5-1

5-1

PRINCIPLES OF MARKETING

Chapter 5
Chapter
Consumer Markets
and
Consumer Buyer Behavior
Consumer
Consumer Buying
Buying Behavior
Behavior
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5-2

• Consumer Buying Behavior refers to

the buying behavior of final
consumers (individuals & households)
who buy goods and services for
personal consumption.
• Study consumer behavior to answer:
“How do consumers respond to
marketing efforts the company might
use?”
Model
Model of
of Consumer
Consumer Behavior
Behavior
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5-3

Product Marketing
Marketing and
and Economic
Other
Other Stimuli
Stimuli
Price Technological
Place Political
Promotion Cultural

Buyer’s Characteristics
Decision Buyer’s
Buyer’s Black
Black Box
Box Affecting
Process Consumer
Behavior

Product Choice Purchase

Buyer’s
Buyer’s Response
Response Timing
Brand Choice
Purchase
Dealer Choice Amount
Characteristics
Characteristics Affecting
Affecting
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5-4

Consumer
Consumer Behavior
Behavior
Culture
Social
Personal
Psychological
Buyer
Buyer
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
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5-5

Culture
Culture
•• Most
Most basic
basic cause
cause of
of aa person's
person's wants
wants and
and
behavior.
behavior.
•• Values
Values
•• Perceptions
Perceptions
Subculture
Subculture Social
Social Class
Class
••Groups
Groupsofofpeople
peoplewith
withshared
shared ••People
Peoplewithin
withinaasocial
socialclass
class
value
valuesystems
systemsbased
basedon
oncommon
common tend
tendto
toexhibit
exhibitsimilar
similarbuying
buying
life
lifeexperiences.
experiences. behavior.
behavior.
••Occupation
Occupation
••Income
Income
••Education
Education
••Wealth
Wealth
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
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5-6

Social
Social
Groups
Groups
••Membership
Membership
••Reference
Reference

Family
Family
••Husband,
Husband, wife,
wife, kids
kids Social
Social Factors
Factors
••Influencer,
Influencer, buyer,
buyer, user
user

Roles
Roles and
and Status
Status
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
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5-7

Personal
Personal
Personal
Personal Influences
Influences
Age
Age and
and Family
Family Life
Life Cycle
Cycle Occupation
Occupation
Stage
Stage

Economic
Economic Situation
Situation Personality
Personality && Self-Concept
Self-Concept

Lifestyle
Lifestyle Identification
Identification

Activities
Activities Opinions
Opinions

Interests
Interests
VALS
VALS 22
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5-8

Actualizers Abundant
Actualizers Abundant Resources
Resources

Principle Oriented Status Oriented Action Oriented

Fulfilleds
Fulfilleds Achievers
Achievers Experiencers
Experiencers

Believers
Believers Strivers
Strivers Makers
Makers

Strugglers
Strugglers
Minimal
Minimal Resources
Resources
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
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5-9

Psychological
Psychological

Motivation
Motivation

Beliefs
Beliefs and
and Psychological
Factors PPerception
erception
Attitudes
Attitudes

Learning
Learning
Maslow’s
Maslow’s Hierarchy
Hierarchy of
of Needs
Needs
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5-10

Self
Actualization
(Self-development)

Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
Types
Types of
of Buying
Buying Decisions
Decisions
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5-11

High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between
brands Behavior Behavior
Few Dissonance- Habitual
differences Reducing Buying
between
Buying
brands Behavior Behavior
The
The Buyer
Buyer Decision
Decision Process
Process
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5-12

Need
Need Recognition
Recognition

Information
Information Search
Search

Evaluation
Evaluation of
of Alternatives
Alternatives

Purchase
Purchase Decision
Decision

Postpurchase
Postpurchase Behavior
Behavior
The
The Buyer
Buyer Decision
Decision Process
Process
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5-13

Step
Step 1.
1. Need
Need Recognition
Recognition

Need
Need Recognition
Recognition
Difference
Difference between
between an
an actual
actual state
state and
and aa desired
desired state
state

Internal
Internal Stimuli
Stimuli External
External Stimuli
Stimuli
•• Hunger
Hunger ••TV
TV advertising
advertising
•• Thirst
Thirst •• Magazine
Magazine ad
ad
•• AA person’s
person’s normal
normal •• Radio
needs Radio slogan
slogan
needs
••Stimuli
Stimuli in
in the
the
environment
environment
The
The Buyer
Buyer Decision
Decision Process
Process
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5-14

Step
Step 2.
2. Information
Information Search
Search

Personal •Family, friends, neighbors

Personal Sources
Sources •Most influential source of
information

Commercial •Advertising, salespeople

Commercial Sources
Sources •Receives most information
from these sources

Public •Mass Media

Public Sources
Sources •Consumer-rating groups

•Handling the product

Experiential
Experiential Sources
Sources •Examining the product
•Using the product
 5-15
The
The Buyer
Buyer Decision
Decision Process
Process
5-15

Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

Degree
Degreeof
of Importance
Importance
Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?

Brand
BrandBeliefs
Beliefs
What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?

Total
Total Product
Product Satisfaction
Satisfaction
Based
Basedon
onwhat
whatI’m
I’mlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?
Evaluation
EvaluationProcedures
Procedures
Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.
The
The Buyer
Buyer Decision
Decision Process
Process
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5-16

Step
Step 4.
4. Purchase
Purchase Decision
Decision

Purchase
Purchase Intention
Intention
Desire
Desire to
to buy
buy the
the most
most preferred
preferred brand
brand

Attitudes Unexpected
of others situational
factors

Purchase
Purchase Decision
Decision
The
The Buyer
Buyer Decision
Decision Process
Process
5-17
5-17

Step
Step 5.
5. Postpurchase
Postpurchase Behavior
Behavior
Consumer’s
Consumer’s Expectations
Expectations of
of
Product’s
Product’s Performance
Performance
Product’s Perceived
Performance

Satisfied
Satisfied Dissatisfied
Dissatisfied
Customer!
Customer! Customer
Customer
Cognitive Dissonance
Stages
Stages in
in the
the Adoption
Adoption Process
Process
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5-18

Awareness
Awareness

Interest
Interest

Evaluation
Evaluation

Trial
Trial

Adoption
Adoption
Adoption
Adoption of
of Innovations
Innovations
Percentage of Adopters
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5-19

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late
Influences
Influences on
on the
the Rate
Rate of
of Adoption
Adoption
5-20
5-20

of
of New
New Products
Products

Communicability Relative Advantage

Can results be easily Is the innovation
observed or described superior to existing
to others? products?

Product
Divisibility Characteristics Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or
use?