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8/9/2019 5.Consumer Markets and Buying Behaviour
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Consumer Markets andConsumer Markets andConsumer BuyerConsumer Buyer
BehaviorBehavior
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Harley HogsHarley Hogsaccount for 1/5 ofaccount for 1/5 ofU.S. cycle salesU.S. cycle sales
Sales haveSales have
exceeded supplyexceeded supplyfor yearsfor years
19861986--2000: Four2000: Fourstock splits,stock splits,
increase of 7,100%increase of 7,100%
Fiercely loyalFiercely loyalclientele revolvesclientele revolvesaround 7 corearound 7 core
customer typescustomer types
Harley owners useHarley owners usetheir bikes totheir bikes to
express theirexpress their
lifestyle andlifestyle and
attitudesattitudes
HarleyHarley--DavidsonDavidson
Case Study
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Definitions
Consumer Buying BehaviorConsumer Buying Behavior
Buying behavior of individuals andBuying behavior of individuals andhouseholds that buy products forhouseholds that buy products forpersonal consumption.personal consumption.
Consumer MarketConsumer MarketAll individuals/households who buyAll individuals/households who buy
products for personal consumption.products for personal consumption.
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Stimulus Response ModelStimulus Response ModelMarketing and other stimuli enter theMarketing and other stimuli enter the
buyers black box and producebuyers black box and producecertain choice/purchase responses.certain choice/purchase responses.
Marketers must figure out what isMarketers must figure out what isinside of the buyers black box andinside of the buyers black box andhow stimuli are changed tohow stimuli are changed to
responses.responses.
Modelof
Consumer Behavior
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Characteristics Affecting
Consumer Behavior
CulturalCultural
SocialSocial
PersonalPersonal
PsychologicalPsychological
CultureCulture
SubcultureSubculture HispanicHispanic
consumersconsumers
African AmericansAfrican AmericansAsian AmericansAsian Americans
Mature consumersMature consumers
Social ClassSocial Class
Key FactorsKey Factors
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HispanicsHispanics 35 million consumers purchase $42535 million consumers purchase $425
billion worth of goods and services.billion worth of goods and services.
Expected to grow 64% in 20 years.Expected to grow 64% in 20 years.
Spanish media makes group easy toSpanish media makes group easy toreach.reach.
Brand loyal group.Brand loyal group.
Characteristics Affecting
Consumer Behavior
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Asian AmericansAsian Americans 10 million consumers purchase $22910 million consumers purchase $229
billion worth of goods and services.billion worth of goods and services.
Fastest growing, most affluent subculture.Fastest growing, most affluent subculture.
Many nationalities comprise this group.Many nationalities comprise this group.
Consumer packaged goods companiesConsumer packaged goods companiesnow target this group more heavily.now target this group more heavily.
Characteristics Affecting
Consumer Behavior
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Mature ConsumersMature Consumers 75 million consumers aged 50+ will grow75 million consumers aged 50+ will grow
to 115 million within 25 years.to 115 million within 25 years.
Mature consumers control 50% of allMature consumers control 50% of alldiscretionary income.discretionary income.
Attractive market for travel, restaurant,Attractive market for travel, restaurant,and cosmetics products, among others.and cosmetics products, among others.
Characteristics Affecting
Consumer Behavior
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Characteristics Affecting
Consumer Behavior
CulturalCultural
SocialSocial
PersonalPersonal
PsychologicalPsychological
GroupsGroups
MembershipMembership ReferenceReference
Aspirational groupsAspirational groups
Opinion leadersOpinion leaders B
uzz marketingB
uzz marketing FamilyFamily
Children can influenceChildren can influence
Roles and StatusRoles and Status
Key FactorsKey Factors
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Characteristics Affecting
Consumer Behavior
CulturalCultural
SocialSocial
PersonalPersonal
PsychologicalPsychological
Age and life cycleAge and life cycle
OccupationOccupation Economic situationEconomic situation
LifestyleLifestyle Activities, interests, andActivities, interests, and
opinionsopinions Lifestyle segmentationLifestyle segmentation
Personality and selfPersonality and self--conceptconcept Brand personalityBrand personality
Key FactorsKey Factors
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Brand Personality DimensionsBrand Personality Dimensions
Characteristics Affecting
Consumer Behavior
SinceritySincerity
RuggednessRuggedness
ExcitementExcitement
CompetenceCompetence
SophisticationSophistication
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Characteristics Affecting
Consumer Behavior
CulturalCultural
SocialSocial
PersonalPersonal
PsychologicalPsychological
MotivationMotivation N
eeds provide motives forN
eeds provide motives forconsumer behaviorconsumer behavior
Motivation researchMotivation research
Maslows hierarchy of needsMaslows hierarchy of needs
PerceptionPerception Selective attention, selectiveSelective attention, selective
distortion, selective retentiondistortion, selective retention LearningLearning
Drives, stimuli, cues,Drives, stimuli, cues,responses and reinforcementresponses and reinforcement
Beliefs and attitudesBeliefs and attitudes
Key FactorsKey Factors
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Maslows Hierarchy of NeedsMaslows Hierarchy of Needs
Characteristics Affecting
Consumer Behavior
SelfSelf--actualizationactualization
Esteem NeedsEsteem Needs
Social NeedsSocial Needs
Safety NeedsSafety Needs
Physiological NeedsPhysiological Needs
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Typesof Buying-
Decision Behavior
DifferenceDifference
between brandsbetween brands
SignificantSignificantDifferencesDifferences
ComplexComplex
buyingbuying
behaviorbehavior
LowLow
FewFewDifferencesDifferences
DissonanceDissonance--
reducingreducing
buyingbuying
behaviorbehavior
Habitual buyingHabitual buying
behaviorbehavior
VarietyVariety--seekingseeking
buying behaviorbuying behavior
High
High
Involvement LevelInvolvement Level
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Five Stages:Five Stages: Need recognitionNeed recognition
Information searchInformation search
Evaluation of alternativesEvaluation of alternatives Purchase decisionPurchase decision
Postpurchase behaviorPostpurchase behavior
The Buyer Decision
Process
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The Buyer Decision
Process
Need recognitionNeed recognition
Information searchInformation search
Evaluation of alternativesEvaluation of alternatives
Purchase decisionPurchase decision
Postpurchase behaviorPostpurchase behavior
Needs can beNeeds can be
triggered by:triggered by: Internal stimuliInternal stimuli
Normal needs becomeNormal needs become
strong enough to drivestrong enough to drive
behaviorbehavior External stimuliExternal stimuli
AdvertisementsAdvertisements
Friends of friendsFriends of friends
ProcessProcess
StagesStages
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The Buyer Decision
Process
Need recognitionNeed recognition
Information searchInformation search
Evaluation of alternativesEvaluation of alternatives
Purchase decisionPurchase decision
Postpurchase behaviorPostpurchase behavior
Consumers exhibitConsumers exhibit
heightened attention orheightened attention oractively search foractively search forinformation.information.
