05 -Consumer Markets and Consumer Buying Behaviour
Transcript of 05 -Consumer Markets and Consumer Buying Behaviour
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Consumer Buying Behavior(p. 171)
Consumer Buying Behavior refers to thebuying behavior of final consumers -
individuals & households who buy goodsand services for personal consumption.
All these consumers make up theconsumer market.
The central question for marketers is:How do consumers respond to various
marketing efforts the company might use?
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Model of Buyer Behavior(Fig. 5.1, pp. 171-172)
Marketing andOther Stimuli
MarketingProductPricePlacePromotion
OtherEconomicTechnologicalPoliticalCultural
Buyers Black Box
Buyer CharacteristicsBuyer Decision Process
Buyer Responses
Product ChoiceBrand ChoiceDealer Choice
Purchase TimingPurchase Amount
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Factors InfluencingConsumer Behavior(Fig. 5.2, p. 172)
Social
Referencegroups
Family
Rolesand
status
Personal
Age andlife-cycle
Occupation
Economicsituation
LifestylePersonality
andself-concept
Psycho-logical
Motivation
Perception
Learning
Beliefs andattitudes
Buyer
Culture
Sub-culture
Socialclass
Cultural
Most basicBroadest
Most specificMost individual
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Factors Affecting Consumer
Behavior: Cultural Factors
Subculture (pp. 173-176)
Group of people with shared value systems based oncommon life experiences and situations
Represent important market segments
e.g., Hispanic, African-American, Asian-American;
e.g., Gen Y, Gen X, Baby Boomers, Mature
Culture (pp. 172-173)
The most basic cause of a person's wants and behavior.
the set of values, perceptions, wants & behavior learned by a member of
society (learned from family & social institutions)
achievement & success, activity & involvement, efficiency & practicality,progress, material comfort, individualism, freedom, humanitarianism,youthfulness, fitness & health
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Factors Affecting Consumer
Behavior: Cultural FactorsSocial Class(pp. 176-177, Table 5.1)
Societys relatively permanent & ordereddivisions
Based on resources, power, prestige
Members of a social class share similar values, interests, andbehaviors(including buying behavior)
Measured by:
Occupation
Wealth and income(both amount andsource)
Education
Housing, neighborhood, possessions, values
In U.S., loosely defined
Lines between social classes are not fixed and rigid
High social class mobilitycan move up or down
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U.S. Social Classes(Table 5.1, p. 177)
1.7%Lower-upper
Upper-upper
7%Lower-lower
Uppermiddle
Middle class(white-collar)
.3%
12%
32% 38%
9%
Upper lower
Workingclass(blue-collar)
Sources: Coleman, Journal of Consumer Research,1983Fussell, Class,1983, 2000
Inheritedwealth
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Reference GroupsMost influence on visible purchasesMembershiphas direct influence (e.g., friends, family)
Aspirationaldoes not belong, but still influenced byOpinion leadersinfluential individuals
(skills, knowledge, personalityoften product/category specific)
Family(most important)Consumption rolesdecider, buyer, user, influencerChanging roles & changing family structures
Factors Affecting ConsumerBehavior: Social Factors(pp. 176-180)
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Achievers(14%)
Actualizers(10%)
Strugglers
(10%)
Strivers(14%)
Fulfilleds(10%)
Believers(17%)
Experiencers(13%)
Makers(12%)
SRI Values and Lifestyles
(VALS)(Fig. 5.3, pp. 181-183) Psychographics
Minimal Resources
Principle Oriented Status Oriented Action Oriented
Abundant Resources
http://www.sric-bi.com/VALS
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Factors Affecting ConsumerBhvr: Psychological Factors(pp. 184-188)
Motivationdriving force behind behavior, resulting fromtension
Motive = a need that is sufficiently pressing to direct a person
to seek satisfactionFreudunconscious motives (p. 186 & Highlight 5.2 on pp. 188-189)
Maslowhierarchy of needs (p. 186 & Figure 5.4 on p. 187)
Perceptionprocess by which we select, organize, andinterpret information to form a meaningful picture of the world
Selective attentionSelective distortion (misinterpret to support existing attitudes)Selective retention
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Physiological Needs(hunger, thirst, shelter, air, sex)
(security, protection, emotional safety, order, familiarity)
Social Needs(belonging, love, relationships, family, friendship)
Esteem Needs(self-esteem, recognition, admiration, status, prestige)
Self Actualization(self-development, fulfillment,
self-realization)
Maslows Hierarchy of Needs(Fig. 5.4, p. 187)
MostPressing
LeastPressing
Progressup thehierarchy
Safety Needs
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Associative learning rattitude rbehaviorReinforcement learning rbehavior rattitude
Factors Affecting ConsumerBhvr: Psychological Factors(pp. 188-191)
Learning associative learning(information, imagery - advertising)
reinforcement learning(actual behaviortrial use, sampling)
Beliefs-- what we think
Attitudes-- what we thinkhow we feelbehavior tendencies
Resistant to change
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High ConsumerInvolvement *
Significantperceived
differencesbetween
brands
Few
perceiveddifferences
betweenbrands
Low ConsumerInvolvement
Types of Buying Decision
Behavior (Fig. 5.5, pp. 191-193)
ComplexBuying
Behavior
Variety-SeekingBehavior
Dissonance-
Reducing BuyingBehavior
Habitual
BuyingBehavior
Cognitive dissonance (p. 197)(buyers remorse)
* expensive, infrequently purchased, important, risky, and/or self-expressive
Influences the buyers decision processSuggests appropriate marketing strategy
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Buyer Decision Process(Fig. 5.6, pp. 193-197)
5PostpurchaseBehavior
4PurchaseDecision
2InformationSearch
1Need
Recognition
3Evaluationof Alternatives
Actual state vs. desired stateTriggered by internal or external stimuli
Personal sourcesmost effectiveCommercial sourcesmost usedPublic sourcesExperiential sources
Sequence influenced bydecision type:Complex
Dissonance-reducingVariety-seeking
Habitual
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The Buyer Decision Process:Postpurchase Behavior
(pp. 197-199)
- DissatisfiedCustomer
+ SatisfiedCustomer !
Perception of Product Performance- Expectations
Customer Satisfaction
RetentionPositive w-o-m (tells 3+)
Lost customerNegative w-o-m (tells 11+)
CognitiveDissonance
Create moderately high (realistic, not exaggerated)expectations & exceed them
Encourage complaintscare, respond constructively
(exceeds expectations)
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Discussion ConnectionsForm small groups to discuss a specificmajor purchase that one of you has
made recently. What type of buying decision was it?
(slide #14)
Discuss the Buyer Decision Process (slide#15) and what major factors influencedyour decisions.
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Chapter ReviewDescribe the four major categories of factorsthat influence consumer buyer behavior, andthe major influences within each factor.
Understand the major theories discussedunder each influence.
Describe the four major types of buying
decisions and the suggested marketingstrategies for each.
Understand the stages in the buyer decisionprocess and how the type of buying decision
influences the process.