TMarkPromo | M.Aldana ‘14

Consumer Markets and Consumer Consumer Markets and Consumer Buying BehaviorBuying Behavior

In groups of 8, discuss your process of buying.Say you want to buy a new laptop, what steps

do you take? Start individually, and then synthesize them as a group. Summarize them in 5 steps. Write in a ¼ sheet of paper with the names of the members.

Each group will then have a representative and write it down in the blackboard and explain. (next meeting)

ActivityActivity

Consumer Buying Behavior Consumer buying behavior refers to the

buying behavior of final consumers – individuals & households who buy goods and services for personal consumption

The central question for marketers is: ““How How do consumers respond to various do consumers respond to various marketing efforts the company might marketing efforts the company might use?”use?”

Five Premises of Consumer Five Premises of Consumer BehaviorBehavior

Consumer behavior is purposeful and goal oriented

The consumer has free choiceConsumer behavior is a processConsumer behavior can be influenced There is a need for consumer education

A Model of Consumer BehaviorA Model of Consumer Behavior

The company that understands how customers respond to different product features, prices, and advertising appeals has a great advantage over its competitors.

Marketing stimuli consists of the 4 Ps: Product, Price, Place and Promotion. Other stimuli include major forces and events in the environment like: economic, technological, political and cultural.

All these stimuli enter the buyer’s black box, where they are turned into a set of observable buyer responses: product choice, brand choice, dealer choice, purchase timing, and purchase amount.

Model of Consumer BehaviorModel of Consumer Behavior

Personal Characteristics Affecting Personal Characteristics Affecting Consumer BehaviorConsumer BehaviorCultural FactorsSocial FactorsPersonal FactorsPsychological Factors

Factors Influencing Consumer Factors Influencing Consumer BehaviorBehavior

Cultural FactorsCultural FactorsCulture is the most basic determinant of a person’s

wants and behavior ◦ It comprises the basic values, perceptions, wants, and

behaviors that a person learns continuously in a society

Cultural FactorsCultural FactorsSubcultures are groups of people with shared

value systems based on common life experiences and situations

•Each culture contains groups of people with shared value systems based on common life experiences and situations

•Subcultures include nationalities, religions, racial groups, and geographic regions

Cultural FactorsCultural Factors◦ Social classes are relatively

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

Social FactorsSocial FactorsConsumer behavior is influenced by:

◦Consumers’ groups◦Family◦Social roles◦Status

Consumer GroupsConsumer GroupsAn individual’s attitudes and behavior are

influenced by many small groupsTypes of groups

◦Membership groups – ex. Clubs, religious groups etc.◦Reference groups – serve as direct or indirect points

of comparison or reference in the forming of a person’s attitudes and behavior

◦Aspirational groups – to which people do not belong but would like to Opinion leaders – people who have special skills, knowledge,

personality or other characteristics, exert influence on others.

Family members have a strong influence on buyer behavior

FamilyFamily

A person belongs to many groups: family, clubs, and organizations

An individual’s position in each group can be defined in terms of role and status

A role consists of the activities that a person is expected to perform according to the persons around him or her

Social RolesSocial Roles

Each role carries a status reflecting the general esteem given to it by society

People often choose products that show their status in society

StatusStatus

Online social networks are online communities where people socialize or exchange information and opinions

Marketers must be careful when tapping into online social networks

Online Social NetworksOnline Social Networks

Personal FactorsPersonal FactorsAge and Life-Cycle Stage

◦ The types of goods and services people buy change during their lifetimes

◦ Preferences for leisure activities, travel destinations, food, and entertainment are often age related

◦ Successful marketing to various age segments may require specialized and targeted strategies

◦ This will almost certainly require segmented target publications and database marketing

◦ Buying behavior is also shaped by the family life-cycle stages

Personal FactorsPersonal FactorsOccupation

◦ A person’s occupation affects the goods and services bought

Personal FactorsPersonal FactorsEconomic Situation

◦ A person’s economic situation greatly affects product choice and the decision to purchase a particular product

Personal FactorsPersonal FactorsLifestyle

◦People coming from the same subculture, social class, and occupation may have quite different lifestyles

◦A lifestyle is a person’s pattern of living as expressed in his or her activities, interests, and opinions

Personal FactorsPersonal FactorsPersonality is a person’s distinguishing

psychological characteristics that lead to relatively consistent and lasting responses to his or her environment

Self-Concept is the complex mental pictures people have of themselves, also known as self-image

Psychological FactorsPsychological FactorsMotivation

◦Maslow’s Theory of Motivation Sought to explain why people are driven by particular

needs at particular times

Physiological Needs(hunger, thirst)

Safety Needs(security, protection)

Social Needs (sense of belonging, love)

Esteem Needs (self-esteem)

Self Actualization

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

◦Herzberg’s Theory A two-two factor theory that distinguishes dissatisfiers

(factors that cause dissatisfaction) and satisfiers (factors that cause satisfaction)

Herzberg’s TheoryHerzberg’s Theory

Herzberg’s TheoryHerzberg’s Theory

Psychological FactorsPsychological FactorsPerception

◦Selective Attention Consumers are constantly bombarded with information and

will screen out stimuli◦Selective Distortion

Messages to do not always come across in the same way the sender indented.

◦Selective Retention People will forget much that they learn but will tend to

retain information that supports their attitudes and beliefs

Psychological FactorsPsychological FactorsLearning describes changes in an individual’s

behavior arising from experience

A belief is a descriptive thought that a person holds about something

An attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or an idea

Buyer Decision ProcessBuyer Decision Process

Need RecognitionNeed Recognition

For the decision process to begin, a potential buyer must first recognize a problem or need

Can be caused by internal or external stimuli

Information SearchInformation Search Information can be obtained from:

◦ Personal Sources Family, friends, neighbors, and acquaintances

◦ Commercial Sources Advertising, salespeople, dealers, packaging, and displays

◦ Public Sources Restaurant reviews, editorials in the travel section,

consumer-rating organizations

Evaluation of AlternativesEvaluation of Alternatives

Products are seen as bundles of product attributes

Customers rank attributes and form purchase intentions

Purchase DecisionPurchase Decision

Post Purchase BehaviorPost Purchase BehaviorThe smaller the gap between customer

expectations and perceived performance, the greater the customer’s satisfaction

Cognitive dissonance is buyer discomfort caused by post purchase conflict

THE ENDTHE END