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A Global Perspective                            Philip Kotler                         Gary Armstrong                      ...
Learning ObjectivesAfter studying this chapter, you should be able to:1. Define the consumer market and construct a simple...
Chapter Outline1.   Model of Consumer Behavior2.   Characteristics Affecting Consumer Behavior3.   Types of Buying Decisio...
Model of Consumer Behavior•   Consumer buyer behavior refers to the buying    behavior of final consumers—individuals and ...
Model of Consumer BehaviorMarketing stimuli consists   Other stimuli include:  of the 4 Ps                • Economic force...
Model ofConsumerBehavior           5-6
Factors influencing Consumer Behavior                                        5-7
Characteristics Affecting Consumer BehaviorCultural Factors           Social Factors  • Buyer’s culture          • Referen...
Characteristics Affecting Consumer BehaviorPersonal Factors               Psychological Factors  • Age and life-cycle stag...
Characteristics Affecting Consumer Behavior                 Culture is the learned values,                  perceptions, w...
Characteristics Affecting Consumer BehaviorSubcultures are groups of people within a culture  with shared value systems ba...
Characteristics Affecting Consumer Behavior• Social classes are society’s relatively permanent and ordered divisions whose...
Characteristics Affecting Consumer BehaviorThe major social classes:• Upper class• Middle class• Working class• Lower clas...
Characteristics Affecting Consumer BehaviorSocial FactorsGroups• Membership groups have a direct influence and to which a ...
Characteristics Affecting Consumer BehaviorSocial FactorsGroups• Opinion leaders are people within a reference group with ...
Characteristics Affecting Consumer BehaviorSocial Factors• Family is the most important consumer-buying  organization in s...
Characteristics Affecting Consumer BehaviorPersonal Factors• Personal characteristics• Age and life-cycle stage• Occupatio...
Characteristics Affecting Consumer BehaviorPersonal FactorsAge and life-cycle stage• RBC (Royal Bank of Canada) Royal Bank...
Characteristics Affecting Consumer BehaviorPersonal Factors• Occupation affects the goods and services bought by  consumer...
Characteristics Affecting Consumer BehaviorPersonal Factors• Lifestyle is a person’s pattern of living as expressed in  hi...
Characteristics Affecting Consumer BehaviorPersonal FactorsSRI Consulting’s Values and Lifestyle (VALS) typology:• Classif...
Characteristics Affecting Consumer BehaviorPersonal FactorsPrimary motivations• Ideals• Achievement• Self-expression      ...
Characteristics Affecting Consumer BehaviorPersonal FactorsResources• High resources  • Innovators exhibit all primary mot...
VALS LifestyleClassifications                  5-24
Characteristics Affecting Consumer BehaviorPersonal FactorsPersonality and Self-Concept• Personality refers to the unique ...
Characteristics Affecting Consumer BehaviorPersonal FactorsPersonality and Self-ConceptBrand personality refers to the spe...
Characteristics Affecting Consumer BehaviorPersonal FactorsPersonality and Self-Concept• Self-concept refers to people’s  ...
Characteristics Affecting Consumer BehaviorPsychological Factors• Motivation• Perception• Learning• Beliefs and attitudes ...
Characteristics Affecting Consumer BehaviorPsychological FactorsMotivation• A motive is a need that is sufficiently pressi...
Characteristics Affecting Consumer BehaviorPsychological FactorsAbraham Maslow’s Hierarchy of Needs• People are driven by ...
Characteristics Affecting Consumer BehaviorPsychological Factors• Perception is the process by which people select, organi...
Characteristics Affecting Consumer BehaviorPsychological Factors• Selective attention is the tendency for people to screen...
Characteristics Affecting Consumer BehaviorPsychological Factors• Learning is the changes in an individual’s behavior aris...
Characteristics Affecting Consumer BehaviorPsychological FactorsBeliefs and Attitudes• Belief is a descriptive thought tha...
Characteristics Affecting Consumer BehaviorPsychological FactorsBeliefs and AttitudesAttitudes describe a person’s relativ...
Four Types of Buying Decision Behavior•   Complex buying behavior•   Dissonance-reducing buying behavior•   Habitual buyin...
Types of Buying Decision BehaviorComplex Buying Behavior• Occurs when consumers are highly motivated in a purchase  and pe...
Types of Buying Decision Behavior• Dissonance-reducing buying behavior occurs when consumers are highly involved with an e...
Types of Buying Decision Behavior• Habitual buying behavior occurs when consumers have low involvement and there is little...
The Buyer Decision ProcessFive stages in the buyer decision process1. Need recognition2. Information search3. Evaluation o...
