Consumer Market and

Consumer Buyer
Behavior
Chapter Four
Learning outlines: 2

 Definition.

 Model of consumer behavior.

 Characteristics affecting consumer behavior.

 Types of consumer behavior.

 The buyer decision process.

 The buyer process for new products.

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 Definition 3

 Consumer buyer behavior. The buying behavior of

final consumers; individuals and households who buy
goods and services for personal consumption.
 Consumermarket. All the individuals and households
who buy or acquire goods and services for personal
consumption.

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Model of consumer behavior 4
Marketing & other stimuli Buyer's black box Buyer's
response
Marketing Environmental Buyer Decision
Stimuli Stimuli Characteristics Process
Product Economic Attitudes Problem Product
Price Technological Motivation recognition choice.
Place Political Perceptions . Brand choice.
Promotion Cultural Personality Information Dealer
Demographic Lifestyle search. choice.
Natural Knowledge Alternative Purchase
evaluation. timing.
Purchase Purchase
decision. amount.
Post-
purchase
behavior.

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 RM152,530.00
RM123,800

RM1,010,800
RM525,000 TREY
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Characteristics affecting consumer 6
behavior
 Cultural factors. Culture, sub-culture, social class.

 Social factors. Groups, family, roles and status.

 Personal factors. Age and life-cycle stage, occupation, economic

situation, lifestyle, personality and self-concept.

 Psychological factors. Motivation, perception, learning, beliefs and

attitudes.

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Cont.,

Culture- may be defined as

the set of basic values,
perception, wants and
behavior learned by a
member of society from
family and other important
institutions. (Kotler,1996)
As marketers, we must be aware
of the cultural influences on the
buying of product and services
and the changes on culture that
have significant marketing.

Note: It is important for multinational

marketers to understand the different cultures
of different markets/countries

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 Cont., 8

Sub-Cultural – small group that are based upon race, nationality,

religion, geographic location, urban etc., which share elements of
their overall culture as well as unique elements of their group.
 Example: Zaiton’s product has advertisement in Tamil language to
attract the Indian Muslims market to use their products.

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Aspects of culture
Values are
The study of
Culture can be beliefs that
culture includes
described as guide culturally
language,
the society’s appropriate
knowledge,
personality behaviour, are
laws, rituals
enduring, and
and so on
are widely
accepted

Both values and Customs are

beliefs are
overt modes
mental images About of
that affect a
wide range of culture behaviour
attitudes and for specific
behaviours situations

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Cont., 10

Social Class – are society’s relatively permanent and ordered division,

whose members share similar values, interest and
behavior.(Kotler,1996). It comprise of the upper class, middle class
and lower class.
 Marketers must find distinct product and brand preferences that
can offer to the various level of social class.

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Marketing applications – fashion and shopping
Lower
Upper-class
middle-class

Prefer T-shirts with Prefer more

a sporting team subtle looking
or some form of clothing, such as
licensed overseas
trademark sportswear

Use mass- More likely

market stores customers for
such as Mydin Colorado and
and Giant David Jones

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Cont.,

2. Social Factors – a consumer behavior is also influenced by social

factors such as:-
i. Reference groups – a group in society that influences an
individual’s purchasing behavior. Consumers may use products or
brands to identify with or to become a member of the group.
ii. Family
iii. Opinion leader –an individual who influences the opinion of
others. Example – movie stars, sports figure, celebrity, etc to
promote products.

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Cont.,
3. Individual Factors
i. Gender – have different needs and wants.
ii. Age - tastes in food, clothes, furniture, and recreation are often age
related.
Family life cycle stage - (ex., young singles, young married with
children/no children etc.)
iii. Personality – a way of organizing and grouping the consistencies of
an individual’s reaction to situations (ex., type of car, clothes or
jewelry),
Self concept – how consumers perceives themselves in term of
attitude, perceptions, beliefs, and self evaluation.
Life style – a person pattern of living as expressed in his or her
activities, interest and opinion: or AIO INVENTORY

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Psychographic segmentation
 Psychographic research is also referred to as ‘lifestyle
analysis’
 Often considers consumers’ AIO’s
 AIO = activities, interests, opinions
 Used to help structure appropriate marketing messages

Activities Interests Opinions

Work Home Politics
Internet Fashion Social events
Sport Food The future

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About the family stages
• Have disposable income for rent, cars,
travel and entertainment
Young singles
• Easy to reach through specialist
magazines and certain TV shows
• High disposable income, but have
Young marrieds considerable start-up home expenses
• Also referred to as the full-nest stage
Parenthood • Family structure and needs will change
over this 20-25 year period
• Also referred to as the empty-nest stage
Post-parenthood • Best financial stage and retirement may
provide the opportunity for travel
• Tend to follow a more economic lifestyle
Dissolution
in this stage

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Cont.,
 4. Psychological Factors. There are four main factors:
I. Motivation – a driving force that causes a person to take action
to satisfy specific needs.
II. Perception – the process by which people select, organize,
and interpret information to form a meaningful picture of the
world.
III. Learning – changing in individual’s behavior arising from
experience.
IV. Beliefs – a descriptive thought that a person has about
something.
Attitudes – a person’s relatively consistent evaluations,
feelings, and tendencies toward an object or idea.

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 The ‘techno-class’
 With the growth in computers and Internet, the ability to use
and benefit from technology has become a new kind of
class standing
 Parents seek early computer exposure for their children, as
computer ability has become a requirement for career
success
 Those without computer skills will be disadvantaged
 In the present and future trends - people will more buy
online compare to offline.

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Types of buying decision behavior 18

 Complex buying behavior. Consumer buying behavior in situations

characterized by high consumer involvement in a purchase and
significant perceived differences among brands. (Eg: car, house,
etc)
 Dissonance-reducing buying behavior. Consumer buying behavior
in situations characterized by high involvement but few perceived
differences among brands. (Eg: handphone, television, etc)
 Habitual buying behavior. Consumer buying behavior in situations
characterized by low consumer involvement and few significant
perceived brand differences. (Eg: sugar, salt, etc)
 Variety-seeking buying behavior. Consumer buying behavior in
situations characterized by low consumer involvement but
significant perceived brand differences. (Eg: cookies, ice cream)

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Four types of buying behavior adapted from Henry Assael.

High involvement Low involvement

Significant differences Variety- seeking

Complex buying buying
between brands behavior behavior

Dissonance
Few difference between reducing Habitual buying
brands buying behavior
behavior

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 Five Stages of Buyer Decision Process

01 02 03 04 05
Evaluation
Need Information Of Purchase Postpurchase
Recognition Search alternatives decision behavior

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 Need recognition.
 The first stage of the buyer decision process, in which the consumer recognizes a
problem or need.
 Information Search.
 The stage of the buyer decision process in which the consumer is aroused to search for
more information; the consumer may simply have heightened attention or may go into
active information search internal and external.
 Evaluation of alternatives.
 The stage of buyer decision process in which the consumer uses information to evaluate
alternative brands in the choice set.
 Purchase decision.
 The buyer’s decision about which brand to purchase.

 Post-purchase behavior.
 The stage of the buyer decision process in which the consumers takes further action after
purchase, based on their satisfaction or dissatisfaction.

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Some sources of external information
Independent
Salespeople Friends
product
and family
reviews

Brochures Packaging

Visiting a Advertising
store

Personal and
The impersonal Direct
Internet information marketing
sources

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The buyer decision process 23

(cont’d)
 The state of having inconsistent thoughts, beliefs,
or attitudes, esp. as relating to behavioral
decisions and attitude change is known as
“cognitive dissonance”.

 In marketing “cognitive dissonance” is a buyer

discomfort caused by post-purchase conflict.

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Individual Differences in innovations 24

 first 2.5 % of the buyers to adopt the

new idea with some risk.
 13.5 % early adaptors which are the
are also opinion leaders in
communities and adopt news ideas
early with carefully.
 34% early majority are
deliberate/cautious adopts new
ideas before the average persons.
 34% late majority are
skeptical/uncertain/distrust which
they adopt an innovation only after
a majority of people have tried it.
 16% laggards/lazybones, the are
suspicious of changes and adopt the
innovation only when it has become
something of a tradition itself.

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Influence of product characteristics on rate
25
of adoption
 Relative advantage.
 Is the innovation superior to existing product.

 Compatibility.
 Does the innovation fit with 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 limited basis.

 Communicability.
 Can results be easily observed or described to others.

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The Consumer Buying Process
Personal & Environmental Factors
Psychological Personal Social Cultural

Problem Information Evaluation of Purchase Post-purchase

Recognition Seeking Alternatives Decision Evaluation

Marketing Factors
Product Pricing Promotion Place

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 27

Consumers make many buying

decisions every day. Marketers must
decide on the degree to which they
will adapt their products and
marketing programs to meet the
unique cultures and needs of
consumers in various market.

Conclusion
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 28

Thank
You

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