Download Key Factors

Consumer Markets and
Consumer Buyer
Behavior
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Definitions
• Consumer Buying Behavior
 Buying behavior of individuals and
households that buy products for
personal consumption.
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Factors Influencing Buying Decisions
Cultural
Factors
Personal
Factors
Social
Factors
Psychological
Factors
CONSUMER
DECISIONMAKING
PROCESS
BUY /
DON’T BUY
Characteristics Affecting
Consumer Behavior
Key Factors
• Cultural
• Social
• Personal
• Psychological
• Culture
• Subculture




Hispanic consumers
African Americans
Asian Americans
Mature consumers
• Social Class
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Definition of Culture
Culture
Represents the behavior, beliefs, the way we act learned by
interacting or observing other members of society. Shared
behavior, passed along from one member of society to
another.
Culture in Marketing
The philosophy of a company, a way to do business to insure
customer satisfaction.
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Components of Culture
Values
Language
Myths
Customs
Rituals
Laws
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Core American Values
Success
Materialism
Freedom
Progress
Youth
Capitalism
Subculture
• 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.
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• 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.
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• 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 companies now
target this group more heavily.
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• Mature Consumers
 75 million consumers aged 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.
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Social Class Measurements
Occupation
Income
Education
Wealth
Other Variables
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
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Social Class and Education
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
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Characteristics Affecting
Consumer Behavior
Key Factors
• Groups
• Cultural
 Membership
 Reference
• Social
 Opinion leaders

Aspirational groups
• Personal
• Family
• Psychological
• Roles and Status
 Children can influence
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Social Influences
A group in society that
Reference
Groups
influences an individual’s
purchasing behavior.
Opinion
Leaders




Movie stars
Sports figures
Celebrities
Political figures
Family
Members
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Copyright 2010 by Cengage Learning Inc. All Rights Reserved
LO6
Social Factors
Direct
Reference
Groups
Opinion
Leaders
Primary
Indirect
Secondary
People
you know
Aspirational Non-aspirational
Celebrities/Political
Socialization Process
Family
Initiators
Decision Makers
Influencers
Purchasers
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Characteristics Affecting
Consumer Behavior
Key Factors
• Cultural
• Social
• Personal
• Psychological
•
•
•
•
Age and life cycle
Occupation
Economic situation
Lifestyle
 Activities, interests, and
opinions
• Personality and selfconcept
 Brand personality
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Family Life Cycle Stages
Bachelor
Young Married
Nine
stages
with
different
buying
behavior
Full Nest I
Single Parents
Divorced and Alone
Middle-aged Married
Full Nest II
Empty Nest
Older Single
Characteristics Affecting
Consumer Behavior
Key Factors
• Cultural
• Social
• Personal
• Psychological
•
•
•
•
Age and life cycle
Occupation
Economic situation
Lifestyle
 Activities, interests, and
opinions
• Personality and selfconcept
 Brand personality
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Characteristics Affecting
Consumer Behavior
Key Factors
• Cultural
• Social
• Personal
• Psychological
• Motivation
 Needs provide motives for
consumer behavior
 Motivation research
 Maslow’s hierarchy of needs
• Perception
 Selective attention, selective
distortion, selective retention
• Learning
 Drives, stimuli, cues, responses
and reinforcement
• Beliefs and attitudes
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Characteristics Affecting
Consumer Behavior
Maslow’s Hierarchy of Needs
Self-actualization
Esteem Needs
Social Needs
Safety Needs
Physiological Needs
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Examples
• Lunesta- “Soothing rest for mind and
body
• “Volvo-Protect the body ignite the soul”
• Smackers Lip Gloss “All the flavor of
being a girl”
• Lexus automobiles “The relentless
pursuit of perfection”
• DePaul University- “Turning goals into
acomplishments”
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What Level of Maslow’s
Hierarchy is this ad?
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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.
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The Buyer Decision
Process
• Five Stages:
 Need recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Postpurchase behavior
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The Buyer Decision
Process
Process Stages
• Need recognition
• Information search
• Needs can be
triggered by:
 Internal stimuli

• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior
Recall information in
memory
 External stimuli
Advertisements
 Friends of friends

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The Buyer Decision
Process
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/Conceptual
• Word-of-mouth
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Consumer Buying Decisions and
Consumer Involvement
Routine
Response
Behavior
Less
Involvement
Limited
Decision
Making
Extensive
Decision
Making
More
Involvement
Five Factors of Consumer Involvement
1. Level of consumer involvement
2. Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives considered
Copyright 2010 by Cengage Learning Inc. All Rights ved Reser
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Types of Learning
Experiential
An experience changes behavior
Conceptual
Not learned through direct
experience
The Buyer Decision
Process
Process Stages
• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior
• Evoked Brands: Group of
brands resulting from an
information search
• Most buyers evaluate
multiple attributes, each of
which is weighted
differently.
• At the end of the evaluation
stage, purchase intentions
are formed.
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Evaluation of Alternatives
and Purchase
Evoked Set
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance
Purchase!
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Copyright 2010 by Cengage Learning Inc. All Rights Reserved
The Buyer Decision
Process
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
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The Buyer Decision
Process
Process Stages
• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior
• Satisfaction is important:
 Delighted consumers
engage in positive word-ofmouth.
 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 is
common
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Cognitive Dissonance
Did I make a good decision?
Did I buy the right product?
Did I get a good value?
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LO3
Consumer post purchase evaluation process
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
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Buyer Decision Process
for New Products
• New Products
 Good, service or idea that is
perceived by customers as new.
• Stages in the Adoption Process
 Marketers should help consumers
move through these stages.
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Buyer Decision Process
for New Products
Stages in the Adoption Process
• Awareness
• Interest
• Evaluation
• Trial
• Adoption
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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.
• Product Characteristics and Adoption
 Five product characteristics influence the
adoption rate.
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Buyer Decision Process
for New Products
Adopter Categories
• Innovators
• Early Adopters
• Early Majority
• Late Majority
• Laggards
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Innovators – venturesome, educated, creative, multiple
information sources
Early adopters – social leaders, popular, educated; try out
new ideas but in a careful way
Early majority –thoughtful people, careful but accepting
change more quickly than the average
Late majority – skeptical, traditional, lower socio-economic
status; accepts new products when the majority are using it
Laggards – traditional people, caring, but like “the old ways,”
are critical of new ideas, neighbors and friends are main
information sources, may also have a fear of debt.
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Decision Making Process