The Buyer Decision ProcessNeed Recognition• Need recognition occurs when the buyer recognizes a problem or need triggered ...
The Buyer Decision ProcessInformation SearchInformation search is the amount of information needed  in the buying process ...
The Buyer Decision ProcessInformation SearchSources of information:• Personal sources—family and friends• Commercial sourc...
Sources and Role of Information                                  5-44
The Buyer Decision ProcessEvaluation of AlternativesEvaluation of alternatives is how the consumer  processes information ...
The Buyer Decision ProcessPurchase Decision• The purchase decision is the act by the consumer to buy the most preferred br...
The Buyer Decision ProcessPost-Purchase Decision• The post-purchase decision is the satisfaction or dissatisfaction the co...
The Buyer Decision ProcessPost-Purchase Decision• The larger the gap between expectation and performance, the greater the ...
The Buyer Decision ProcessPost-Purchase Decision• Customer satisfaction is a key to building profitable relationships with...
The Buyer Decision Process forNew Products• New product is a good, service, or idea that is  perceived by some potential c...
The Buyer Decision Process forNew ProductsStages in the Adoption Process1. Awareness2. Interest3. Evaluation4. Trial5. Ado...
The Buyer Decision Process forNew ProductsStages in the Adoption Process• Awareness is when the consumer becomes aware  of...
The Buyer Decision Process forNew ProductsStages in the Adoption Process• Evaluation is when the consumer considers  wheth...
The Buyer Decision Process forNew ProductsIndividual Differences in Innovation• Early adopters are opinion leaders and ado...
The Buyer Decision Process forNew ProductsIndividual Differences in Innovation                                       5-55
The Buyer Decision Process forNew ProductsInfluence of Product Characteristics on Rate of   Adoption• Relative advantage i...
The Buyer Decision Process forNew ProductsInfluence of Product Characteristics on Rate of   Adoption• Complexity is the de...
Consumer Behavior Across InternationalBorders• Differences can include:  • Values  • Attitudes  • Behaviors• The question ...
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    1. 1. A Global Perspective Philip Kotler Gary Armstrong Swee Hoon Ang5 Siew Meng Leong Chin Tiong Tan Oliver Yau Hon-Consumer Markets and Ming Consumer Buyer Behavior 5-1
    2. 2. Learning ObjectivesAfter studying this chapter, you should be able to:1. Define the consumer market and construct a simple model of consumer buyer behavior2. Name the four major factors that influence consumer buyer behavior3. List and understand the major types of buying decision behavior and the stages in the buyer decision process4. Describe the adoption and diffusion process for new products 5-2
    3. 3. Chapter Outline1. Model of Consumer Behavior2. Characteristics Affecting Consumer Behavior3. Types of Buying Decision Behavior4. The Buyer Decision Process5. The Buyer Decision Process for New Products6. Consumer Behavior Across International Borders 5-3
    4. 4. Model of Consumer Behavior• Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption.• Consumer market refers to all of the personal consumption of final consumers. 5-4
    5. 5. Model of Consumer BehaviorMarketing stimuli consists Other stimuli include: of the 4 Ps • Economic forces• Product • Technological forces• Price • Political forces• Place • Cultural forces• Promotion 5-5
    6. 6. Model ofConsumerBehavior 5-6
    7. 7. Factors influencing Consumer Behavior 5-7
    8. 8. Characteristics Affecting Consumer BehaviorCultural Factors Social Factors • Buyer’s culture • Reference groups • Buyer’s subculture • Family • Buyer’s social class • Roles and status 5-8
    9. 9. Characteristics Affecting Consumer BehaviorPersonal Factors Psychological Factors • Age and life-cycle stage • Motivation • Occupation • Perception • Economic situation • Learning • Lifestyle • Beliefs and attitudes • Personality and self- concept 5-9
    10. 10. Characteristics Affecting Consumer Behavior Culture is the learned values, perceptions, wants, and behavior from family and other important institutions. 5-10
    11. 11. Characteristics Affecting Consumer BehaviorSubcultures are groups of people within a culture with shared value systems based on common life experiences and situations. • Chinese • Indians • Malays • Eurasians 5-11
    12. 12. Characteristics Affecting Consumer Behavior• Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. • Measured by a combination of occupation, income, education, wealth, and other variables 5-12
    13. 13. Characteristics Affecting Consumer BehaviorThe major social classes:• Upper class• Middle class• Working class• Lower class 5-13
    14. 14. Characteristics Affecting Consumer BehaviorSocial FactorsGroups• Membership groups have a direct influence and to which a person belongs.• Aspirational groups are groups to which an individual wishes to belong.• Reference groups are groups that form a comparison or reference in forming attitudes or behavior. 5-14
