Chapter 5

Consumer Markets and Consumer Buying Behavior

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Consumer Buying Behavior

Consumer Buying Behavior refers to the buying behavior of final consumers individuals & households who buy goods and services for personal consumption. All these consumers make up the consumer market. The central question for marketers is:
– “How do consumers respond to various marketing efforts the company might use?”
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Model of Buyer Behavior (Fig. 5.1) Marketing and Other Stimuli Marketing Product Price Place Promotion Buyer’s Black Box Buyer Characteristics Buyer Decision Process Buyer Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount Other Economic Technological Political Cultural 3 .

Factors Influencing Consumer Behavior (Fig. 5.2) Cultural Social Culture Subculture Social class Reference groups Family Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psychological Motivation Perception Learning Beliefs and attitudes Buyer Roles and status 4 .

Factors Affecting Consumer Behavior: Culture Culture is the Most Basic Cause of a Person's Wants and Behavior. Subculture • Group of people with shared value systems based on common life experiences. • Hispanic Consumers • African American Consumers • Asian American Consumers • Mature Consumers 5 .

and behaviors. • Measured by: Occupation. Wealth and Other Variables. 6 . Education. Perceptions. Income.Factors Affecting Consumer Behavior: Culture Culture is the Set of Values. Wants & Behavior Learned by a Member of Society from Family. interests. Social Class • Society’s relatively permanent & ordered divisions whose members share similar values.

kids •Influencer.Factors Affecting Consumer Behavior: Social Groups •Membership •Reference Family (most important) •Husband. wife. What other companies use children to influence family buying decisions? Click or pre ss spa cebar to return 7 . Johnson & Johnson reminds customer’s of its commitment to the American Family. buyer. user Social Factors Family Buying Influence Roles and Status Children can exert a strong influence on family buying decisions.

Factors Affecting Consumer Behavior: Personal Personal Influences Personal Influences Age and Life Age and Life Cycle Stage Cycle Stage Economic Economic Situation Situation Personality & Personality & Self-Concept Self-Concept Occupation Occupation Lifestyle Identification Lifestyle Identification Activities Activities Interests Interests Opinions Opinions 8 .

Factors Affecting Consumer Behavior: Psychological Motivation Beliefs and Attitudes Psychological Factors Affecting Buyers Choices Perception Learning 9 .

thirst) 10 . protection) Safety Needs Physiological Needs (hunger. love) Social Needs (security.4) Self Actualization (Self-development) Esteem Needs (self-esteem) (sense of belonging.Maslow’s Hierarchy of Needs (Fig. 5.

5.5) High Involvement Significant differences between brands Few differences between brands Low Involvement Complex Buying Behavior DissonanceReducing Buying Behavior VarietySeeking Behavior Habitual Buying Behavior 11 .Types of Buying Decision Behavior (Fig.

5.6) Purchase Decision Evaluation of Alternatives Information Search Need Recognition Postpurchase Behavior 12 .Buyer Decision Process (Fig.

Need Recognition Buyer Recognizes a Problem or a Need. Needs Arising From: State Where the Buyer’s Needs are Fulfilled and the Buyer is Satisfied.Buyer Decision Process Step 1. Internal Stimuli – Hunger External Stimuli- Friends 13 .

friends. neighbors •Most effective source of information •Advertising. Information Search Personal Sources Commercial Sources Public Sources Experiential Sources •Family.The Buyer Decision Process Step 2. salespeople •Receives most information from these sources •Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product 14 .

Consumers May Make Buying Decisions Only After Consulting Others. Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives 15 .The Buyer Decision Process Step 4. Evaluation of Alternatives Consumer May Use Careful Calculations & Logical Thinking Consumers May Buy on Impulse and Rely on Intuition Consumers May Make Buying Decisions on Their Own.

The Buyer Decision Process Step 5. Purchase Decision Desire to buy the most preferred brand Purchase Intention Attitudes of Others Unexpected Situational Factors Purchase Decision 16 .

Postpurchase Behavior Satisfied Customer! Consumer’s Expectations of Product’s Performance. Product’s Perceived Performance.The Buyer Decision Process Step 6. Dissatisfied Customer 17 .

Discussion Connections • Form small groups to discuss a specific major purchase that one of you has made recently. – What type of buying decision was it? (slide #12) – Discuss the Buyer Decision Process and what major factors influenced your decisions. .

Stages in the Adoption Process Awareness: Consumer is aware of product. Trial: Consumer tries new product on a small scale. Interest: Consumer seeks Information about new product. 19 . Adoption: Consumer decides to make regular use of product. Evaluation: Consumer considers trying new product. but lacks information.

5% 34% 34% 16% Laggards 2.7) Percentage of Adopters Early Majority Late Majority Innovators Early Adopters 13.Adopter Categories (Fig.5% Time of Adoption Late Early 20 . 5.

Influence of Product Characteristics on Rate of Adoption Communicability Can results be easily observed or described to others? Relative Advantage Is the innovation superior to existing products? Can the innovation be used on a trial basis? Is the innovation difficult to understand or use? Divisibility Complexity Does the innovation fit the values and experience of the target market? Compatibility 21 .

Review of Concept Connections • • • • Define the consumer market and construct a simple model of consumer buyer behavior. Describe the adoption and diffusion process for new products. List and understand the stages in the buyer decision process. Name the four major factors that influence consumer buyer behavior. 22 .

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