Chapter 5

IBU Consumer Markets and

Buyer Behavior
International Burch
University

IBU 001- Marketing Management

Assist. Prof. Dr. Malcolm Duerod
Learning Objectives
5.1 Define the consumer market and construct a simple
model of consumer buyer behavior.
5.2 Name the four major factors that influence consumer
buyer behavior.
5.3 List and define the major types of buying decision
behavior and the stages in the buyer decision process.
5.4 Describe the adoption and diffusion process for new
products.
SHINOLA: Nobody’s Confusing Sh*t
with Shinola Anymore
“Shinola is selling much more
than just watches or bikes or
leather accessories. It’s
selling gritty Detroit,
authentically American
values, emotions, and a roll-
up-our-sleeves lifestyle,
things that lie at the heart of
consumers’ feelings and
behavior toward the brand.”
Learning Objective 1
Define the consumer market and construct a simple model of
consumer buyer behavior.
Consumer Markets and Buyer
Behavior
Consumer buyer behavior is the buying behavior of final
•

consumers—individuals and households that buy goods and

services for personal consumption.
Consumer markets are made up of all the individuals and
•

households that buy or acquire goods and services for

personal consumption.
Learning Objective 2
Name the four major factors that influence consumer buyer
behavior.
Model of Consumer Behavior
Figure 5.1 The Model of Buyer Behavior
Characteristics Affecting Consumer
Behavior (1 of 15)
Figure 5.2 Factors Influencing Consumer Behavior
Characteristics Affecting Consumer
Behavior (2 of 15)
Cultural Factors
Culture is the set of basic values, perceptions, wants, and
behaviors learned by a member of society from family and
other important institutions.
Characteristics Affecting Consumer
Behavior (3 of 15)
Cultural Factors
Subcultures are groups of people
within a culture with shared value
systems based on common life
experiences and situations.

Targeting Hispanic consumers:

Nestle’s DiGiorno brand worked
with Twitter’s U.S. Hispanics team
and the NF L to create a football
campaign with Spanish tweets.
Characteristics Affecting Consumer
Behavior (4 of 15)
Cultural Factors
Social classes are society’s relatively permanent and
ordered divisions whose members share similar values,
interests, and behaviors.
Measured as a combination of occupation, income,
education, wealth, and other variables
Characteristics Affecting Consumer
Behavior (5 of 15)
Groups and Social Networks
• Reference groups
• Opinion leaders
• Word-of-mouth influence
• Influencer marketing
• Online social networks

Influencer marketing: CoverGirl’s “I

Am What I Make Up” campaign
uses a diverse team of influential
brand ambassadors who explain
authentically in their own words
what the slogan means to them.
Characteristics Affecting Consumer
Behavior (6 of 15)
Social Factors
• Family is the most important
consumer-buying organization in
society.
• Role and status can be defined by a
person’s position in a group.

Harnessing the power of mom-to-mom

influence: Each year, Disney invites 175
to 200 moms and their families to its
Disney Social Media Moms Celebration
in Florida, an affair that’s a mix of public
relations event, educational conference,
and family vacation with plenty of Disney
magic for these important mom
influencers.
Characteristics Affecting Consumer
Behavior (7 of 15)
Personal Factors
Occupation affects the goods
and services bought by
consumers.
Age and Life Stage affect tastes
in food, clothes, furniture, ad
recreation.
Economic situations include Appealing to occupation
trends in spending, personal segments: Medical apparel
income, savings, interest rates. maker FIG S sells modern,
comfortable, and functional
scrubs direct to medical and
health professionals.
Characteristics Affecting Consumer
Behavior (8 of 15)
Personal Factors
Lifestyle is a person’s pattern of
living as expressed in his or her
psychographics.
Personality refers to the unique
psychological characteristics that
distinguish a person or group.

Brand personality: MIN I markets to personality segments of

people who are “adventurous, individualistic, open-minded,
creative, tech-savvy, and young at heart”— anything but normal—
just like the car.
Characteristics Affecting Consumer
Behavior (9 of 15)
Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs and attitudes

