Chapter 7
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Chapter 7






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Chapter 7 Chapter 7 Presentation Transcript

  • Consumer markets Chapter 7 Markets
  • Consumer buying behaviour
    • Defined as the buying behaviour of the final consumers, individuals and households who buy goods and services for personal consumption.
  • Consumer market
    • Consumer market is defined as all the individuals and households who buy or acquire goods and services for personal consumption.
    • The world consumer market consists of approx 6.3 billion people
      • the billion people in North America, Western Europe and Japan make up 70% of the world’s spending power.
  • Influencers of consumer behaviour
    • Cultural factors
    • Social factors
    • Personal and psychological characteristics
  • Cultural factors
        • Culture
          • Basic cause of person’s wants and behaviour
          • Human behaviour is predominantly learned behaviour from family and other important institutions
        • Subculture
          • Group sharing similar value systems based upon life experiences and situations
        • Social class
          • Relatively permanent and ordered divisions in a society whose members share similar values interests and behaviours.
          • Class systems differ in size and constituents
          • Lower social classes are more culture-bound
          • Young people of all classes are less so
  • Social factors
        • Membership groups
          • Primary groups
            • family, friends, neighbours
          • Secondary groups
            • religious groups and professional associations
          • Reference groups
            • direct or indirect influence on the person’s behaviour or attitudes
          • Aspirational groups
            • reference group to which we want to belong
  • Consumer buying roles
    • Initiator
      • Person who first suggests or thinks of the idea of buying a particular product.
    • Influencer
      • A person whose views or advice will influence the product or service.
    • Decider
      • Buying decision maker of the product
    • Buyer
      • Ultimate purchaser
    • User
      • Ultimate user
  • Personal factors
      • Age and life cycle phase
      • Psychological life cycles
        • Changing interests
      • Occupation
      • Economic circumstances
        • Savings and buying power
      • Lifestyle
        • Pattern of living expressed in activities
        • Psychographics is the technique of measuring lifestyles
      • Personality and self-concept
  • Psychological factors
      • Motivation
      • Perception
      • Learning
      • Beliefs and attitudes
  • Buying decision behaviour
    • Dissonance-reducing buying behaviour
      • Situations characterised by high involvement with an expensive, infrequent or risky purchase but few perceived differences among the brands.
    • Habitual buying behaviour
      • Characterised by low consumer involvement and few significant perceived brand differences
    • Variety seeking buying behaviour
      • Low consumer involvement but significant perceived brand differences
  • Figure 7.5  Four types of buying behaviour Source : Adapted from Henry Assael, Consumer Behaviour and Marketing Action , 6th edition, p. 67 (Boston, MA: Kent Publishing Company, 1987) © Wadsworth Inc. 1987. Reprinted by permission of Kent Publishing Company, a division of Wadsworth Inc.
  • Buyer decision process
    • Need recognition
    • Information search
    • Evaluation of alternatives
    • Purchase decision
    • Post-purchase behaviour
  • Figure 7.7  Steps between evaluation of alternatives and a purchase decision Typical consumer evaluation process