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consumer Morkets ond consumer

8uyer 8ehovior
nAkLL DAVIDSCN
8ulldlng Success
- undersLandlng Lhe
cusLomers' emoLlons and
moLlvaLlon
- ueLermlnlng Lhe facLors
of loyalLy
- 1ranslaLlng Lhls
lnformaLlon Lo effecLlve
adverLlslng
Measurlng Success
- CurrenLly 22 of all uS
blke sales
- uemand above supply
- Sales doubled ln Lhe pasL
3 years wlLh earnlngs
Lrlpled
DLIINI1ICNS
- Consumer buyer behavlor refers Lo Lhe buylng
behavlor of flnal consumers lndlvlduals and
households who buy goods and servlces for
personal consumpLlon
- All of Lhese flnal consumers comblne Lo make
up Lhe consumer markeL
,CDLL CI CCNSU,Lk 8LnAVICk
Marketing and
Other StimuIi
Marketing and
Other StimuIi
Buyer's BIack Box Buyer's BIack Box
Buyer's Response Buyer's Response
Product
Price
PIace
Promotion
Economic
TechnoIogicaI
PoIiticaI
CuIturaI
Characteristics
Affecting
Consumer
Behavior
Buyer's
Decision
Process
Product Choice
Brand Choice
DeaIer Choice
Purchase Timing
Purchase Amount
CnAkAC1LkIS1ICS AIILC1ING
CCNSU,Lk 8LnAVICk
8uyer 8uyer
sycho|og|ca|
ersona|
Soc|a|
Cu|ture
CnAkAC1LkIS1ICS AIILC1ING CCNSU,Lk 8LnAVICk
CulLure
lotms o petsoos
woots ooJ bebovlot
SubculLure
toops wltb sboteJ
voloe systems
Soclal Class
ocletys Jlvlsloos wbo
sbote voloes lotetests
ooJ bebovlots
Cultural
Social
Personal
Psychological
ey Factors ey Factors
IAC1CkS AIILC1ING CCNSU,Lk 8LnAVICk
CUL1UkL
Soc|a| C|ass
- eop|e w|th|n a soc|a| c|ass
tend to exh|b|t s|m||ar
buy|ng behav|or
- Cccupat|on
- Income
- Lducat|on
- Wea|th
Soc|a| C|ass
- eop|e w|th|n a soc|a| c|ass
tend to exh|b|t s|m||ar
buy|ng behav|or
- Cccupat|on
- Income
- Lducat|on
- Wea|th
,ost bas|c cause of a persons wants and behav|or
Ialues
ercepLlons
,ost bas|c cause of a persons wants and behav|or
Ialues
ercepLlons
Subcu|ture
- Groups of peop|e w|th shared
va|ue systems based on common
||fe exper|ences
- n|span|c Consumers
- Afr|can Amer|can Consumers
- As|an Amer|can Consumers
- ,ature Consumers
Subcu|ture
- Groups of peop|e w|th shared
va|ue systems based on common
||fe exper|ences
- n|span|c Consumers
- Afr|can Amer|can Consumers
- As|an Amer|can Consumers
- ,ature Consumers
CnAkAC1LkIS1ICS AIILC1ING CCNSU,Lk 8LnAVICk
roups
Membershlp
8eference
AsplraLlonal
Cplnlon Leaders
8uzz markeLlng
lamlly
Many lnfluencers
8oles and SLaLus
Cultural
Social
Personal
Psychological
ey Factors ey Factors
IAC1CkS AIILC1ING CCNSU,Lk 8LnAVICk
SCCIAL
GkCUS
-,L,8LkSnI
-kLILkLNCL
GkCUS
-,L,8LkSnI
-kLILkLNCL
IA,IL
-nUS8AND WIIL kIDS
-INILULNCLk 8ULk USLk
IA,IL
-nUS8AND WIIL kIDS
-INILULNCLk 8ULk USLk
kCLLS AND S1A1US kCLLS AND S1A1US
SCCIAL IAC1CkS SCCIAL IAC1CkS
CnAkAC1LkIS1ICS AIILC1ING CCNSU,Lk 8LnAVICk
Age and llfe cycle
CccupaLlon
Lconomlc slLuaLlon
LlfesLyle
ctlvltles lotetests ooJ
oploloos
llfestyle seqmeototloo
ersonallLy and self
concepL
Cultural
Social
Personal
Psychological
