consumer markets final
TRANSCRIPT
CONSUMER MARKETS AND CONSUMER
BUYER BEHAVIOR
“To be a bullfighter, you must first learn to be a bull.”
-Anonymous
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Model of Consumer Behavior
Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption
Consumer market refers to all of the personal consumption of final consumers
Characteristics Affecting Consumer Behavior
Factors Influencing Consumer Behavior
Characteristics Affecting Consumer Behavior
Culture is the learned values, perceptions, wants, and behavior from family and other important institutions
Every group or society has a culture and cultural influences on buying behavior may vary greatly from one country to another
Marketers are always trying to spot cultural shifts in order to discover new products that might be wanted
Characteristics Affecting Consumer Behavior
Subculture are groups of people within a culture with shared value systems based on common life experiences
and situationsHispanicAfrican AmericanAsianMature consumers
In IndiaReligions like Sikhs Muslims Christians etc form subculture
Characteristics Affecting Consumer Behavior
Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors
Measured by a combination of occupation, income, education, wealth, and other variables
Characteristics Affecting Consumer Behavior
Membership Groups
• Groups with direct influence and to which a person belongs
Aspirational Groups
• Groups an individual wishes to belong to
Reference Groups
• Groups that form a comparison or reference in forming attitudes or behavior
Groups and Social Networks
Never Allow Yourself to be advised Non-conformism
Characteristics Affecting Consumer Behavior
Word-of-mouth influence and buzz marketing Opinion leaders are people within
a reference group who exert social influence on others
Also called influentials or leading adopters
Marketers identify them to use as brand ambassadors
Groups and Social Networks
Characteristics Affecting Consumer Behavior
Online Social Networks are online communities where people socialize or exchange information and opinions
Include blogs, social networking sites (facebook), virtual worlds (second life)
Groups and Social Networks
Characteristics Affecting Consumer Behavior
Age and life-cycle stagePeople change the goods and services they buy
over their lifetimes. Tastes in food, clothes, furniture and recreation are age related. Buying Is also shaped by the stage of the family life cycle “ the stages through which families might pass as they mature over time”
Personal Factors
Stages in the Family Life Cycle1. Bachelor stage: Young, single, not living at home
Few financial burdens. Fashion opinion leaders. Recreation oriented. Buy: basic home equipment, furniture, cars, equipment for the mating game; vacations.
2. Newly married couples: Young, no children
Highest purchase rate and highest average purchase of durables: cars, appliances, furniture, vacations.
3. Full nest I: Youngest child under six
Home purchasing at peak. Liquid assets low. Interested in new products, advertised products. Buy: washers, dryers, TV, baby food, chest rubs and cough medicines, vitamins, dolls, wagons, sleds, skates.
4. Full nest II: Youngest child six or over
Financial position better. Less influenced by advertising. Buy larger-size packages, multiple-unit deals. Buy: many foods, cleaning materials, bicycles, music lessons, pianos.
Characteristics Affecting Consumer Behavior
RBC Royal Bank stages Youth: younger than 18 Getting started: 18–35 who are going through first
experiences, first credit card, first car , first child• Builders: 35–50 in their peak earning years, as they
build careers and family, they tend to borrow more than they invest
• Accumulators: 50–60Worry about saving for retirement and invested wisely.• Preservers: over 60Want to maximize their retirement income to maintain a desired
lifestyle.
Personal Factors
Characteristics Affecting Consumer Behavior
Lifestyle is a person’s pattern of living as expressed in his or her psychographics
Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment
Personal Factors
Halo Effect
Characteristics Affecting Consumer Behavior
Personality and self-concept Personality refers to the unique psychological
characteristics that lead to consistent and lasting responses to the consumer’s environment
Personality is described in terms of traits .
Personal Factors
innovativeness
Characteristics Affecting Consumer Behavior
Personal Factors Dominance Autonomy
Defensiveness Adaptability Aggressiveness
Characteristics Affecting Consumer Behavior
Psychological Factors
Motivation
Perception
Learning
Beliefs and attitudes
Characteristics Affecting Consumer Behavior
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
Psychological Factors
Grouping /Association
Closure Concept
Closure Concept
Characteristics Affecting Consumer Behavior
A person has may needs at any given time. Some are biological, arising from the states of tension such as hunger, thirst or discomfort. Others are psychological arising from the need for recognition , esteem , or belonging .
A need becomes a motive when it’s aroused to a sufficient level of intensity
Psychological FactorsMotivation
Characteristics Affecting Consumer Behavior
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
Psychological FactorsMotivation
Influencing Buyer Behavior
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Ernest Dichter’s research found: Consumers resist prunes because prunes
are wrinkled looking and remind people of old age.
Men smoke cigars as an adult version of thumb sucking.
Women prefer vegetable shortening to animal fats because the latter arouse a sense of guilt over killing animals.
Characteristics Affecting Consumer Behavior
Psychologists have developed theories of human motivation, two of the most popular- the theories of psychologists Frued and Maslow.
Frued’s theory suggests that a person’s buying decisions are affected by subconscious motives that even the buyer mayn’t fully understand.
Characteristics Affecting Consumer Behavior
Maslow’sHierarchy of Needs
Achievement oriented
Characteristics Affecting Consumer Behavior
Learning is the change in an individual’s behavior arising from experience and occurs through interplay of:
Psychological Factors
Drives Stimuli Cues
Responses Reinforcement
Memory
Brand Associations
Mental Maps
Memory Processes
EncodingRetreival
Brand
Association
Association
Association
Association
Association
Figure
6.3 Hypothetical State Farm Mental Map
Characteristics Affecting Consumer Behavior
Belief is a descriptive thought that a person has about something based on:
KnowledgeOpinionFaith
Psychological FactorsBeliefs and Attitudes
Characteristics Affecting Consumer Behavior
Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea
Psychological Factors
Characteristics Affecting Consumer Behavior
Attitudes put people into a frame of mind of liking or disliking things, or moving toward or away from them
Attitudes are difficult to change, a company should usually try to fit its products into existing attitudes rather than an attempt to change the attitudes.
Psychological Factors
Types of Buying Decision BehaviorFour Types of Buying Behavior
Complex buying behaviorWhen consumers are highly involved in a
purchase and perceive significant differences among the brands. Consumers maybe highly involved when the product is expensive, risky and purchased infrequently
Marketers need to help buyers learn about product-class attributes& their relative importance. They need to differentiate their brand features, by describing them using print media with long copy
Dissonance-reducing buying behavior
Occurs when consumers are highly involved with an expensive , risky purchase but see little differences among brands
Consumers might experience post purchase dissonance when they notice certain disadvantages of the purchased brand or hear favorable things about brands not purchased
Habitual buying behavior
Occurs under conditions of low consumer involvement and little significant brand difference
Consumers appear to have low involvement with most low cost, frequently purchased products
Ad repetition creates brand familiarity rather than brand conviction “ consumers don’t form strong attitudes toward a brand, they select the brand because its familiar
Variety-seeking buying behavior
In situations characterized by low consumer involvement but significant perceived brand differences. In such cases consumers often do a lot of brand switching
Brand switching occurs for the sake of variety rather than because of dissatisfaction .
The Buyer Decision ProcessBuyer Decision Making Process
The Buyer Decision Process for New Products
Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use.
Stages in the process include:
Awareness
Interest
Evaluation Trial Adoption
The Buyer Decision Process for New Products
Influence of Product Characteristics on Rate of Adoption
Relative advantage
Compatibility Complexity
Divisibility Communicability