Consumer Markets and

Consumer Buyer
Behavior
Chapter 5

2
Schedule Before Midterm
4 Oct.8/9 Consumer Markets and
Consumer Buyer Behavior
Ch.5 Case 3
5 Oct.15/16 Business Markets and Business
Buyer Behavior
Ch.6 Case 4
6 Oct.22/23 Marketing Information System Ch.4 Case 5
3
Learning Goals
1. Define the consumer market and construct a
model of consumer buyer behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the process
4. Describe the adoption and diffusion process
for new products

Case Study
Harley Davidson
Building Success

Understanding the
customers emotions
and motivation
Determining the factors
of loyalty
Translating this
information to effective
advertising
Measuring Success

Currently 22% of all U.S.
bike sales
Demand above supply
Sales doubled in the past
5 years with earnings
tripled
5 - 4
5
Learning Goals
1. Define the consumer market and construct a
model of consumer buyer behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the process
4. Describe the adoption and diffusion process
for new products

6
Definitions
Consumer buyer behavior refers to the
buying behavior of final consumers
individuals and households who buy
goods and services for personal
consumption
All of these final consumers combine
to make up the consumer market
7
8
Learning Goals
1. Define the consumer market and
construct a model of consumer buyer
behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the
process
4. Describe the adoption and diffusion
process for new products

Model of Buyer Behavior

10
Characteristics Affecting
Consumer Behavior
Culture
Forms a persons wants and
behavior
Subculture
Groups with shared value
systems
Social Class
Societys divisions who
share values, interests and
behaviors
Cultural
Social
Personal
Psychological
Key Factors
11
Characteristics Affecting
Consumer Behavior
Groups
Membership
Reference
Aspirational
Opinion leaders
Buzz marketing
Family
Many influencers
Roles and status
Cultural
Social
Personal
Psychological
Key Factors
This
advertiser
knows teens
are strongly
influenced by
groups when
purchasing
fashion items
13
Characteristics Affecting
Consumer Behavior
Age and life cycle
Occupation
Economic situation
Lifestyle
Activities, interests and
opinions
Lifestyle segmentation
Personality and self-concept
Cultural
Social
Personal
Psychological
Key Factors
14
Personal Factors
Family Life Cycle stages throughout which
families pass as they mature over time
Stages in family life cycle:
1.bachelor stage
2.newly married couples, no children
3.full nest 1; youngest child under 6
4.full nest 2; youngest child 6 or over
5. full nest 3; older married couples with dependent children
6.empty nest 1; older married couples no children with them
7. empty nest 1; older married couples no children at home;retired
8.solitary survivor, working
9.solitary survivor, retired

15
Personal Factors

Personality a persons unique
characteristics that lead to relatively consistent
and lasting responses to his environment

Self-concept the self image or general
picture that people have of themselves

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Personal Factors
Lifestyle a persons pattern of living as
expressed in his activities, interests and
opinions
Psychographics technique of measuring lifestyles
and developing lifestyle classifications
Major dimensions measured are:
Activities (work, hobbies, social events, entertainment,
shopping, sports,vacation)
Interests (family, home, job, recreation, fashion, food,
media, achievements)
Opinions (themselves, social issues, politics, business,
economics, products, future)

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High Resources
































High Innovation
















Achievers
Actualizers
Strugglers
Strivers
Fulfilleds
Believers
Experiencers
Makers
Values and Lifestyles (VALS)
Low Resources
Low Innovation
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Brand Personality Dimensions
Sincerity
Ruggedness
Excitement
Competence
Sophistication
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Characteristics Affecting Consumer
Behavior
Motivation
Perception
Learning
Beliefs and attitudes
Cultural
Social
Personal
Psychological
Key Factors
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Psychological Factors
Motivation
A motive is a need that is sufficiently
pressing to direct the person to seek
satisfaction
Motivation research is based on Freud.
Looks for hidden and subconscious
motivation
Maslow ordered needs based on how
pressing they are to the consumer
Maslows Hierarchy of Needs

