Download Chapter 6 Consumer Markets and Consumer Buying Behavior

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Chapter 6
“To be a bullfighter, you must first
learn to be a bull.”
Consumer
Markets and
Consumer
Buying
Behavior
©2006 Pearson Education, Inc.
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Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Chapter Objectives
• Name the elements of the response
model of consumer behavior
• Outline the major characteristics
affecting consumer behavior
• Explain the buyer decision process
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Five Premises of Consumer
Behavior
• Consumer behavior is purposeful and
goal oriented
• The consumer has free choice
• Consumer behavior is a process
• Consumer behavior can be influenced
• There is a need for consumer education
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-Anonymous
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Consumer Buying Behavior
• Consumer buying behavior refers to the
buying behavior of final consumers –
individuals & households who buy goods
and services for personal consumption
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Consumer Buying Behavior
• The central question for marketers is: “How
do consumers respond to various
marketing efforts the company might
use?”
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A Model of Consumer
Behavior
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Factors Influencing Consumer
Behavior
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Cultural Factors
• Culture is the most basic determinant of a
person’s wants and behavior
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Cultural Factors
• Subcultures are groups
of people with shared
value systems based on
common life experiences
and situations
• Social classes are
relatively permanent and
ordered divisions in a
society whose members
share similar values,
interests, and behaviors
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Social Factors
• Consumer behavior is influenced by:
–Consumers’ groups
–Family
–Social roles
–Status
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Consumer Groups
• An individual’s attitudes and behavior
are influenced by many small groups
• Types of groups
– Membership groups
• Primary groups
• Secondary groups
– Reference groups
– Aspirational groups
• Opinion leaders
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Social Factors (Roles and Status)
• A role consists of the activities that a
person is expected to perform according
to the persons arround him or her.
• Each role carries a status reflecting the
general asteem given to it by society.
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Personal Factors
• Personality is a person’s distinguishing
psychological characteristics that lead to
relatively consistent and lasting responses to
his or her environment
• Self-Concept is the complex mental pictures
people have of themselves, also known as
self-image
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Maslow’s Hierarchy of Needs
Self
Actualization
Esteem Needs
(self-esteem)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
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Personal Factors
• Age and Life-Cycle Stage
• Occupation
• Economic Situation
• Lifestyle – a person’s pattern of
living as expressed in his or her
activities, interests, and opinions
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Psychological Factors
• Motivation
– Maslow’s Theory of Motivation
• Sought to explain why people are driven by
particular needs at particular times
– Herzberg’s Theory
• A two factor theory that distinguishes
dissatisfiers (factors that cause dissatisfaction)
and satisfiers (factors that cause satisfaction)
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Psychological Factors
• Perception
– Selective Attention
• Consumers are constantly bombarded with
information and will screen out stimuli
– Selective Distortion
• Messages to do not always come across in the
same way the sender intended.
– Selective Retention
• People will forget much that they learn but will
tend to retain information that supports their
attitudes and beliefs
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Psychological Factors
• Learning describes changes in an
individual’s behavior arising from
experience
• A belief is a descriptive thought that a
person holds about something
• An attitude describes a person’s relatively
consistent evaluations, feelings, and
tendencies toward an object or an idea
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• Think of a recent important purchase– briefly draw a
flowchart of the steps you recall moving through from the
awareness of need to post purchase
• What influenced you at each step?
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Buyer Decision Process
• How do you know when to shop? What are the triggers
that initiate an awareness & search?
• What are the internal & external sources of these
triggers?
Cultural, Social, Individual and Psychological
Factors affect all steps
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Need Recognition
Need Recognition
• For the decision process to begin, a potential
buyer must first recognize a problem or need
Need Recognition
Difference between an actual state and a desired state
When do you need recognition?
