intro + buying desicion process

8/9/2019 Intro + Buying Desicion Process

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Consumer Markets andConsumer Buyer Behavior

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Principles of Marketing


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Learning Objectives

After studying this chapter, you should be able to:

1. Define the consumer market and construct a simple

model of consumer buyer behavior2. Name the four major factors that influence

consumer buyer behavior

3. List and understand the major types of buyingdecision behavior and the stages in the buyer

decision process4. Describe the adoption and diffusion process for new

products

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Chapter Outline

1. Model of Consumer Behavior

2. Characteristics Affecting ConsumerBehavior

3. Types of Buying Decision Behavior

4. The Buyer Decision Process

5. The Buyer Decision Process for NewProducts

6. Consumer Behavior AcrossInternational Borders

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Model of Consumer Behavior

Consumer buyer behavior refers to thebuying behavior of final consumersindividuals and households who buy goodsand services for personal consumption

Consumer market refers to all of the personalconsumption of final consumers

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Model of Consumer Behavior

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Marketing stimuliconsists of the 4 Ps

Product

Price

Place

Promotion

Other stimuli include:

Economic forces

Technological forces

Political forces

Cultural forces


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Characteristics Affecting

Consumer Behavior

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Cultural Factors

Buyers culture

Buyers subculture

Buyers social class

Social Factors

Reference groups

Family

Roles and status


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Consumer Behavior

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Personal Factors

Age and life-cycle

stage Occupation

Economic situation

Lifestyle

Personality and self-concept

PsychologicalFactors

Motivation

Perception

Learning

Beliefs and attitudes


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Consumer Behavior

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Culture is the learned values,

perceptions, wants, and behavior fromfamily and other important institutions


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Consumer Behavior

Subculture are groups of people within aculture with shared value systems

based on common life experiences andsituations Hispanic

African American

Asian Mature consumers

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Consumer Behavior

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Social classes are societys relatively

permanent and ordered divisions whosemembers share similar values, interests,and behaviors

Social class is measured by a combinationof occupation, income, education,wealth, and other variables


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Consumer Behavior

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The major American social classes

Upper class Middle class Working class Lower class


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Consumer Behavior

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Social Factors

Groups

Membership groups have a direct influenceand to which a person belongs

Aspirational groups are groups to which an

individual wishes to belongReference groups are groups that form a

comparison or reference in forming attitudesor behavior


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Consumer Behavior

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Social FactorsGroups

Opinion leaders are people within a referencegroup with special skills, knowledge,

personality, or other characteristics that canexert social influence on others

Buzz marketing enlists opinion leaders to

spread the word Social networking is a new form of buzz

marketing MySpace.com Facebook.com


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Consumer Behavior

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Social Factors

Family is the most important consumer-buying organization in society

Social roles and status are the groups,

family, clubs, and organizations to which aperson belongs that can define role andsocial status


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Consumer Behavior

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Personal Factors

Personal characteristics

Age and life-cycle stage

Occupation

Economic situation Lifestyle

Personality and self-concept


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Consumer Behavior

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Personal Factors

Age and life-cycle stage RBC Royal Band stages:

Youthyounger than 18

Getting started18-35

Builders35-50 Accumulators50-60

Preserversover 60


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Consumer Behavior

Personal Factors

Occupation affects the goods and servicesbought by consumers

Economic situation includes trends in:

Personal income

Savings

Interest rates

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Consumer Behavior

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Personal Factors

Lifestyle is a persons pattern of living asexpressed in his or her psychographics

Measures a consumers AIOs (activities,interests, and opinions) to capture informationabout a persons pattern of acting andinteracting in the environment


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Consumer Behavior

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Personal Factors

SRI Consultings Values and Lifestyle(VALS) typology

Classifies people according to how they

spend money and time Primary motivations

Resources


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Consumer Behavior

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Personal Factors

Primary motivations

Ideals

Achievement

Self-expression


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Consumer Behavior

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Personal Factors

Resources

High resources

Innovators exhibit all primary motivations

Low resources Survivors do not exhibit strong primary

motivation


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Consumer Behavior

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Personal FactorsPersonality and Self-Concept

Personality refers to the uniquepsychological characteristics that leadto consistent and lasting responses tothe consumers environment


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Consumer Behavior

Personal Factors

Personality and Self-Concept

Brand personality refers to the specific mixof human traits that may be attributed to aparticular brand

Sincerity

Excitement Competence

Sophistication

Ruggedness

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Consumer Behavior

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Personal Factors

Personality and Self-Concept

Self-concept refers to peoplespossessions that contribute to andreflect their identities


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Consumer Behavior

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Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes


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Consumer Behavior

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Psychological FactorsMotivation

A motive is a need that is sufficientlypressing to direct the person to seeksatisfaction

Motivation research refers toqualitative research designed to probeconsumers hidden, subconsciousmotivations


