Download The Buyer Decision Process

Consumer Markets
and Consumer
Buyer Behavior
Alokesh Banerjee
Objectives
Be able to define the
consumer market and
construct a simple model of
consumer buyer behavior.
Know the four major factors
that influence consumer
buyer behavior.
6-1
Objectives
Understand the major types of
buying decision behavior and
the stages in the buyer decision
process.
Be able to describe the
adoption and diffusion process
for new products.
6-2
c
Harley-Davidson
Harley “Hogs”
account for 1/5 of
U.S. cycle sales
Sales have
exceeded supply
for years
1986-2000: Four
stock splits,
increase of
7,100%
Fiercely loyal
clientele revolves
around 7 core
customer types
Harley owners use
their bikes to express
their lifestyle and
attitudes
Advertising reflects
the Harley mystique
6-3
Definitions
Consumer Buying Behavior
 Buying behavior of individuals and
households that buy products for
personal consumption.
Consumer Market
 All individuals/households who buy
products for personal consumption.
6-4
Figure 6-1:
Model of Buyer Behavior
6-5
Model of
Consumer Behavior
Stimulus Response Model
 Marketing and other stimuli enter the
buyer’s “black box” and produce
certain choice / purchase responses.
 Marketers must figure out
what is inside of the buyer’s
“black box” and how stimuli
are changed to responses.
?
6-6
Figure 6-2:
Factors Influencing
Consumer Behavior
6-7
Characteristics Affecting
Consumer Behavior
Key Factors
Cultural
Social
Personal
Psychological
Culture
Subculture
 Hispanic
consumers
 African Americans
 Asian Americans
 Mature consumers
Social Class
6-8
Characteristics Affecting
Consumer Behavior
Hispanics
 35 million consumers
purchase $425 billion
worth of goods and
services.
 Expected to grow 64%
in 20 years.
 Spanish media makes
group easy to reach.
 Brand loyal group.
6-9
Sears uses the Fiesta mobile to visit
Hispanic neighborhoods regularly
6 - 10
Characteristics Affecting
Consumer Behavior
African Americans
 35 million consumers
purchase $527 billion
worth of goods and
services.
 Growing more affluent /
sophisticated.
 Price and brand name
conscious; quality and
selection are important.
 Certain media target this
group.
6 - 11
Hallmark offers an Afrocentric line of greeting
cards called Mahogany. What other brands have
been targeted specifically to African Americans?
6 - 12
Characteristics Affecting
Consumer Behavior
Asian Americans
 10 million consumers
purchase $229 billion
worth of goods and
services.
 Fastest growing, most
affluent subculture.
 Many nationalities
comprise this group.
 Consumer packaged
goods firms now target
this group more heavily.
6 - 13
Characteristics Affecting
Consumer Behavior
Mature Consumers
 75 million consumers age 50+will grow to 115
million within 25 years.
 Mature consumers
control 50% of all
discretionary income.
 Attractive market for
travel, restaurant, and
cosmetics products,
among others.
6 - 14
Characteristics Affecting
Consumer Behavior
Key Factors
Cultural
Social
Personal
Psychological
Groups
 Membership
 Reference

Aspirational
groups
 Opinion leaders

Buzz marketing
Family
 Kids can influence
Roles and Status
6 - 15
Characteristics Affecting
Consumer Behavior
Key Factors
Cultural
Social
Personal
Psychological
Age and life-cycle
Occupation
Economic situation
Lifestyle
 Activities, interests, and
opinions
 Lifestyle segmentation
Personality and selfconcept
 Brand personality
6 - 16
Lifestyles:
Jeep targets
people who
want to “leave
the civilized
world behind”
What other
types of images
could be used
to appeal to this
lifestyle?
6 - 17
Figure 6-3:
VALS Lifestyle Classification
Learn more about
VALS and take the
VALS survey online
by clicking the web
link icon below.
6 - 18
Characteristics Affecting
Consumer Behavior
Brand Personality Dimensions
Sincerity
Excitement
Ruggedness
Competence
Sophistication
6 - 19
Think about Tide
detergent.
What brand
personality
seems to
describe Tide
best?
Can you think of
examples of
brands that fit
each personality
type?
6 - 20
Characteristics Affecting
Consumer Behavior
Key Factors
Cultural
Social
Personal
Psychological
Motivation
 Needs provide motives
 Motivation research
 Maslow’s hierarchy of
needs
Perception
 Selective attention,
selective distortion,
selective retention
Learning
 Drives, stimuli, cues,
responses and
reinforcement
Beliefs and attitudes
6 - 21
Figure 6-4:
Maslow’s Hierarchy
6 - 22
The milk
moustache
campaign
changed
attitudes
toward milk.
6 - 23
Figure 6-5:
Types of Buying Behavior
6 - 24
Figure 6-6:
The Buyer Decision Process
6 - 25
The Buyer Decision Process
Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase
behavior
Needs can be
triggered by:
 Internal stimuli
Normal
needs
become strong
enough to drive
behavior
 External stimuli
Advertisements
Friends
of friends
6 - 26
Attempt to stimulate need recognition
6 - 27
The Buyer Decision Process
Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase
behavior
Consumers exhibit
heightened attention or
actively search for
information.
Sources of information:




Personal
Commercial
Public
Experiential
Word-of-mouth
6 - 28
The Buyer Decision Process
Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase
behavior
Evaluation procedure
depends on the
consumer and the buying
situation.
Most buyers evaluate
multiple attributes, each
of which is weighted
differently.
At the end of the
evaluation stage,
purchase intentions are
formed.
6 - 29
The Buyer Decision Process
Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase
behavior
Two factors
intercede between
purchase
intentions and the
actual decision:
 Attitudes of others
 Unexpected
situational factors
6 - 30
The Buyer Decision Process
Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase
behavior
Satisfaction is key:
 Delighted consumers
engage in positive
word-of-mouth.
 Unhappy customers
tell on average 11
other people.
 It costs more to attract
a new customer than it
does to retain an
existing customer.
Cognitive dissonance
6 - 31
Buyer Decision Process for
New Products
New Products
 Good, service or
idea that is
perceived by
customers as new.
6 - 32
Buyer Decision Process for
New Products
Stages in the Adoption
Process
 Marketers should help
consumers move from
awareness to adoption.
6 - 33
Buyer Decision Process
for New Products
Stages in the Adoption Process
Awareness
Evaluation
Interest
Trial
Adoption
6 - 34
Buyer Decision Process for
New Products
Individual Differences
in Innovativeness
 Consumers can be
classified into five
adopter categories,
each of which behaves
differently toward new
products.
6 - 35
Figure 6-7:
Adopter Categories Based
on Relative Time of Adoption
6 - 36
Buyer Decision Process for
New Products
Product Characteristics
and Adoption
 Five product
characteristics
influence the
adoption rate.
6 - 37
Buyer Decision Process
for New Products
Product Characteristics
Relative Advantage
Compatibility
Complexity
Divisibility
Communicability
6 - 38
Discussion Question
Describe how each
of the five productrelated innovation
characteristics will
influence the rate of
the adoption for this
product.
6 - 39
Buyer Decision Process for
New Products
International Consumer Behavior
 Values, attitudes and behaviors differ greatly
in other countries.
 Physical differences exist that require
changes in the marketing mix.
 Customs vary from country to country.
 Marketers must decide the degree to which
they will adapt their marketing efforts.
6 - 40