Part 2: Understanding Buyers and Markets

Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Part 2: Understanding Buyers Part 2: Understanding Buyers and Marketsand Markets

5. Consumer Behavior

6. Business-to-Business (B2B) Marketing

7. Serving Global Markets

Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Chapter 5Chapter 5Consumer Consumer BehaviorBehavior

5-3Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Chapter ObjectivesChapter Objectives1. Distinguish between customer behavior and

consumer behavior.2. Explain how marketers classify behavioral influences

on consumer decisions.3. Describe cultural, group, and family influences on

consumer behavior.4. Explain each of the personal determinants of

consumer behavior; needs and motives, perceptions, attitudes, and self-concept theory.

5. Distinguish between high-involvement and low-involvement purchase decisions.

6. Outline the steps in the consumer decision process.7. Differentiate among routinized response behavior,

limited problem solving, and extended problem solving by consumers.


Customer vs. Consumer BehaviorCustomer vs. Consumer Behavior

Customer behavior:Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products

Consumer behavior:Consumer behavior: the process through which the ultimate buyer makes purchase decisions


Interpersonal Determinants ofInterpersonal Determinants ofConsumer BehaviorConsumer Behavior

Figure 5.1: Figure 5.1: Why People Buy New Products


Cultural InfluencesCultural InfluencesCulture: values, beliefs, preferences, and

tastes handed down from one generation to the next

It is important to recognize the concept of ethnocentrism, or the tendency to view your own culture as the norm, as it relates to consumer behavior.


Core Values in the U.S. CultureCore Values in the U.S. CultureWhile some cultural values change over

time, basic core values do notExamples of American core values

include:Importance of family and home lifeEducationYouthfulnessIndividualism


International Perspective on Cultural International Perspective on Cultural InfluencesInfluencesCultural differences are particularly important

for international marketersSuccessful strategies in one country often

cannot extend to other international markets because of cultural variations


Subcultures:Subcultures: subgroup of culture with its own, distinct modes of behaviorCultures are not homogeneous entities with

universal values.Subcultures can differ by:

Ethnicity or NationalityAge or GenderReligionSocial class or Profession

Figure 5.2 Figure 5.2 (next slide)(next slide)Ethnic and Racial Minorities as a

Percentage of the Total U.S. Population



Hispanic-American ConsumersHispanic-American ConsumersThe 40 million Hispanics in the U.S., coming

from a wide range of countries, are not homogenous

There are important differences in acculturation

The Hispanic market is large and fast-growing

Hispanics tend to be younger than the general U.S. population

Hispanics are geographically concentrated


African-American ConsumersAfrican-American ConsumersAfrican-American buying power is rising

rapidly compared to U.S. consumers in general

Family structures may differ for African-American consumers, creating differences in preferences for clothing, music, cars, and many other products


Asian-American ConsumersAsian-American ConsumersMarketing to Asian-Americans presents

many of the same challenges as reaching Hispanics

Asian-Americans are spread among culturally diverse groups, including Chinese, Japanese, Indians, Koreans, Filipinos, and Vietnamese--many retaining their own languages


Social InfluencesSocial InfluencesGroup membership influences an individual’s purchase decisions and behavior in both overt and subtle ways.Norms: are the values, attitudes, and

behaviors that a group deems appropriate for its members

Status: is the relative position of any individual member in a group

Roles define behavior that members of a group expect of individuals who hold specific positions within the group


The Asch Phenomenon:The Asch Phenomenon: the effect of a reference group on individual decision-making

Reference groups:Reference groups: groups whose value structures and standards influence a person’s behaviorRequires two conditions:

The purchased product must be one that others can see and identify

The purchased item must be conspicuous; it must stand out as something unusual, a brand or product that not everyone owns


Social classes:Social classes: groups whose rankings are determined by occupation, income, education, family background, and residence location

W. Lloyd Warner identifiedsix classes:

1. Upper-upper2. Lower-upper3. Upper-middle4. Lower-middle5. Working class6. Lower class


Opinion leaders:Opinion leaders: trendsetters who purchase new products before others in a group and then influence others in their purchases

Figure 5.4Figure 5.4: Alternative Channels for Communications Flow


Family InfluencesFamily InfluencesAutonomic role is when the partners

independently make equal numbers of decisions.

Husband-dominant role is when the husband makes most of the decisions.

Wife-dominant role is when the wife makes most of the decisions.

Syncratic role is when both partners jointly make most decisions.


Children and Teenagers in Family Children and Teenagers in Family PurchasesPurchasesGrowing numbers are assuming

responsibility for family shoppingThey also influence what parents buyThey represent over 50 million

consumers in their own right


Personal Determinants of Personal Determinants of Consumer BehaviorConsumer Behavior


Needs and MotivesNeeds and MotivesNeed: an imbalance between a consumer’s

actual and desired statesMotives: inner states that direct a person

toward the goal of satisfying a felt need


Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Self-Actualization


Physiological NeedsProducts Vitamins, herbal supplements, medicines, food, exercise equipment,

fitness clubs

Marketing themes

Pepcid antacid—”Just one and hearburn’s done”Puffs facial tissues—”A nose in need deserves Puffs indeed”Ocean Spray cranberry juice—”Crave the wave”

Safety Needs

Products Cars and car accessories, burglar alarm systems, retirement investments, insurance, smoke and carbon-monoxide detectors, medicines

Marketing themes

Fireman’s Fund insurance—“License to get on with it.”American General Financial Group—“Live the life you’ve imagined.”Volvo—“Protect the body. Ignite the soul.”


