5. Consumer markets and consumer buyer behaviour1. Model of consumer behavior Consumer buyer behaviour:the buying behaviour of final consumersindividuals andhouseholds that buy goods and services for personal consumption. Consumer market: all the individuals and households that buy or acquire goods andservices for personal consumption.Models of consuming behavior

Review the black box model of buyer behavior. Which buyer characteristics that affect buyer behavior influence the most when selecting a restaurant? Are those the same characteristics that would influence a customer when making a smartphone purchase? Explain your answerStimulus-response model Environment (stimulus)We can measure the inputs to consumer buying decisions Marketing stimuli: Four Ps (product, price, promotion, place) Other stimuli: major forces and events ex: economic, technological, political and cultural Black box: Whys of consumer behavior How stimuli are changes into response Buyers characteristics influence how he perceives and reacts to stimuli2. Characteristics affecting consumer behavior Factors affecting consumer behavior

Culture Culture= the learned values, perceptions, wants andbehaviours from family and other important institutions. Try to spot cultural shifts ex towards health and fitness lifestyle hofstede Subculture= are groups of people within a culture with shared value systems based on common lifeexperiences and situations. Hispanic American African American Asian American Mature consumersEx: nationalities, religions, racial groups and geographic regions Social classes= relatively permanent and ordered divisions in a society whose members share similarvalues, interests and behaviours. Measured by a combination of occupation, income,education, wealth and other variablesSocial class

Groups and social networks Reference groups serve as direct or indirect points of comparison or reference in forming a persons attitude or behavior Expose to new behavior, lifestyle, influence the persons attitudes and self-concept (pressure to conform Aspirational group (group you wish to belong to) Word-of mouth influence and buzz marketing o Opinion leaders are people within a reference group who exert social influence on others. o Also called influential or leading adopters. o Marketers identify them to use as brand ambassadors.Ex Playstation use communities to get new videos out and encourage fans to share them Online social networks = online communities where people socialize or exchange information andopinions. Include blogs, social networking sites (Facebook) and virtual worlds (second life). Family is the most important consumer-buying organisation in society. But avoid insensitive stereotyping Social roles and status= the groups, family, clubsand organisations that a person belongs to that candefine role and social status.Personal factors Age and life-cycle stage Life style changing events (marriage, having children, divorce..) RBC Royal Band stages o Youth: younger than 18 o Getting started: 1835 o Builders: 3550 o Accumulators: 5060 o Preservers: over 60 Occupation affects the goods and services bought by consumers. Economic situation includes trends in:

Lifestyle = a persons pattern of living as expressed in his or her psychographics. Measures a consumers AIOs (activities, interests, opinions) to capture information about a persons pattern of acting and interacting in the environment. Personality and self-concept= Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumers environment.

Brand personality =specific mix of human traits that may be attributed to a particular brand Self-concept=peoples possessions contribute and reflect their identities (we are what we have)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. Uncover underlying emotions and attitudes towards brands and buying situations

Perception= the process by which people select, organise and interpret information to form ameaningful picture of the world from three perceptual processes: 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 supportwhat they already believe. Selective retention= the tendency to remember good points made about a brand they favour and forget good points about competing brands. Subliminal advertising=affected by marketing messages without even knowing it Learning= the change in an individuals behavior arising from experience and occurs through the interplay of Drives Stimuli Cues Responses Reinforcement A drive is a strong internal stimuli that calls for actiona drive becomes a motive when it is directed towards a particular stimulus object Cues are minor stimuli that determine when, where an how a person responds Beliefs and attitudes Belief is a descriptive thought that a person holds about something based on Knowledge Opinion Faith Attitudes describe a persons consistently favorable or unfavorable evaluations, feelings and tendencies toward an object or idea.

3. Types of buying decision behavior Complex buying behaviorExpensive, risky purchased infrequently and highly self-expressiveMuch to learn about the product category Cycle of information gathering and brand evaluation process (belief-attitude-behavior) Dissonance-reducing buying behaviorGood pricing or purchase convenience Ex carpeting Habitual buying behaviorBrand familiarityPrice differences and promotionsEx table salt Variety-seeking buying behaviorA lot of brand switchingEx cookies Encouraging habitual buying behavior by dominating shelf space, keeping shelves fully stocked and running frequently reminder advertisingNew firms: offer low prices, special deals, coupons, free samples to encourage variety seekers

4. The buyer decision process

1) Need recognitionOccurs when the buyer recognizes a problem or needtriggered by:o Internal stimuli ex hungero External stimuli ex advertisement2) Information sources Personal sourcesfamily and friends Commercial sourcesadvertising, Internet Public sourcesmass media, consumer organisations Experiential sourceshandling, examining, using the3) Evaluation of alternatives= How the consumer processes information to arrive atbrand choices.4) Purchase decision= The act by the consumer to buy the most preferredbrand. can be affected by: o attitudes of others o unexpected situational factors.5) Postpurchase behavior The satisfaction or dissatisfaction that theconsumer feels about the purchase. Relationship between:o Consumers expectationso Products perceived performance. The larger the gap between expectation andperformance, the greater the consumersdissatisfaction. Cognitive dissonance is buyer discomfortcaused by postpurchase conflict Customer satisfaction = a key to building profitable relationships with consumersto keeping and growingconsumers and reaping their customer lifetime value5. The buyer decision process for new products Adoption process = the mental process an individual goes through from first learning about an innovation tofinal regular use.

Individual differences in innovativeness

Innovators: try new things at some risk Early adopters: quided by respect; they are opinion leaders Early majority: deliberate Late majority: skeptical Laggards: tradition bound New-product marketers often target innovators and early adopters, who in turn influence later adopters Influence of products characteristics on rate of adaptation Relative advantageAppears superior to existing productspositive relation Compatibility=fits into your behavior and your other product experience, can integrate it easily into your lifethan rate of adoption is going up Complexityf too difficult to use dont buy it =>Philips slogan = simplicity DivisibilityCan try it on a limited basis and you can talk/ communicate about this new innovation CommunicabilityResult can be observed or described to others=>Ex IKEA wants furniture that can charge your phoneCertain characteristics can affect its rate of adiption. Which characteristics will impact how quickly the new services described above and explain why => first mention the 5 characteristics and prove it with sentences of the textBook p 67 1. Four Ps (marketing mix): Promotion and environmental factors , black box = Stimulus response model in that black box there are different characteristics that affect buying behaviorcultural/social/personal/psychological Clothing: social because of the reference group Computer: personal education ex technological model, income2. opinion leader = people in a reference group and their opinion will affect the rest of the reference because they have special skills, knowledge, other characteristics..=> they try to identify the opinion leaders and through this medium they try to influence reference group ex become brand ambassadors (blogs)3. Name and describe the types of consumer buying behaviour- complex : lot of differences between the brands ex choosing a mobile phone : high involvement and a lot of different products- dissonance-reducing- variety-seeking frozen diner: you have a lot of differences between the brands but low involvement- habitual4. Explain the stages of the consumer buyer decision process

Need for recognitionidea missing something: internal/external stimuli Information searchcommercial, relatives or family, public sources Evaluation of alternativesSee model in book Purchase decision Postpurchase behaviorpost purchase conflict6. Name and describe the adopter categories and explain how a marketer of 3D television can use this knowledge in its marketing targeting decisions Innovators Opinion leaders= Early adopters .. ..7. Trigger events ex having a child (car seats, baby furniture), wedding, divorce (IKEA: single market), death

Ex apple: lifestyledell: service, technologyHP: All different atmosphere, whole branding is different