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CHAPTER 4: CONSUMER MARKETS AND CONSUMER BUYER

Principles of Marketing
Assoc. Prof. Dr. Thu Huong Pham
Mobile: 0912522490
Email: huongftu1@gmail.com
BEHAVIOR
1. Consumer markets and model of consumer behavior:
1.1. Consumer markets
1.2 Consumer markets classifications
1.3. Model of consumer behavior
2. Types of buying decision behavior
2.1. Complex buying behavior
2.2. Dissonance-reducing buying behavior
2.3. Habitual buying behavior
2.4. Variety-seeking buying behavior
3. Factors affecting consumer behavior
3.1. Cultural factors
3.2. Social factors
3.3. Personal factors
3.4. Psychological factors
4. The buyer decision process

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1. Consumer markets and model of consumer 1. Consumer markets and model of consumer
behavior behavior
• 1.1 Consumer markets 1.2 Consumer markets classifications
• Consumer buyer behavior is the buying behavior of final consumers-
individuals and households that buy goods and services for personal Actual market or market share
consumption.
Potential market
• Consumer markets are made up of all the individuals and households
that buy goods and services for personal consumption. Mix market

Theory market

Test market

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1. Consumer markets and model of 2. Types of buying decision behavior

consumer behavior
1.3 The Model of Buyer Behavior

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2. Types of buying decision behavior

2. Types of buying decision behavior 2.1. Complex buying behavior
• Product:
The table shows the types of consumer buying behavior based on the Expensive
Purchased infrequently
degree of buyer involvement and the degree of differences among Risky
Significant differences among brands perceived by customers
brands.
• Marketers should:
Understand the information-gathering and evaluation behavior of consumers.
Help buyers learn about products’ attributes and their relative importance.

Describe and illustrate the brand’s benefits through printed promotional materials or in- depth online
information and videos
Motivate store salespeople and the buyer’s acquaintances to influence the final brand choice.

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2. Types of buying decision behavior 2. Types of buying decision behavior

2.2 Dissonance-reducing buying behavior:
• Product
Expensive
Purchased infrequently
Risky
Few differences among brands perceived by customers.
• Because perceived brand differences are not large, buyers may shop around to learn
what is available but buy relatively quickly. After the purchase, they might experience
post purchase dissonance (after-sale discomfort) when they notice certain
disadvantages of the purchased products or hear favorable things about brands not
purchased.
• Marketers should provide after-sale communications with evidences and support to
help consumers feel good about their brand choices.
2.3 Habitual buying behavior:
Product:
Low cost
Frequently purchased
Few difference among brands perceived by customers.
Consumers simply go to store and reach for a brand. If they keep reaching for the same
brand, it is out of habit rather than strong brand loyalty.
Marketers should:
Use price and sales promotions to stimulate product trial.
Ad campaigns should include high repetition of short-duration messages. TV is more
effective than print media because it is suitable for passive learning.
Add product features or enhancements to differentiate their brands from the rest of
the pack and raise involvement

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2. Types of buying decision behavior 3. Factors affecting consumer behavior

CULTURAL SOCIAL PERSONAL PSYCHOLOGICAL
2.4 Variety-seeking buying behavior:
Product: Culture Group and social network Age anf life cycle stage Motivation
Low cost Subculture Family Occupation Perception
Frequently purchased
Significant differences among brands perceived by customers. Social class Role and status Economic situation Leaning

Consumers do a lot of brand switching, which occurs for the sake of variety rather Life style Belief and attitudes
than because of dissatisfaction. Personality and self-concept
Marketing strategy may differ for the market leader and minor brands:
Market leader will try to encourage habitual buying behavior by dominating shelf, keep
shelves fully stocked and running frequent reminder advertising.
Minor brands will try to encourage variety seeking by offering lower prices, special
deals, coupons, free samples, and advertising that presents reasons for trying something
new. BUYER

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3. Factors affecting consumer behavior 3. Factors affecting consumer behavior

• Cultural factors
Culture: The set of basic values, perceptions, wants and behaviors learned by
a member of society from family and other important institutions.
Subculture: A group of people with shared value systems based on common
life experiences and situations.
Social class: Relatively permanent and ordered divisions in a society whose
members share similar values, interests and behaviours.
• Social factors
v Group and social networks: can have direct or indirect influence on a
consumer’s decision. A group is made up of two or more people who
interact to accomplish individual or mutual goals. Social networks are
where people socialize or exchange information and opinions.
vFamily: whose role can be spouse or kin, can strongly influence a
consumer’s purchase of different products and services.
vSocial roles and status: is the image of a consumer maintains within
Groups, Social Networks, and among Family by buying certain products
and services.