    15. 15. Characteristics Affecting Consumer BehaviorSocial FactorsGroups• Opinion leaders are people within a reference group with special skills, knowledge, personality, or other characteristics that can exert social influence on others. • Buzz marketing enlists opinion leaders to spread the word. • Social networking is a new form of buzz marketing • MySpace.com • Facebook.com 5-15
    16. 16. Characteristics Affecting Consumer BehaviorSocial Factors• Family is the most important consumer-buying organization in society.• Social roles and status are the groups, family, clubs, and organizations to which a person belongs that can define role and social status. 5-16
    17. 17. Characteristics Affecting Consumer BehaviorPersonal Factors• Personal characteristics• Age and life-cycle stage• Occupation• Economic situation• Lifestyle• Personality and self-concept 5-17
    18. 18. Characteristics Affecting Consumer BehaviorPersonal FactorsAge and life-cycle stage• RBC (Royal Bank of Canada) Royal Bank has identified five life-stage segments: • Youth—younger than 18 years • Getting started—18-35 years • Builders—35-50 years • Accumulators—50-60 years • Preservers—over 60 years 5-18
    19. 19. Characteristics Affecting Consumer BehaviorPersonal Factors• Occupation affects the goods and services bought by consumers.• Economic situation includes trends in: • Personal income • Savings • Interest rates 5-19
    20. 20. Characteristics Affecting Consumer BehaviorPersonal Factors• Lifestyle is a person’s pattern of living as expressed in his or her psychographics. • Measures a consumer’s AIOs (activities, interests, and opinions) to capture information about a person’s pattern of acting and interacting in the environment. 5-20
    21. 21. Characteristics Affecting Consumer BehaviorPersonal FactorsSRI Consulting’s Values and Lifestyle (VALS) typology:• Classifies people according to how they spend money and time: • Primary motivations • Resources 5-21
    22. 22. Characteristics Affecting Consumer BehaviorPersonal FactorsPrimary motivations• Ideals• Achievement• Self-expression 5-22
    23. 23. Characteristics Affecting Consumer BehaviorPersonal FactorsResources• High resources • Innovators exhibit all primary motivations.• Low resources • Survivors do not exhibit strong primary motivation. 5-23
    24. 24. VALS LifestyleClassifications 5-24
    25. 25. Characteristics Affecting Consumer BehaviorPersonal FactorsPersonality and Self-Concept• Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment. 5-25
    26. 26. Characteristics Affecting Consumer BehaviorPersonal FactorsPersonality and Self-ConceptBrand personality refers to the specific mix of human traits that may be attributed to a particular brand: • Sincerity • Excitement • Competence • Sophistication • Ruggedness 5-26
    27. 27. Characteristics Affecting Consumer BehaviorPersonal FactorsPersonality and Self-Concept• Self-concept refers to people’s possessions that contribute to and reflect their identities. 5-27
    28. 28. Characteristics Affecting Consumer BehaviorPsychological Factors• Motivation• Perception• Learning• Beliefs and attitudes 5-28
    29. 29. Characteristics Affecting Consumer BehaviorPsychological FactorsMotivation• A motive is a need that is sufficiently pressing to direct the person to seek satisfaction.• Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations. 5-29
    30. 30. Characteristics Affecting Consumer BehaviorPsychological FactorsAbraham Maslow’s Hierarchy of Needs• People are driven by particular needs at particular times.• Human needs are arranged in a hierarchy from most pressing to least pressing. 5-30
    31. 31. Characteristics Affecting Consumer BehaviorPsychological Factors• Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes: • Selective attention • Selective distortion • Selective retention 5-31
    32. 32. Characteristics Affecting Consumer BehaviorPsychological Factors• Selective attention is the tendency for people to screen out most of the information to which they are exposed.• Selective distortion is the tendency for people to interpret information in a way that will support what they already believe.• Selective retention is the tendency to remember good points made about a brand they favor and to forget good points about competing brands. 5-32
    33. 33. Characteristics Affecting Consumer BehaviorPsychological Factors• Learning is the changes in an individual’s behavior arising from experience and occurs through interplay of: • Drives • Stimuli • Cues • Responses • Reinforcement 5-33
    34. 34. Characteristics Affecting Consumer BehaviorPsychological FactorsBeliefs and Attitudes• Belief is a descriptive thought that a person has about something based on: • Knowledge • Opinion • Faith 5-34
    35. 35. Characteristics Affecting Consumer BehaviorPsychological FactorsBeliefs and AttitudesAttitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. 5-35
    36. 36. Four Types of Buying Decision Behavior• Complex buying behavior• Dissonance-reducing buying behavior• Habitual buying behavior• Variety-seeking buying behavior 5-36
