PRINCIPLES OF MARKETING

Consumer Markets &

Consumer Buyer 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 refers to all of the

personal consumption of final consumers
Model of Consumer Behavior
Product Economic
Price Technological
Stimuli
OtherStimuli
Other
Place and
Marketingand
Marketing Political
Promotion Cultural

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

Product Choice Purchase

Response
Buyer’s Response Timing
Brand Choice Buyer’s
Purchase
Dealer Choice Amount
Characteristics Affecting
Consumer Behavior
Culture
Social
Personal
Psychological
Buyer
Buyer
Factors Affecting Consumer Behavior:
Culture

Culture
Culture is
is the
the learned
learned values,
values,
perceptions,
perceptions, wants,
wants, and
and behavior
behavior from
from
family
family and
and other
other important
important institutions
institutions

Subculture
Subculture Social
SocialClass
Class
•• Groups
Groupsof ofpeople
peoplewith
withshared
shared •• People
Peoplewithin
withinaasocial
socialclass
class
value
valuesystems
systemsbased
basedonon tend
tendto
toexhibit
exhibitsimilar
similarbuying
buying
common
commonlife lifeexperiences.
experiences. behavior.
behavior.
•• racial,
racial,regional
regionalconsumers
consumersetc.
etc. •• Occupation
Occupation
•• Income
Income
•• Education
Education
•• Wealth
Wealth
 Roles
Roles and
and Status
Status
Family
Family
Social
Social Factors
Factors •• Husband,
Husband, wife,
wife, kids
kids
•• Influencer,
Influencer, buyer,
buyer, user
user
Groups
Groups
•• Membership
Membership
•• Reference
Reference
Social
Factors Affecting Consumer Behavior:
 Interests
Interests
Opinions
Opinions Activities
Activities
Lifestyle
Lifestyle Identification
Identification
Personality
Personality && Self-Concept
Self-Concept Economic
Economic Situation
Situation
Age
Age and
and Family
Family Life
Life Cycle
Cycle
Occupation
Occupation Stage
Stage
Personal
Personal Influences
Influences
Personal
Factors Affecting Consumer Behavior:
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological

Motivation

Beliefs and Psychological

Factors Perception
Attitudes

Learning
Maslow’s Hierarchy of Needs

Self
Actualization
(Self-development)

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

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
Types of Buying Decisions

High Low
Involvement Involvement
Significant
Behavior Behavior
differences
Buying Seeking
between
Complex Variety-
brands
Few Behavior Behavior
differences Reducing Buying Buying
between Dissonance- Habitual
brands
 Complex buying behavior
 Consumers engage in complex buying behavior when they are highly
involved in a purchase and aware of significant differences among brands.
 This is usually the case when a product is expensive, bought infrequently,
risky, and highly self –expressive, like an automobiles.
 Dissonance reducing buyer behavior
 Consumers sometimes engage in highly involved in a purchase but sees
little differences in brands.
 The high involvement is based on the fact that the purchase is expensive,
infrequent, and risky, e.g. Diamond Rings
 In this case the buyer will shop around to learn what is available. If they find
quality differences in the brands, they might go for the higher price. If they
find little differences, they might simply buy on price or convenience.
 Habitual buying behavior
 Many products are bought under conditions of low involvement and
the absence of significant brand differences, for example: salt.
 There is good evidence that consumers have low involvement with
most low-cost, frequently purchased products.

 Variety seeking buying behavior

 Some buying situations are characterized by low involvement but
significant brand differences. E.g. Various cookies & toothpastes etc.
 Here consumers often do a lot of brand switching.
 Brand switching occurs for the sake of variety rather than dissatisfaction.
Postpurchase
Postpurchase Behavior
Behavior
Purchase
Purchase Decision
Decision
Evaluation
Evaluation of
of Alternatives
Alternatives
Information
Information Search
Search
Need
Need Recognition
Recognition
The Buyer Decision Process
The
The Buyer
Buyer Decision
Decision Process
Process
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/ Social Media
TV/ Social Media
advertising
advertising
•• Thirst
Thirst
•• Magazine
Magazine ad ad
•• AAperson’s
person’s normal
normal •• slogan
slogan
needs
needs •• Stimuli
Stimuli in
in the
the
Environment
Environment
The Buyer Decision Process
Step 2. Information Search

Personal Sources
Personal Sources • Family, friends, neighbors
• Most influential source of
information
Commercial Sources
Commercial Sources • Advertising, salespeople
• Receives most information
from these sources

Public Sources
Public Sources • Mass Media
• Consumer-rating groups

Sources
Experiential Sources
Experiential • Handling the product
• Examining the product
• Using the product
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

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

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

Total
TotalProduct
ProductSatisfaction
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 Buyer Decision Process
Step 4. Purchase 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 Buyer Decision Process
Step 5. Postpurchase 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
 Adoption
Adoption
Trial
Trial
Evaluation
Evaluation
Interest
Interest
Awareness
Awareness
Stages in the Adoption Process
Adoption of Innovations
Percentage of Adopters

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late