Belongingness

Products Beauty aids, entertainment, clothing, cars

Marketing themes

Old Navy—”Spring Break from coast to coast”Washington Mutual banks—”More human interest”TJ Maxx clothing store—”You should go”

Esteem NeedsProduct Clothing, cars, jewelry, hobbies, beauty spa services

Marketing themes

Lexus automobiles—The relentless pursuit of perfection”Van Cleef & Arpels—“The pleasure of perfection.”Accutron watches—“Perhaps it’s worthy of your trust.”Jenn-Air kitchen appliances—“The sign of a great cook.”

Self-ActualizationProducts Education, cultural events, sports, hobbies, luxury goods,

technology, travel

Marketing themes

Gatorade—“Is it in you?”DePaul University—”Turning goals into accomplishments”Dodge cars and trucks—”Grab life by the horns”


Perceptions:Perceptions: the meaning that a person attributes to incoming stimuli gathered through the five senses – sight, hearing, touch, taste, and smell.

Perceptual screens:Perceptual screens: the filtering processes through which all inputs must pass


Subliminal Perception:Subliminal Perception: subconscious receipt of informationAlmost 50 years ago, a New Jersey movie

theater tried to boost concession sales by flashing the words Eat Popcorn and Drink Coca-Cola.

Subliminal advertising is aimed at the subconscious level of awareness.

Subliminal advertising has been universally condemned as manipulative, and is exceedingly unlikely that it can induce purchasing.

Research has shown that subliminal messages cannot force receivers to purchase goods that they would not consciously want.


AttitudesAttitudesA person’s enduring favorable or

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

Attitude components:CognitiveAffective Behavioral


Changing Consumer AttitudesChanging Consumer AttitudesAttempt to produce consumer attitudes that

will motivate the purchase of a particular product

Evaluate existing consumer attitudes and then make the product characteristics appeal to them

Modifying the Components of AttitudeModifying the Components of AttitudeAttitudes change in response to

inconsistencies among the three componentsMarketers can work to modify attitudes by

providing evidence of product benefits and by correcting misconceptions


LearningLearningAn immediate or expected change in

behavior as a result of experience.The learning process includes the

component of:DriveCueResponseReinforcement


Applying Learning Theory to Marketing Applying Learning Theory to Marketing DecisionsDecisionsShaping: process of applying a series of

rewards and reinforcements to permit more complex behavior to evolve over time


Self-ConceptSelf-ConceptA person’s multifaceted picture of himself or

herself, composed of the:Real selfSelf-imageLooking-glass selfIdeal self


The Consumer Decision ProcessThe Consumer Decision Process Consumers complete a step-by-step

process when making purchase decisionsHigh-involvement purchase

decisions are those with high levels of potential social or economic consequences

Low-involvement decisions are routine purchases that pose little risk to the consumer

SearchSearch

Alternative Alternative EvaluationEvaluation

Purchase Purchase DecisionDecision

Purchase Purchase ActAct

Post-Post-purchase purchase

EvaluationEvaluation

Problem Problem Opportunity Opportunity RecognitionRecognition


Figure 5.8Figure 5.8Integrated Model

of the Consumer Decision Process


Problem or Opportunity RecognitionProblem or Opportunity RecognitionConsumer becomes aware of a

significant discrepancy between the existing situation and the desired situation

Motivates the individual to achieve the desired state of affairs


SearchSearchConsumer gathers information related to

their attainment of the desired state of affairsIdentifies alternative means of problem

solutionMay cover internal or external sources of

informationBrands that a consumer actually considers

buying before making a purchase decision are known as the evoked set


Evoked Set Evoked Set ModelModel

All All BrandsBrands

Unknown Unknown BrandsBrands

Known Known Brands Brands

OverlookedOverlookedBrandsBrands

UnacceptableUnacceptableBrandsBrands

AcceptableAcceptableBrandsBrands

Rejected Rejected Brands Brands

PurchasedPurchasedBrandBrand

EvokedEvokedSetSet

InertInertSetSet


Evaluation of AlternativesEvaluation of AlternativesConsumer evaluates the evoked setDifficult to completely separate the second

and third steps, since some evaluation takes place as the search progresses

Outcome of the evaluation stage is the choice of a brand or product (or possibly a decision to renew the search)

Evaluative criteria: features that a consumer considers in choosing among alternatives


Purchase Decision and Purchase ActPurchase Decision and Purchase ActConsumer narrows the alternatives

down to oneThe purchase location is decided


Postpurchase EvaluationPostpurchase EvaluationAfter the purchase, consumers are either

satisfied or experience post-purchase anxiety

Cognitive dissonance: Post-purchase anxiety that results from an imbalance among an individual’s knowledge, beliefs, and attitudes after an action or decision is taken


Classifying Consumer Problem-Solving Classifying Consumer Problem-Solving ProcessesProcessesThree categories of problem-solving

behaviorRoutinized Response BehaviorLimited Problem SolvingExtended Problem Solving

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Part 2: Understanding Buyers and Markets