Consumer Markets

and Consumer Buying

Behavior
“Consumers are individuals and
households who buy services and
products for personal consumption”
 Chapter Objectives
• Name the elements of the stimulus-response model
of consumer behaviors

• Outline the major characteristics affecting

consumer behavior, and list some of the specific
cultural, social, personal, and psychological factors that
influence consumers

• Explain the buyer decision process and discuss

need recognition, information search, evaluation of
alternatives, the purchase decision, and postpurchase
behavior
 Consumer Buying Behavior

• Consumer Buying Behavior refers to the

buying behavior of final consumers for personal
consumption.
• The consumer market consists of:
• 21 million consumers
• Rs trillion of goods and services
• Grows every year
 Consumer Buying Behavior

• Marketplace has become very competitive

• Globalization of industry
• Aggressive competition
• Invest in research, learn consumer trends,
preferences, how they but, what they buy
• The central question for marketers is:
“How do consumers respond to various
marketing efforts the company might use?”
A Model of Consumer Behavior

• Marketing stimuli (product, price, place,

promotion)
• Other stimuli (economic, technological, political,
cultural)
• Buyer’s black box (buyer characteristics and
buyer decision process)
• Buyer’s responses (product choice, brand
choice, dealer choice, purchase timing, purchase
amount)
 Model of Buyer Behavior

Marketing and Buyer’s Black Box Buyer Responses

Other Stimuli
Buyer Characteristics
Marketing Product Choice
Product Brand Choice
Price Buyer Decision Process Dealer choice
Place Purchase Timing
Promotion
Purchase Amount
Other
Economic
Technological
Political
Cultural
 Factors Influencing
Consumer Behavior

Cultural

Social Personal
Culture Psycho-
Reference Age and logical
groups life-cycle
Motivation
Sub-culture Occupation
Perception Buyer
Family Economic Learning
situation
Social class Beliefs and
Lifestyle attitudes
Roles Personality
and and
status self-concept
 Cultural Factors
• Culture is the most basic determinant of a person’s
wants and behavior.
• Culture is expressed through tangible items, such as
food, architecture, clothing and art.
• Culture is a fundamental part of the business.
• Culture is dynamic and adopting to the environment
• Subculture is smaller groups’ culture of a major culture
• Subcultures include, nationalities, religions, racial
groups, geographic regions (Hispanic, African
Americans, Asian Americans)
 Cultural Factors
• International cultures: the values, attitudes, and
behaviors can vary dramatically by country.
• Germany
• United Kingdom
• Saudi Arabia
• Japan
International restaurant chains modify their products
• Social class: relatively permanent and ordered
divisions in a society whose members share similar
values, interests, and behaviors.
• Seven Social Classes
 Social Factors
Strongly affect consumer responses, companies must
take them into account when designing marketing
strategies
 Reference Groups
 Membership groups
 Aspirational groups
 Opinion leaders

• Family
• Roles and status
 Personal Factors
• Age and Family Life-Cycle Stage
• Occupation
• Economic situation
• Lifestyle
• With greater resources
• With lower resources
• Personality and self-concept
• Personality – distinguishing psychological
characteristics
• Self Concept or self-image
 Psychological Factors

Motivation

Psychological
Beliefs and Factors Perception
Attitudes Affecting
Buyers
Choices

Learning
 Psychological - Motivation

• Biological needs: arising from hunger, thirst, and

discomfort
• Psychological needs: arising from states of tension,
such as recognition, esteem, or belonging
• A motive is a need that has a sufficient level of
intensity. Creating a tension state that drives the
person to act.
• Satisfying the need reduces the felt tension.
 Psychological - Motivation

Two of the Most Popular Motivation Theories

• Maslow’s Theory of Motivation
• Human needs are arranged in a hierarchy, from the
most pressing to the least pressing.
• Herzberg’s Theory-Two Factor Theory
• Dissatisfies - Hygiene factors
Factors that cause dissatisfaction
• Satisfiers - Motivators
Factors that cause satisfaction
Maslow’s Hierarchy of Needs

Self
Actualization
Esteem Needs
(self-esteem)

Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
 Psychological-Perception

Perception
 How a person acts is influenced by his/her
perception of the situation.
 Why do people have different perceptions on the
same situation?? Interpretation is individual!!
 Selective Attention
Current need, anticipation, size of deviation
 Selective Distortion
Tendency to twist information
 Selective Retention
Retain information that support attitudes and beliefs
 Psychological-Perception

Learning
 Learning describes changing behaviors arising from
experience.
 Site selection committee members visit hotels,
examine the hotel’s features.
 Hotels should help guests to learn about the quality of
their facilities and services
 Tours to first-time guests
 Beliefs and Attitudes
Belief: A descriptive
thought that a person holds
about something
•X hotels have the best
facilities.
•A particular airline has
poor maintenance
•A particular country has
unhealthy food-handling
standards
Attitude: Relatively
consistent evaluations,
feelings, and tendencies
toward an object or idea.
•Liking or disliking things
•Healthy food – eat chicken
•Customers develop
negative or positive attitude
towards some products or
places.
•Difficult to change
 Buyer Decision Process

Purchase
Decision
Evaluation Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition
 Need Recognition

•The buying process starts when the buyer recognizes

a problem or need.
• Actual state ~ desired state

• The need can be triggered by internal stimuli

• The need can also be triggered by external stimuli
• Gift certificates
 Information Search
Information Sources
Several sources of information
• Personal sources
•Family, friends, neighbors
• Commercial sources
•Advertising, salespeople, dealers, packaging
• Public sources
•reviews, editorials in the section, consumer-rating
organizations, tripadvisor.com, WORD-OF-MOUTH
Evaluation of Alternatives
How to sort and process information?
Certain basic concepts will help explain consumer
evaluation process
• Each consumer sees a product as a bundle of product
attributes
• The consumer attaches different degrees of importance
to each attribute
•The consumer is likely to develop a set of beliefs about
where each brand stands on each attribute
The set of beliefs held about a particular brand is known
as the brand image
 Purchase Decision

• The consumer ranks brands in the choice set and

forms purchase intentions.
• Generally the consumer will buy the most
preferred brand.
• Influenced by the attitudes of others
• Influenced by unexpected situations
 Postpurchase Behavior

• Post-purchase Behavior:
• Satisfied or not satisfied
• Consumers’ expectations are compared to
performance
• If a seller exaggerates the product’s likely
performance, the consumer will be disappointed.
• The difference between expectation and
performance is ………….?
Postpurchase Behavior

•Post-purchase satisfaction influences

future behavior
 Postpurchase conflict

 Dissatisfied customers
• Return or complain
• Refund or exchange
• Lawsuit
• Stop purchasing or discourage purchases
 Reduce postpurchase satisfaction
Thank you