This classic ad from the American

Association of Advertising Agencies
pokes fun at subliminal advertising.
“So-called ‘subliminal advertising’
simply doesn’t exist,” says the ad.
“Overactive imaginations, however,
most certainly do.”
Characteristics Affecting Consumer
Behavior (10 of 15)
Psychological Factors
A motive (or drive) is a need that is sufficiently pressing to
direct the person to seek satisfaction of the need.
Motivation research refers to qualitative research designed
to probe consumers’ hidden, subconscious motivations.
Characteristics Affecting Consumer
Behavior (11 of 15)
Figure 5.3 Maslow’s Hierarchy of Needs
Characteristics Affecting Consumer
Behavior (12 of 15)
Psychological Factors
Perception is the process by which people select, organize,
and interpret information to form a meaningful picture of the
world.
Perceptual Processes
• Selective attention
• Selective distortion
• Selective retention
Characteristics Affecting Consumer
Behavior (13 of 15)
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
made about competing brands.
Characteristics Affecting Consumer
Behavior (14 of 15)
Psychological Factors
Learning is the change in an individual’s behavior arising
from experience and occurs through the interplay of:
• Drives
• Stimuli
• Cues
• Responses
• Reinforcement
Characteristics Affecting Consumer
Behavior (15 of 15)
Psychological Factors
A belief is a descriptive thought that a person has about
something based on:
• knowledge
• opinion
• faith

An attitude describes a person’s relatively consistent

evaluations, feelings, and tendencies toward an object or
idea.
SPAN X: Changing the Way Women
Think about “Shapewear”
SPAN X changed the way women–and even men–think
about both clothing and their body types
Learning Objective 3
List and define the major types of buying decision behavior
and the stages in the buyer decision process.
Types of Buying Decision Behavior (1 of 2)
• Complex buying behavior
• Dissonance-reducing buying behavior
• Habitual buying behavior
• Variety-seeking buying behavior
Types of Buying Decision Behavior (2 of 2)
Figure 5.4 Four Types of Buying Behavior

Source: Adapted from Henry Assael, Consumer Behavior and Marketing Action
(Boston: Kent Publishing Company, 1987), p. 87. Used with permission of the
author.
Figure 5.5 The Buyer Decision
Process
The Buyer Decision Process (1 of 6)
Need Recognition
Need recognition is the first stage of the buyer decision
process, in which the consumer recognizes a problem or
need triggered by:
• Internal stimuli
• External stimuli
The Buyer Decision Process (2 of 6)
Information Search
Information search is the stage of the buyer decision
process in which the consumer is motivated to search for
more information.
Sources of information:
– Personal sources
– Commercial sources
– Public sources
– Experiential sources
The Buyer Decision Process (3 of 6)
Evaluation of Alternatives
Alternative evaluation is the stage of the buyer decision
process in which the consumer uses information to evaluate
alternative brands in the choice set.
The Buyer Decision Process (4 of 6)
Purchase Decision
Purchase decision is the buyer’s decision about which
brand to purchase.
The purchase intention may not be the purchase decision
due to:
• Attitudes of others
• Unexpected situational factors
The Buyer Decision Process (5 of 6)
Postpurchase Behavior
Postpurchase behavior is the stage of the buyer decision
process in which consumers take further action after
purchase, based on their satisfaction or dissatisfaction.
The Buyer Decision Process (6 of 6)
Postpurchase Behavior
Cognitive dissonance is buyer discomfort caused by
postpurchase conflict.

Postpurchase cognitive
dissonance: Postpurchase
customer satisfaction is a key
to building profitable customer
relationships. Most marketers
go beyond merely meeting
the customer expectations—
they aim to delight customers.
The Customer Journey
Customer journey: the sum of the ongoing experiences
consumers have with a brand that affect their buying
behavior, engagement, and brand advocacy over time.
The customer journey: By
understanding the customer
journey, marketers can work
to create brand experiences
that will result in positive
purchase behavior,
engagement, and brand
advocacy over time.
Learning Objective 4
Describe the adoption and diffusion process for new
products.
The Buyer Decision Process for New
Products (1 of 3)
The adoption process is the
mental process an individual goes
through from first learning about an
innovation to final regular use.
• Stages in the adoption process
include: The adoption process: To help get
– Awareness tentative consumers over the buying
– Interest decision hump, Beyond Meat invited
– Evaluation consumers to “try some free—zip,
zero, zilch” at their local grocery
– Trial
store.
– Adoption
The Buyer Decision Process for New
Products (2 of 3)
Individual Differences in Innovativeness
• Innovators
• Early Adopters
• Early Mainstream
• Late Mainstream
• Lagging Adopters
The Buyer Decision Process for New
Products (3 of 3)
Figure 5.6 Adopter Categories Based on Relative Time of
Adoption of Innovations
Analyzing and Using Marketing
Information
Influence of Product Characteristics on Rate of Adoption
• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability