Consumer Markets and

Consumer Buyer Behavior

Chapter 5
• Consumer buyer behavior refers
to the buying behavior of final
consumers – individuals and
households who buy goods and
services for personal consumption

• All of these final consumers

combine to make up the consumer
market

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Model of Buyer Behavior

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Factors Influencing Consumer
Behavior

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culture

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 Cultural Factors and Consumer
Behavior
 Culture
• Values - Forms a person’s wants and behavior
 Subculture
• Groups with shared value systems -
Religious, Linguistic, Racial
 Social Class
• Society’s divisions - share values, interests
and behaviors

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 Cultural Influences
• Collectivist / Individualistic
cultures
• Materialistic / Spiritual
• Hedonism / Ascetic
• Norms – prescriptive ‘Do’s and
taboos “Don’t’s
• Customs, Mores, Folklore
• Roles
• Symbolism
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Social influences on Consumer Behavior
 Groups
• Membership - Reference
• Non-membership - Aspirational
• Informational, Normative, Comparative influences
• Opinion Leaders
– Buzz marketing

 Family
• Roles: Initiator, Influencer, Gatekeeper, Decider,
User, Purchaser, Maintainer

 Roles and Status

 Wealth, Power, Prestige
 Social Comparison theory – Upward, Downward, Lateral
 FOMO – Fear of Missing Out

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 Types of groups
• Primary / Secondary
• Formal / Informal
• Friendship group, Shopping group,
Virtual group, Consumer action
group, Work group

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Personal factors & Consumer Behavior
 Age and life cycle stage
 Occupation
 Economic situation
 Lifestyle
 Values and Lifestyles VALS
•Activities, Interests and Opinions - AIO
•Lifestyle segmentation
 Personality and self-concept
 Psychographic segmentation

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 Psychological factors & Consumer
Behavior
Motivation
 Needs provide motives
 Motivation research
 Maslow’s hierarchy of needs
Perception
 Selective attention, selective distortion,
selective retention
Learning
 Drives, stimuli, cues, responses and
reinforcement
Beliefs and attitudes

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 Selective attention:

Imagine that you are at a party for a friend

hosted at a bustling restaurant. Multiple
conversations, the clinking of plates and forks,
and many other sounds compete for your
attention. Out of all these noises, you find
yourself able to tune out the irrelevant sounds
and focus on the amusing story that your dinner
partner shares.

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 Types of Buying Behavior

https://www.youtube.com/watch?v=LkFjd4xso7I – video 5 - 20
 Involvement
• Expense
• Frequency of purchase
• Time commitment
• Effort
• Social visibility
• Symbolic / psychological meaning
• Complexity
• Potential Risk

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The Buying Decision Process

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1. Need Recognition
The buying decision process begins when a consumer realizes
they have a need. They become aware they have a problem they
want to solve or a gap they want to fill.
At this point, the customer may or may not know what will solve
their problem. They may only be aware that they want to change
their reality or situation. Or they may have an idea about what will
help them but are not quite sure which brand, product, service, or
solution will provide the best option.
Customer Examples: A consumer buying process example at this
phase could be a college freshman, Sarah, who has a computer
that is starting to run slowly. She is getting ready to start the
semester and needs a computer that will efficiently help her with
her assignments
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2. Information Search
The next phase of the buying decision process begins when the
customer starts looking for information that will help them solve
their problem. They know they need something to fix their
situation but aren’t sure which solution is best for them.
The customer starts searching for information that will help him
or her better understand their situation and identify what will fix
their issues. At this point, the customer frequently turns to
online research and conducts searches to find solutions.
Customer Examples: Sarah, the college student may start
seeking information to help resolve her immediate problem,
which is speeding up her computer. Depending on what she
finds, she may also begin searching for options for purchasing a
new computer.

