CH 5 - Consumer Markets and Consumer Buyer Behavior

Chapter Five
Consumer Markets and Consumer

Buyer Behavior
Copyright © 2010 Pearson Education, Inc.

Chapter 5- slide 1
Publishing as Prentice Hall
Consumer Markets and Consumer
Buyer Behavior
Topic Outline
• Model of Consumer Behavior

• Characteristics Affecting Consumer
Behavior
• Types of Buying Decision Behavior
• The Buyer Decision Process
• The Buyer Decision Process for New
Products

Chapter 5- slide 2
• 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
Chapter 5- slide 3
Chapter 5- slide 4
Chapter 5- slide 5
Model of Consumer 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

Chapter 5- slide 6
Characteristics Affecting
Consumer Behavior
Culture is the learned values,

perceptions, wants, and behavior from
family and other important institutions

Chapter 5- slide 7
Culture characteristics:
• (1) Culture is comprehensive. This
means that all parts must fit together in
some logical fashion. For example,
bowing and a strong desire to avoid the
loss of face are unified in their
manifestation of the importance of
respect.
• (2) Culture is learned rather than being
something we are born with. We will
consider the mechanics of learning later in
the course.
Chapter 5- slide 8
• (3) Culture is manifested within
boundaries of acceptable behavior. For
example, in American society, one
cannot show up to class naked, but
wearing anything from a suit and tie to
shorts and a T-shirt would usually be
acceptable.
• Failure to behave within the prescribed
norms may lead to sanctions, ranging
from being hauled off by the police for
indecent exposure to being laughed at
by others for wearing a suit at the
beach.
Chapter 5- slide 9
• (4) Conscious awareness of cultural
standards is limited. One American spy
was intercepted by the Germans during
World War II simply because of the way
he held his knife and fork while eating.
• (5) Cultures fall somewhere on a
continuum between static and dynamic
depending on how quickly they accept
change. For example, American culture
has changed a great deal since the
1950s, while the culture of Saudi Arabia
has changed much less.
Chapter 5- slide 10
Cultural characteristics as a
continuum by Hofstede’s Dimensions
• There is a tendency to stereotype
cultures as being one way or another
(e.g., individualistic rather than
collectivistic).
• Note, however, countries fall on a
continuum of cultural traits.
• Hofstede’s research demonstrates a wide
range between the most individualistic
and collectivistic countries, for example—
some fall in the middle.
Chapter 5- slide 11
• Gert Hofstede, a Dutch researcher, found
that cultural differences tended to center
around four key dimensions:
1. Individualism vs. collectivism: To what
extent do people believe in individual
responsibility and reward rather than having
these measures aimed at the larger group?
Contrary to the stereotype, Japan actually ranks in
the middle of this dimension, while Indonesia and
West Africa rank toward the collectivistic side. The
U.S., Britain, and the Netherlands rate toward
individualism.

Chapter 5- slide 12
• Power distance: To what extent is there a
strong separation of individuals based on
rank? Power distance tends to be particularly
high in Arab countries and some Latin
American ones, while it is more modest in
Northern Europe and the U.S.

Chapter 5- slide 13
• Masculinity vs. femininity involves a
somewhat more nebulous concept.
• “Masculine” values involve competition and
“conquering” nature by means such as large
construction projects, while “feminine” values
involve harmony and environmental
protection.
• Japan is one of the more masculine countries, while the Netherlands rank
relatively low.
• The U.S. is close to the middle, slightly toward the masculine side.
• ( The fact that these values are thought of as “masculine” or “feminine” does
not mean that they are consistently held by members of each respective
gender—there are very large “within-group” differences.
• There is, however, often a large correlation of these cultural values with the
status of women.
Chapter 5- slide 14
• Uncertainty avoidance involves the
extent to which a “structured” situation
with clear rules is preferred to a more
ambiguous one; in general, countries
with lower uncertainty avoidance tend to
be more tolerant of risk. Japan ranks
very high. Few countries are very low
in any absolute sense, but relatively
speaking, Britain and Hong Kong are
lower, and the U.S. is in the lower range
of the distribution.