ey Factors ey Factors
IAC1CkS AIILC1ING CCNSU,Lk 8LnAVICk
LkSCNAL
ersona| Inf|uences ersona| Inf|uences
Age and FamiIy Life CycIe
Stage
Age and FamiIy Life CycIe
Stage
Occupation Occupation
Economic Situation Economic Situation
LifestyIe Identification LifestyIe Identification
Activities Activities Opinions Opinions
Interests Interests
PersonaIity & SeIf-Concept PersonaIity & SeIf-Concept
Brand Personality Dimensions
CnAkAC1LkIS1ICS AIILC1ING CCNSU,Lk 8LnAVICk
- SlncerlLy
- 8uggedness
- LxclLemenL
- CompeLence
- SophlsLlcaLlon
CnAkAC1LkIS1ICS AIILC1ING CCNSU,Lk 8LnAVICk
MoLlvaLlon
ercepLlon
Learnlng
8ellefs and aLLlLudes
Cultural
Social
Personal
Psychological
ey Factors ey Factors
SCnCLCGICAL IAC1CkS
,C1IVA1ICN
- A moLlve ls a need LhaL ls sufflclenLly presslng Lo
dlrecL Lhe person Lo seek saLlsfacLlon
- MoLlvaLlon research ls based on lreud Looks for
hldden and subconsclous moLlvaLlon
- Maslow ordered needs based on how presslng Lhey
are Lo Lhe consumer
SCnCLCGICAL IAC1CkS LkCL1ICN
- ercepLlon ls Lhe process by whlch people selecL
organlze and lnLerpreL lnformaLlon
- ercepLlon lncludes
SelecLlve aLLenLlon
Consumers screen ouL lnformaLlon
SelecLlve dlsLorLlon
eople lnLerpreL Lo supporL bellefs
SelecLlve reLenLlon
eople reLaln polnLs Lo supporL aLLlLudes
SCnCLCGICAL IAC1CkS LLAkNING
Learnlng descrlbes changes ln an lndlvldual's
behavlor arlslng from experlence
Learnlng occurs Lhrough
urlves
lnLernal sLlmulus LhaL calls for acLlon
SLlmull
Cb[ecLs LhaL move drlve Lo moLlve
Cues
Mlnor sLlmull LhaL affecL response
8elnforcemenL
leedback on acLlon
SCnCLCGICAL IAC1CkS 8LLILIS AND A11I1UDLS
8e||ef
a descrlpLlve LhoughL abouL a brand or servlce
may be based on real knowledge oplnlon or falLh
Att|tude
descrlbes a person's evaluaLlons feellngs and
Lendencles Loward an ob[ecL or ldea
1hey are dlfflculL Lo change
nCUSLnCLD 8UING 8LnAVICk
ouseholds are the basic unit of
buying and consumption in a society
A household is a consumption unit of one or more persons
identified by a common location with an address
nCUSLnCLD 8UING 8LnAVICk
IA,ILILS AND nCUSLnCLDS
Iam||y househo|d
A group of persons relaLed by blood and/or marrlage lour
Lypes are mosL common
Marrled couples alone
Marrled couples wlLh chlldren
A slngle parenL wlLh chlldren
LxLended famlly whlch may lnclude parenLs chlldren's
spouses and/or grandchlldren and occaslonally couslns
Nonfam||y househo|d
A household LhaL does noL conLaln a famlly
A slngle person llvlng alone ln a dwelllng unlL
8oommaLes
8oardlng houses
nCUSLnCLD 8UING 8LnAVICk
1nL IA,IL DLCISICN,AkING kCCLSS
1he same famlly member may noL have all Lhree
roles
A slngle role may be [olnLly held by more Lhan one
lndlvldual
nCUSLnCLD 8UING 8LnAVICk
S1LS IN IA,IL 8UING DLCISICNS
lnlLlaLlon of Lhe purchase declslon
aLherlng and sharlng of lnformaLlon
LvaluaLlng and decldlng
Shopplng and buylng
ConfllcL managemenL
