marketing

LECTURE 5 MKT501

CONSUMER MARKETS AND CONSUMER BUYER

BEHAVIOUR

Learning outcomes

After having studied the lecture, the student should be able to:

• Define the consumer market and construct a simple model of consumer buyer behaviour

• Name the four major factors that influence consumer buyer behaviour

• List and understand the major types of buying decision behaviour and the stages in the buyer decision process

• Describe the adoption and diffusion process for new products

LECTURE CONCEPTS

1. Model of consumer behaviour

2. Characteristics affecting consumer behaviour

3. Types of buying decision behaviour

4. The buyer decision process

5. The buyer decision process for new products

6. Consumer behaviour across international borders

Model of consumer behaviour

Consumer behaviour

Consumer market

Refers to the buying behaviour of final

consumers - individuals and households who

buy goods and services for personal consumption

Refers to all of the personal consumption

of final consumers

Model of consumer behaviour

Marketing stimuli consists of the

4 Ps

Other stimuli

Product

Price

Place

Promotion

Economic forces

Technological forces

Political forces

Cultural forces

Characteristics affecting consumer behaviour

Cultural factors Social factors

Buyer’s culture

Buyer’s sub-culture

Buyer’s social class

Reference groups

Family

Roles and status


Personal factors Psychological factors

Age and life-cycle stage

Occupation

Economic situation

Lifestyle

Personality and self-concept

Motivation

Perception

Learning

Beliefs and attitudes


CULTURE: WHAT IS IT?

CultureThe learned values, perceptions, wants and

behaviour from family and other important institutions


SUB-CULTURE: WHAT IS IT?

Sub-cultureGroups of people within a culture with shared value

systems based on common life experiences and situations

Types of sub-cultures in South Africa Afrikaners isiXhosa

Griekwas Teenage consumers


SOCIAL CLASS: WHAT IS IT?

Social classSociety’s relatively permanent and ordered divisions

whose members share similar values, interests and behaviours

How is social class measured? By a combination of occupation, income,

education, wealth and other variables


The major South African social classes:

• Upper class• Middle class• Working class• Lower class


Social factors: Groups

Membership groupHas a direct influence, a person belongs

to this group

Aspirational groupsGroups to which an individual wishes to belong

Reference groupsGroups that form a comparison or reference in

forming attitudes or behaviour


Social factors: Groups

Opinion leadersPeople within a reference group with special skills,

knowledge, personality or other characteristics that can exert social influence on others

Buzz marketingEnlists opinion leaders to spread the word

Social networkingA new form of buzz marketing

e.g. Twitter, MySpace.com, Facebook.com


Social factors

FamilyThe most important consumer-buying

organisation in society

Social roles and statusThe groups, family, clubs and organisations to

which a person belongs that can define role and social status


Personal factors

• Personal characteristics

• Age and life-cycle stage

• Occupation

• Economic situation

• Lifestyle

• Personality and self-concept


Personal factors

Age and life-cycle stages• Youth: Younger than 18• Getting started: 18-35• Builders: 35-50• Accumulators: 50-60• Preservers: over 60


Social factors

OccupationAffects the goods and services bought by

consumers

Economic situationIncludes trends in personal income, savings and

interest rates


PERSONALITY: WHAT IS IT?

PersonalityThe unique psychological characteristics that lead to consistent and lasting responses to the

consumer’s environment


Personal factors: Personality and self-concept

Brand personalityThe specific mix of human traits (sincerity,

excitement, competence, sophistication, ruggedness) that may be attributed to a

particular brand

Self-conceptPeople’s possessions that contribute to and

reflect their identities


Psychological factors: Motivation

A motiveA need that is sufficiently pressing to direct the

person to seek satisfaction

Motivation researchQualitative research designed to probe consumers’

hidden, subconscious motivations


Psychological factors

Maslow’s Hierarchy of Needs • People are driven by particular needs at particular

times• Human needs are arranged in a hierarchy from

most pressing to least pressing:• Psychological• Safety• Social• Esteem• Self-actualisation


PERCEPTION: WHAT IS IT?