Chapter 5- slide 15
When Does Culture Matter in Marketing?
Research explores the circumstances under which culture
influences consumer-purchasing decisions.
• Situation :
You need a new computer. You log on to the web
and spend time thoughtfully perusing various
vendor sites to determine the best fit for your
needs. You think you've made up your mind. But
then you're whizzing down the highway and pass
a billboard touting a different computer. You have
only a few seconds to absorb the advertising
message, but you're swayed in ways you hadn't
anticipated. What's going on?

Chapter 5- slide 16
Cultural biases influence purchasing behavior
when information is processed in a cursory and
spontaneous manner.
• An under-examined issue recently explored by Donnel Briley of
the University of Sydney and Jennifer Aaker, the General Atlantic
Professor of Marketing at Stanford GSB.
• Four experiments found that culture-based differences show up
when information is processed in a cursory and spontaneous
manner.
• So when you passed that roadside billboard, you were likely to be
influenced by advertising that appealed to your particular culture.
But when you had the time to deliberate more — by examining
information on the web, for instance — attempts by advertisers to
rely on cultural factors tended not to be as successful.

Chapter 5- slide 17
Cultural vs. Personal Knowledge When
Making Consumer Judgments
• A key factor - cultural versus personal knowledge when making
purchasing decisions.
• General cultural knowledge includes implicit theories about the world
we live in that are largely shared by the members of our society.
• But in addition to this shared set of ideas, we also have personal
knowledge that can conflict with accepted, culturally derived practices.
• For example:
• boy growing up in China may generally accept the importance of
his relationships with others, and therefore seek to keep harmony
with family members. But more personal knowledge — such as
being exposed to pictures of American cultural icons like Green
Day or Madonna — may lead him to sometimes wear clothes that
his parents don't like.
• In other words, when pressured to form a quick judgment, we generally
rely on cultural norms as a "default." But when making a thoughtful
deliberation, we're more likely to engage in an internal debate, and
waver.
Chapter 5- slide 18
Market Culture
• A market culture is a type of corporate culture that
emphasizes competitiveness not only between the
organization and its market competitors but also
betwee
• The market model is the most aggressive and
capitalistic of the four common
corporate culture models.
• Employees are encouraged to set difficult goals and
strive to achieve them. Employee performance is
closely monitored and often directly rewarded or
punished. The emphasis on individual performance is
thought to lead to greater achievement for the
individual employee and, as a result, greater success
for the
Publishing organization.
as Prentice Hall
Chapter 5- slide 19
4 main types of corporate cultures
1. A hierarchical corporate culture has a
fairly rigid and fixed organizational
structure.
2. An adhocracy is based on the ability to
adapt quickly to changing conditions.
3. A clan culture is a family-like or tribe-like
environment that values consensus and
commonality of values and goals.
4. A market culture is a corporate
environment that emphasizes competition.
Chapter 5- slide 20
Consumer Behavior
1. 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
Chapter 5- slide 21
Subcultures- Factors
Foundations for subcultural variation
•(1)nationality (Tahitian, Swedish, Mexican, Japanese)

• (2) ethnicity (Basque, Croat, Georgian, Zulu, Cajun)
• (3) age (teens, Generation X and Y, baby boomers,
seniors)
• (4) geographic region (Dixie, Nile valley)
•(5) religion (Buddhist, Muslim, Jewish, Amish,
Catholic).
Less obvious are subcultures that can be influenced by
and built around a variety of reference groups

Chapter 5- slide 22
• Individual consumers typically belong to
multiple subcultures. Although our strongest
affiliation may be to our nationality.
• for example, age, religion, and several other
influences are likely working to affect both our
attitudes and our behaviors as consumers.
• http://www.consumerpsychologist.com/cb_Cu
lture.html

