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Chapter Five
Consumer Markets and Consumer Buyer
Behavior
Chapter 5- slide 1
Consumer Markets and Consumer
Buyer Behavior
Topic Outline
• Model of Consumer Behavior
• Characteristics Affecting Consumer
Behavior
• Types of Buying Decision Behaviors
• The Buyer Decision Process
• The Buyer Decision Process for New
Products
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Publishing as Prentice Hall
Chapter 5- slide 2
Model of Consumer Behavior
Consumer buyer behavior refers to the buying
behavior of final consumers—individuals and
households who buy goods and services for
personal consumption
Consumer market refers to all of the personal
consumption of final consumers
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Chapter 5- slide 3
Model of Consumer Behavior
• Consumers make many buying decisions
every day, and the buying decision is the
focal point of the marketer’s effort.
– Most large companies research consumer
buying decisions in great detail to answer
questions about what consumers buy
– Marketers can study actual consumer
purchases to find out. But learning about the
whys of consumer buying behavior is not so
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Chapter 5- slide 4
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Model of Consumer Behavior
• The central question for marketers is as
follows: How do consumers respond to
various marketing efforts the company
might use
• The starting point is the stimulus-response
model of buyer behavior
• Marketing and other stimuli enter the
consumer’s “black box” and produce
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Inc.
responses
Chapter 5- slide 5
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Model of Consumer Behavior
• Marketers want to understand how the stimuli are
changed into responses inside the consumer’s black
box.
• First, the buyer’s characteristics influence how he or she
perceives and reacts to the stimuli.
• Second, the buyer’s decision process itself affects his or
her behavior.
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Chapter 5- slide 6
Model of Consumer Behavior
All these inputs enter the buyer’s black box, where they are
turned into a set of buyer responses: what he or she buys, when,
where, and how often.
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Chapter 5- slide 7
Characteristics Affecting
Consumer Behavior
Factors Influencing Consumer Behavior
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Chapter 5- slide 8
Characteristics Affecting
Consumer Behavior
Culture is the most basic cause of person’s
want and behavior. Growing up child learns
basic values, perceptions, wants, and
behavior from family and other important
institutions.
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Chapter 5- slide 9
Characteristics Affecting
Consumer Behavior
Subcultures are groups of people within a culture
with shared value systems based on common life
experiences and situations
• Bengalis
• Gujaratis
• Punjabis
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Chapter 5- slide 10
Characteristics Affecting
Consumer Behavior
Social classes are society’s relatively
permanent and ordered divisions whose
members share similar values, interests,
and behaviors
• Measured by a combination of occupation,
income, education, wealth, and other
variables
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Chapter 5- slide 11
Characteristics Affecting
Consumer Behavior
Groups and Social Networks
Membership
Groups
• Groups with
direct
influence
and to
which a
person
belongs
Aspirational
Groups
• Groups an
individual
wishes to
belong to
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Reference
Groups
• Groups that
form a
comparison
or reference
in forming
attitudes or
behavior
Chapter 5- slide 12
Characteristics Affecting
Consumer Behavior
Groups and Social Networks
• Word-of-mouth influence and buzz
marketing
– Opinion leaders are people within a
reference group who exert social
influence on others
– Marketers identify them to use as brand
ambassadors
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Chapter 5- slide 13
Characteristics Affecting
Consumer Behavior
Groups and Social Networks
• Online Social Networks are
online communities where
people socialize or exchange
information and opinions
• Include blogs, social
networking sites (facebook),
virtual worlds (second life)
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Chapter 5- slide 14
Characteristics Affecting
Consumer Behavior
Social Factors
• Family is the most important consumerbuying organization in society
• The groups, family, clubs, and organizations
that a person belongs to define his/her social
role and status
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Chapter 5- slide 15
Characteristics Affecting
Consumer Behavior
Personal Factors
Occupation affects the goods and services
bought by consumers
Economic situation includes trends in:
Personal
income
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Savings
Interest
rates
Chapter 5- slide 16
Characteristics Affecting
Consumer Behavior
Personal Factors
Lifestyle is a person’s pattern of living
as expressed in his or her
psychographics
• Measures a consumer’s AIOs
(activities, interests, opinions) to
capture information about a person’s
pattern of acting and interacting in the
environment
• It profiles a person’s whole pattern of
acting and interacting in the world.
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Chapter 5- slide 17
Characteristics Affecting
Consumer Behavior
Personal Factors
• Personality and self-concept
– Personality refers to the unique psychological
characteristics that lead to consistent and
lasting responses to the consumer’s
environment usually described in terms of
traits as self confidence, dominance,
sociability, aggressiveness, adaptability.
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Chapter 5- slide 18
Characteristics Affecting
Consumer Behavior
Psychological Factors
Motivation
Perception
Learning
Beliefs and attitudes
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Chapter 5- slide 19
Characteristics Affecting
Consumer Behavior
Psychological Factors
Motivation
A motive is a need that is sufficiently
pressing to direct the person to seek
satisfaction
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Chapter 5- slide 20
Characteristics Affecting
Maslow’s Consumer Behavior
Hierarchy of Needs
People are driven by particular
needs at particular times
Human needs are arranged in
a hierarchy from most
pressing to least pressing
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Chapter 5- slide 21
Characteristics Affecting
Consumer Behavior
Psychological Factors
Perception is the process by which
people select, organize, and interpret
information to form a meaningful picture
of the world from three perceptual
processes
– Selective attention
– Selective distortion
– Selective retention
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Chapter 5- slide 22
Characteristics Affecting
Consumer Behavior
Psychological Factors
Selective attention is the tendency for people to
screen out most of the information to which they
are exposed
Selective distortion is the tendency for people to
interpret information in a way that will support
what they already believe
Selective retention is the tendency to remember
good points made about a brand they favor and
forget good points about competing brands
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Chapter 5- slide 23
Characteristics Affecting
Consumer Behavior
Psychological Factors
• Learning is the change in an individual’s
behavior arising from experience
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Chapter 5- slide 24
Characteristics Affecting
Consumer Behavior
Psychological Factors
Beliefs and Attitudes
Belief : A belief is a descriptive thought that
a person has about something.