nCUSLnCLD 8UING 8LnAVICk
IAC1CkS INILULNCING IN1LkSCUSAL INILULNCL
enderrole orlenLaLlon
Wlfe's employmenL sLaLus
SLage ln famlly llfe cycle
1lme pressure
Socloeconomlc developmenL of Lhe
populaLlon
nCUSLnCLD 8UING 8LnAVICk
CPlLu8Ln'S lnlLuLnCL Cn lAMlL? uLClSlCn MAkln
Chlldren lnfluence household buylng ln Lhree ways
Chlldren express lndlvlduallsLlc preferences for producLs
pald for and boughL by parenLs
Chlldren ln Lhelr Leen years begln Lo have Lhelr own money
and become Lhelr own payers and buyers of lLems of self
use
Chlldren lnfluence Lhelr parenLs' cholce of producLs LhaL
are meanL for shared consumpLlon
nCUSLnCLD 8UING 8LnAVICk
CPlLu8Ln'S lnlLuLnCL Cn lAMlL? uLClSlCn MAkln
IA,IL CkILN1A1ICN
Ch||dren's |nf|uence |n the fam||y dec|s|ons depends on
whether the fam||y has a soc|a| or a concept or|entat|on
Another way of c|ass|fy|ng fam|||es |s by how author|ty |s
exerc|sed |n the fam||y
nCUSLnCLD 8UING 8LnAVICk
CPlLu8Ln'S lnlLuLnCL Cn lAMlL? uLClSlCn MAkln
LLAkNING ,LCnANIS,S
lnsLrumenLal CondlLlonlng
Chlldren learn Lhose behavlors and values LhaL recelve rewards
from Lhelr parenLs
Modellng
Chlldren look up Lo Lhelr parenLs as role models and Lry Lo
lnLernallze and adopL Lhelr values roles apLlLudes eLc
CognlLlve
Low lnvolvemenL
1here could be adopLlon of producL cholces because of
famlllarlLy or because Lhese were used by one's parenLs
Plgh lnvolvemenL
SoclallzaLlon lnfluence can occur due Lo communlcaLlon and
educaLlon by parenLs abouL varlous brands or buylng
sLraLegles
nCUSLnCLD 8UING 8LnAVICk
CPlLu8Ln'S lnlLuLnCL Cn lAMlL? uLClSlCn MAkln
IN1LkGLNLkA1ICNAL INILULNCL
1he Lransmlsslon of values aLLlLudes and
behavlors from one generaLlon Lo Lhe
oLher
lorward ll
lrom parenLs Lo chlldren
8everse ll
lrom chlldren Lo parenLs
uemocraLlc [usLlce
8USINLSS 8UING 8LnAVICk
A business is a licensed entity engaged in
the activity of making, buying, or selling
products and services for profit or
nonprofit objectives
8USINLSS 8UING 8LnAVICk
1nL NA1UkL AND SI2L CI CkGANI2A1ICNAL
,AkkL1S
- Industr|a| ,arkets (roducers)
- kese||er ,arkets (kese||ers)
- Government ,arkets (Ied St C|ty)
- Not for rof|t Assoc|at|ons
ey is ey is
intended intended
use use
8USINLSS 8UING 8LnAVICk
CC,AkISCN CI nCUSLnCLD AND 8USINLSS 8UING
Comb|ned or s||ght|y
spec|a||zed
Informa| S||ght|y forma| (sma||
bus|nesses) to forma| (|arge
bus|nesses)
,oderate|y to very
spec|a||zed
Spec|a||zat|on of customer
ro|es
Iorma||zat|on of the buy|ng
process
CnAkAC1LkIS1IC nCUSLnCLD 8UING 8USINLSS 8UING
Not forma||y measured Str|ct measures Accountab|||ty for dec|s|ons
Weak Weak (sma|| bus|nesses to
very strong (|arge bus|nesses
Interna| capab|||t|es
L|tt|e comp|ex|ty Cperat|ona| and strateg|c
comp|ex|ty
Comp|ex|ty of requ|rement
Characteristic Characteristic Characteristic Characteristic
Demand Demand
Volume Volume
# of Customers # of Customers
Location Location
Distribution Distribution