• When a current product isn’t performing properly
• When the consumer is running out of an product
• When another product seems superior to the one
currently used
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Internal Stimuli
External Stimuli
• Hunger
• TV advertising
• Thirst
• Magazine ad
• A person’s normal
needs
• Radio slogan
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•Stimuli in the
environment
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Need Recognition
Marketing helps
consumers recognize (or
create) an imbalance
between present status
and preferred state
• go back to your past purchase– what were the specific
internal and external sources of information that
influenced your decision?
• how do you determine (and rate) the credibility of
these sources?
• what specific information influenced you?
Information Search
The information search stage
An internal search involves the scanning
of one's memory to recall previous experiences
or knowledge concerning solutions to the
problem-- often sufficient for frequently
purchased products.
An external search may be necessary
when past experience or knowledge is
insufficient, the risk of making a wrong purchase
decision is high, and/or the cost of gathering
information is low.
• Information can be obtained from:
Personal sources
(friends and family)
Public sources (rating
services like Consumer
Reports)
Marketer-dominated
sources (advertising or
sales people)
set: a group of
brands from which the buyer can
choose
– Personal Sources
• Family, friends, neighbors, and acquaintances
– Commercial Sources
• Advertising, salespeople, dealers, packaging,
and displays
– Public Sources
• Restaurant reviews, editorials in the travel
section, consumer-rating organizations
The evoked
Determinants of External Search
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Successive Sets Involved in
Consumer Decision Making
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Buyer Behavior
Other people often influence a consumers purchase decision. The
marketer needs to know which people are involved in the buying
decision and what role each person plays, so that marketing
strategies can also be aimed at these people. (Kotler et al, 1994).
• Initiator: the person who first suggests or thinks of the idea of buying a
particular product or service.
Evaluation of Alternatives
• Products are seen as bundles of
product attributes
• Influencer: a person whose views or advice carry weight in making the final
buying decision (Opinion leaders)
• Decider: the person who ultimately makes the final buying decision or any part
of it
• Buyer: the person who makes the actual purchase
• Customers rank attributes and form
purchase intentions
• User: the person who consumes the product or service
Note: teens are increasingly assuming more of these roles
Think about your past purchase– who was in which role?
©2006 Pearson Education, Inc.
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Consumer decision making
varies with the level of involvement in the
purchasing decision
• quickly list 10 items you have purchased in the past
month
• reexamine how long it took you to make a decision on
each
• why did such a difference in decision occur?
• Extensive: problem solving occurs when
buyers purchase more expensive, less
frequently purchased products in an
unfamiliar product category requiring
information search & evaluation; may
experience cognitive dissonance.
• Limited: problem solving occurs when buyers are confronted
with an unfamiliar brand in a familiar product category
• Routine: response behavior occurs
when buyers purchase low cost, low risk, brand loyal, frequently
purchased, low personal identification or relevance, items with
which they are familiar.
Factors affecting
Consumer involvement
• Previous
Increase in
Consumer
evaluation
processes
Types of consumer involvement
and decision making
experience: low level involvement
Routine
Limited
Extensive
Involvement
Short
Low to
moderate
High
• Situation: low to high due to risk
Time
Low
Short to
moderate
Long
• Social
Cost
Short
Low to
moderate
High
Information
Search
Internal only
Mostly
internal
Internal &
external
Number of
alternatives
one
few
many
• Interest: high involvement
• Perceived
risk of negative consequences: high involvement
visibility: involvement increases with product visibility
So…
• Offer extensive information on high involvement products
• In-store promotion & placement is important for low involvement products
• Linking low-involvement product to high-involvement issue can increase sales
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Purchase Decision
Post Purchase Behavior
• The smaller the gap between customer
expectations and perceived performance,
the greater the customer’s satisfaction
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Post Purchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived
Performance
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Postpurchase Behavior
Cognitive dissonance is buyer discomfort caused by post purchase conflict
Cognitive Dissonance
?
Did I make a good decision?
Did I buy the right product?
Satisfied
Customer!
©2006 Pearson Education, Inc.
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Dissatisfied
Customer
Can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
Underpromise & overdeliver
Did I get a good value?
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