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Chapter 5- slide 25
Characteristics Affecting
Consumer Behavior
Psychological Factors
Attitudes describe a person’s relatively
consistent evaluations, feelings, and
tendencies toward an object or idea
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Chapter 5- slide 26
Types of Buying Decision
Behavior
Complex buying behavior
Dissonance-reducing buying behavior
Habitual buying behavior
Variety-seeking buying behavior
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Chapter 5- slide 27
Types of Buying Decision Behavior
Complex Buying Behavior
When consumers are highly motivated in a purchase
and perceive significant differences among brands
Purchasers are highly motivated when:
•
Product is expensive
•
Product is risky
•
Product is purchased infrequently
•
Product is highly self-expressive
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5-34
Chapter 5- slide 28
Types of Buying Decision Behavior
Dissonance-reducing buying behavior occurs
when consumers are highly involved with an
expensive, infrequent, or risky purchase, but see
little difference among brands
Post-purchase dissonance occurs when the
consumer notices certain disadvantages of the
product purchased or hears favorable things
about a product not purchased
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Chapter 5- slide 29
Types of Buying Decision Behavior
Habitual buying behavior occurs when
consumers have low involvement and there
is little significant brand difference
Variety-seeking buying behavior occurs when
consumers have low involvement and there
are significant brand differences
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Chapter 5- slide 30
The Buyer Decision Process
Need Recognition
Need recognition occurs when the buyer
recognizes a problem or need triggered by:
• Internal stimuli
• External stimuli
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Chapter 5- slide 31
The Buyer Decision Process
Information Search
Information search is the amount of information
needed in the buying process and depends on
the strength of the drive, the amount of
information you start with, the ease of obtaining
the information, the value placed on the
additional information, and the satisfaction from
searching
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Chapter 5- slide 32
The Buyer Decision Process
Information Search
Sources of information:
Personal sources—family and friends
Commercial sources—advertising, Internet
Public sources—mass media, consumer organizations
Experiential sources—handling, examining, using the
product
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Chapter 5- slide 33
The Buyer Decision Process
Evaluation of Alternatives
Evaluation of alternatives is how the
consumer processes information to arrive
at brand choices
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Chapter 5- slide 34
The Buyer Decision Process
Purchase Decision
The purchase decision is the act by the
consumer to buy the most preferred brand
The purchase decision can be affected by:
• Attitudes of others
• Unexpected situational factors
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5-42
Chapter 5- slide 35
The Buyer Decision Process
Post-Purchase Decision
The post-purchase decision is the satisfaction
or dissatisfaction the consumer feels about
the purchase
Relationship between:
• Consumer’s expectations
• Product’s perceived performance
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Chapter 5- slide 36
The Buyer Decision Process
Post-Purchase Decision
The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction
Cognitive dissonance is the discomfort caused
by a post-purchase conflict
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Chapter 5- slide 37
The Buyer Decision Process
Post-Purchase Decision
Customer satisfaction is a key to building
profitable relationships with
consumers—to keeping and growing
consumers and reaping their customer
lifetime value
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Chapter 5- slide 38
The Buyer Decision Process for
Products
New
New product is a good, service, or idea that is
perceived by some potential customers as
new
Adoption process is the mental process an
individual goes through from first learning
about an innovation to final regular use
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Chapter 5- slide 39
The Buyer Decision Process for
Products
New
Stages in the Adoption Process
1.
2.
3.
4.
5.
Awareness
Interest
Evaluation
Trial
Adoption
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Chapter 5- slide 40
The Buyer Decision Process for
New Products
Stages in the Adoption Process
Awareness is when the consumer becomes
aware of the new product but lacks
information
Interest is when the consumer seeks
information about the new product
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Chapter 5- slide 41
The Buyer Decision Process for
New Products
Stages in the Adoption Process
Evaluation is when the consumer considers
whether trying the new product makes
sense
Trial is when the consumer tries the new
product to improve his or her estimate of
value
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Chapter 5- slide 42
The Buyer Decision Process for
New Products
Stages in the Adoption Process
Adoption is when the consumer decides to
make full and regular use of the product
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Chapter 5- slide 43
The Buyer Decision Process for
Products
New
Individual Differences in Innovation
Early adopters are opinion leaders and adopt new
ideas early but cautiously
Early majority are deliberate and adopt new ideas
before the average person
Late majority are skeptical and adopt new ideas only
after the majority of people have tried it
Laggards are suspicious of changes and adopt new
ideas only when they become tradition
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Chapter 5- slide 44
The Buyer Decision Process for
New Products
Influence of Product Characteristics
on Rate of Adoption
Relative advantage is the degree to which an
innovation appears to be superior to existing
products
Compatibility is the degree to which an innovation
fits the values and experiences of potential
consumers
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Chapter 5- slide 45
The Buyer Decision Process for
New Products
Influence of Product Characteristics
on Rate of Adoption
Complexity is the degree to which the
innovation is difficult to understand or use
Divisibility is the degree to which the
innovation may be tried on a limited basis
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Chapter 5- slide 46
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 5- slide 47