Nature of Buy Nature of Buy
Buy Influence Buy Influence
Negotiations Negotiations
Reciprocity Reciprocity
Leasing Leasing
Promotion Promotion
Business Market Business Market Business Market Business Market
OrganizationaI OrganizationaI
Larger Larger
Fewer Fewer
Concentrated Concentrated
More Direct More Direct
More ProfessionaI More ProfessionaI
MuItipIe MuItipIe
More CompIex More CompIex
Yes Yes
Greater Greater
PersonaI SeIIing PersonaI SeIIing
Consumer Market Consumer Market Consumer Market Consumer Market
IndividuaI IndividuaI
SmaIIer SmaIIer
Many Many
Dispersed Dispersed
More Indirect More Indirect
More PersonaI More PersonaI
SingIe SingIe
SimpIer SimpIer
No No
Lesser Lesser
Advertising Advertising
Business Vs Consumer Market
CC,CNLN1S CI 1nL 8USINLSS 8UING kCCLSS
rocuremenL sysLem
naLure of Lhe purchase
CrganlzaLlonal characLerlsLlcs
8uylng cenLer
8ules and procedures
A declslon process
Iorces Inf|uenc|ng Crgan|zat|ona| 8uy|ng 8ehav|or
LnvlronmenLal
lorces
CrganlzaLlonal
lorces
roup
lorces
lndlvldual
lorces
CrganlzaLlonal
8uylng
8ehavlor
-Lconomlc CuLlook
uomesLlc lobal
-ace of 1echnologlcal
Change
-lobal 1rade 8elaLlons
-oals Cb[ecLlves and
SLraLegles
-CrganlzaLlonal oslLlon
of urchaslng
-8oles relaLlve
lnfluence and paLLerns
of lnLeracLlon of buylng
declslon parLlclpanLs
-!ob funcLlon pasL
experlence and buylng
moLlves of lndlvldual
declslon parLlclpanLs
A pro[ecLed change ln
buslness condlLlons can
drasLlcally alLer buylng
plan
CC,CNLN1S CI 1nL 8USINLSS 8UING kCCLSS
8uy|ng Center
A buy|ng center ls Lhe group of people ln an
organlzaLlon who parLlclpaLe ln Lhe buylng process
and share common goals rlsks and knowledge
lmporLanL Lo a purchase declslon
Buying Center
Lg Da||as 8uy|ng Center Iocus
SporLswear
WesLern wear
!ewelry
lfLs
uecoraLlve accessorles
CC,CNLN1S CI 1nL 8USINLSS 8UING kCCLSS
1nL 8UING CLN1Lk
USLk
8ULk
ANAL2Lk
INILULNCLk
GA1LkLLLkS
DLCIDLk
THE BUYING CENTER
,u|t|p|e 8uy|ng Inf|uences
8uyinq centre inc/udes peop/e p/oyinq the fo//owinq ro/es
users Wlll use producL ln quesLlon mlnlmal ma[or lnfluence
|nf|uencers rovldes lnformaLlon Lo oLher members for
evaluaLlng alLernaLlve producLs or seLs purchaslng speclflcaLlons
can operaLe wlLhln/ouLslde buylng cenLer
ana|ysers daLa / markeL analysls experLs
dec|ders make Lhe acLual declslon Lo buy
gatekeepers 1lghL conLroller of lnformaLlon flow Lo oLher
buylng cenLer members can open/close gaLe for salespeople
buyers Asslgned formal auLhorlLy Lo selecL vendors and
compleLe purchaslng LransacLlon
THE BUYING CENTER
,u|t|p|e 8uy|ng Inf|uences
Several people may play Lhe same role or Lhe same
person may occupy more Lhan one role
1he slze and composlLlon of a buylng cenLre wlll vary
among buslnesses
1rylng Lo deLermlne who does whaL ln a buylng cenLre
ls very lmporLanL buL can also be very dlfflculL
1he challenges ln a buslness buylngdeclslon process
