Consumer Markets and Consumer

Buying Behavior

https://www.youtube.com/watch?v=3rECosdjJpM 1
 Consumer Buying Behavior
Consumer Buying Behavior refers to the
buying behavior of final consumers -
individuals & households who buy goods
and services for personal consumption.
All these consumers make up the
consumer market.
The central question for marketers is:
 “How do consumers respond to various
marketing efforts the company might use?”
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 Model of Buyer Behavior
Marketing and Buyer’s Black Box Buyer Responses
Other Stimuli

Marketing Buyer Characteristics Product Choice

Product Buyer Decision Process Brand Choice
Price Dealer Choice
Place
Promotion
Other Purchase Timing
Economic Purchase Amount
Technological
Political
Cultural

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 Factors Influencing
Consumer Behavior
Cultural
Social
Personal
Psycho-
Culture Reference Age and logical
groups life-cycle
Occupation Motivation
Perception Buyer
Sub- Family Economic
culture situation Learning
Lifestyle Beliefs and
attitudes
Roles Personality
Social and and
class status self-concept

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 Factors Affecting Consumer
Behavior: Culture
Culture is the Most Basic Cause of a Person's
Wants and Behavior.
Subculture • Nationality
(Swedish, Mexican, Japanese)
• Group of people with shared
• Ethnicity
value systems based on
common life experiences. (Basque, Croat, Cajun)
• Age
• Hispanic Consumers (Teens, Gen X, Y, Millenials)
• African American Consumers • Geographic Region
(Dixie, So Cal, Nile valley)
• Asian American Consumers • Religion
• Mature Consumers (Buddihist, Muslim, Jewish)

https://www.youtube.com/watch?v=CT8IYKMgadQ
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 Factors Affecting Consumer
Behavior: Culture
Culture is the Set of Values, Perceptions, Wants &
Behavior Learned by a Member of Society from
Family.
Social Class
• Society’s relatively permanent &
ordered divisions whose
members share similar values,
interests, and behaviors.
• Measured by: Occupation,
Income, Education, Wealth and
Other Variables.

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https://www.youtube.com/watch?
v=5QWmi3WRT6o

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 Factors Affecting Consumer
Behavior: Social
Cars are often seen as a status symbol, and
marketers choose which element to present in
their advertising.

Compare this ad to the one on the next slide.

Click to continue

Groups Family Buying Influence

• Membership
Children can exert a
strong influence on
family buying decisions.
Johnson & Johnson reminds
customer’s of its commitment
to the American Family.

• Reference What other companies use

children to influence
family buying decisions?

Click or pre ss spa cebar to return

Family (most
important) Social Factors
• Husband, wife, kids
• Influencer, buyer, user

Roles and Status

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 Factors Affecting Consumer Advertisements often appeal to the
buyer’s self concept.

Behavior: Personal
Th is ad ap peals to someon e
with a self con cep t rela ted to
eco nomic s ucces s.

Click to con tinue

Personal Influences

Age and Life Economic Personality &

Occupation Situation Self-Concept
Cycle Stage

Lifestyle Identification

Activities Interests Opinions

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https://www.youtube.com/watch?v=v3ZnuYPFPQY
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 SRI Values and Lifestyles
(VALS)
Actualizers High Innovation
High Resources

Fulfilleds Achievers Experiencers

Believers Strivers Makers

Strugglers
Low Resources Low Innovation
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 The Size of Each VALSTM Segment as
Percent of the United States Population

VALSTM SEGMENT PERCENT OF POPULATION

Actualizer 11.7%
Fulfilled 10.5
Believer 17.0
Achiever 14.7
Striver 11.8
Experiencer 12.9
Maker 12.0
Struggler 9.5

http://www.strategicbusinessinsights.com/vals/presurvey.shtml
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 Factors Affecting Consumer
Behavior: Psychological
Motivation

Psychological
Factors
Beliefs and Affecting Perception
Attitudes Buyers
Choices

Learning
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Can We Perceive Unattended
Stimuli? – the Puzzling Cases of
Subliminal Advertising

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Maslow’s Hierarchy of Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem)

Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
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 Types of Buying Decision
Behavior
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between Behavior Behavior
brands
Few Dissonance- Habitual
differences Reducing Buying Buying
between Behavior Behavior
brands

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 Level of Involvement
Previous
Experience
Interest

Factors Perceived Risk of

Determining Negative
Level of Consequences
Involvement

Situation
Social Visibility
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 Buyer Decision Process
Purchase
Decision
Evaluation Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition 18
 Buyer Decision Process
Step 1. Need Recognition

Buyer
Recognizes Needs Arising
State Where the From:
Buyer’s Needs a
are Fulfilled and Problem Internal Stimuli –
the Buyer is or a
Satisfied. Need.
Hunger
External Stimuli-
Friends

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The Buyer Decision Process
Step 2. Information Search

Personal Sources •Family, friends, neighbors

•Most effective source of

information

Commercial Sources •Advertising, salespeople

•Receives most information from

these sources

Public Sources •Mass Media

•Consumer-rating groups

•Handling the product

Experiential Sources •Examining the product
•Using the product

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 The Buyer Decision Process
Step 3. Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking

Consumers May Buy on Impulse and

Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.

Consumers May Make Buying Decisions

Only After Consulting Others.

Marketers Must Study Buyers to Find Out

How They Evaluate Brand Alternatives
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The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of Others Situational
Factors

Purchase Decision
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The Buyer Decision Process
Step 5. Postpurchase Behavior

Satisfied Customer!

Cognitive Dissonance
Consumer’s
Expectations of Product’s Performance.
Product’s Perceived
Performance.

Dissatisfied Customer
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 Postpurchase Behavior

?
Cognitive Dissonance

Can minimize through:

Effective Communication
Did I make a good decision? Follow-up
Guarantees
Did I buy the right product? Warranties

Did I get a good value?

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 Stages in the Adoption
Process
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks
Information about new product.

Evaluation: Consumer considers

trying new product.
Trial: Consumer tries new
product on a small scale.

Adoption: Consumer decides

to make regular use of product.

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 Adopter Categories
Percentage of Adopters

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late

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 Influence of Product Characteristics

on Rate of Adoption
Communicability Relative Advantage
Can results be easily
observed or described Is the innovation
superior to existing
to others?
products?

Divisibility Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?
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