Sources of information:Sources of information:
PersonalPersonal CommercialCommercial
PublicPublic
ExperientialExperiential
WordWord--ofof--mouthmouth
ProcessProcess
StagesStages
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The Buyer Decision
Process
Need recognitionNeed recognition
Information searchInformation search
Evaluation of alternativesEvaluation of alternatives
Purchase decisionPurchase decision
Postpurchase behaviorPostpurchase behavior
Evaluation procedureEvaluation procedure
depends on the consumerdepends on the consumerand the buying situation.and the buying situation.
Most buyers evaluateMost buyers evaluatemultiple attributes, each ofmultiple attributes, each ofwhich is weightedwhich is weighted
differently.differently.
At the end of the evaluationAt the end of the evaluationstage, purchase intentionsstage, purchase intentionsare formed.are formed.
ProcessProcess
StagesStages
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The Buyer Decision
Process
Need recognitionNeed recognition
Information searchInformation search
Evaluation of alternativesEvaluation of alternatives
Purchase decisionPurchase decision
Postpurchase behaviorPostpurchase behavior
Two factors intercedeTwo factors intercede
between purchasebetween purchaseintentions and theintentions and theactual decision:actual decision:
Attitudes of othersAttitudes of others
UnexpectedUnexpectedsituational factorssituational factors
ProcessProcess
StagesStages
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The Buyer Decision
Process
Need recognitionNeed recognition
Information searchInformation search
Evaluation of alternativesEvaluation of alternatives
Purchase decisionPurchase decision
Postpurchase behaviorPostpurchase behavior
Satisfaction is important:Satisfaction is important:
Delighted consumersDelighted consumersengage in positive wordengage in positive word--ofof--mouth.mouth.
Unhappy customers tell onUnhappy customers tell onaverage 11 other people.average 11 other people.
It costs more to attract aIt costs more to attract a
new customer than it doesnew customer than it doesto retain an existingto retain an existingcustomer.customer.
Cognitive dissonance isCognitive dissonance iscommoncommon
ProcessProcess
StagesStages
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Buyer Decision Process
for New Products
New ProductsNew Products Good, service or idea that isGood, service or idea that is
perceived by customers as new.perceived by customers as new.
Stages in the Adoption ProcessStages in the Adoption ProcessMarketers should help consumersMarketers should help consumers
move through these stages.move through these stages.
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Stages in the Adoption ProcessStages in the Adoption Process
Buyer Decision Process
for New Products
AwarenessAwareness
EvaluationEvaluation
InterestInterest
TrialTrial
AdoptionAdoption
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Buyer Decision Process
for New Products
Individual Differences in InnovativenessIndividual Differences in Innovativeness Consumers can be classified into fiveConsumers can be classified into five
adopter categories, each of whichadopter categories, each of whichbehaves differently toward new products.behaves differently toward new products.
Product Characteristics and AdoptionProduct Characteristics and Adoption Five product characteristics influence theFive product characteristics influence the
adoption rate.adoption rate.
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Adopter CategoriesAdopter Categories
Buyer Decision Process
for New Products
InnovatorsInnovators
Early MajorityEarly Majority
Early AdoptersEarly Adopters
Late MajorityLate Majority
LaggardsLaggards
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Product CharacteristicsProduct Characteristics
Buyer Decision Process
for New Products
Relative AdvantageRelative Advantage
CompatibilityCompatibility
ComplexityComplexity
DivisibilityDivisibility CommunicabilityCommunicability
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Buyer Decision Process
for New Products
International Consumer BehaviorInternational Consumer Behavior Values, attitudes and behaviors differValues, attitudes and behaviors differgreatly in other countries.greatly in other countries.
Physical differences exist which requirePhysical differences exist which require
changes in the marketing mix.changes in the marketing mix. Customs vary from country to country.Customs vary from country to country.
Marketers must decide the degree to whichMarketers must decide the degree to whichthey will adapt their marketing efforts.they will adapt their marketing efforts.