PowerPoint by Yu Hongyan Business School of Jilin University

Chapter 6

Analyzing Analyzing Consumer Consumer

Markets and Markets and Buyer BehaviorBuyer Behavior

Objectives

How and why consumer buy Buyer Decision Making

Consumer Behavior The field of Consumer Behavior:

“studies how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.”

1. How and Why Consumer buy

Figure 6-1: Model of Customer Buyer Behavior

1 How and Why Consumers Buy (cont’d)

Influence Factors

Cultural Social Personal Psychological

Broadest and deepest influence

Culture Coca Cola Coca Cola China Pepsi

Subculture Social classes

How and Why Consumers Buy (cont’d)

SuccessSuccess

MaterialismMaterialism

FreedomFreedom

ProgressProgress

EfficiencyEfficiency

Activity Activity

CoreCoreAmerican American

ValuesValues

CoreCoreAmerican American

ValuesValues

1 How and Why Consumers Buy (cont’d)

Social classes are relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar value, interests, and behavior

Reflect income, occupation, education

.

1 How and Why Consumers Buy (cont’d)

Relative size Group Some (abbreviated) characteristics

Upper-class

Upper-middleclass

Lower-middleclass*

Upper-lower(“working”) class*

Lower-lowerclass

1.5%

12.5%

32%

38%

16%

People from old wealthy families and socially prominent new rich...

Small business people, teachers, office workers, technicians--the typical white collar workers...

The blue collar workers--factory workers, skilled laborers, and service people…most earn good incomes...

Unskilled laborers and people in very low status occupations

* America’s “mass market”

How And Why Consumers Buy

Influence Factors

Cultural Social Personal Psychological

Reference groups Family Social roles and

statuses

1 How and Why Consumers Buy (cont’d)

Social Factors Reference Group

A person reference group consists of all the groups that have a direct or indirect influence on the person’s attitude or behavior

Membership groups are groups having a direct influence on a person, such as family, friend, neighbors

1 How and Why Consumers Buy (cont’d)

Family The family is the most important consumer-buyi

ng organization in society The family of orientation consists of one’s pa

rents and siblings 同胞 Family of procreation, one’s spouse and child

ren Marketers are interested in the role and relative

influence of the wife, child, and so on

1 How and Why Consumers Buy (cont’d)

Roles and Statues A role consists of the activities that a

person is expected to perform, students, professor, and administer

Each role carries a status Marketers are aware of the status

symbol potential of products and brands

Such as the beer to drink ?

1 How and Why Consumers Buy (cont’d)

Influence Factors

Cultural Social Personal Psychological

Age Stage in life cycle Occupation Economic

circumstances Lifestyle Personality Self-concept

1 How and Why Consumers Buy (cont’d)

Personal Factor A lifestyle is the person’s pattern of

living in the world as expressed in Activities, Interest and Opinions.(AIO)

Marketers search for relationships between their products and lifestyle group

1 How and Why Consumers Buy (cont’d)

Personal Factors: AIO

ACTIVETIES INTERESTS OPINIONS DEMOGRAPHICS

Work HobbiesSocial eventsVacationEntertainmentClubsShopping Sports

Family Home Job Community Recreation Fashion FoodAchievements

Themselves Social issues Politics Business Economics Education Future Product

Age Education Income Occupation Family size City size Stage in cycle Geography

1 How and Why Consumers Buy (cont’d)

Personal Factors SRI International Values and lifestyle

1 How and Why Consumers Buy (cont’d)

VALS, established in 1978, is one of the first major consumer segmentation systems based on lifestyle characteristics.

Consumer products and services companies throughout the United States have used VALS to improve product development, product positioning, advertising effectiveness, and corporate image.

in 1989, the program introduced VALSTM 2, a new segmentation system that incorporated recent lifestyle trends and improved the applicability of the segmentation system to advertising and marketing applications.

VALS 2 continues to be calibrated 校准 against today's consumer attitudes via the VALS survey.

VALS2 Segment Activities 2nd Media Use*VALS2 Segment Activities 2nd Media Use*

12-6

实现

者

完成

者

成就

者r

体验

者

信奉

者

奋争

者

制造

者

挣扎

者

Barbecue outdoors 125 93 82 118 111 109 123 50Do gardening 155 129 118 109 68 54 104 80Do gourmet cooking 217 117 96 103 53 133 86 47Drink coffee daily 120 119 126 88 87 55 91 116Drink herbal tea 171 125 89 117 71 115 81 68Drink domestic beer 141 88 73 101 87 157 123 50Drink imported beer 238 93 41 130 58 216 88 12Do activities with kids 155 129 57 141 112 89 116 32Play team sports 114 73 69 104 110 172 135 34Do cultural activities 293 63 67 96 45 154 63 14Exercise 145 114 69 123 94 143 102 39Do home repairs 161 113 85 82 53 88 171 58

* Figures under each segment are the index for each segment (100 = Base rate usage).