Chapter 5- slide 23
Consumer Behavior
2. Social classes are society’s relatively

permanent and ordered divisions whose
members share similar values,
interests, and behaviors.
• Measured by a combination of
occupation, income, education,
wealth, and other variables
Chapter 5- slide 24
Consumer Behavior
3. Groups and Social Networks

Chapter 5- slide 25
Consumer Behavior
Groups and Social Networks
• 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

Chapter 5- slide 26
Consumer Behavior
Groups and Social Networks
• Online social networks are online

communities where people socialize or
exchange information and opinions
• Include blogs, social networking sites

(facebook), virtual worlds (second life)

Chapter 5- slide 27
Consumer Behavior
4. 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

Chapter 5- slide 28
Consumer Behavior
5. Personal Factors
Occupation affects the goods and

services bought by consumers
Economic situation includes trends in:

Chapter 5- slide 29
Consumer Behavior
Personal Factors
Lifestyle is a person’s pattern of living as expressed in his

or her psychographics
• Measures a consumer’s AIOs (activities, interests,
opinions) to capture information about a person’s pattern of
acting and interacting in the environment
Personality and Self-Concept: Personality

refers to the unique psychological
characteristics that lead to consistent and
lasting responses to the consumer’s
environment
Chapter 5- slide 30
OTHER: Characteristics Affecting
Consumer Behavior

Chapter 5- slide 31
Consumer Behavior
6. Psychological Factors

Chapter 5- slide 32
Consumer Behavior
Psychological Factors
Motivation
A motive is a need that is sufficiently

pressing to direct the person to seek
satisfaction
Motivation research refers to qualitative

research designed to probe consumers’
hidden, subconscious motivations
Chapter 5- slide 33
Chapter 5- slide 34
Consumer Behavior
Perception is the process by which

people select, organize, and interpret
information to form a meaningful picture
of the world from three perceptual
processes
– Selective attention
– Selective distortion
– Selective retention

Chapter 5- slide 35
Consumer Behavior
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
Chapter 5- slide 36
Consumer Behavior
• Learning is the change in an

individual’s behavior arising from
experience and occurs through interplay
of:

Chapter 5- slide 37
Consumer Behavior
Beliefs and Attitudes
Belief is a descriptive thought that a

person has about something based on:
• Knowledge
• Opinion
• Faith

Chapter 5- slide 38
Consumer Behavior
Attitudes describe a person’s relatively

consistent evaluations, feelings, and
tendencies toward an object or idea

Chapter 5- slide 39
CONSUMER BUYING DECISION
PROCESS
• Consumers can purchase different
products And this difference because
that different buying decisions buying
process consists of several steps
• Consumers to purchase some goods don’t
need to pass during all stages of the
buying decision.
• However, some purchases are so
important that the consumer is forced to
do© 2010
Copyright allPearson
these steps
Education, Inc. carefully & meticulously.
Chapter 5- slide 40
Chapter 5- slide 41
The Buyer Decision Process
STEP 1: Need Recognition
1) Identify the problem:

•The first stage of the decision making
process is that people can feel the
difference between current and desired
situation,
•Occurs when the buyer recognizes a
problem or need triggered by:
– Internal stimuli
– External stimuli
Chapter 5- slide 42
Information Search Sources of Information
• Personal sources—family and friends •

Commercial sources—advertising,
Internet
• Public sources—mass media,
consumer organizations
• Experiential sources—handling,
examining, using the product

Chapter 5- slide 43
STEP 2: Information Search
Sources of Information
2. Data collection:
• For solving this problem collect information. This
information can be internal (experiences) and
external (family, exhibits, etc.)
• Personal sources—family and friends
• Commercial sources—advertising, Internet
• Public sources—mass media, consumer
organizations
• Experiential sources—handling, examining,
using the product
Chapter 5- slide 44
STEP 3: Evaluation of Alternatives
3. Assessment Options:
• After gathering information, the consumer is
ready to make a decision.
• At this point, he should be able to
evaluate different options and choose
products that meet the demands of him.
• How the consumer processes information to
arrive at brand choices