suggesL LhaL coordlnaLlon of Lhe buylng and selllng
acLlvlLles would be beneflclal Lo boLh flrms
THE BUYING CENTER
8us|ness 8uy|ng atterns
ofLen wlll buy dlrecLly from Lhe producer
suppllers wlll ofLen esLabllsh longLerm close relaLlonshlps wlLh
Lhelr cusLomers
some producLs are boughL very lnfrequenLly
average order ls larger Lhan ln Lhe consumer markeL
negoLlaLlons ofLen go on for monLhs or years
someLlmes Lhere ls reclproclLy reclproclLy lnvolved
ofLen conslderable need for afLersale servlce
cusLomers are very dependenL on suppllers Lo guaranLee a
conslsLency of supply
growlng Lendency Lo lease lnsLead of buy
BUYING DECISIONS
1LS CI 8UING DLCISICN 8LnAVICk
Comp|ex
Plghly lnvolved slgnlflcanL brand dlfferences
Lxample compuLer
D|ssonancereduc|ng
Plghly lnvolved llLLle brand dlfferences
Lxample carpeLlng
nab|tua|
Low lnvolvemenL llLLle brand dlfferences
Lxample salL
Var|etyseek|ng
Low lnvolvemenL slgnlflcanL percelved brand dlfferences
Lxample cookles
1LS CI 8UING DLCISICNS
CompIex
Buying
Behavior
Dissonance-
Reducing Buying
Behavior
Variety-
Seeking
Behavior
HabituaI
Buying
Behavior
High
InvoIvement
Significant
differences
between
brands
Few
differences
between
brands
Low
InvoIvement
1nL 8ULk DLCISICN kCCLSS
-eed recoqnition
lnformotion seorch
vo/uotion of o/ternotives
Purchose decision
Postpurchose behovior
needs can be Lrlggered
by
lnLernal sLlmull
normal needs
become sLrong
enough Lo drlve
behavlor
LxLernal sLlmull
AdverLlsemenLs
lrlends of frlends
rocess Stages rocess Stages
1nL 8ULk DLCISICN kCCLSS
ExternaI StimuIi
TV advertising
Magazine ad
Radio sIogan
StimuIi in the
environment
ExternaI StimuIi
TV advertising
Magazine ad
Radio sIogan
StimuIi in the
environment
InternaI StimuIi
Hunger
Thirst
A person's normaI
needs
InternaI StimuIi
Hunger
Thirst
A person's normaI
needs
Need Recognition
Difference between an actual state and a desired state
Need Recognition
Difference between an actual state and a desired state
1nL 8ULk DLCISICN kCCLSS
-eed recoqnition
lnformotion seorch
vo/uotion of o/ternotives
Purchose decision
Postpurchose behovior
- Consumers exhlblL
helghLened aLLenLlon or
acLlvely search for
lnformaLlon
- Sources of lnformaLlon
ersonal
Commerclal
ubllc
LxperlenLlal
- WordofmouLh
rocess Stages rocess Stages
1nL 8ULk DLCISICN kCCLSS
-eed recoqnition
lnformotion seorch
vo/uotion of o/ternotives
Purchose decision
Postpurchose behovior
- LvaluaLlon procedure
depends on Lhe consumer
and Lhe buylng slLuaLlon
- MosL buyers evaluaLe
mulLlple aLLrlbuLes each of
whlch ls welghLed dlfferenLly
- AL Lhe end of Lhe evaluaLlon
sLage purchase lnLenLlons are
formed
rocess Stages rocess Stages
1nL 8ULk DLCISICN kCCLSS
PkOuuc1 411kl8u15
Lva|uat|on of ua||ty r|ce Ieatures
PkOuuc1 411kl8u15
Lva|uat|on of ua||ty r|ce Ieatures
u6k Ol lMPOk14-c
Wh|ch attr|butes matter most to me?
u6k Ol lMPOk14-c
Wh|ch attr|butes matter most to me?
