Fundamentals of Marketing

Week 3

Consumer Markets
and Buyer Behavior

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Consumer Markets and Buyer Behavior

Consumer buyer behavior is the buying behavior of final

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

Consumer markets are made up of all the individuals

and households that buy or acquire goods and services
for personal consumption.

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 Model of Consumer Behavior

Figure 5.1 The Model of Buyer Behavior

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Characteristics Affecting Consumer Behavior
Cultural Factors
Factors Influencing Consumer Behavior

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Characteristics Affecting Consumer Behavior
Social Factors
Groups and Social Networks

Membership Aspirational Reference

Groups Groups Groups
• Groups with • Groups an • Groups that
direct individual form a
influence wishes to comparison
and to which belong to or reference
a person in forming
belongs attitudes or
behavior

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Characteristics Affecting Consumer Behavior
Personal Factors
Brand Personality Traits

Sincerity Excitement Competence

Sophistication Ruggedness

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Characteristics Affecting Consumer Behavior
Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes

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Characteristics Affecting Consumer Behavior
Psychological Factors
Figure 5.4 - Maslow’s Hierarchy of Needs

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Characteristics Affecting Consumer Behavior
Psychological Factors

Perception is the process by which people select, organize, and

interpret information to form a meaningful picture of the world.

Perceptual Processes

Selective Selective Selective

attention distortion retention

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Characteristics Affecting Consumer Behavior
Psychological Factors

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 favor and forget good points about competing brands.
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 Types of Buying Decision Behavior

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior

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 Types of Buying Decision Behavior

FIGURE | 5.5 Four Types of Buying Behavior

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 The Buyer Decision Process

FIGURE | 5.6 Buyer Decision Process

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The Buyer Decision Process for New Products
Influence of Product Characteristics
on Rate of Adoption

Relative
Compatibility Complexity
advantage

Divisibility Communicability

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 Fundamentals of Marketing
Terms to Know

• Consumer buyer behavior

• Consumer markets
• Model of Consumer Behavior
• Characteristics Affecting Consumer Behavior
• Types of Buying Decision Behavior
• The Buyer Decision Process
• Influence of Product Characteristics on Rate of Adoption

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