Lecture 5 Mkt501: Consumer Markets and Consumer Buyer Behaviour

LECTURE 5 MKT501
CONSUMER MARKETS
AND CONSUMER BUYER
BEHAVIOUR
Learning outcomes
After having studied the lecture, the student should
be able to:
Define the consumer market and construct a simple

model of consumer buyer behaviour
Name the four major factors that influence consumer
buyer behaviour
List and understand the major types of buying decision
behaviour and the stages in the buyer decision process
Describe the adoption and diffusion process for new
products
LECTURE CONCEPTS
1. Model of consumer behaviour
2. Characteristics affecting consumer
behaviour
3. Types of buying decision behaviour
4. The buyer decision process
5. The buyer decision process for new
products
6. Consumer behaviour across international
borders
Model of consumer behaviour

Consumer
behaviour
Consumer market
Refers to the buying

behaviour of final
consumers - individuals
and households who
buy goods and services
for personal
consumption
Refers to all of the

personal consumption
of final consumers
Model of consumer behaviour

Marketing stimuli
consists of the
4 Ps
Product
Price
Place
Promotion
Other stimuli
Economic forces
Technological forces
Political forces
Cultural forces
Characteristics affecting consumer

behaviour
Cultural factors
Buyers culture
Buyers sub-culture
Buyers social class
Social factors
Reference groups
Family
Roles and status

behaviour
Personal factors
Age and life-cycle stage
Occupation
Economic situation
Lifestyle
Personality and selfconcept
Psychological
factors
Motivation
Perception
Learning
Beliefs and attitudes

behaviour
CULTURE:
WHAT IS IT?
Culture
The learned values, perceptions, wants and
behaviour from family and other important
institutions

behaviour
SUB-CULTURE:
WHAT IS IT?
Sub-culture
Groups of people within a culture with shared value
systems based on common life experiences and
situations
Types of sub-cultures in South Africa

Afrikaners
Griekwas
isiXhosa
Teenage consumers

behaviour
SOCIAL CLASS:
WHAT IS IT?
Social class
Societys relatively permanent and ordered divisions
whose members share similar values, interests
and behaviours
How is social class measured?

By a combination of occupation, income,
education, wealth and other variables

behaviour
The major South African social classes:
Upper class
Middle class
Working class
Lower class

behaviour
Social factors: Groups
Membership group
Has a direct influence, a person belongs
to this group
Aspirational groups
Groups to which an individual wishes to belong
Reference groups
Groups that form a comparison or reference in
forming attitudes or behaviour

behaviour
Social factors: Groups
Opinion leaders
People within a reference group with special skills,
knowledge, personality or other characteristics
that can exert social influence on others
Buzz marketing
Enlists opinion leaders to spread the word
Social networking
A new form of buzz marketing

e.g. Twitter, MySpace.com, Facebook.com

behaviour
Social factors
Family
The most important consumer-buying
organisation in society
Social roles and status

The groups, family, clubs and organisations to
which a person belongs that can define role
and social status

behaviour
Personal factors
Personal characteristics
Age and life-cycle stage
Occupation
Economic situation
Lifestyle
Personality and self-concept

behaviour
Personal factors
Age and life-cycle stages
Youth: Younger than 18

Getting started: 18-35
Builders: 35-50
Accumulators: 50-60
Preservers: over 60

behaviour
Social factors
Occupation
Affects the goods and services bought by
consumers
Economic situation
Includes trends in personal income, savings and
interest rates

behaviour
PERSONALITY:
WHAT IS IT?
Personality
The unique psychological characteristics that
lead to consistent and lasting responses to the
consumers environment

behaviour
Personal factors: Personality and self-concept
Brand personality
The specific mix of human traits (sincerity,
excitement, competence, sophistication,
ruggedness) that may be attributed to a
particular brand
Self-concept
Peoples possessions that contribute to and
reflect their identities

behaviour
Psychological factors: Motivation
A motive
A need that is sufficiently pressing to direct the
person to seek satisfaction
Motivation research
Qualitative research designed to probe consumers
hidden, subconscious motivations

behaviour
Psychological factors
Maslows 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:
Psychological
Safety
Social
Esteem
Self-actualisation

behaviour
PERCEPTION:
WHAT IS IT?
Perception
The process by which people select, organise and
interpret information to form a meaningful picture
of the world from three perceptual processes

behaviour
Psychological factors
Selective attention
The tendency for people to screen out most of the
information to which they are exposed
Selective distortion
The tendency for people to interpret information
in a way that will support what they already
believe
Selective retention
The tendency to remember good points made about
a brand they favor and to forget good points about
competing brands

behaviour
LEARNING:
WHAT IS IT?
Learning
The changes in an individuals behaviour arising
from experience and occurs through interplay of
different factors
These factors are:

Drives
Cues
Stimuli
Responses
Reinforcement

behaviour
BELIEF:
WHAT IS IT?
Belief
A descriptive thought that a person has about
something based on three things:
Knowledge
Opinion
Faith

behaviour
ATTITUDE:
WHAT IS IT?
Attitude
Describe a persons relatively consistent
evaluations, feelings and tendencies toward an
object or idea
Types of buying decision behaviour

Complex buying behaviour
When consumers are highly motivated
in a purchase and perceive significant
differences among brands
Purchasers are highly motivated when the:
Product is expensive
Product is risky
Product is purchased infrequently
Product is highly self-expressive

Dissonance-reducing buying behaviour
When consumers are highly involved with an
expensive, infrequent or risky purchase, but
see little difference among brands
Post-purchase dissonance
When the consumer notices certain disadvantages
of the product purchased or hears favourable
things about a product not purchased

Habitual buying behaviour
When consumers have low involvement and
there is little significant brand difference
Variety-seeking buying behaviour

When consumers have low involvement and
there are significant brand differences
The buyer decision process

NEED
RECOGNITION
POST-PURCHASE
BEHAVIOUR
DIFFERENT
TYPES OF
NEEDS
PURCHASE
DECISION
EVALUATION OF
ALTERNATIVES
INFORMATION
SEARCH

Need recognition
When the buyer recognises a problem or
need triggered by internal or external
stimuli
Information search
The amount of information needed in the
buying process and depends on:
Strength of the drive
The amount of information you start with
The ease of obtaining the information

The value placed on the additional information
The satisfaction from searching

Information search
Sources of information:
Personal sources: family and friends
Commercial sources: advertising, Internet
Public sources: mass media, consumer

organisations
Experiential sources: handling,

examining, using the product

Information search
Evaluation of alternatives
How the consumer processes
information to arrive at brand choices

The purchase decision
The act by the consumer to buy the most
preferred brand
The purchase decision can be affected by:
Attitudes of others
Unexpected situational factors

The post-purchase decision
The satisfaction or dissatisfaction the
consumer feels about the purchase
Relationship between:
Consumers expectations
Products perceived performance

Post-purchase decision
The larger the gap between expectation
and performance, the greater the
consumers dissatisfaction
Cognitive dissonance
The discomfort caused by a postpurchase conflict

for new products
New product
A product, service or idea that is perceived
by some potential customers as new
Adoption process
The mental process an individual goes
through from first learning about an
innovation to final regular use

for new products
Stages in the new-product adoption process
Awareness
Interest
Evaluation
Trial
Adoption

for new products
Stages in the adoption process
Awareness
When the consumer becomes aware of the
new product but lacks information
Interest
When the consumer seeks information
about the new product

for new products
Evaluation
When the consumer considers whether
trying the new product makes sense
Trial
When the consumer tries the new product to
improve his or her estimate of value

for new products
Adoption
When the consumer decides to make full and
regular use of the product

for new products
EARLY
ADOPTERS
LAGGARDS
BUYER
DECISION
PROCESS
LATE
MAJORITY
EARLY
MAJORITY

for new products
Early adopters
Opinion leaders; adopt new ideas early but
cautiously
Early majority
Are deliberate; adopt new ideas before the average
person does

for new products
Late majority
Are skeptical; adopt new ideas only after the
majority of people have tried it
Laggards
Are suspicious of changes; adopt new ideas only
when they become tradition

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LECTURE 5 MKT501

Define the consumer market and construct a simple

Model of consumer behaviour

Refers to the buying

Refers to all of the

Model of consumer behaviour

Characteristics affecting consumer

Characteristics affecting consumer

Characteristics affecting consumer

Characteristics affecting consumer

Types of sub-cultures in South Africa

Characteristics affecting consumer

How is social class measured?

Characteristics affecting consumer

Characteristics affecting consumer

Characteristics affecting consumer

A new form of buzz marketing

Characteristics affecting consumer

Social roles and status

Characteristics affecting consumer

Characteristics affecting consumer

Youth: Younger than 18

Characteristics affecting consumer

Characteristics affecting consumer

Characteristics affecting consumer

Characteristics affecting consumer

Characteristics affecting consumer

Characteristics affecting consumer

Characteristics affecting consumer

Characteristics affecting consumer

These factors are:

Characteristics affecting consumer

Characteristics affecting consumer

Types of buying decision behaviour

Types of buying decision behaviour

Types of buying decision behaviour

Variety-seeking buying behaviour

The buyer decision process

The buyer decision process

The amount of information you start with

The ease of obtaining the information

The satisfaction from searching

The buyer decision process

Personal sources: family and friends

Commercial sources: advertising, Internet

Public sources: mass media, consumer

Experiential sources: handling,

The buyer decision process

The buyer decision process

The purchase decision can be affected by:

Unexpected situational factors

The buyer decision process

Products perceived performance

The buyer decision process

The buyer decision process

The buyer decision process

The buyer decision process

The buyer decision process