Segment

Source: SRI International.

VALS2 Segment Activities 2nd Media Use*VALS2 Segment Activities 2nd Media Use*12-6 (II)

Act

ual

izer

Fu

lfill

ed

Bel

ieve

r

Ach

ieve

r

Str

iver

Exp

erie

nce

r

Mak

er

Str

ug

gle

r

Do risky sports 190 48 36 52 59 283 171 7Socialize weekly 109 64 73 90 96 231 94 62Automotive magazines 92 105 50 79 50 254 157 22Business magazines 255 227 74 179 37 71 33 8Commentary magazines 274 173 106 87 66 109 49 15Reader’s Digest 58 143 150 90 63 57 87 130Fish and game magazines 56 83 119 46 37 130 209 79Human-interest magazines 83 115 113 129 93 135 86 46Literary magazines 533 120 29 77 44 105 45 31Watch “Face the Nation” 161 199 161 62 42 35 37 126Watch “L.A. Law” 96 113 132 114 109 71 89 70Watch “McGyver” 35 50 126 57 92 104 153 140

* Figures under each segment are the index for each segment (100 = Base rate usage).

Segment

Source: SRI International.

China Lifestyle

1 How and Why Consumers Buy (cont’d)

Influence Factors

Cultural Social Personal Psychological

Motivation Perception Learning Beliefs Attitudes

1 How and Why Consumers Buy (cont’d)

Psychological Factors Motivation?

A need becomes a motive when it is aroused to a sufficient level of intensity

A motive is a need that is sufficiently pressing to drive the person to act

A need that is sufficiently pressing to direct the person to seek satisfaction of the need.

1 How and Why Consumers Buy (cont’d)

Psychological Factors Motivation

Freud’s Theory Maslow’s Theory Herzberg’s Theory

1 How and Why Consumers Buy (cont’d)

Freud’s theory The psychological forces shaping

people’s behavior are largely unconscious

Laddering can be used to trace a person’s motivation, page 91

In-depth interview

Laddering 您为什么喜欢购买 A 感冒药

中药成份

为什么中药成分对您来说这么重要呢

为什么副作用小、标本兼治对您选择该产品的影响力这么大呢？

Importance

Projective techniques In-depth interview Word association Sentence completion Picture interpretation

In-depth interview

Word association

A word association test involves reading words to a respondent who then answers with the first word that comes to his or her mind

The researcher look for hidden meanings or associations between response and the words being tested on the original list

如： “ 奔驰”，被调查者可能联想到 “ 宝洁” “ 海尔” 顺牌 金士百

Sentence Completion Test

将未完成的句子呈现给被调查者，由它们来完成的句子 Someone who drinks beer is ________ Beer is good to drink when _________ Buying beer is ____________ _______ My friends think beer is ____________

Picture interpretation 让受试者画出他们对某一特定的物体的印象。

Cartoon or Balloon Test

Each product is capable of arousing a unique set of motives in consumers

Beer ?action, status, or fun Motivational positioning

Maslow’s Hierarchy of Needs

Psychological needs(food, water, shelter)Psychological needs(food, water, shelter)1

Safety needs(security, protection)

Safety needs(security, protection)

2

Social needs(sense of belonging, love)

Social needs(sense of belonging, love)3

Esteem needs(self-esteem, recognition)

Esteem needs(self-esteem, recognition)

4

Self-actualization

(self-developmentand realization)

Self-actualization

(self-developmentand realization)

5

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Basic Marketing

The PSSP Hierarchy of Needs

1 How and Why Consumers Buy (cont’d)

Marketing sight Maslow’s theory helps marketers under

stand how various products fit into the plans, goals and lives of consumers

Bread, house, cloth,medicine Insurance, 安全气囊 , 预防性药物 causal food, entertainments Furniture, car, wine, collation Education,sport, holiday

1 How and Why Consumers Buy (cont’d)

Herzberg’s Theory A two-factor theory that distinguishes dis

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

The absence of dissatisfiers is not enough, satisfiers must be actively present to motivate a purchase

1 How and Why Consumers Buy (cont’d)

Two implications Sellers should do their best to avoid dissa

tisfiers Manufacturer should identify the major

satisfiers or motivators of purchase in the market and them supply them.

How to do it

1 How and Why Consumers Buy (cont’d)

Psychological Factors Perception

Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.

Marketing Implications of Perception Important attributes Higher price Brand names Quality and reliability Threshold 极限 level of perception Product changes

.