This ad
demonstrates a
product meeting
physiological
and social
needs
Discussion
What consumer
products might fulfill
multiple levels of the
Hierarchy of Needs?
24
Psychological Factors
Perception
Perception is the process by which people
select, organize, and interpret information.
Perception Includes:
Selective attention
Consumers screen out information
Selective distortion
People interpret to support beliefs
Selective retention
People retain points to support attitudes
Discussion Question
Perception
1. How many ads were
you exposed to
today?
2. Which ones do you
remember? Why?
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Psychological Factors
Learning
Learning describes changes in an individuals
behavior arising from experience
Learning occurs through
Drives
Internal stimulus that calls for action
Stimuli
Objects that move drive to motive
Cues
Minor stimuli that affect response
Reinforcement
Feedback on action

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Psychological Factors Beliefs
and Attitudes
Belief
a descriptive thought about a brand or service
may be based on real knowledge, opinion, or
faith
Attitude
describes a persons evaluations, feelings and
tendencies toward an object or idea
They are difficult to change
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Learning Goals
1. Define the consumer market and
construct a model of consumer buyer
behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the
process
4. Describe the adoption and diffusion
process for new products

29
Types of Buying
Decision Behavior

31
The Buying Roles
5 roles people might play in a buying decision
Initiator who first gives the idea of buying the
product or service
Influencer whose view or advice influences the
decision
Decider who decide on any component of buying
decision
Buyer who makes the actual purchase
User who uses the product or sevice purchased
The Buyer Decision Process

33
The Buyer Decision
Process
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Needs can be triggered
by:
Internal stimuli
Normal needs
become strong
enough to drive
behavior
External stimuli
Advertisements
Friends of friends
Process Stages
34
The Buyer Decision
Process
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Consumers exhibit
heightened attention or
actively search for
information
Sources of information:
Personal
Commercial
Public
Experiential
Word-of-mouth
Process Stages
35
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
Personal Sources
Commercial Sources
Public Sources
Experiential Sources



Information Search
36
The Buyer Decision
Process
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Evaluation procedure
depends on the consumer
and the buying situation.
Most buyers evaluate
multiple attributes, each of
which is weighted
differently.
At the end of the evaluation
stage, purchase intentions
are formed.
Process Stages
37
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.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
Evaluation of Alternatives
38
Total
Set
Decision Making Sets
Aware-
ness
Set
Consid-
eration
Set
Choice
Set
Decision
39
The Buyer Decision
Process
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Two factors intercede
between purchase
intentions and the actual
decision:
Attitudes of others
Unexpected
situational factors
Process Stages
40
Buyer Decision Process for
New Products
New Products
Good, service or idea that is perceived by
customers as new.
Stages in the Adoption Process
Marketers should help consumers move
through these stages.
41

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.

Stages in the Adoption Process
42
Buyer Decision Process for
New Products
Individual Differences in Innovativeness:

Consumers can be classified into five
adopter categories, each of which behaves
differently toward new products
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Adopter Categories
P
e
r
c
e
n
t
a
g
e

o
f

A
d
o
p
t
e
r
s

Time of Adoption
Early Late
I
n
n
o
v
a
t
o
r
s

Early
Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
44
Buyer Decision Process for
New Products
Product Characteristics influencing the adoption rate:

Relative Advantage Is the innovation superior to
existing products?
Compatibility Does the innovation fit the values and
experience of the target market?
Complexity Is the innovation difficult to understand
or use?
Divisibility Can the innovation be used on a trial
basis?
Communicability Can results be easily observed or
described to others?

45
Buyer Decision Process for
New Products
International Consumer Behavior

Values, attitudes and behaviors differ greatly in other
countries.
Physical differences exist which require changes in
the marketing mix.
Customs vary from country to country.
Marketers must decide the degree to which they will
adapt their marketing efforts.
Discussion Question

How is a site
like
Consumer
Reports
used in the
decision-
making
process?
Why might the
adoption process be
slow for a home
robot?
Discussion Question

Source: Business Week
Source: Business Week
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The Buyer Decision
Process
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Satisfaction is important:
Delighted consumers
engage in positive word-
of-mouth.
Unhappy customers tell
on average 11 other
people.
Cognitive dissonance is
common
Process Stages
49
Learning Goals
1. Define the consumer market and
construct a model of consumer buyer
behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the
process
4. Describe the adoption and diffusion
process for new products

50
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Ramazan Bayraminiz Kutlu & Mutlu
olsun!!!
For Next Week
Read Chapter 6
Be prepared for case 4 Kodak discussion