Consumer Markets and Consumer Buyer Behaviour 2019

Chapter 4
Consumer Markets
and Consumer Buyer
Behaviour
Business Markets and

Business Buyer
Behaviour
Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Define the consumer market and construct a
simple model of consumer buyer behaviour
2. Name the four major factors that influence
buyer behaviour
3. List and understand the types of buying
decision behaviour and stages in the buying
decision process
4. Describe the adoption and diffusion process
for new products
5. Define the business market and explain the
business buyer behavior
Copyright © 2008 Pearson Education Canada 6-2 Principles of Marketing, Seventh Canadian Edition
Definitions
• Consumer buyer behaviour refers to the
buying behaviour 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
Model
Modelof
ofBuyer
BuyerBehavior
Behavior
Product Marketing
Marketing and
and Economic
Other
Other Stimuli
Stimuli
Price Technological
Place Political
Promotion Cultural
Buying Buyer
Decision Buyer’s
Buyer’s Black
Black Box
Box Characteristics
Process
Product Choice Purchase

Buyer’s
Buyer’s Response
Response Timing
Brand Choice
Purchase
Dealer Choice Amount
Figure 6.1 (cont.)
Factors Influencing Consumer
Behaviour
Factors Affecting
Consumer behaviour
• Cultural • Culture
• – Influence a person’s
Social
wants and behaviour
• Personal • Subculture
• Psychological – Smaller groups with
shared value systems
• Social Class
– Society’s divisions
who share values,
interests and
behaviours
Factors Affecting
Consumer behaviour
• Cultural • Groups
• Social – Membership
• – Reference
Personal
– Aspirational
• Psychological
– Opinion leaders
– Buzz marketing
• Family
– Many influencers
• Roles and status
This
advertiser
knows teens
are strongly
influenced by
groups when
purchasing
fashion items
Factors Affecting
Consumer Behaviour
• Cultural • Age and life-cycle stage
• Social • Occupation
• Personal • Economic situation
• Psychological • Lifestyle
– AIO - Activities, interests
and opinions
– Lifestyle segmentation
• Personality and self-
concept
Factors Affecting
Consumer behaviour
• Cultural • Motivation
• Social – A need that drives the person to
• seek satisfaction of the need
Personal
• • Perception
Psychological – The process by which people
select, organize, and interpret
information
• Learning
– Changes in an individual’s
behaviour arising from experience
• Beliefs
– A descriptive thought about
something
• Attitudes
– A person’s consistently favourable
or unfavourable evaluations,
feelings, and tendencies towards
something
Psychological Factors
Motivation
• A motive is a need that is sufficiently pressing to
direct the person to seek satisfaction
• Motivation research is based on Freud. Looks
for hidden and subconscious motivation
• Maslow ordered needs based on how pressing
they are to the consumer
Psychological Factors Beliefs
and Attitudes
• Belief
– a descriptive thought about a brand or service
– may be based on real knowledge, opinion, or
faith
• Attitude
– describes a person’s evaluations, feelings and
tendencies toward an object or idea
– They are difficult to change
The
The Buyer
Buyer Decision
Decision Process
Process
Need
Need Recognition
Recognition
Information
Information Search
Search
Evaluation
Evaluation of
of Alternatives
Alternatives
Purchase
Purchase Decision
Decision
Postpurchase
Postpurchase Behavior
Behavior
The Buyer Decision Process
• Need Recognition
– Triggered by internal (person’s normal needs)
or external stimuli (advertisements, friends)
– Must reach an intensity high enough to
become a drive
– Needs are basic, wants are learned behaviour
to satisfy them
• Information Search
– Influenced by level of involvement (interest)
in the decision
– Memory (internal) search
– External search: personal, commercial, public,
experiential sources of information
– Word-of-mouth sources are most influential
(credibility)
• Evaluation of Alternatives
– Evaluation procedure depends on the
consumer and the buying situation
– Attributes and importance weights are chosen
as criteria
– Alternatives compared against the criteria
– Marketers can influence this stage; personal
selling
Evaluation
Evaluation of
of Alternatives
Alternatives
Consumer
ConsumerMay
MayUse
UseCareful
Careful
Calculations
Calculations&&Logical
LogicalThinking
Thinking
Consumers
ConsumersMay
MayBuy
BuyononImpulse
Impulseand
and
Rely
Relyon
onIntuition
Intuition
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
.on
.onTheir
TheirOwn
Own
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
.Only
.OnlyAfter
AfterConsulting
ConsultingOthers
Others
Marketers Must Study Buyers to Find Out