Chapter 5- slide 45
Evaluation of Alternatives
• How the consumer processes

information to arrive at brand choices

Chapter 5- slide 46
STEP 4: Purchase Decision
4. Purchase:
This stage is the stage that all marketing activities are
the result.
•Consumer at this stage, according to the information
already obtained, Select a product that feels satisfy his
need and buys it
•The act by the consumer to buy the most preferred
brand
•The purchase decision can be affected by:
– Attitudes of others
– Unexpected situational factors
Chapter 5- slide 47
STEP 5: Postpurchase Decision
• The satisfaction or dissatisfaction that the

consumer feels about the purchase
• Relationship between:
– Consumer’s expectations
– Product’s perceived performance
• The larger the gap between expectation
and performance, the greater the
consumer’s dissatisfaction
• Cognitive dissonance is the discomfort
caused by a postpurchase conflict
Chapter 5- slide 48
Post-Purchase Decision
Customer satisfaction is a key to

building profitable relationships with
consumers—to keeping and growing
consumers and reaping their customer
lifetime value

Chapter 5- slide 49
The Buyer Decision Process for
New Products
Adoption process is the mental process

an individual goes through from first
learning about an innovation to final
regular use.
• Stages in the process include:

Chapter 5- slide 50
Chapter 5- slide 51
Black Box itself is composed of two parts.
First part personal characteristics of buyer on how to
understand and respond to stimuli affect and the second
part is the buyer's decision making process that effects on his
behavior.
Figure 2: Model of consumer behavior (Kotler, 1999)

Chapter 5- slide 52
New Products
Influence of Product Characteristics
on Rate of Adoption

Chapter 5- slide 53
Types of Buying Decision
Behavior

Chapter 5- slide 54
Chapter 5- slide 55
Chapter 5- slide 56
New Products
• Adoption process is the mental process

an individual goes through from first
learning about an innovation to final
regular use.
• Stages in the process include:

Chapter 5- slide 57
Chapter 5- slide 58

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Chapter Five

Consumer Markets and Consumer

Copyright © 2010 Pearson Education, Inc.

• Model of Consumer Behavior

Copyright © 2010 Pearson Education, Inc.

• Consumer buyer behavior refers to the

• Consumer market refers to all of the

Copyright © 2010 Pearson Education, Inc.

Culture is the learned values,

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

•(1)nationality (Tahitian, Swedish, Mexican, Japanese)

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

2. Social classes are society’s relatively

Copyright © 2010 Pearson Education, Inc.

• Word-of-mouth influence and buzz

Copyright © 2010 Pearson Education, Inc.

• Online social networks are online

• Include blogs, social networking sites

Copyright © 2010 Pearson Education, Inc.

• Social roles and status are the groups,

Copyright © 2010 Pearson Education, Inc.

Occupation affects the goods and

Copyright © 2010 Pearson Education, Inc.

Lifestyle is a person’s pattern of living as expressed in his

Personality and Self-Concept: Personality

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

A motive is a need that is sufficiently

Motivation research refers to qualitative

Perception is the process by which

Copyright © 2010 Pearson Education, Inc.

Selective attention is the tendency for

• Learning is the change in an

Copyright © 2010 Pearson Education, Inc.

Belief is a descriptive thought that a

Copyright © 2010 Pearson Education, Inc.

Attitudes describe a person’s relatively

Copyright © 2010 Pearson Education, Inc.

1) Identify the problem:

• Personal sources—family and friends •

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

• How the consumer processes

Copyright © 2010 Pearson Education, Inc.

• The satisfaction or dissatisfaction that the

Customer satisfaction is a key to

Copyright © 2010 Pearson Education, Inc.

Adoption process is the mental process

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

Copyright © 2010 Pearson Education, Inc.

• Adoption process is the mental process

Copyright © 2010 Pearson Education, Inc.

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