Chap 04 _Consumer Market and Consumer Buyer Behavior

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Consumer Markets and

Consumer Buyer Behavior

Chapter 4

By: Juan Rizal Saari


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Learning Goals

1. Learn the consumer market andconstruct model of consumer buyerbehavior

2. Know the four factors that influencebuyer behavior

3. Understand the types of buyingdecision behavior and stages in the

process4. Comprehend the adoption anddiffusion process for new products

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Definitions

Consumer buyer behavior refersto the buying behavior of final

consumers individuals andhouseholds who buy goods andservices for personal consumption

All of these final consumers

combine to make up the consumermarket

Goal 1: Learn the consumer market & construct model of buyer behavior


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Stimulus-Response Model ofConsumer Behavior

Stimuli4PsOther characteristics

economic technological political cultural

Buyer ResponseProduct choice

Brand choice

Dealer choicePurchase timing

Purchase amount

Buyers Black BoxBuyer characteristics

Buyer decision process

Goal 1: Learn the consumer market & construct model of buyer behavior


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Characteristics Affecting

Consumer Behavior Culture

Forms a persons wantsand behavior

Subculture

Groups with shared valuesystems

Social Class

Societys divisions whoshare values, interestsand behaviors

Cultural

Social

Personal

Psychological

Key Factors

Goal 2: Know the four factors that influence consumer buying behavior


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Consumer Behavior Groups

Membership

Reference

Aspirational

Opinion Leaders

Buzz marketing

Family

Many influencers

Roles and Status

Cultural

Social

Personal

Psychological

Key Factors



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Consumer Behavior Age and life cycle

Occupation

Economic situation

LifestyleActivities, interests andopinions

Lifestyle segmentation

Personality and self-concept

Cultural

Social

Personal

Psychological

Key Factors



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Brand Personality Dimensions

Characteristics AffectingConsumer Behavior

Sincerity Ruggedness

Excitement Competence

Sophistication



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Consumer Behavior

Motivation

Perception

Learning

Beliefs and attitudesCultural

Social

Personal

Psychological

Key Factors



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Psychological Factors

Motivation A motive is a need that is sufficiently

pressing to direct the person to seek

satisfaction Motivation research is based on Freud;

Looks for hidden and subconsciousmotivation

Maslow ordered needs based on howpressing they are to the consumer



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Perception Perception is the process by which

people select, organize, and interpret

information Perception Includes:

Selective attention Consumers screen out information

Selective distortion People interpret to support beliefs

Selective retention People retain points to support attitudes



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LearningLearning describes changes in anindividuals behavior arising fromexperience

Learning occurs through: Drives

Internal stimulus that calls for action

Stimuli Objects that move drive to motive

Cues Minor stimuli that affect response

Reinforcement Feedback on action



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Beliefs and AttitudesBelief

a descriptive thought about a brand orservice

may be based on real knowledge, opinion,or faith

Attitude

describes a persons evaluations, feelingsand tendencies toward an object or idea

They are difficult to change



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Types of Buying

Decision BehaviorComplex

Highly involved, significant brand differences Example computer

Dissonance-reducing Highly involved, little brand differences Example carpeting

Habitual Low involvement, little brand differences Example salt

Variety-seeking Low involvement, significant perceived brand

differences Example cookies

Goal 3: Understand types of buying decisions and stages in the process


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The Buyer Decision

Process

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

Needs can be triggered by:

Internal stimuli

Normal needsbecome strongenough to drivebehavior

External stimuli

Advertisements Friends of friends

Process Stages



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The Buyer Decision

Process

Need recognition

Information search


Purchase decision


Consumers exhibitheightened attention or

actively search forinformation.

Sources of information:

Personal

Commercial

Public Experiential

Word-of-mouth

Process Stages



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The Buyer Decision

Process

Need recognition

Information search


Purchase decision


Evaluation procedure dependson the consumer and the buying

situation. Most buyers evaluate multiple

attributes, each of which isweighted differently.

At the end of the evaluationstage, purchase intentions areformed.

Process Stages



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The Buyer Decision

Process

Need recognition

Information search


Purchase decision


Two factors intercedebetween purchase intentions

and the actual decision: Attitudes of others

Unexpected situationalfactors

Process Stages



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The Buyer Decision

Process

Need recognition

Information search


Purchase decision


Satisfaction is important: Delighted consumers

engage in positive word-of-mouth. Unhappy customers tell

on average 11 otherpeople.

It costs more to attract anew customer than it

does to retain an existingcustomer.

Cognitive dissonance iscommon

Process Stages



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Stages in the Adoption Process

Buyer Decision Process for

New Products

Awareness

EvaluationInterest

Trial

Adoption

Goal 4: Comprehend the diffusion & adoption process for new products


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New ProductsIndividual Differences in Innovativeness

Consumers can be classified into fiveadopter categories, each of which behavesdifferently toward new products.

Product Characteristics and Adoption Five product characteristics influence the

adoption rate.



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Product Characteristics


New Products

Relative Advantage

Compatibility

Complexity

Divisibility

Communicability



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New ProductsInternational Consumer Behavior

Values, attitudes and behaviors differgreatly in other countries.

Physical differences exist which requirechanges in the marketing mix.

Customs vary from country to country.

Marketers must decide the degree to whichthey will adapt their marketing efforts.


Documents

Chap 04 _Consumer Market and Consumer Buyer Behavior