How They Evaluate Brand Alternatives
• Purchase Decision
– Two factors intercede between purchase
intentions and the actual decision:
• Attitudes of others
• Unexpected situational factors
Video Snippet
Wild Planet realizes
that kids and
parents make the
decision for toys
• Postpurchase Behaviour
– What the consumer thinks and does after
purchasing and using the product or service
– Satisfaction: relationship between consumer
expectation and perceived performance
• Delighted consumers engage in positive word-of-
mouth.
• Unhappy customers tell on average 11 other
people.
– Cognitive dissonance
Buyer Decision Process
for New Products
• New Products
– Good, service or idea that is perceived by customers
as new.
• The Adoption Process
– Mental process through which an individual passes
from first hearing about an innovation to final
adoption.
• Five Stages in the Adoption Process
– Awareness, interest, evaluation, trial, and adoption.
Stages
Stagesin
inthe
theAdoption
AdoptionProcess
Process
Awareness
Awareness
Interest
Interest
Evaluation
Evaluation
Trial
Trial
Adoption
Adoption
for New Products
• Individual Differences in Innovativeness
– Consumers can be classified into five adopter
categories, each of which behaves differently
toward new products.
Influence
Influenceof
ofProduct
ProductCharacteristics
Characteristics
on
onRate
Rateof
ofAdoption
Adoption
Communicability Relative Advantage

Can results be easily Is the innovation
observed or described superior to existing
?to others ?products
Product
Product
Divisibility Characteristics
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
for New Products
• Consumer Behaviour across International
Borders
– Values, attitudes and behaviours differ greatly in
other countries.
– Physical differences exist which require changes in
the marketing mix.
– Customs vary from country to country.
– Marketers must decide the degree to which they will
adapt their marketing efforts.
What
WhatisisaaBusiness
BusinessMarket?
Market?
• Business Buyer Behavior refers to the

buying behavior of all the organizations
that buy goods and services for use in the
production of other products and services
that are sold, rented, or supplied to others.
• The business market is huge and involves

many more dollars and items do consumer
markets.
Characteristics
Characteristics of
of Business
Business Markets
Markets
Market
MarketStructure
Structureand
andDemand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Geographically
Geographicallyconcentrated
concentrated
••Demand
Demand derivedfrom
derived fromconsumers
consumers
••Fluctuating
Fluctuatingdemand
demand
Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit
••More
Morebuyers
buyers
••More
Moreprofessional
professionalpurchasing
purchasing
effort
effort
Types
Typesof
ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process
••More
Morecomplex
complexdecisions
decisions
••Process
Processisismore
moreformalized
formalized
••Buyer
Buyer and seller aremore
and seller are more
dependent
dependenton oneach
eachother
other
••Build
Buildclose
closelong-term
long-termrelationships
relationships
with customers
with customers
Model
Modelof
of Business
BusinessBuyer
Buyer Behavior
Behavior
Product Marketing
Marketing and
and Economic
Other
Other Stimuli
Stimuli
Price Technological
Place Political
Promotion Cultural
The
TheBuying
BuyingOrganization
Organization
Organizational Interpersonal
The Buying Center
Influences and Individual
Buying Decision
Process
Influences
Product or Service Delivery Terms

Choice Buyer’s
Buyer’s Response
Response and Times
Supplier Choice Service Terms
Order Quantities Payment
Business
BusinessBuying
BuyingSituations
Situations
New
NewTask
TaskBuying
Buying
Involved Decision Making
Modified
ModifiedRebuy
Rebuy
Straight
StraightRebuy
Rebuy
Participants
Participants in
in the
the Business
Business Buying
Buying
Process:
Process: The
The Buying
Buying Center
Center
Gatekeepers Users
Buying
Buying Center
Center
Buyers Deciders
Influencers
Major
MajorInfluences
Influenceson
onBusiness
Business
Buyer
BuyerBehavior
Behavior
Environmental
Environmental
Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive
Organizational
Organizational
Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure, & Systems
Structure, & Systems
Interpersonal
Interpersonal
Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness
Individual
Individual
Age,
Age,Education,
Education,Job
JobPosition,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes
Buyers
Buyers
Stages
Stagesof
ofthe
theBusiness
Business
Buying
BuyingProcess
Process
Problem
ProblemRecognition
Recognition
General
GeneralNeed
NeedDescription
Description
Product
ProductSpecification
Specification
Supplier
SupplierSearch
Search
Proposal
ProposalSolicitation
Solicitation
Supplier
SupplierSelection
Selection
Order
OrderRoutine
RoutineSpecification
Specification
Performance
PerformanceReview
Review

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Consumer Markets and Consumer Buyer Behaviour 2019

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Chapter 4

Business Markets and

Product Choice Purchase

Marketers Must Study Buyers to Find Out

Communicability Relative Advantage

• Business Buyer Behavior refers to the

• The business market is huge and involves

Product or Service Delivery Terms

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