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Outline 4
Consumer Markets and Consumer Buyer Behavior

Consumer Buying Behavior


Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption. Study consumer behavior to answer: How do consumers respond to marketing efforts the company might use?

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Model of Consumer Behavior


Product
Price Place Promotion

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Marketing and Other Stimuli

Economic
Technological Political Cultural

Buyers Decision Process

Buyers Black Box

Characteristics Affecting Consumer Behavior

Product Choice
Brand Choice Dealer Choice

Buyers Response

Purchase Timing Purchase Amount

Characteristics Affecting Consumer Behavior


Culture

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Social
Personal Psychological

Buyer

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Cultural Factors
It exert a broad and deep influence on consumer behavior. Culture the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Marketers are always trying to spot cultural shifts in order to discover new products that might be wanted. Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures includes nationalities, religions, racial groups, and geographic regions.

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Social classes are societys relatively permanent and ordered divisions whose members share similar values, interests, and behavior. Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables. Marketers are interested in social class because people within a given social class tend to exhibit similar buying behavior. Seven major American social classes: Upper uppers, Lower uppers, Upper middles, Middle class, Working class, Upper lowers, Lower lowers.

Factors Affecting Consumer Behavior: Social


Groups Membership Reference

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Family Husband, wife, kids Influencer, buyer, user

Social Factors

Roles and Status

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Social Factors
Group two or more people who interact to accomplish individual or mutual goals. Membership groups groups that have a direct influence and to which a person belongs. Reference groups serve as direct (face-to-face) or indirect points of comparison or reference in forming a persons attitudes or behavior. People often are influenced by reference groups to which they do not belong. For example, an aspirational group is one to which the individual wishes to belong. Opinion leaders people within a reference group, who, because of special skills, knowledge, personality, or other characteristics, exert influence on others.

Family members can strongly influence buyer behavior.

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Marketers are interested in the roles and influences of the husband, wife, and children on the purchase of different products and services. Husbandwife involvement varies widely by product categories and by stage in the buying process. A person belongs to many groupsfamily, clubs, organizations. The persons position in each group can be defined in terms of both role and status. A role consists of the activities people are expected to perform according to the persons around them. Each role carries a status reflecting the general esteem given to it by society.

Factors Affecting Consumer Behavior: Personal


Personal Influences
Age and Family Life Cycle Stage Economic Situation Occupation

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Personality & Self-Concept

Lifestyle Identification
Activities Opinions

Interests

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People coming from the same subculture, social class, and occupation may have quite different lifestyles. Lifestyle is a persons pattern of living It involves measuring consumers major AIO dimensions: Activities (work, hobbies, shopping, sports, social events) _ Interests (food, fashion, family, recreation)

_Opinions (about themselves, social issues, business, products).

Factors Affecting Consumer Behavior: Psychological


Motivation

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Beliefs and Attitudes

Psychological Factors

Perception

Learning

A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. A motivated person is ready to act. How the person acts is influenced by his or her own perception of the situation. Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
People can form different perceptions of the same stimulus because of three perceptual processes: selective attention, selective distortion, and selective retention.

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Selective attention the tendency for people to screen out most of the information to which they are exposed means that marketers have to work especially hard to attract the consumer's attention. Selective distortion the tendency of people to interpret information in a way that will support what they already believe. Selective retention people tend to retain information that supports their attitudes and beliefs.

Maslows Hierarchy of Needs


Self Actualization
(Self-development)

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Esteem Needs
(self-esteem, status) Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)

Learning Learning describes changes in an individuals behavior arising from experience.

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Through doing and learning, people acquire beliefs and attitudes. A belief is a descriptive thought that a person has about something.
Beliefs may be based on real knowledge, opinion, or faith, and may or may not carry an emotional charge. Marketers are interested in the beliefs that people formulate about specific products and services, because these beliefs make up product and brand images that affect buying behavior.

Attitude describes a persons relatively consistent evaluations, feelings, and tendencies toward an objec or idea.

Types of Buying Decisions Behavior

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High Involvement Significant differences between brands Few differences between brands

Low Involvement

Complex Buying Behavior


DissonanceReducing Buying Behavior

VarietySeeking Behavior
Habitual Buying Behavior

The Buyer Decision Process

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Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior

The Buyer Decision Process


Step 1. Need Recognition
Need Recognition

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Difference between an actual state and a desired state

Internal Stimuli
Hunger
Thirst
A persons normal needs

External Stimuli
TV advertising

Magazine ad
Radio slogan

Stimuli in the environment

The Buyer Decision Process


Step 2. Information Search
Personal Sources
Commercial Sources

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Family, friends, neighbors Most influential source of information Advertising, salespeople Receives most information from these sources Mass Media Consumer-rating groups Handling the product Examining the product Using the product

Public Sources

Experiential Sources

The Buyer Decision Process


Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features

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Degree of Importance
Which attributes matter most to me?

Brand Beliefs
What do I believe about each available brand?

Based on what Im looking for, how satisfied would I be with each product?

Total Product Satisfaction

Evaluation Procedures
Choosing a product (and brand) based on one or more attributes.

The Buyer Decision Process


Step 4. Purchase Decision
Purchase Intention Desire to buy the most preferred brand

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Attitudes of others

Unexpected factors

Purchase Decision

The Buyer Decision Process


Step 5. Postpurchase Behavior
Consumers Expectations of Products Performance
Products Perceived Performance

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Satisfied Customer!

Dissatisfied Customer
Cognitive Dissonance

Situational Influences or Factors

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Physical surroundings Social Surroundings Time Reason for the purchase Emotional and Financial State