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3. Factors affecting consumer behavior

• Personal factors
ØAge and life stage: People change the goods and services they buy over their lifetimes. Tastes in
food, clothes, furniture, and recreation are often age related.

ØOccupation: Marketers try to identify the occupational groups that have an above-average interest in
their products and services

ØEconomic situation: A person’s economic situation will affect his or her store and product choices.
Ø Life style: A person’s pattern of living as expressed in his or her activities, interests, and opinions.
ØPersonality and self-concept: Personality refers to the unique psychological characteristics that
distinguish a person or group. Self- concept is the idea that possessions contribute to and reflect a
person’s identity.

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3. Factors affecting consumer behavior 4. The buyer decision process

• Psychological factors
vMotivation: is a need that is sufficiently pressing to direct the person to seek
satisfaction of the need
vPerception: is the process by which people select, organize, and interpret
information to form a meaningful picture of the world from three perceptual
processes which are selective attention, selective distortion and selective
retention
vLearning: is the change in an individual’s behavior arising from experience
vBelief and attitude: Belief is a descriptive thought that a person holds about
something. Attitudes describe a person’s relatively consistent evaluations,
feelings, and tendencies toward an object or idea.

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4. The buyer decision process 4. The buyer decision process

4.2 Information search
4.1 Need recognition
is the stage in which the consumer is motivated to search for
is the first stage of the buyer decision process, in which the more information.
consumer recognizes a problem or need triggered by:
Sources of information:
• Internal stimuli
Personal sources: family, friends
• External stimuli Commercial sources: advertising, sales force
Public sources mass media, Internet
The marketer should research consumers to find out what
kinds of needs or problem arise, and how they led the consumer to Experiential sources? handling, examining, using the product.
this particular product.
The marketer should research consumers to identify consumers’
sources of information and the importance of each source.

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4. The buyer decision process 4. The buyer decision process

4.3 Evaluation of alternatives 4.4 Purchase decision
• The stage of the buyer decision process in which the consumer is the buyer’s decision about which
uses information to evaluate alternative brands in the choice set. brand to purchase.
• Consumers do not use a simple and single evaluation process in • The purchase intention may not be the
all buying situations. It depends on the individual consumer and purchase decision due to:
the specific buying situation. • Attitudes of others
If marketers know what evaluative processes go on, they can • Unexpected situational factors
take steps to influence the buyer’s decision.
Marketer wants to know what interfere
between customer buying intention and
buying decision.

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4. The buyer decision process Publications

4.5 Post- purchase behavior
• Examining customer purchase decision towards battery electric vehicles in
Vietnam market: A combination of self-interested and pro-environmental
is the stage of the buyer decision process in which consumers take approach, Cogent Business & Management Journal, Taylor & Francis
Online, Scopus Q2
further action after purchase, based on their satisfaction or https://www.tandfonline.com/doi/full/10.1080/23311975.2022.2141671
• From Intention to Actual Behavior to Adopt Battery Electric Vehicles: A
dissatisfaction. Systematic Literature Review. The Open Transportation Journal, Bentham
Open, Scopus Q3
https://opentransportationjournal.com/VOLUME/16/ELOCATOR/e1874447
A company should set up systems that encourage customers to 822081 00/F
• Evaluating the purchase behavior of organic foods by young consumer in
complain. In this way, the company can learn how well it is doing and an emerging market economy, Vol.27 Issue 6, Journal of Strategic
marketing, A-ranking in Australian Business Deans Council’s journal list,
how it can improve. Scopus Q1 strategy and management, Q2 Marketing SCImago
• https://www.tandfonline.com/doi/abs/10.1080/0965254X.2018.1447984

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