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Consumer Behavior

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Abraham Maslows Hierarchy of Needs

People are driven by particular needs atparticular times

Human needs are arranged in a hierarchy frommost pressing to least pressing

Psychological

Safety

Social

Esteem

Self-actualization


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Consumer Behavior

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Perception is the process by which peopleselect, organize, and interpret information toform a meaningful picture of the world fromthree perceptual processes

Selective attention Selective distortion

Selective retention


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Consumer Behavior

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Selective attention is the tendency for peopleto screen out most of the information to whichthey are exposed

Selective distortion is the tendency for peopleto interpret information in a way that willsupport what they already believe

Selective retention is the tendency toremember good points made about a brandthey favor and to forget good points aboutcompeting brands


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Consumer Behavior

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Learning is the changes in an individualsbehavior arising from experience andoccurs through interplay of:

Drives

Stimuli Cues

Responses

Reinforcement


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Consumer Behavior

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Beliefs and Attitudes

Belief is a descriptive thought that aperson has about something based on:

Knowledge

Opinion Faith


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Consumer Behavior

Attitudes describe a persons relativelyconsistent evaluations, feelings, andtendencies toward an object or idea

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Psychological FactorsBeliefs and Attitudes


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Types of Buying Decision Behavior

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Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior


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ComplexBuying Behavior

When consumers are highly motivated in apurchase and perceive significant differencesamong brands

Purchasers are highly motivated when:

Product is expensive Product is risky Product is purchased infrequently Product is highly self-expressive


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Dissonance-reducing buying behavioroccurs when consumers are highly involved

with an expensive, infrequent, or riskypurchase, but see little difference amongbrands

Post-purchase dissonance occurs when theconsumer notices certain disadvantages ofthe product purchased or hears favorablethings about a product not purchased


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Habitual buying behavior occurs whenconsumers have low involvement and

there is little significant brand difference

Variety-seeking buying behavioroccurs when consumers have lowinvolvement and there are significantbrand differences


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The Buyer Decision Process

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Five stages in the buyer decision process

1. Need recognition

2. Information search

3. Evaluation of alternatives

4. Purchase decision

5. Post-purchase behavior


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Need Recognition

Need recognition occurs when thebuyer recognizes a problem or needtriggered by:

Internal stimuli External stimuli

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Information Search

Information search is the amount ofinformation needed in the buying processand depends on the strength of the drive,the amount of information you start with, theease of obtaining the information, the valueplaced on the additional information, and thesatisfaction from searching


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Information Search

Sources of information:

Personal sourcesfamily and friends

Commercial sourcesadvertising, Internet

Public sourcesmass media, consumerorganizations

Experiential sourceshandling, examining,using the product


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Evaluation of Alternatives

Evaluation of alternatives is how theconsumer processes information toarrive at brand choices


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Purchase Decision

The purchase decision is the act by theconsumer to buy the most preferredbrand

The purchase decision can be affected by: Attitudes of others

Unexpected situational factors


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Post-Purchase Decision

The post-purchase decision is thesatisfaction or dissatisfaction theconsumer feels about the purchase

Relationship between: Consumers expectations

Products perceived performance


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The larger the gap between expectationand performance, the greater theconsumers dissatisfaction

Cognitive dissonance is the discomfortcaused by a post-purchase conflict


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Customer satisfaction is a key tobuilding profitable relationships withconsumersto keeping and growingconsumers and reaping their

customer lifetime value

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The Buyer Decision Process for

New Products

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Stages in the Adoption Process

1. Awareness

2. Interest

3. Evaluation

4. Trial5. Adoption


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New Products

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Awareness is when the consumerbecomes aware of the new product butlacks information

Interest is when the consumer seeksinformation about the new product


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New Products

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Evaluation is when the consumerconsiders whether trying the newproduct makes sense

Trial is when the consumer tries the newproduct to improve his or her estimateof value


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New Products

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Adoption is when the consumer decidesto make full and regular use of theproduct


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New Products

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Individual Differences in Innovation

Early adopters are opinion leaders and adoptnew ideas early but cautiously

Early majority are deliberate and adopt newideas before the average person

Late majority are skeptical and adopt newideas only after the majority of people have

tried itLaggards are suspicious of changes and adopt

new ideas only when they become tradition


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New Products

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Influence ofProduct Characteristics

on Rate of Adoption

Relative advantage is the degree to which aninnovation appears to be superior to existingproducts

Compatibility is the degree to which aninnovation fits the values and experiences ofpotential consumers


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New Products

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Influence ofProduct Characteristics

on Rate of Adoption

Complexity is the degree to which theinnovation is difficult to understand oruse

Divisibility is the degree to which theinnovation may be tried on a limitedbasis


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Consumer Behavior Across

International Borders

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Differences can include:

Values

Attitudes

Behaviors

The question for marketers is whether toadapt or standardize the marketing

intro + buying desicion process

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