CONSUMER MARKETS AND CONSUMER

BUYER BEHAVIOR

CHAPTER 5
DEFINITIONS
Consumer Buying Behavior
 Buying behavior of individuals and households that buy products
for personal consumption.
Consumer Market
 All individuals/households who buy products for personal
consumption.

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CONSUMER BEHAVIOR

The behavior that consumers display in

searching for, purchasing, using, evaluating, and
disposing of products and services that they
expect will satisfy their needs.
 CONSUMER BEHAVIOR
Focuses on how individuals make decisions
What they buy?
Why they buy it?  How they evaluate it
after the purchase?
When they buy it?
Where they buy it?  How they dispose of it?
How often they buy it?
How often they use it?
 STIMULUS-RESPONSE MODEL OF
CONSUMER BEHAVIOR

Goal 1: Learn the consumer market & construct model of buyer behavior
MODEL OF
CONSUMER BEHAVIOR

Stimulus Response Model

 Marketing and other stimuli enter the buyer’s “black
box” and produce certain choice/purchase responses.
 Marketers must figure out what is inside of the buyer’s
“black box” and how stimuli are changed to responses.

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FACTORS INFLUENCING CONSUMER BEHAVIOR
Personal Social
•Age & lifecycle stage •Household type
Psychological
•Occupation •Reference groups
•Motivation
•Education •Roles & status
•Perception
•Economic situation
•Learning (memory)
•Beliefs & attitudes
•Personality &
self-concept Consumer Buyers’ responses
•Product service &
BUYER DECISION category selection
PROCESS •Brand selection
Marketing programs Experiences •Reseller selection
•Marketing objectives •Purchase timing &
Lifestyle
•Marketing strategy repurchase intervals
•Marketing mix •Purchase amount

Environmental influences Cultural

•Economic •Culture
•Technological •Subculture
•Political •Social Class
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 CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
 Culture
 Forms a person’s wants and
Key Factors behavior
 Subculture
 Groups with shared value
 Cultural systems
 Social Class
 Social
 Society’s divisions who share
 Personal values, interests and
behaviors
 Psychological

Goal 2: Know the four factors that influence consumer buying behavior
 CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR
 Groups
 Membership
Key Factors  Reference
 Aspirational
 Opinion Leaders
 Cultural  Buzz marketing
 Social  Family
 Personal  Many influencers
 Roles and Status
 Psychological

Goal 2: Know the four factors that influence consumer buying behavior
CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOR

Age and life cycle

Occupation
Key Factors Economic situation
Lifestyle-pattern of living
Cultural  Activities- work, hobbies,
shopping, sports
Social  Interests- food, fashion,
recreation
Personal  Opinions- about themselves,
social issues, business, product
Psychological Personality and self-concept
 Brand personality

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PERSONALITY AND SELF-CONCEPT

Personality refers to the unique psychological characteristics

that lead to relatively consistent and lasting responses to
one’s environment.
 Self-confidence
 Dominance
 Autonomy
 Defensiveness etc.

Brand personality is the specific mix of human traits that may

be attributed to a particular brand.
 Sincerity- down to earth, honest. Dove
 Excitement- Apple
 Competence- CNN
 Sophistication- Rolex watch
 Ruggedness- Bata shoe
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CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR

Key Factors Motivation

 Needs provide motives for consumer
behavior
Cultural  Maslow’s hierarchy of needs
Perception
Social  Selective attention, selective
distortion, selective retention
Personal Learning
Psychological Beliefs and attitudes

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 PSYCHOLOGICAL FACTORS
MOTIVATION
A motive is a need that is sufficiently pressing to
direct the person to seek satisfaction
Motivation research is based on Freud; Looks for
hidden and subconscious motivation
Maslow ordered needs based on how pressing they
are to the consumer

Goal 2: Know the four factors that influence consumer buying behavior
MASLOW’S HIERARCHY OF NEEDS
 PSYCHOLOGICAL FACTORS PERCEPTION
Perception is the process by which people select,
organize, and interpret information
Perception Includes:
 Selective attention
 Consumers screen out information
 Selective distortion
 People interpret to support beliefs
 Selective retention
 People retain points to support attitudes

Goal 2: Know the four factors that influence consumer buying behavior
PSYCHOLOGICAL (CONT)

Belief- descriptive thoughts that a person

holds about something.

