Consumer Markets and

Consumer Buyer Behavior

 Definitions
• Consumer buyer behavior refers
to the buying behavior 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

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Model of Buyer Behavior

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Factors Influencing
Consumer Behavior

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 Characteristics Affecting
Consumer Behavior
 Culture
• Forms a person’s wants
Key Factors and behavior
 Subculture
• Groups with shared value
Cultural systems
 Social Class
Social • Society’s divisions who
Personal share values, interests
and behaviors
Psychological • https://
www.youtube.com/watc
h?v=WW2lIpWIMSY

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 Characteristics Affecting
Consumer Behavior
 Groups
• Membership
Key Factors • Reference
– Aspirational
• Opinion Leaders
Cultural – Buzz marketing
Social  Family
Personal • Many influencers
 Roles and Status
Psychological

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 Characteristics Affecting
Consumer Behavior
 Age and life cycle
 Occupation
Key Factors  Economic situation
 Lifestyle
Cultural •Activities, interests and
opinions
Social •Lifestyle segmentation
Personal  Personality and self-concept
•https://www.youtube.com/
Psychological watch?v=eu-1ULsrUXs

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 Characteristics Affecting
Consumer Behavior
Motivation
Key Factors 

Needs provide motives
Motivation research
 Maslow’s hierarchy of needs
Perception
Cultural  Selective attention, selective
distortion, selective retention
Learning
Social  Drives, stimuli, cues, responses
and reinforcement
Personal Beliefs and attitudes
Psychological

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Types of Buying Behavior

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The Buyer Decision Process

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 The Buyer Decision
Process

Process Stages Needs can be triggered by:

Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
 Internal stimuli
• Normal needs
become strong
enough to drive
behavior
 External stimuli
• Advertisements
• Friends & family
• Friends of friends

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 The Buyer Decision
Process

Process Stages • Consumers exhibit

heightened attention or
actively search for
Need recognition information.
Information search • Sources of information:
Evaluation of alternatives  Personal
Purchase decision  Commercial
Postpurchase behavior  Public (publically
available)
 Experiential

 Physical or online sources

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 The Buyer Decision
Process

Process Stages • Evaluation procedure depends

on the consumer and the buying
situation.
Need recognition • Most buyers evaluate multiple
Information search attributes, each of which is
Evaluation of alternatives weighted differently.
Purchase decision • At the end of the evaluation
Postpurchase behavior stage, purchase intentions are
formed.

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 The Buyer Decision
Process

Process Stages • Two factors intercede

between purchase intentions
and the actual decision:
Need recognition  Your perceptions &
Information search preferences
Evaluation of alternatives  Attitudes of others
Purchase decision  Unexpected situational
Postpurchase behavior factors

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 The Buyer Decision
Process

Process Stages • Satisfaction is important:

 Delighted consumers
engage in positive word-
Need recognition of-mouth.
 Unhappy customers tell
Information search on average 11 other
Evaluation of alternatives people.
Purchase decision  It costs more to attract a
Postpurchase behavior new customer than it
does to retain an existing
customer.
• Cognitive dissonance is
common

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Buyer Decision Process for
New Products
New Products
 Good, service or idea that is
perceived by customers as new.
Stages in the Adoption Process
 Marketers should help consumers
move through these stages.

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Buyer Decision Process for
New Products

Stages in the Adoption Process

Awareness Interest
Evaluation Trial

Adoption
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 Adopter Categories Based
on Relative Time of Adoption
(theory & model of diffusion of innovation)

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Buyer Decision Process for
New Products
Individual Differences in Innovativeness
 Consumers can be classified into five
adopter categories, each of which behaves
differently toward new products.
Product Characteristics and Adoption
 Five product characteristics influence the
adoption rate.

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Buyer Decision Process for
New Products

Product Characteristics
Relative Advantage Complexity
Compatibility Divisibility

Communicability
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