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3. Option Evaluation
Once the initial information search is complete, customers start
reflecting on what they learned or discovered. They begin to
evaluate their options to determine which is the best solution for
their problem.
Customers at this point in the buying decision process have a lot to
consider. They must determine what solution is the most
trustworthy, affordable, highest quality, and highest performing.
They look for reasons to believe why one solution has more
benefits than the other.
Customer Examples: In this phase, Sarah might be making a
comparison list of multiple computers. The list may include prices,
features, and reviews.
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4. Purchase Decision
At this point of the buying decision process, the customer is ready
to pull the trigger and make a purchase. They have made their
decision about which product, service, brand, or solution is best for
them, and they are ready to buy.
The research and evaluation are over, so now the customer just
needs a clear pathway to purchase. For a brand to help customers
through this phase, you need to make it simple to buy. You also
need to present additional reinforcements (like great reviews,
testimonials, discounts, etc.) that will lead to purchase and avoid
negative reinforcements (like bad reviews, additional expenses,
barriers, etc.), which will cause customers to turn away.
Customer Examples: Now that the college student, Sarah, has
decided to buy, she is likely eager to make the purchase and get her
computer. She may, therefore, be more likely to buy the computer if
she gets free and expedited shipping.
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5. Post-Purchase Evaluation
The customer has made a purchase. But that doesn’t mean the
customer journey is complete. Now is the time when the customer
reflects on whether they made the right decision.
The customer will consider if the solution accurately and fully
meets their needs. They will decide if it was worth the cost and if
the brand delivered on their promises. They will feel either
satisfaction or buyer’s remorse. If it’s the former, the customer
could come back to make another purchase. But if it’s the latter, the
customer could reject the brand, never make another purchase, and
even share their negative experience with others.
Examples: When Sarah makes it to this phase of her buying
decision process, she is using the computer and discovering what
she likes and doesn’t like. Reading resources that show her how to
better utilize the computer could make her like it more.
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 Need Recognition
Needs can be triggered by:
 Internal stimuli
• Normal needs become strong enough to
drive behavior
 External stimuli
• Advertisements
• Friends of friends

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 Information Search
• Consumers exhibit heightened attention or
actively search for information.
• Sources of information:
 Personal
 Commercial
 Public - Neutral
 Experiential
• Word-of-Mouth
• Word-of-Web

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 Evaluation of alternatives
• Involvement:
Evaluation procedure depends on the consumer
and the buying situation.
• Attributes or Features:
Most buyers evaluate multiple attributes, each
of which is weighted differently.
• Choice:
At the end of the evaluation stage, purchase
intentions are formed.

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 Purchase Decision
• Some factors can intercede between purchase
intentions and the actual decision:
 Attitudes of others
 Unexpected situational factors – new
information

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 Post-Purchase behaviour

• Satisfaction is important:
 Delighted consumers engage in positive
word-of-mouth.
 Unhappy customers tell on average 11
other people.
 It costs more to attract a new customer
than it does to retain an existing customer.
• Cognitive dissonance

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Buyer Decision Process for
New Products
New Products
 Good, service or idea that is
perceived by customers as new.
Stages in the Adoption Process
 Marketers should help consumers
move through these stages.

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Buyer Decision Process for
New Products

Stages in the Adoption Process

Awareness – Interest –
Evaluation – Trial - Adoption

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1.Awareness – consumer becomes aware of the new
product but lacks information about it
2.Interest – consumer seeks information about the new
product
3.Evaluation – consumer considers whether trying the
new product makes sense
4.Trial – consumer tries the new product on a small
scale to improve his/her estimate of its value
5.Adoption – consumer decides to make full and
regular use of the new product

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 Adopter Categories Based
on Relative Time of Adoption

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1.Innovators – they are
venturesome
2.Early adopters – they are guided
by respect and often are opinion
leaders in their communities
3.Early majority – they are
deliberate
4.Late majority – they are sceptical
5.Laggards – they are tradition-
bound

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Buyer Decision Process for
New Products
Individual Differences in Innovativeness
 Consumers can be classified into five
adopter categories, each of which behaves
differently toward new products.
Product Characteristics and Adoption
 Five product characteristics influence the
adoption rate.

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Buyer Decision Process for
New Products

Product Characteristics
Relative Advantage Complexity
Compatibility Divisibility
Communicability

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1.Relative advantage – the degree to which the innovation
appears superior to existing products.
2.Compatibility – the degree to which the innovation fits the
value and experiences of potential consumers
3.Complexity – the degree to which the innovation is difficult
to understand or use
4.Divisibility – the degree to which the innovation may be
tried on a limited basis
5.Communicability – the degree to which the results of using
the innovation can be observed and described to others.

Other characteristics that can influence the adoption rate also

include the initial and ongoing costs, risk and uncertainty, as
well as social approval

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