8k4-u 8Lll5
What do I be||eve about each ava||ab|e brand?
8k4-u 8Lll5
What do I be||eve about each ava||ab|e brand?
1O14L PkOuuc1 541l5l4c1lO-
8ased on what I'm |ook|ng for how sat|sf|ed
wou|d I be w|th each product?
1O14L PkOuuc1 541l5l4c1lO-
8ased on what I'm |ook|ng for how sat|sf|ed
wou|d I be w|th each product?
v4Lu41lO- PkOcuuk5
Choos|ng a product (and brand) based on one
or more attr|butes
v4Lu41lO- PkOcuuk5
Choos|ng a product (and brand) based on one
or more attr|butes
1nL 8ULk DLCISICN kCCLSS
-eed recoqnition
lnformotion seorch
vo/uotion of o/ternotives
Purchose decision
Postpurchose behovior
- 1wo facLors lnLercede
beLween purchase
lnLenLlons and Lhe acLual
declslon
ALLlLudes of oLhers
unexpecLed slLuaLlonal
facLors
rocess Stages rocess Stages
1nL 8ULk DLCISICN kCCLSS
-eed recoqnition
lnformotion seorch
vo/uotion of o/ternotives
Purchose decision
Postpurchose behovior
- SaLlsfacLlon ls lmporLanL
uellghLed consumers
engage ln poslLlve word
ofmouLh
unhappy cusLomers Lell
on average 11 oLher
people
lL cosLs more Lo aLLracL a
new cusLomer Lhan lL
does Lo reLaln an
exlsLlng cusLomer
- CognlLlve dlssonance ls
common
rocess Stages rocess Stages
8ULk DLCISICN kCCLSS NLW kCDUC1S
New roducts
ood servlce or ldea LhaL ls percelved by
cusLomers as new
Stages |n the Adopt|on rocess
MarkeLers should help consumers move Lhrough
Lhese sLages
S1AGLS IN 1nL ADC1ICN kCCLSS
8ULk DLCISICN kCCLSS ICk NLW kCDUC1S
Awareness
LvaluaLlon
lnLeresL
1rlal
AdopLlon
8ULk DLCISICN kCCLSS ICk NLW kCDUC1S
lndlvldual ulfferences ln lnnovaLlveness
Consumers can be classlfled lnLo flve adopLer caLegorles
each of whlch behaves dlfferenLly Loward new producLs
roducL CharacLerlsLlcs and AdopLlon
llve producL characLerlsLlcs lnfluence Lhe adopLlon raLe
8ULk DLCISICN kCCLSS ICk NLW kCDUC1S
DIVISIBILITY
Can the innovation
be used on a
triaI basis?
DIVISIBILITY
Can the innovation
be used on a
triaI basis?
CC,LLkI1
Is the |nnovat|on
d|ff|cu|t to
understand or use?
CC,LLkI1
Is the |nnovat|on
d|ff|cu|t to
understand or use?
CC,A1I8ILI1
Does the |nnovat|on
f|t the va|ues and
exper|ence of the
target market?
CC,A1I8ILI1
Does the |nnovat|on
f|t the va|ues and
exper|ence of the
target market?
RELATIVE ADVANTAGE
Is the innovation superior
to existing products?
RELATIVE ADVANTAGE
Is the innovation superior
to existing products?
CC,,UNICA8ILI1
Can resu|ts be eas||y
Cbserved or descr|bed
to others?
CC,,UNICA8ILI1
Can resu|ts be eas||y
Cbserved or descr|bed
to others?
roduct
Character|st|cs
8ULk DLCISICN kCCLSS ICk NLW kCDUC1S
lnLernaLlonal Consumer 8ehavlor
Ialues aLLlLudes and behavlors dlffer greaLly ln oLher
counLrles
hyslcal dlfferences exlsL whlch requlre changes ln Lhe
markeLlng mlx
CusLoms vary from counLry Lo counLry
MarkeLers musL declde Lhe degree Lo whlch Lhey wlll adapL
Lhelr markeLlng efforLs