PerceptionThe process by which people select, organise and

interpret information to form a meaningful picture of the world from three perceptual processes


Psychological factors

Selective attentionThe tendency for people to screen out most of the

information to which they are exposed

Selective distortionThe tendency for people to interpret information

in a way that will support what they already believe

Selective retentionThe tendency to remember good points made about a brand they favor and to forget good points about

competing brands


LEARNING: WHAT IS IT?

LearningThe changes in an individual’s behaviour arising

from experience and occurs through interplay of different factors

These factors are: Drives Stimuli

Cues Responses Reinforcement


BELIEF: WHAT IS IT?

BeliefA descriptive thought that a person has about

something based on three things:

Knowledge Opinion Faith


ATTITUDE: WHAT IS IT?

AttitudeDescribe a person’s relatively consistent

evaluations, feelings and tendencies toward an object or idea

Types of buying decision behaviour

Complex buying behaviour

When consumers are highly motivated in a purchase and perceive significant differences among brands

Purchasers are highly motivated when the:• Product is expensive• Product is risky• Product is purchased infrequently• Product is highly self-expressive


Dissonance-reducing buying behaviourWhen consumers are highly involved with an

expensive, infrequent or risky purchase, but see little difference among brands

Post-purchase dissonanceWhen the consumer notices certain disadvantages

of the product purchased or hears favourable things about a product not purchased


Habitual buying behaviourWhen consumers have low involvement and

there is little significant brand difference

Variety-seeking buying behaviourWhen consumers have low involvement and

there are significant brand differences

The buyer decision process

DIFFERENT TYPES OF

NEEDS

NEED RECOGNITION

EVALUATION OF ALTERNATIVES

INFORMATION

SEARCH

POST-PURCHASE BEHAVIOUR

PURCHASE DECISION


Need recognitionWhen the buyer recognises a problem or

need triggered by internal or external stimuli

Information searchThe amount of information needed in the

buying process and depends on:• Strength of the drive

• The amount of information you start with• The ease of obtaining the information

• The value placed on the additional information• The satisfaction from searching


Information search

Sources of information:

• Personal sources: family and friends

• Commercial sources: advertising, Internet

• Public sources: mass media, consumer organisations

• Experiential sources: handling, examining, using the product


Information search

Evaluation of alternatives

How the consumer processes information to arrive at brand choices


The purchase decision

The act by the consumer to buy the most preferred brand

The purchase decision can be affected by:

• Attitudes of others

• Unexpected situational factors


The post-purchase decision

The satisfaction or dissatisfaction the consumer feels about the purchase

Relationship between:

• Consumer’s expectations

• Product’s perceived performance


Post-purchase decision

The larger the gap between expectation and performance, the greater the

consumer’s dissatisfaction

Cognitive dissonance

The discomfort caused by a post-purchase conflict

The buyer decision processfor new products

New productA product, service or idea that is perceived

by some potential customers as new

Adoption processThe mental process an individual goes

through from first learning about an innovation to final regular use


Stages in the new-product adoption process

• Awareness • Interest• Evaluation• Trial• Adoption


Stages in the adoption process

AwarenessWhen the consumer becomes aware of the

new product but lacks information

InterestWhen the consumer seeks information

about the new product



EvaluationWhen the consumer considers whether

trying the new product makes sense

TrialWhen the consumer tries the new product to

improve his or her estimate of value


Adoption

When the consumer decides to make full and regular use of the product



LAGGARDS

LATE MAJORITY

EARLY MAJORITY

EARLY ADOPTERS

BUYER DECISION PROCESS


Early adopters

Opinion leaders; adopt new ideas early but cautiously

Early majority

Are deliberate; adopt new ideas before the average person does


Late majority

Are skeptical; adopt new ideas only after the majority of people have tried it

Laggards

Are suspicious of changes; adopt new ideas only when they become tradition

marketing

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