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TOPIC 7

CONSUMER MARKETS AND CONSUMER BUYER BEHAVIOR

SUHAILY MOHD RAMLY

CONSUMER MARKETS AND CONSUMER BUYER BEHAVIOR


Topic Outline

Characteristics Affecting Consumer Behavior Types of Buying Decision Behavior The Buyer Decision Process

SUHAILY MOHD RAMLY

CONSUMER BEHAVIOR
Consumer buyer behavior refers to the buying behavior of final consumersindividuals and households who buy goods and services for personal consumption Consumer market refers to all of the personal consumption of final consumers

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FACTORS INFLUENCING CONSUMER BEHAVIOR

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FACTORS INFLUENCING CONSUMER BEHAVIOR : CULTURAL

Culture is the learned values, perceptions, wants, and behavior from family and other important institutions

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FACTORS INFLUENCING CONSUMER BEHAVIOR : CULTURAL


Subculture are groups of people within a culture with shared value systems based on common life experiences and situations Indian Chinese Malays

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FACTORS INFLUENCING CONSUMER BEHAVIOR : CULTURAL


Social classes are societys relatively permanent and ordered divisions whose members share similar values, interests, and behaviors Measured by: Occupation, Income, Education, Wealth and Other Variables.
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FACTORS INFLUENCING CONSUMER BEHAVIOR : CULTURAL

The Impact of Social Class on Marketing

Indicates which medium to use for advertising Helps determine the best distribution for products

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FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL


Social Influences on Buying Decisions

Reference Groups

Opinion Leaders

Family Members

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FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL

Reference Group
A group in society that influences an individuals purchasing behavior.

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FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL


Primary Direct Secondary Reference Groups Aspirational Indirect Non-aspirational
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FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL


Influences of Reference Groups

1. They serve as information sources and


influence perceptions

2. They affect an individuals aspiration levels 3. Their norms either constrain or stimulate
consumer behavior

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FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL

Opinion leaders are people within

a reference group who exert social influence on others Marketers identify them to use as brand ambassadors

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FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL

Online Social Networks are online communities where people socialize or exchange information and opinions Include blogs, social networking sites (facebook), virtual worlds (second life)

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FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL

ROLE & STATUS

ROLE Expected activities

STATUS Esteem given to role by society

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FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL

Initiators Influencers Decision Makers Purchasers Consumers

Purchase Roles in the Family

Children Influence Purchase Decisions

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FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL

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FACTORS INFLUENCING CONSUMER BEHAVIOR : PERSONAL


PERSONAL INFLUENCES
Age & Lifecycle Gender Occupation Economical Status Lifestyle Personality & Self concept
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FACTORS INFLUENCING CONSUMER BEHAVIOR : PERSONAL

Age and life-cycle stage:

People change the goods they buy over their


lifetimes.

Youth: younger than 18 Getting started: 1835 Builders: 3550 Accumulators: 5060 Preservers: over 60
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FACTORS INFLUENCING CONSUMER BEHAVIOR : PERSONAL


GENDER
MALE FEMALE

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FACTORS INFLUENCING CONSUMER BEHAVIOR : PERSONAL

Occupation:

Occupation influences the purchase of


clothing and other goods.

Economic situation:

Some goods and services are especially


income-sensitive.

Personal income
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Savings

Interest rates
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FACTORS INFLUENCING CONSUMER BEHAVIOR : PERSONAL

People within the same subculture, social class, and occupation may have different lifestyles. Lifestyle:

Pattern of living as expressed in


psychographics.

Activities Interests Opinions


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FACTORS INFLUENCING CONSUMER BEHAVIOR : PERSONAL


Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumers environment Self-concept is how consumers perceive themselves.
Self-concept theory suggests that peoples
possessions contribute to and reflect their identities. An individuals products purchased , stores patronized, and credit cards held reflect their identity. For example, the car he or she drives reflects a persons self-image.
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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL

Motivation Perception Learning Beliefs and attitudes

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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL

A motive is a need that is sufficiently pressing to direct the person to seek satisfaction

Motivation research refers to qualitative research designed to probe consumers hidden, subconscious motivations

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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL


Maslows Hierarchy of Needs

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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL


Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes

Selective attention Selective distortion Selective retention


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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL


Selective attention is the tendency for people to screen out most of the information to which they are exposed Selective distortion is the tendency for people to interpret information in a way that will support what they already believe Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands
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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL


A Consumers Selective Exposure
Notices only 11 to 20 ads

Exposure to over 2,500 advertisement messages per day


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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL

Learning is the change in an individuals behavior arising from experience and occurs through interplay of:
Drives Responses Stimuli Cues

Reinforcement
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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL


Types of Learning
Experiential

Description
An experience changes behavior Not learned through direct experience

Conceptual

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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL

Belief is a descriptive thought that a person has about something based on: Knowledge Opinion Faith

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FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL

Attitudes describe a persons relatively consistent evaluations, feelings, and tendencies toward an object or idea

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GOT MILK?

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TYPES OF BUYING DECISION BEHAVIOR


Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior

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TYPES OF BUYING DECISION BEHAVIOR

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THE BUYER DECISION PROCESS

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THE BUYER DECISION PROCESS: Need Recognition

Occurs when the buyer recognizes a problem or need triggered by:

Internal Stimuli laparnya

External Stimuli

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THE BUYER DECISION PROCESS: Information Search


Internal Information Search Recall information in memory External Information search Seek information in outside environment
Non-marketing controlled Marketing controlled

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THE BUYER DECISION PROCESS: Information Search


External Information Search
Marketing controlled

Commercial sourcesadvertising, Internet Salesperson

Non marketing controlled

Public sourcesmass media, consumer organizations

Personal sourcesfamily and friends

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THE BUYER DECISION PROCESS: Evaluation of Alternatives

How the consumer processes information to arrive at brand choices


All Brands

Known Brands

Unknown Brands

Unacceptable

Acceptable

Overlooked

Purchased Brand

Rejected Brands

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THE BUYER DECISION PROCESS: Purchase Decision

The act by the consumer to buy the most preferred brand The purchase decision can be affected by:

Attitudes of others Unexpected situational factors

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THE BUYER DECISION PROCESS: Post-Purchase Decision

Consumer satisfaction is a function of consumer expectations and perceived product performance.

Performance < Expectations ----- Disappointment Performance = Expectations ----- Satisfaction Performance > Expectations ----- Delight A buyers doubts shortly after a purchase about whether it was the right decision.
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Cognitive dissonance:

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THE BUYER DECISION PROCESS: Post-Purchase Decision


COGNITIVE DISSONANCE

Did I make a good decision? Did I buy the right product? Did I get a good value?
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Can minimize through: Effective Communication Follow-up Guarantees Warranties

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CONSUMER ROLES
USER

INITIATOR

BUYER DECISION MAKER


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INFLUENCER

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