1 How and Why Consumers Buy (cont’d)

Psychological Factors Learning

Learning involves changes in an individual’s behavior arising from experience

Most human behavior is learned. Learning theorists believe that learning is

produced through the interplay of drives, stimuli, cues, responses, and reinforcement

1 How and Why Consumers Buy (cont’d)

Psychological Factors Beliefs and Attitudes

Belief A belief is a descriptive thought that a person hold

s about something Belief may based on knowledge, opinion, or f

aith. They may or may not carry an emotional char

ge. E.g. Haire, Chinese medicine

1 How and Why Consumers Buy (cont’d)

Psychological Factors Attitude is a person’s enduring favorable

or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea

People have attitudes toward almost everything:religion, politics, clothes, music

Attitudes put them into a frame of mind of liking and disliking an object, moving toward or away from it

2. Consumer Buying Decision Process

Understand

Buying roles Buying behavior Buying decision

process

Initiator Influencer Decider Buyer User

2. Consumer Buying Decision Process (cont’d)

Understand

Buying roles Buying behavior Buying decision

process

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior

2. Consumer Buying Decision Process (cont’d)

ComplexBuying

Behavior

Dissonance-Reducing Buying

Behavior

Variety-SeekingBehavior

HabitualBuying

Behavior

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

HighInvolvement

LowInvolvement

Four type of consumers buying behavior

2. Consumer Buying Decision Process (cont’d)

Understand

Buying roles Buying behavior Buying decision

process

Five stages in the consumer buying process

The amount of time spent in each stage varies according to several factors

2. Consumer Buying Decision Process (cont’d)

Figure 6-2: Five-Stage Model of the Consumer Buying Process

Consumer Buying Process

ProblemProblemrecognitionrecognition

Informationsearch

Evaluation ofalternatives

Purchasedecision

Postpurchasebehavior

1. Problem Recognition

The buying process starts when the buyer recognize a problem or need

Marketers Identify the circumstance that trigger

a particular need Identify the most frequent stimuli that

spark an interest in a product

2. Information Search

An aroused consumer will search for more information

Two level arousal Heightened attention

More receptive to information about a product

Active information search Looking for reading materials, phoning

friends

2.Information Search (cont’d) Four group information sources

Personal sources: Family, friend, neighbors

Commercial sources: Ad, dealers, packaging, displays,salesperson

Public sources Mass media, consumer-rating organizations

Experiential sources Handling, examining, using the product

2.Information Search (cont’d)

Figure 6-3: Successive Sets Involved in Consumer Decision Making

3. Evaluation of Alternatives

Some concept can help us to understand The consumer try to satisfy a need Look for certain benefit form the

product See each product as a bundle of

attributes

3. Evaluation of Alternatives (cont’d)

The attribute of interest of buyer Different product have different

attributes Cameras:

Picture sharpness, speeds, size, price Hotel

Location, cleanliness, atmosphere, price Tire

Safety, tread life, ride quality, price

3. Evaluation of Alternatives (cont’d)

Where:Ab = Attitude toward brandbi = strength of belief that brand has attribute

i (1 to 7)ei = evaluation of attribute i (-3 to +3)n = the number or salient attributes

Multi attribute model (e.g. Fishbein):

A b ebi

n

i i 1

Exceptive Computer

Attribute

ExpectMemor

y capaci

ty

Graphics

capability

Size and

weight

price

Weight

0.4 0.3 0.2 0.1 1.0

A 10 8 6 4 8.0

B 8 9 8 3 7.8

C 6 8 10 5 7.3

D 4 3 7 8 4.7

3. Evaluation of Alternatives (cont’d)

Strategy to Redesign the computer Alter beliefs about the brand Alter beliefs about competitors brand Alter the importance weights Call attention to neglected attributes Shift the buyer’s ideals

4. Purchase Decision

In the evaluation stage, the consumer forms preferences

Also form an intention to buy the most preferred brand

There are two factors between purchase intention and decision

4. Purchase Decision (cont’d)

EvaluationEvaluationofof

alternativesalternatives

Purchasedecision

Unanticipatedsituational

factors

Attitudeof others

Purchaseintention

5. Postpurchase Behavior

Postpurchase Satisfaction Postpurchase Actions Postpurchase Use and Disposal

5. Postpurchase Behavior (cont’d)

Postpurchase Satisfaction Buyer’s expectations Product’s perceived performance Consumer form the expectation on the b

asis of message received from sellers, friends and other information recourse

Product claim must be truthfully represent

5. Postpurchase Behavior (cont’d)

Postpurchase Actions Influence subsequent behavior The satisfied customer will tend to say go

od things about the brand to others Marketer say : our best Ad is a satisfied cu

stomer Dissatisfied customer may abandon or re

turn the product

5. Postpurchase Behavior (cont’d)

Postpurchase Use and Disposal Marketers should monitor how buyers us

e and dispose of the product

5. Postpurchase Behavior (cont’d)

Figure 6-4: How Consumers Use or Dispose of Products

Review Major Factors Influencing Buyer Behavior

Culture, Social, personal psychological The Buying Decision Process

Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior

The type of consumer buying

Thank you very much!