Attitudes- person’s relatively consistent

evaluations, feelings and tendencies
towards an object or idea. “Buy the Best”,

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TYPE OF BUYING DECISION BEHAVIOR

High involvement Low involvement

Complex Variety
Significant
differences buying seeking
between brands behavior buying
behavior

Dissonance
Few differences Habitual
reducing
between brands buying
buying
behavior
behavior
 TYPES OF BUYING
DECISION BEHAVIOR
Complex
 Highly involved, significant brand differences
 Example – computer
Dissonance-reducing
 Highly involved, little brand differences
 Example – carpeting
Habitual
 Low involvement, little brand differences
 Example – salt
Variety-seeking
 Low involvement, significant perceived brand differences
 Example – cookies

Goal 3: Understand types of buying decisions and stages in the process

THE BUYER DECISION PROCESS
 5-step process:
1. Need recognition
2. Information search
1. Sources:
1. Personal- family, friends, neighbor (most effective source)
2. Commercial- ad, salespeople, website, packaging, labeling (most
informative source)
3. Public- mass media, Internet searches
4. Experiential- handling, examining, using the product

3. Alternative evaluation
4. Purchase decision
5. Post-purchase behavior
 THE BUYER DECISION PROCESS

Process Stages Needs can be triggered by:

 Internal stimuli
 Normal needs become strong
enough to drive behavior
Need recognition
 External stimuli
Information search  Advertisements
Evaluation of alternatives  Response of friends
Purchase decision
Postpurchase behavior

Goal 3: Understand types of buying decisions and stages in the process

 THE BUYER DECISION PROCESS

Process Stages
Consumers exhibit heightened attention
or actively search for information.
Sources of information:
Need recognition
 Personal
Information search
 Commercial
Evaluation of alternatives  Public
Purchase decision  Experiential
Postpurchase behavior Word-of-mouth

Goal 3: Understand types of buying decisions and stages in the process

 THE BUYER DECISION PROCESS

Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Evaluation procedure depends on the
consumer and the buying situation.
Most buyers evaluate multiple attributes,
each of which is weighted differently.
At the end of the evaluation stage, purchase
intentions are formed.

Goal 3: Understand types of buying decisions and stages in the process

 THE BUYER DECISION PROCESS

Process Stages
Two factors intercede between purchase
intentions and the actual decision:
 Attitudes of others
Need recognition
 Unexpected situational factors
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

Goal 3: Understand types of buying decisions and stages in the process

 THE BUYER DECISION PROCESS
Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Goal 3: Understand types of buying decisions and stages in the process
Satisfaction is important:
 Delighted consumers engage in
positive word-of-mouth.
 Unhappy customers tell on average
11 other people.
 It costs more to attract a new
customer than it does to retain an
existing customer.
Cognitive dissonance is common
BUYER DECISION PROCESS FOR NEW PRODUCTS

 New product
 Adoption process

 Adoption process: 5 stages:

1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
ADOPTER GROUPS

 The 5 adopter groups have differing values:

1. Innovators- they try new ideas at some risks.
2. Early adopters- they are opinion leaders in their community and adopt new
ideas early but carefully.
3. Early majority- they are not leaders, but they adopt before average person
4. Late majority- they adopt an innovation only after majority people adopted it
5. Laggards- suspicious about new things and adopt only when it becomes
tradition
INFLUENCE ON PRODUCT CHARACTERISTICS
ON RATE OF ADOPTION
Relative advantage- speed the rate of adoption, and appears superior
to existing product. HDTV (better quality picture)

Compatibility-degree to which new product is compatible to potential

consumers.

Complexity- degree to which new product is difficult to use or

understand.

Divisibility- degree to which new product is used in a limited basis.

Expensive product.

Communicability - degree to which the result of using the new product

can be observed or described to others.