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Chapter 5

Consumer Markets and Consumer

Buying Behavior

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Consumer Buying Behavior

Consumer Buying Behavior refers to thebuying behavior of final consumers -

individuals & households who buy goods andservices for personal consumption.

All these consumers make up the consumermarket.

The central question for marketers is:

How do consumers respond to various marketingefforts the company might use?

2

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Model of Buyer Behavior (Fig. 5.1)

3

Marketing andOther Stimuli

MarketingProductPricePlacePromotion

OtherEconomicTechnologicalPoliticalCultural

Buyers Black Box

Buyer CharacteristicsBuyer Decision Process

Buyer Responses

Product ChoiceBrand ChoiceDealer Choice

Purchase TimingPurchase Amount

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Factors Influencing

Consumer Behavior (Fig. 5.2)

4

Social

Referencegroups

Family

Rolesand

status

Personal

Age andlife-cycle

Occupation

Economicsituation

LifestylePersonality

andself-concept

Psycho-logical

MotivationPerceptionLearning

Beliefs andattitudes

Buyer

Culture

Sub-culture

Socialclass

Cultural

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Factors Affecting Consumer

Behavior: Culture

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Subculture Group of people with shared

value systems based oncommon life experiences.

Hispanic Consumers

African American Consumers

Asian American Consumers

Mature Consumers

Culture is the Most Basic Cause of a Person'sWants and Behavior.

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Factors Affecting Consumer

Behavior: Culture

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Culture is the Set of Values, Perceptions, Wants &Behavior Learned by a Member of Society from

Family.

Social Class

Societys relatively permanent& ordered divisions whosemembers share similar values,interests, and behaviors.

Measured by: Occupation,Income, Education, Wealth andOther Variables.

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Factors Affecting Consumer

Behavior: Social

7

GroupsMembership

Reference

Family (most important)Husband, wife, kidsInfluencer, buyer, user

Roles and Status

Social Factors

Family Buying Influence

Children can exert a

strong influence onfamily buying decisions.

Johnson & Johnson remindscustomers of its commitment

to the American Family.

What other companies usechildren to influence

family buying decisions?

Click or press spacebar to return

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Factors Affecting Consumer

Behavior: Personal

8

Personal Influences

Personal Influences

Age and LifeCycle Stage

Age and LifeCycle Stage OccupationOccupation

Personality &Self-Concept

Personality &Self-Concept

EconomicSituation

EconomicSituation

ActivitiesActivities InterestsInterests

Lifestyle IdentificationLifestyle Identification

Opinions

Opinions

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Factors Affecting Consumer

Behavior: Psychological

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PsychologicalFactors

Affecting

BuyersChoices

Motivation

Perception

Learning

Beliefs andAttitudes

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Maslows Hierarchy of Needs

(Fig. 5.4)

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Physiological Needs(hunger, thirst)

Safety Needs(security, protection)

Social Needs(sense of belonging, love)

Esteem Needs(self-esteem)

SelfActualization

(Self-development)

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Types of Buying Decision Behavior

(Fig. 5.5)

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HighInvolvement

Significant

differencesbetween

brandsFew

differencesbetween

brands

LowInvolvement

Complex

BuyingBehavior

Variety-

SeekingBehavior

Dissonance-Reducing Buying

Behavior

HabitualBuying

Behavior

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Buyer Decision Process

(Fig. 5.6)

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PostpurchaseBehavior

PurchaseDecision

InformationSearch

Need

Recognition

Evaluationof Alternatives

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Buyer Decision Process

Step 1. Need Recognition

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State Where theBuyers Needsare Fulfilled andthe Buyer is

Satisfied.

Needs Arising

From:

Internal Stimuli

Hunger

External Stimuli-

Friends

Buyer

RecognizesaProblem

or aNeed.

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The Buyer Decision Process

Step 2. Information Search

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Family, friends, neighborsMost effective source of

informationAdvertising, salespeopleReceives most information from

these sources

Mass Media

Consumer-rating groups

Handling the productExamining the productUsing the product

Personal Sources

Commercial Sources

Public Sources

Experiential Sources

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The Buyer Decision Process

Step 4. Evaluation of Alternatives

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Consumer May Use CarefulCalculations & Logical Thinking

Consumers May Buy on Impulse andRely on Intuition

Consumers May Make Buying Decisionson Their Own.

Consumers May Make Buying DecisionsOnly After Consulting Others.

Marketers Must Study Buyers to Find Out

How They Evaluate Brand Alternatives

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The Buyer Decision Process

Step 5. Purchase Decision

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Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

UnexpectedSituational

Factors

Attitudesof Others

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The Buyer Decision Process

Step 6. Postpurchase Behavior

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Consumers

Expectations of Products Performance.

Products Perceived

Performance.

Dissatisfied Customer

Satisfied Customer!

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Discussion Connections

Form small groups to discuss a specific

major purchase that one of you has made

recently. What type of buying decision was it? (slide

#12)

Discuss the Buyer Decision Process and whatmajor factors influenced your decisions.

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Stages in the Adoption Process

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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 (Fig. 5.7)

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Percentage

ofA

dopters

Time of Adoption

Early Late

Innovato

rs

EarlyAdopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority

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Influence of Product Characteristics

on Rate of Adoption

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DivisibilityCan the innovation

be used on atrial basis?

ComplexityIs the innovation

difficult tounderstand or use?

CommunicabilityCan results be easily

observed or describedto others?

CompatibilityDoes the innovation

fit the values andexperience of thetarget market?

Relative AdvantageIs the innovation

superior to existing

products?

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Review of Concept Connections

Define the consumer market and construct a

simple model of consumer buyer behavior.

Name the four major factors that influence

consumer buyer behavior.

List and understand the stages in the buyer

decision process.

Describe the adoption and diffusion process for

new products.

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