    37. 37. Types of Buying Decision BehaviorComplex Buying Behavior• Occurs when consumers are highly motivated in a purchase and perceive significant differences among brands.• Purchasers are highly motivated when: • Product is expensive • Product is risky • Product is purchased infrequently • Product is highly self-expressive 5-37
    38. 38. Types of Buying Decision Behavior• Dissonance-reducing buying behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. • Post-purchase dissonance occurs when the consumer notices certain disadvantages of the product purchased or hears favorable things about a product not purchased. 5-38
    39. 39. Types of Buying Decision Behavior• Habitual buying behavior occurs when consumers have low involvement and there is little significant brand difference.• Variety-seeking buying behavior occurs when consumers have low involvement and there are significant brand differences. 5-39
    40. 40. The Buyer Decision ProcessFive stages in the buyer decision process1. Need recognition2. Information search3. Evaluation of alternatives4. Purchase decision5. Post-purchase behavior 5-40
    41. 41. The Buyer Decision ProcessNeed Recognition• Need recognition occurs when the buyer recognizes a problem or need triggered by: • Internal stimuli • External stimuli 5-41
    42. 42. The Buyer Decision ProcessInformation SearchInformation search is the amount of information needed in the buying process and depends on:• The strength of the drive,• The amount of information you start with,• The ease of obtaining the information,• The value placed on the additional information, and• The satisfaction from searching. 5-42
    43. 43. The Buyer Decision ProcessInformation SearchSources of information:• Personal sources—family and friends• Commercial sources—advertising, Internet• Public sources—mass media, consumer organizations• Experiential sources—handling, examining, using the product 5-43
    44. 44. Sources and Role of Information 5-44
    45. 45. The Buyer Decision ProcessEvaluation of AlternativesEvaluation of alternatives is how the consumer processes information to arrive at brand choices. 5-45
    46. 46. The Buyer Decision ProcessPurchase Decision• The purchase decision is the act by the consumer to buy the most preferred brand.• The purchase decision can be affected by: • Attitudes of others • Unexpected situational factors 5-46
    47. 47. The Buyer Decision ProcessPost-Purchase Decision• The post-purchase decision is the satisfaction or dissatisfaction the consumer feels about the purchase.• Relationship between: • Consumer’s expectations • Product’s perceived performance 5-47
    48. 48. The Buyer Decision ProcessPost-Purchase Decision• The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction.• Cognitive dissonance is the discomfort caused by a post-purchase conflict 5-48
    49. 49. The Buyer Decision ProcessPost-Purchase Decision• Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value. 5-49
    50. 50. The Buyer Decision Process forNew Products• New product is a good, service, or idea that is perceived by some potential customers as new.• Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. 5-50
    51. 51. The Buyer Decision Process forNew ProductsStages in the Adoption Process1. Awareness2. Interest3. Evaluation4. Trial5. Adoption 5-51
    52. 52. The Buyer Decision Process forNew ProductsStages in the Adoption Process• Awareness is when the consumer becomes aware of the new product but lacks information.• Interest is when the consumer seeks information about the new product. 5-52
    53. 53. The Buyer Decision Process forNew ProductsStages in the Adoption Process• Evaluation is when the consumer considers whether trying the new product makes sense.• Trial is when the consumer tries the new product to improve his or her estimate of value.• Adoption is when the consumer decides to make full and regular use of the product 5-53
    54. 54. The Buyer Decision Process forNew ProductsIndividual Differences in Innovation• Early adopters are opinion leaders and adopt new ideas early but cautiously.• Early majority are deliberate and adopt new ideas before the average person.• Late majority are skeptical and adopt new ideas only after the majority of people have tried it.• Laggards are suspicious of changes and adopt new ideas only when they become tradition. 5-54
    55. 55. The Buyer Decision Process forNew ProductsIndividual Differences in Innovation 5-55
    56. 56. The Buyer Decision Process forNew ProductsInfluence of Product Characteristics on Rate of Adoption• Relative advantage is the degree to which an innovation appears to be superior to existing products.• Compatibility is the degree to which an innovation fits the values and experiences of potential consumers. 5-56
    57. 57. The Buyer Decision Process forNew ProductsInfluence of Product Characteristics on Rate of Adoption• Complexity is the degree to which the innovation is difficult to understand or use.• Divisibility is the degree to which the innovation may be tried on a limited basis. 5-57
    58. 58. Consumer Behavior Across InternationalBorders• Differences can include: • Values • Attitudes • Behaviors• The question for marketers is whether to adapt or standardize the marketing. 5-58
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