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Consumer Markets and Consumer Buyer Behavior Chapter 6 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 Consumer Buying Behavior Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption. Study consumer behavior to answer:“How do consumers respond to marketing efforts the company might use?” 6-4 Model of Consumer Behavior Product Price Marketing and Other Stimuli Economic Technological Place Political Promotion Cultural Buyer’s Decision Process Product Choice Brand Choice Dealer Choice Buyer’s Black Box Buyer’s Response Buyer Characteristics Affecting Consumer Behavior Purchase Timing Purchase Amount 6-5 Characteristics Affecting Consumer Behavior Culture Social Personal Psychological Buyer 6-6 Factors Affecting Consumer Behavior: Culture Most basic cause of a person's wants and behavior. Values Perceptions learned by a member of society Subculture Social Class • A group of people with shared value systems based on common life experiences. • People within a social class tend to exhibit similar buying behavior. • Hispanic Consumers • Occupation • African American Consumers • Income • Asian American Consumers • Education • Mature Consumers • Wealth 6-7 Factors Affecting Consumer Behavior: Social Groups •Membership •Reference Cars are often seen as a status symbol, and marketers choose which element to present in their advertising. Compare this ad to the one on the next slide. Click to continue Family Buying Influence Children can exert a strong influence on family buying decisions. Johnson & Johnson reminds customer’s of its commitment to the American Family. What other companies use children to influence family buying decisions? Family (most important) •Husband, wife, kids •Influencer, buyer, user Click or press spacebar to return Social Factors Roles and Status 6-8 Factors Affecting Consumer Behavior: Personal Personal Influences Age and Family Life Cycle Stage Occupation Economic Situation Personality & Self-Concept Lifestyle Identification Activities Opinions Interests 6-9 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 - 10 Figure 6-3: VALS Lifestyle Classification Learn more about VALS and take the VALS survey online by clicking the web link icon below. 6 - 11 Characteristics Affecting Consumer Behavior Brand Personality Dimensions Sincerity Excitement Ruggedness Competence Sophistication 6 - 12 Factor Affecting Consumer Behavior: Psychological Motivation Beliefs and Attitudes Psychological Factors Perception Learning 6 - 13 Psychological Factors Motivation Freud Maslow (Hierarchy of Needs)* Perception Learning generalization (one Honda model good... all good) discrimination (becoming a stereophile) Belief (descriptive thought about object) Attitude (general evaluation of object) Maslow’s Hierarchy of Needs Self Actualization (Self-development) Esteem Needs (self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) 6 - 15 Selective Perception • • • Attention (screen) • too much information to process Distortion (adjust) • make it fit what we believe Retention (forget) • much is forgotten The milk moustache campaign changed attitudes toward milk. 6 - 17 The Buyer Decision Process* Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior 6 - 18 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 - 19 Attempt to stimulate need recognition 6 - 20 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 - 21 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 - 22 Consumer Buying Decision Process: Step 3: Evaluation of Alternatives Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter most to me? Brand Beliefs What do I believe about each available brand? Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Evaluation Procedures Choosing a product (and brand) based on one or more attributes. 6 - 23 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 - 24 The Buyer Decision Process Step 5. Postpurchase Behavior Consumer’s Expectations of Product’s Performance Product’s Perceived Performance Satisfied Customer! Dissatisfied Customer Cognitive Dissonance 6 - 25 Figure 6-5: Types of Buying Behavior* 6 - 26 Four Types of Buying Behavior Differences Between Brands Significant High Involvement Low Involvement Cars Cookies Houses Carpeting Few Toothpaste Salt Placement determined by person not the product Buyer Decision Process for New Products New Products Good, service or idea that is perceived by customers as new. 6 - 28 Buyer Decision Process for New Products Stages in the Adoption Process Marketers should help consumers move from awareness to adoption. 6 - 29 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption 6 - 30 Figure 6-7: Adopter Categories Based on Relative Time of Adoption 6 - 31 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 - 32 Buyer Decision Process for New Products Product Characteristics and Adoption Five product characteristics influence the adoption rate. 6 - 33 Influences on the Rate of Adoption of New Products* Communicability Relative Advantage Can results be easily observed or described to others? Is the innovation superior to existing products? Divisibility Product Characteristics Can the innovation be used on a trial basis? Complexity Compatibility Does the innovation fit the values and experience of the target market? Is the innovation difficult to understand or use? 6 - 34