5.

Consumer Markets and

Consumer Buyer Behavior
Subjects:

1. Model of Consumer Behavior

2. Characteristics Affecting Consumer
Behavior
3. Types of Buying Decision Behavior
4. The Buyer Decision Process
5. The Buyer Decision Process for New
Products

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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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Model of Consumer Behavior

Marketing stimuli Other stimuli include:

consists of the 4 Ps • Economic forces

• Product • Technological forces

• Price • Political forces

• Place • Cultural forces

• Promotion

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Characteristics Affecting
Consumer Behavior

• Cultural Factors • Social Factors

• Buyer’s culture • Reference groups
• Buyer’s subculture • Family
• Buyer’s social class • Roles and status

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Characteristics Affecting
Consumer Behavior

• Personal Factors • Psychological

• Age and life-cycle Factors
stage • Motivation
• Occupation • Perception
• Economic situation • Learning
• Lifestyle • Beliefs and attitudes
• Personality and self-
concept

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Characteristics Affecting
Consumer Behavior

1. Cultural factors
Culture is the learned values,
perceptions, wants, and behavior from
family and other important institutions

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Characteristics Affecting
Consumer Behavior

Subculture are groups of people within a

culture with shared value systems
based on common life experiences and
situations
• Hispanic
• African American
• Asian

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Characteristics Affecting
Consumer Behavior

Social classes are society’s relatively

permanent and ordered divisions whose
members share similar values, interests,
and behaviors

Social class is measured by a combination

of occupation, income, education,
wealth, and other variables

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Characteristics Affecting
Consumer Behavior

2. Social Factors
Groups

Membership groups have a direct influence

and to which a person belongs
Aspirational groups are groups to which an
individual wishes to belong
Reference groups are groups that form a
comparison or reference in forming attitudes
or behavior

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Characteristics Affecting
Consumer Behavior
2. Social Factors
Groups

Opinion leaders are 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 is a new form of buzz
marketing
• MySpace.com
• Facebook.com
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Characteristics Affecting
Consumer Behavior

2. Social Factors

Family is the most important consumer-buying organization

in society.
The person’s position in each group can be defined in terms
of Social roles and status.
Social role consists of the activities people are expected to
perform according to the persons around them.
Each role carries a status reflecting the general esteem given
to it by society.

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Characteristics Affecting
Consumer Behavior

3. Personal Factors

• Personal characteristics
• Age and life-cycle stage
• Occupation
• Economic situation
• Lifestyle
• Personality and self-concept
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Characteristics Affecting
Consumer Behavior

3. Personal Factors

Age and life-cycle stage

• RBC Royal Band stages:
• Youth—younger than 18
• Getting started—18-35
• Builders—35-50
• Accumulators—50-60
• Preservers—over 60

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Characteristics Affecting
Consumer Behavior

3.Personal Factors

Occupation affects the goods and services

bought by consumers

Economic situation includes trends in:

• Personal income

• Savings

• Interest rates

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Characteristics Affecting
Consumer Behavior

3. Personal Factors

Lifestyle is a person’s pattern of living as

expressed in his or her psychographics
• Measures a consumer’s AIOs (activities,
interests, and opinions) to capture information
about a person’s pattern of acting and
interacting in the environment

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Characteristics Affecting
Consumer Behavior
3. 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

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Characteristics Affecting
Consumer Behavior

Personal Factors
Personality and Self-Concept

Self-concept refers to people’s

possessions that contribute to and
reflect their identities

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Characteristics Affecting
Consumer Behavior

4. Psychological Factors

• Motivation
• Perception
• Learning
• Beliefs and attitudes

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Characteristics Affecting
Consumer Behavior
4.Psychological Factors
Motivation

A motive is a need that is sufficiently

pressing to direct the person to seek
satisfaction

Motivation research refers to

qualitative research designed to probe
consumers’ hidden, subconscious
motivations
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Characteristics Affecting
Consumer Behavior

4.Psychological Factors
Abraham Maslow’s 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
• Physiological
• Safety
• Social
• Esteem
• Self-actualization

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Characteristics Affecting
Consumer Behavior

4.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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Characteristics Affecting
Consumer Behavior
4. 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 to forget good points about
competing brands

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Characteristics Affecting
Consumer Behavior

4. Psychological Factors

Learning is the changes in an individual’s

behavior arising from experience

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Characteristics Affecting
Consumer Behavior

4. Psychological Factors
Beliefs and Attitudes

Belief is a descriptive thought that a

person has about something based on:
• Knowledge

• Opinion

• Faith

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Characteristics Affecting
Consumer Behavior
4. Psychological Factors
Beliefs and Attitudes

Attitudes describe a person’s relatively

consistent evaluations, feelings, and
tendencies toward an object or idea

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II. The Buyer Decision Process

Five stages in the buyer decision process

1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior

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The Buyer Decision Process

1.Need Recognition

Need recognition occurs when the

buyer recognizes a problem or need
triggered by:
• Internal stimuli

• External stimuli

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 The Buyer Decision Process

2. 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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The Buyer Decision Process

2. 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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The Buyer Decision Process

3. Evaluation of Alternatives

Evaluation of alternatives is how the

consumer processes information to
arrive at brand choices

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The Buyer Decision Process

4.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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The Buyer Decision Process

5. 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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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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 The Buyer Decision Process
Post-Purchase Decision

Customer satisfaction is a key to

building profitable relationships with
consumers—to keeping and growing
consumers and reaching their
customer lifetime value

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The Buyer Decision Process for
New Products

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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The Buyer Decision Process for
New Products

Stages in the Adoption Process

1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption

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The Buyer Decision Process for
New Products

Stages in the Adoption Process

1.Awareness is when the consumer

becomes aware of the new product but
lacks information

2.Interest is when the consumer seeks

information about the new product

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The Buyer Decision Process for
New Products

Stages in the Adoption Process

3. Evaluation is when the consumer

considers whether trying the new
product makes sense

4. Trial is when the consumer tries the

new product to improve his or her
estimate of value

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The Buyer Decision Process for
New Products

Stages in the Adoption Process

5. Adoption is when the consumer

decides to make full and regular use of
the product

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The Buyer Decision Process for
New Products
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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