Consumer Markets

Consumer Markets
This include individuals and/or households that
purchase products and services for personal
consumption.
Consumers normally make purchase in smaller
quantities, due to their tendency to consumer products
gradually over a period of time.
Moverover, consumers tend to be more emotional about
their purchases. The purchases are at times impulsive or
spontaneous.
Consumer buying process
This describes the journey your customer goes through before they
buy your product.
It will enable you to align your sales strategy accordingly.

The five stages framework remains a good way to evaluate the

customer’s buying process.

John Dewey first introduced the following five stages in 1910.

01 Problem/need recognition

A purchase cannot take place without the recognition of the need. The need
may have been triggered by internal or external stimuli.

02 Information Search

This is the buyer’s effort to search internal or external business

environments, in order to identify and evaluate information sources related to
the central buying decision.

Your customer may rely on print, visual, online media, or word of mouth for
obtaining information.
03 Evaluation of alternatives
Individuals will evaluate different products or brands at this stage on the basis of
alternative product attributes - those which have the ability to deliver the benefits
the customer is seeking.

Customer attitude and involvement are factors that heavily influences this stage.

04 Purchase decision

Kotler (2009) states that the final purchase decision may be disrupted by two
factors:

Negative feedback from other customers

The level of motivation to accept the feedback.
05 Post-purchase behavior

Customers will compare products with their previous expectations

and will be either satisfied or dissatisfied.

If your customer is satisfied, this will result in brand loyalty, and

the information search and evaluation of alternative stages will
often be fast-tracked or skipped altogether.

Customers will then distribute their positive or negative feedback

about the product.
 Consumer Buying Roles
● Initiator
○ Person who initially suggests buying a particular product.
● Influencer
○ Person who tries to convince others of the need for the product and
influences the purchase decision.
● Decider
○ The person who makes the final decision to purchase or makes the
final decision on any product components such as what to buy, how
to buy, where to buy, etc.
 Consumer Buying Roles

● Buyer
○ The person who makes the actual purchase
● User
○ The person who usually uses the products whether or not
he/she was involved in the buying decision.
 Cultural
Products and services must “fit” the cultural background of the
potential customers and not run contrary to it.

This includes the manner of upbringing, educational background, and

the collective culture consciousness .

Sub-cultural factors are parts of one’s culture that provide specific

identification of its members.

Social class is a status hierarchy in which individuals and groups are

classified through economic success and accumulation of wealth.
 Social
Reference groups exert a strong influence on buyer behavior. This
include individuals and groups that influence consumer opinions, beliefs,
attitude, and behaviors.

Families, friends, schoolmates, co-workers, etc.

They often serve as roles models and inspirations.

An even stronger influence on buyer behavior is the family.

Individual adopts the values, habits, and philosophical orientation of the

family.
 Personal
Nine stages of family’s life cycle - William D. Wells and George
Gubar

● Stage 1 - Bachelor/bachelorette stage

● Stage 2 - Young newly married couple with no children
● Stage 3 - Married couple, with eldest child below elementary
school age
● Stage 4 - Married couple, with youngest child six year old or over
 Personal
Nine stages of family’s life cycle - William D. Wells and George
Gubar

● Stage 5 - Older married couple, family head still working, all

children living on their own
● Stage 6 - Widow/widower, in labor force
● Stage 7 - Widow/widower, retired
 Personal
Occupation also plays an important indicator in the products he/she
purchases.

Lifestyle is dependent of his/her occupation, or status.

Personality refers to individual differences in characteristics patterns

of thinking, feeling, and behaving.

Marketers can use personality as a means of enhancing product.

 Psychological
Motivation addresses the issue of why a consumer buys a
product or what needs he is trying to satisfy.

Perception is the process by which people translate sensory

impression into a coherent and unified view of the world around
them.

Because of perception, consumers may view marketing stimuli

in different ways.
Three perceptual processes guide and individual perception:

● Selective attention - consumers tend to pay attention to only

those that address a current need.
● Selective distortion - pertains to the tendency of individuals to
twist or “distort” information to fit their existing mindset
toward a brand.
● Selective retention - means that consumers tend to remember
only the positive things that reinforce their attitudes and beliefs.
 Psychological
Learning is relatively lasting change in behavior that is the
result of experience.

When a consumer purchases a particular brand of product and

is completely satisfied with it, the positive experience with the
brand is reinforced.

Consumers acquire both beliefs and attitudes through learning.

Thank you!
Activity~