MKT 7001

Consumer Buyer Behaviour

Lecture 2

LECTURER
Augustine Png
Copyright 2011 Singapore Cruise Centre Pte Ltd
 Learning outcomes

1. Critically evaluate the main theories of buyer and consumer

behaviour.

2. Critically analyse how buyer and consumer behaviour theories

can be used in the development of more effective marketing
strategies.
 Understanding consumer buying behaviour
• Understanding consumer buying behaviour is
important to the marketing manager because:

• the buyer’s reaction to the organisation’s marketing

strategy affect its success or failure

• to be able to devise the marketing mix, one must

know what, where, when and how customers buy

• by gaining a better understanding of the customers

buying behaviour, the organisation will be better able
to predict the effectiveness of its marketing activities
 Model of consumer behaviour

Consumer buyer behaviour: the buying behaviour

of final consumers—individuals and households
that buy goods and services for personal
consumption.

Consumer market: all the individuals and

households that buy or acquire goods and
services for personal consumption.
Model of consumer behaviour from
Kotler and others, Principles of
Marketing
Model of consumer behaviour
Buyer’s black box
Factors affecting consumer behaviour
 Factors affecting consumer
behaviour : Culture

Cultural factors exert a broad and deep

influence on consumer behaviour.

Culture is the learned values, perceptions,

wants and behaviours from family and
other important institutions.
 Factors affecting consumer
behaviour : Subculture

Subculture are groups of people within a

culture with shared value systems based on
common life experiences and situations.
• Chinese Singaporeans
• Malay Singaporeans
• Indian Singaporeans
• Other Singaporeans
 Factors affecting consumer
behaviour : Social factors

A consumer’s behaviour is influenced by

social factors such as the consumer’s social
classes, reference groups, family, and social
roles and status.

.
 Factors affecting consumer
behaviour : Social classes

Social classes are relatively permanent and

ordered divisions in a society whose
members share similar values, interests
and behaviours.
• Measured by a combination of occupation,
income, education, wealth and other
variables.
Factors affecting consumer behaviour :
reference groups

Membership Aspirational Reference

groups groups groups
• Groups with • Groups an • Groups that
direct individual form a
influence and wishes to comparison
to which a belong to or reference
person in forming
belongs attitudes or
behaviour
Factors affecting consumer behaviour :
Groups and social networks

• Word-of-mouth influence and buzz

marketing
– Opinion leaders are people within a
reference group who exert social influence
on others.
– Also called influentials or influencers.
– Marketers identify them to use as brand
ambassadors.
Factors affecting consumer behaviour :
family and social roles/status

• Family is an important consumer-buying

organisation in society.

• Social roles and status are the groups,

family, clubs and organisations that a
person belongs to that can define role and
social status.
Factors affecting consumer behaviour :
Personal factors

• Age and life-cycle stage

• Life stages
– Youth: younger than 18
– Getting started: 18–35
– Builders: 35–50
– Accumulators: 50–60
– Preservers: over 60.
Factors affecting consumer behaviour :
Personal factors

Occupation affects the goods and services

bought by consumers.
Economic situation includes trends in:

Personal Interest
Savings
income rates
Factors affecting consumer behaviour :
Lifestyle

Lifestyle is a person’s pattern of living as

expressed in his or her psychographics.
• Measures a consumer’s AIOs (activities,
interests, opinions) to capture
information about a person’s pattern of
acting and interacting in the environment.
Factors affecting consumer behaviour :
Personality

• Personality and self-concept

– Personality refers to the unique psychological
characteristics that lead to consistent and
lasting responses to the consumer’s
environment.
Factors affecting consumer behaviour
: Personality

Personal
Dominance Autonomy
factors

Defensiveness Adaptability Aggressiveness

Copyright © 2017, 2014, 2009 Pearson Education, Inc. All Rights Reserved
Factors affecting consumer behaviour :
Psychological factors

Motivation

Perception

Learning

Beliefs and attitudes

Factors affecting consumer behaviour :
Motivation

A motive is a need that is sufficiently pressing

to direct the person to seek satisfaction.

Motivation research refers to qualitative

research designed to probe consumers’
hidden, subconscious motivations.
Factors affecting consumer behaviour
: Motivation
Maslow’s hierarchy of needs

Copyright © 2017, 2014, 2009 Pearson Education, Inc. All Rights Reserved
Factors affecting consumer behaviour :
Perception

Perception is the process by which people

select, organise and interpret information
to form a meaningful picture of the world
from three perceptual processes:
– Selective attention
– Selective distortion
– Selective retention.
Factors affecting consumer behaviour :
Selective tendency

Selective attention is the tendency for people to

screen out most of the information to which they
are exposed.
Selective distortion is the tendency for people to
interpret information in a way that will support
what they already believe.
Selective retention is the tendency to remember
good points made about a brand they favour and
forget good points about competing brands.
Factors affecting consumer behaviour :
Learning

• Learning is the change in an individual’s

behaviour arising from experience and
occurs through the interplay of:

Drives Stimuli Cues

Responses Reinforcement
Factors affecting consumer behaviour :
Belief

Belief is a descriptive thought that a person

holds about something based on:
• Knowledge
• Opinion
• Faith.
Factors affecting consumer behaviour :
Attitudes

Attitudes describe a person’s consistently

favourable or unfavourable evaluations,
feelings and tendencies toward an object or
idea.
Kotler’s Model of consumer behaviour

External Buy

Stimulus Decision Response

Internal making Don’t Buy
processes
Stimulus response model
Purchase decision
Kotler’s Model of consumer behaviour

External Buy
stimulus
Decision making
processes
Internal Don’t Buy
stimulus
 Pros and Cons of Kotler’s model of
consumer behaviour
Pros:

1. Logical and comprehensive model of consumer behaviour.

2. Major factors affecting consumer buying behavior were

addressed.

3. Candid with ready admission of the limitations of the

model.
 Pros and Cons of Kotler’s model of
consumer behaviour
Cons:

1. Factors are too general. Difficult to derive clear action from

the model.

2. Insufficient indication on the relative strengths of each

group of factors or each factor affecting buyer’s behavior.

3. Assumes consumer buyer’s behavior is a rational

cognitive process.
 Thank You

Copyright 2011 Singapore Cruise Centre Pte Ltd