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Session 6 & 7
Consumer Market & Consumer Behavior
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CONSUMER BEHAVIOR
The field of consumer behavior studieshow individuals, groups, andorganizations select, buy, use, anddispose of goods, services, ideas, orexperiences to satisfy their needs anddesires.
Ref:Wu Jianan, Marketing , 3 rd ed, (Beijing:Higher Education Press, 2007): 105
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A model of consumer behavior
7 Os framework
Occupants Objects Objectives Organizations Operations Occasions Outlets
Key questions Who constitutes the market? What does the market buy? Why does the market buy? Who participates in the buying? How does the market buy? When does the market buy? Where does the market buy?
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The stimulus-response modelWu Jianan, Marketing , 3 rd ed, (Beijing: Higher Education Press, 2007): 106
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MAJOR FACTORS INFLUENCINGBUYING BEHAVIOR
1. How do the buyers characteristics influence buying behavior?2. How does the buyer make purchasing decisions?
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Culture
Subculture
Social class
Cultural
Referencegroups
Family
Roles andstatuses
Social
Age and lifecycle stage
Occupation
Economiccircumstances
Lifestyle
Personality &self-concept
Personal
Motivation
Perception
Learning
Beliefs &attitudes
Psychological
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Personal factors
Individuals lifetime Family life cycle Psychological life-cycle stages
Age and stage in the life cycle
Marketers try to identify the occupational groups that have above-average interest in their products and services.
Occupation
pay attention to trends in personal income, savings, and interest rates
Economic circumstances
is the persons pattern of living in the world as expressed in the persons activities, interests, and opinions.Lifestyle portrays the whole person interacting with his or her environment.
Lifestyle
A persons distinguishing psychological characteristics that lead to relatively consistent and enduring responses to his orher environment.
Personality and self-concept
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Psychological Factors
Beliefs &Attitudes Learning Perception Motivation
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PSYCHOLOGICALFACTORSM OTIVATION
Motivation
LearningPerception
Beliefs &Attitudes
1. Freuds Theory of Motivation2. Maslows theory of Motivation3. Herzbergs Theory of Motivation
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M ASLOWS THEORY OF M OTIVATION
1.Physiological food, water, shelter2.Safety security, protection3.Social sense of belonging, love4.Esteem self-esteem, recognition, status5.Self-actualization self-development and realization
Self-actualization
needs
Esteem needs
Social needs
Safety needs
Physiological needs
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Herzbergs Theory of Motivation
Two-factor theory Dissatisfiers Satisfiers
Motivation-hygiene theory Hygiene factors Motivators
Implications - Sellers should do their best to avoid dissatisfiers; Manufacturers should identify the major satisfiers of purchase and then supply them.
Ref links - http://www.emkt.com.cn/article/69/6994.html ( : HM)
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PSYCHOLOGICALFACTORSPERCEPTION
Perception
LearningMotivation
Beliefs &Attitudes
PERCEPTION is the process by which anindividual selects, organizes, andinterprets information inputs to createa meaningful picture of the world.
Ref:Wu Jianan, Marketing , 3 rd ed, (Beijing:Higher Education Press, 2007): 117
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Three Perceptual ProcessesSelectiveretention tendency to retain
information thatsupports onesattitudes andbeliefs
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PSYCHOLOGICALFACTORSLEARNING
Definition~ involves changes in an individualsbehavior arising from experience, and is believed to be produced through theinterplay of :
1. Drives
2. Stimuli
3. Cues4. Responses
5. Reinforcement
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Drive
Stimuli
Cues
Responses
Reinforcement
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P S Y C H OL O G
I C A L
F A C T O R S
B E L I E F S A N
D A T T I T UD E S
A BELIEFis a descriptive thought that a person holds about something
An ATTITUDE is a persons enduring favorable or unfavorable evaluations,emotional feelings, and action tendenciestoward some object or idea
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THE BUYING PROCESS
BUYING ROLES, BUYING BEHAVIOR, AND STAGES OF THE BUYING DECISION PROCESS
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Five Roles
Initiator
A person who first suggeststhe idea of buying
Influencer
A person whose view oradvice influences thedecision
Decider
A person who decides onany component of a buyingdecision
Buyer
The person who makes theactual purchase
User A person who consumes
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Four Types of Buying Behavior
HIGH INVOLVEMENT LOW INVOLVEMENT
SIGNIFICANT DIFFERENCESBETWEEN BRANDS
COMPLEX VARIETY-SEEKING
FEW DIFFERENCESBETWEEN BRANDS
DISSONANCE-REDUCING HABITUAL
Henry Assael distinguished four types of consumer buying behaviorbased on the degree of buyer involvement and the degree of differencesamong brands
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Buying Decision Process - Stage Model
Stage model of a typical buying process Consumers pass sequentially through 5 stages
(esp. in high-involvement purchases) Consumers may skip or reverse some stages
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Problemrecognition
Informationsearch
Evaluation of alternatives
Purchasedecision
Postpurchasebehavior
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STAGES OF BUYING DECISIONPROCESS STAGE 1
PROBLEMRECOGNITION
Information search
Evaluation of alternatives
Purchase decision
Postpurchasebehavior
1. Gap between ones actual anddesired state2. Internal or external stimuli
A. Persons normal needsB. Aroused by external stimulus
3. Marketers shouldA. Identify the circumstances that
trigger a particular needB. Identify the most frequentstimuli that spark an interest ina product category
C. Develop marketing strategiesthat trigger consumer interest
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Stages of buying decisionprocess stage 2
Problemrecognition
INFORMATION SEARCH
Evaluation of alternatives
Purchase decision
Postpurchasebehavior
Levels of arousalHeightened attentionActive information search
Information sourcesPersonalCommercialPublic sources
ExperientialSuccessive sets involved
1) Total set (of brands)2) Awareness set3) Consideration set4) Choice set
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Stages of buying decisionprocess stage 3
Problemrecognition
Information search
EVALUATION OFALTERNATIVES
Purchase decision
Postpurchasebehavior
(PDF)Ways to stimulate greater interest in
a brando Modify the producto Alter beliefs about the brando Alter he importance weightso Call attention to neglected attributeso Shift buyers ideals
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Stages of buying decisionprocess stage 4
Problemrecognition
Information search
Evaluation of alternatives
PURCHASE DECISION
Postpurchasebehavior
Ref:Wu Jianan, Marketing , 3 rd ed, (Beijing:Higher Education Press, 2007): pp.113-114
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Stages of buying decisionprocess stage 5
Problemrecognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchasebehavior
Ref:Wu Jianan, Marketing , 3 rd ed, (Beijing:Higher Education Press, 2007): pp.114-115
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