mktg 3 cons buying beh

7/27/2019 Mktg 3 Cons Buying Beh

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Consumer BuyingBehavior

How do consumers respond to marketing efforts thecompany might use?


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Consumer Buying

Behaviorrefers to the buying

behavior of finalconsumers (individuals &households) who buy

goods and services forpersonal consumption.


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Consumer Market

Consists of all the

individuals and householdswho buy or acquire goodsand services for personalconsumption.


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Business Market

Org. who buy for the prod. Orassembling of goods or services to be

sold to consumers/ other org.


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Marketing andOther Stimuli

Buyers Black Box

Buyers Response

Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

CharacteristicsAffectingConsumerBehavior

BuyersDecisionProcess

Product Choice

Brand Choice

Dealer Choice

PurchaseTiming

PurchaseAmount

Stimulus Response Model of CB


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Buyer

Psychological

Personal

Social

Culture

Characteristics affectingconsumer behaviour


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Factors Influencing

Consumer BehaviorPersonal

PsychologicalSocial

Cultural


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Culture & Subcultures

CulturesThe accumulation of values, knowledge, beliefs,

customs, objects, and concepts that a societyuses to cope with its environment

SubculturesGroups of individuals who have similar value and

behavior patterns within the group but differfrom those in other groups.


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Social Class

People within a social classtend to exhibit similar buyingbehavior.

Occupation

Income

Education

Wealth

Most basic cause of a person's

wants and behavior.ValuesPerceptions

Subculture

Groups of people with sharedvalue systems based on commonlife experiences.

Factors affecting CB : Culture


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Social Class

Relatively homogenous, enduringdivisions in a society,hierarchically ordered with

members sharing similar values,interests, and behaviors.


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Social Classes

Upper Upper 1%

Lower Upper 2%

Upper Middle 12%

Middle 32%

Working 38%Upper Lower 9%

Lower Lower 7%


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Social Factors

1. Reference Groups

2.Primary groups

3.Secondary Groups


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Factors Affecting Consumer Behavior:Social

Groups

Membership

Reference

FamilyHusband, wife, kids

Influencer, buyer, user

Roles and Status

Social Factors


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Personal Factors

Age

Life-Cycle Stage


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Stages in Family Life-Cycle

1. Single2. Newly Married Couples

3. Full Nest I4. Full Nest II5. Full Nest III

6. Empty Nest I7. Empty Nest II8. Solitary Survivor9. Solitary Survivor, Retired


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Personal Factors

Age

Life-Cycle StageOccupation

Economic CircumstancesLife Style

ff h


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Factors Affecting Consumer Behavior:Personal

Personal Influences

Age and Family Life CycleStage

Occupation

Economic Situation

Lifestyle Identification

Activities Opinions

Interests

Personality & Self-Concept


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AIO FrameworkActivities Work, Hobbies, Social events,

vacation, Entertainment, clubs, community,shopping, sports

Interests Family, Home, Job, community,

recreation, fashion, food, media,achievements

Opinions themselves, social issues, politics,

business, eco, education, products, future,culture

VALS


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VALS

Principle Oriented Status Oriented Action Oriented

Achievers

Actualizers

Strugglers

Strivers

Fulfilleds

Believers

Experiencers

Makers

Abundant Resou rces

Minimal Resources


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Types of Buying Behavior

Routine Response

Limited DecisionExtension Decision

Impulse Buying


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Buying Roles

Initiator

Influencer

Decider

Buyer

User

T f B i D i i


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Types of Buying Decisions

Complex

BuyingBehavior

Dissonance-

Reducing Buying

Behavior

Variety-

SeekingBehavior

Habitual

Buying

Behavior

HighInvolvement

Significant

differencesbetweenbrands

Fewdifferences

between

brands

LowInvolvement


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Complex buying situationpurchase of a car, house,computer etc.,

Dissonance reducing buyingsituation purchase of carpets

Variety seeking buying purchaseof cookies, perfumes

Habitual buying situationpurchase of salt, sugar etc.,


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Factors A ffect ing Consumer Behavior :

Psychological

PsychologicalFactors

Motivation

Perception

Learning

Beliefs andAttitudes


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Psychological Factors

Wants

Based on a want or desire tohave something. Not anecessity.


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Motivation:

FreudIdEgo

Super EgoMaslow

Hierarchy of Needs


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MotivationPerception

The process by which an individualselects, organizes, and interprets inputsto create a meaningful picture of theworld.

Selective ExposureSelective DistortionSelective Retention


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Selective exposure theory is a theory ofcommunication, positing that individuals

prefer exposure to arguments supportingtheir position over those supporting otherpositions. It has been discussed bycommunication scholars for decades. Sinceexcessive amount of media choices areavailable, media consumers have moreprivileges to expose themselves to selectedmedium and media contents.


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Selective Distortion is a term that refersto the tendency of people to interpret

information in a way that will support whatthey already believe. This concept, alongwith selective attention and selectiveretention, makes it hard for marketers to

get their message across and create goodproduct perception
http://en.wikipedia.org/wiki/Selective_attentionhttp://en.wikipedia.org/wiki/Selective_retentionhttp://en.wikipedia.org/wiki/Selective_retentionhttp://en.wikipedia.org/wiki/Marketershttp://en.wikipedia.org/wiki/Marketershttp://en.wikipedia.org/wiki/Selective_retentionhttp://en.wikipedia.org/wiki/Selective_retentionhttp://en.wikipedia.org/wiki/Selective_attention


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Selective retention is the processwhen people remember messages that

are closer to their interests, valuesand beliefs more accurately, thanthose that are in contrast with their

values and beliefs, selecting what tokeep in the memory, narrowing theinformational flow.
http://en.wikipedia.org/wiki/Memoryhttp://en.wikipedia.org/wiki/Memory


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Motivation

PerceptionLearning

Changes in an individuals behaviorarising form experience


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Motivation

PerceptionLearning

Beliefs

Descriptive thoughts that a person holdsabout something


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MotivationPerception

LearningBeliefsAttitudes

Enduring favorable or unfavorablecognitive evaluations emotional feelingsand action tendencies


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Functional Factors

Needs

Need over wants. Delivers to areal need to have something.


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Family Influence on BuyingBehavior

Husband-DominantWife-Dominant

Equal


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Examples of Buying Motives:Psychological or Functional?

A senior wants to impress hisjuniors.

His primary motive is ?

Psychological


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A girl wants to remember hergrandmother on her birthday.

Her primary motive is?

Psychological


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A homemaker needs a new washingmachine and has had good

experiences with LG.Her primary motive is ?

Functional


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A teacher wants to buy a practicalcar to be used for family

transportation.Her/His primary motive is ?

Functional


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A career woman always buys brandedclothes.

Her primary motive is?

Psychological
http://www.lizclaiborne.com/product/index.jsp?productId=2179527&cp=1986587.1988213&parentPage=family


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An overweight 40 year old man wantsto loose weight so that he can reduce

his blood pressure.His primary motive is?

Functional


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A homeowner needs to mow theirlawn.

Their primary motive is?

Functional


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Consumer Buying Behavior Competency

Functional

Motive

Psychological

Motive

The price is 40cents off theregular price.

It never needsironing.

Diamonds areforever.

Serving you since1971.

Ninety-daywarranty.


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Consumer Buying Behavior Competency

FunctionalMotive

PsychologicalMotive

Running shoe withbuilt-in arch.

Its all the rage

colored action wearand style.

Wheatiesthebreakfast ofchampions!

Steel-belted radialtires warranted for40,000 miles

A watcha gift shewill treasure

always.


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Consumer Buying Decision Process

Problem

Recognition

Information

Search

Evaluation of

Alternatives

PurchaseDecision

Post-PurchaseEvaluation

The Buyer Decision Process


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Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior

The Buyer Decis ion Process


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Step 1. Need Recogn it ion

External Stimuli

TV advertising

Magazine ad

Radio slogan

Stimuli in the

environment

Internal Stimuli

Hunger

Thirst

A persons normalneeds

Need RecognitionDifference between an actualstate and a desiredstate



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The Buyer Decision ProcessStep 2. Information Search

Family, friends, neighborsMost influential source of

information

Advertising, salespeopleReceives most information

from these sources

Mass MediaConsumer-rating groups

Handling the productExamining the productUsing the product

Personal Sources

Commercial Sources

Public Sources

Experiential Sources



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Step 3. Evaluat ion o f A lternat ives

Product A tt r ibutesEvaluation of Quality, Price, & Features

Degree of Impo rtanceWhich attributes matter most to me?

Brand Bel iefsWhat do I believe about each available brand?

Total Produ ct Satisfact ion

Based on what Im looking for, how satisfiedwould I be with each product?

Evaluat ion ProceduresChoosing a product (and brand) based on one

or more attributes.



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The Buyer Decision ProcessStep 4. Purchase Decision

Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

Attitudes

of others

Unexpectedsituational

factors



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Step 5. Pos tpu rchase Behavio r

Consumers Expectations ofProducts Performance

Dissatisfied

CustomerSatisfied

Customer!

Products Perceived

Performance

CognitiveDissonance


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Adoption Process

1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Decision6. Confirmation

Stages in the Adoption Process


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Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption

nfluences on the Rate of Adoption


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nfluences on the Rate of Adoptionf New Products

DivisibilityCan the innovation

be used on atrial basis?

CompatibilityDoes the innovation

fit the values andexperience of the

target market?ComplexityIs the innovation

difficult tounderstand or use?

Relative AdvantageIs the innovation

superior to existingproducts?

CommunicabilityCan results be easily

observed or describedto others?

ProductCharacteristics

Adoption of Innovations


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Adoption of Innovations

Percent

ageofAdopters

Time of Adoption

Early Late

Innovato

rs

EarlyAdopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority

mktg 3 cons buying beh

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