Government College Women University Faisalabad

Subject Name :Fundamentals of Marketing

Course Code :MPA-562
Instructor Name: Maryam Saleem
Class& Section :MPA-2nd
Chapter Name : Consumer Markets and Buyer Behavior
Book Name : Principles of Marketing by Philip Kotler & Gary Armstrong(global
edition)
Lecture No :9
Learning outcomes
After studying this you will be able to explain
 Consumer behavior
 Consumer market
 Model of buyer behavior
 Characteristics Affecting Consumer Behavior
 Culture
 Social Class
 Groups and social Networks
 Social Factors
Models of Consumer Behavior
 Consumer buying behavior
Consumer buyer behavior refers to the
buying behavior of final consumers—
individuals and households who buy
goods and services for personal
consumption
 Consumer market
Consumer market refers to all of the
personal consumption of final
consumers
Consumer Behavior
 Models of Consumer Behavior
 In earlier times, marketers could understand consumers well through the daily experience
of selling to them. But as firms and markets have grown in size, many marketing decision
makers have lost direct contact with their customers and must now turn to consumer
research. They spend more money than ever to study consumers, trying to learn more
about consumer behavior. Who buys? How do they buy? When do they buy? Where do
they buy? Why do they buy?
 Therefore, companies and academies have researched heavily the relationship between
marketing stimuli and consumer response. Their starting point is the stimulus -response
model of buyer behavior shown in Figure 5.1. This shows that marketing and other stimuli
enter the consumer's 'black box1 and produce certain responses. Marketers must figure out
what is in the buyer's black box.2
Models of Consumer Behavior
 Marketing stimuli consist of the four Ps: product, price, place and promotion. Other stimuli
include significant forces and events in the buyer's environment; economic, technological,
political and cultural. All these stimuli enter the buyer's black box, where they are turned
into a set of observable buyer responses (shown on the right-hand side of Figure 5.1):
product choice, brand choice, dealer choice, purchase timing and purchase amount.
 The marketer wants to understand how the stimuli are changed into responses inside the
consumer's black box, which has two parts. First, the buyer's characteristics influence how
he or she perceives and reacts to the stimuli Second, the buyer's decision process itself
affects the buyer's behavior. This chapter first looks at buyer characteristics as they affect
buying behavior, and then examines the buyer decision process. We will never know what
exactly is in the black box or be able perfectly to predict consumer behavior, but the models
can help us understand consumers, help us to ask the right questions, and teach us how to
influence them.-
Characteristics Affecting
Consumer Behavior
 Characteristics Affecting
Consumer Behavior
 Culture is the learned values, perceptions, wants, and behavior from family and other
important institutions. It is the most basic cause of a person's wants and behavior. Human
behavior is largely learned. Growing up in a society, a child learns basic values,
perceptions, wants and behaviors from the family and other important institutions
 Subculture are groups of people within a culture with shared value systems based on
common life experiences and situations
– Hispanic
– African American
– Asian
– Mature consumers
 Characteristics Affecting
Consumer Behavior
 Social classes are society’s relatively permanent and ordered divisions whose members
share similar values, interests, and behaviors. Social class is not determined by single
factor such as income but is measured as a combination of occupation, income, education,
wealth, and other variables.
 Marketers are interested in social class because people within a given social class exhibit
similar buying behavior. Social class show distinct product and brand preferences in areas
such as clothimg,home furnishing,travel,lesiur activity financial services and automobiles
 Characteristics Affecting
Consumer Behavior
 Groups and Social Networks
 Characteristics Affecting
Consumer Behavior
 Groups and Social Networks
Groups influence a person's behavior. Groups that have a direct influence and to which a person belongs are called
membership groups. Some are primary groups with whom there is regular but informal interaction - such as family, friends,
neighbors and fellow workers. Some are secondary groups, which are more formal and have less regular interaction. These
include organizations like religious groups, professional associations and trade unions.
 Reference groups are groups that serve as direct (face-to-face) or indirect points of comparison or reference in forming a
person's attitudes or behavior. Reference groups to which they do not belong often influence people. Marketers try to
identify the reference groups of their target markets.
 Word-of-mouth influence and buzz marketing
– Opinion leaders are people within a reference group who exert social influence on others
– Also called influential or leading adopters
– Marketers identify them to use as brand ambassadors
 Online social networks are online communities where people socialize or exchange information and opinions, Include
blogs, social networking sites (Facebook), virtual worlds (second life)
Social Factors
• Family is the most important consumer buying organization in society
• Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and
social status
 Thank you Respected Students
Best of Luck for the Learning process