
Behavior

Copyright 1999 Prentice Hall

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The
The Buyer
Buyer Decision
Decision Process
Process

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Step
Step 1.
1. Need
Need Recognition
Recognition

Need
Need Recognition
Recognition

Difference
Difference between
between an
an actual
actual state
state and
and aa desired
desired state
state

Internal
Internal Stimuli
Stimuli

External
External Stimuli
Stimuli

Hunger
Hunger

TV
TV advertising
advertising

Thirst
Thirst

Magazine
Magazine ad
ad

AApersons
personsnormal
normal
needs
needs

Radio
Radio slogan
slogan
Stimuli
Stimuli in
in the
the
environment
environment

Copyright 1999 Prentice Hall

The
The Buyer
Buyer Decision
Decision Process
Process

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Step
Step 2.
2. Information
Information Search
Search
Personal
Personal Sources
Sources

Family, friends, neighbors

Most influential source of
information

Commercial
Commercial Sources
Sources

Advertising, salespeople
Receives most information
from these sources

Public
Public Sources
Sources
Experiential
Experiential Sources
Sources

Copyright 1999 Prentice Hall

Mass Media
Consumer-rating groups
Handling the product
Examining the product
Using the product

The
The Buyer
Buyer Decision
Decision Process
Process

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Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes

Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

Degree
Degreeof
of Importance
Importance

Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?

Brand
BrandBeliefs
Beliefs

What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?

Total
Total Product
Product Satisfaction
Satisfaction

Based
Basedon
onwhat
whatIm
Imlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?

Evaluation
Evaluation Procedures
Procedures

Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.

Copyright 1999 Prentice Hall

The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 4.
4. Purchase
Purchase Decision
Decision

Purchase
Purchase Intention
Intention
Desire
Desire to
to buy
buy the
the most
most preferred
preferred brand
brand

Attitudes
of others

Unexpected
situational
factors

Purchase
Purchase Decision
Decision

Copyright 1999 Prentice Hall

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The
The Buyer
Buyer Decision
Decision Process
Process

Step
Step 5.
5. Postpurchase
Postpurchase Behavior
Behavior
Consumers
Consumers Expectations
Expectations of
of
Products
Products Performance
Performance
Products Perceived
Performance

Dissatisfied
Dissatisfied
Customer
Customer

Satisfied
Satisfied
Customer!
Customer!

Cognitive Dissonance

Copyright 1999 Prentice Hall

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Stages
Stages in
in the
the Adoption
Adoption Process
Process
Awareness
Awareness
Interest
Interest
Evaluation
Evaluation
Trial
Trial
Adoption
Adoption

Copyright 1999 Prentice Hall

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Early Majority
Innovators

Percentage of Adopters

Adoption
Adoption of
of Innovations
Innovations

Early
Adopters

34%

Late Majority

16%

Time of Adoption

Early

Laggards

34%

13.5%
2.5%

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Copyright 1999 Prentice Hall

Late

Influences
Influences on
on the
the Rate
Rate of
of Adoption
Adoption
of
of New
New Products
Products
Relative Advantage

Communicability

Is the innovation
superior to existing
products?

Can results be easily

observed or described
to others?

Product
Characteristics

Divisibility

Can the innovation

be used on a
trial basis?

Complexity

Is the innovation
difficult to
understand or use?

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Copyright 1999 Prentice Hall

Compatibility

Does the innovation

fit the values and
experience of the
target market?