Chapter 4

Consumer
Markets and
Buying Behavior

4-1
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
 The Consumer Market

ULTIMATE
ULTIMATE CONSUMERS
CONSUMERS

Buy
Buy goods
goods and
and services
services
for
for their
their own
own personal
personal or
or
household
household use
use

4-2
 Geographic Distribution

4-3
 Geographic Distribution

Rural Growing
Growing
Rural Deconcentration
Deconcentration
25%
25% of
of the
the Population
Population

Metropolitan
MetropolitanAreas:
Urban
Urban MSA
Areas:
MSA
75%
75% of
of the
the Population
Population PMSA
PMSA
CMSA
CMSA

Real
RealGrowth
Suburban
Suburban Population
Population Growth
Economic,
Economic,Racial,
Racial,
Ethnic
EthnicImplications
Implications

4-4
 Consumer Demographics

MuchIncome
Much Incomeand
andfinancial
financialassets
assets
Age
Age heldby
held byolder
oldergroup
group

Family Familyform
Family formover
overtime
timeis
isaa
Family majordeterminant
determinantofofconsumer
consumer
LifeCycle
Cycle major
Life behavior
behavior

Education, Majorityare
Majority arewell-educated
well-educatedand
and
Education,
Income prosperouswhile
prosperous while12%
12%live
live
Income belowpoverty
poverty
below

Race,
Race, AfricanAmericans,
African Americans,Hispanics,
Hispanics,Asians
Asians
Ethnicity
Ethnicity
4-5
 Family Life Cycle Stages
Bachelor
Bachelor
Young
YoungMarried
Married
Nine
Nine Full
FullNest
NestII
stages
stages Single
SingleParents
Parents
with
with Divorced
Divorcedand
andAlone
Alone
different
different Middle-aged
Middle-agedMarried
Married
buying
buying
Full
FullNest
NestIIII
behavior
behavior
Empty
EmptyNest
Nest
Older
OlderSingle
Single

4-6
 Consumer Buying-Decision
Process

4-7
 Consumer Buying-Decision
Process

Loyalty

Involvement

Impulse
Buying

4-8
 Consumer Buying-Decision
Process

Need
Need recognition
recognition

Identification
Identification of
of
alternatives
alternatives

Evaluation
Evaluation of
of
alternatives
alternatives

Purchase
Purchase and
and
related
related decisions
decisions

Postpurchase
Postpurchase
behavior
behavior

4-9
 Information and Purchase
Decisions

Information
Information

Commercial
Commercial
sources
sources

Social
Social sources
sources

4-10
 Social Influences

Culture
Culture

Subcultures
Subcultures

Social
Social class
class

Reference
Reference groups
groups

Families
Families and
and
Households
Households

4-11
 Psychological Influences

Motivation
Motivation

Perception
Perception

Learning
Learning

Personality
Personality

Attitude
Attitude

4-12
 Perception
Processof
Process ofreceiving,
receiving,organizing,
organizing,and
andassigning
assigning
meaningto
meaning toinformation
informationororstimuli
stimulidetected
detectedby
byour
ourfive
fivesenses
senses

Selective
Selective Selective
Selective
Perception
Perception Attention
Attention

Selective
Selective Selective
Selective
Distortion
Distortion Retention
Retention
4-13
 Psychological Influences

Motivation
Motivation

Perception
Perception

Learning
Learning

Personality
Personality

Attitude
Attitude

4-14
 Personality
Anindividual’s
An individual’spattern
patternof
of traits
traitsthat
that influence
influence
behavioralresponses
behavioral responses

Psychoanalytic
Psychoanalytic
Theory
Theory
Hidden
Hidden buying
buying
motives
motives
Dreams,
Dreams, hopes,
hopes,
fantasies, Self-concept
Self-concept
fantasies, fears
fears
Actual
Actual
Ideal
Ideal

4-15
 Attitudes
Learned
Learned predisposition
predisposition to to respond
respond to
to an
an
object
object in
in aa consistently
consistently favorable
favorable
or
or unfavorable
unfavorable way
way

Characteristics
Characteristics

Learned
Learned
Object
Object
Direction
Direction
Intensity
Intensity
Stable
Stable
Generalizable
Generalizable

4-16
 Situational Factors

When
When consumers
consumers buy
buy

Where
Where consumers
consumers buy
buy

Why
Why consumers
consumers buy
buy

Conditions
Conditions under
under
which
which
consumers
consumers buy
buy

4-17
 Situational Influences

Surroundings
Surroundings
Time
Time

Consumer
Consumer Terms
Moodsand
and Terms
Moods
Motives
Motives

4-18
 Consumer Buying-Decision
Process

4-19
 Harley-Davidson

What accounts for the behavior of

Harley’s buyers and Harley’-
Davidson’s success?

4-20