Consumer Buying Behavior

Learning Objectives Understand the major factors influencing consumer behavior Know and recognize the types of buying decision behavior Understand the stages in the buying decision process

Understand the major factors influencing consumer behavior

Know and recognize the types of buying decision behavior

Understand the stages in the buying decision process

Consumer Market Consists of all the individuals and households who buy or acquire goods and services for personal consumption.

Consists of all the individuals and households who buy or acquire goods and services for personal consumption.

Consumer Buying Decision Process Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Evaluation

Types of Buying Behavior Routine Response Limited Decision Extension Decision Impulse Buying

Routine Response

Limited Decision

Extension Decision

Impulse Buying

Factors Influencing Consumer Behavior Personal Psychological Social Cultural

Personal

Psychological

Social

Cultural

Personal Factors Age Life-Cycle Stage

Age

Life-Cycle Stage

Stages in Family Life-Cycle Single Newly Married Couples Full Nest I Full Nest II Full Nest III Empty Nest I Empty Nest II Solitary Survivor Solitary Survivor, Retired

Single

Newly Married Couples

Full Nest I

Full Nest II

Full Nest III

Empty Nest I

Empty Nest II

Solitary Survivor

Solitary Survivor, Retired

Personal Factors Age Life-Cycle Stage Occupation Economic Circumstances Life Style

Age

Life-Cycle Stage

Occupation

Economic Circumstances

Life Style

Psychological Factors “ Wants” Based on a want or desire to have something. Not a necessity.

“ Wants”

Based on a want or desire to have something. Not a necessity.

Psychological Factors Motivation: Freud Id Ego Super Ego Maslow Hierarchy of Needs

Motivation:

Freud

Id

Ego

Super Ego

Maslow

Hierarchy of Needs

Psychological Factors Motivation Perception The process by which an individual selects, organizes, and interprets inputs to create a meaningful picture of the world. Selective Exposure Selective Distortion Selective Retention

Motivation

Perception

The process by which an individual selects, organizes, and interprets inputs to create a meaningful picture of the world.

Selective Exposure

Selective Distortion

Selective Retention

Psychological Factors Motivation Perception Learning Changes in an individual’s behavior arising form experience

Motivation

Perception

Learning

Changes in an individual’s behavior arising form experience

Psychological Factors Motivation Perception Learning Beliefs Descriptive thoughts that a person holds about something

Motivation

Perception

Learning

Beliefs

Descriptive thoughts that a person holds about something

Psychological Factors Motivation Perception Learning Beliefs Attitudes Enduring favorable or unfavorable cognitive evaluations emotional feelings and action tendencies

Motivation

Perception

Learning

Beliefs

Attitudes

Enduring favorable or unfavorable cognitive evaluations emotional feelings and action tendencies

Functional Factors “ Needs” Need over wants. Delivers to a real “need” to have something.

“ Needs”

Need over wants. Delivers to a real “need” to have something.

Social Class Relatively homogenous, enduring divisions in a society, hierarchically ordered with members sharing similar values, interests, and behaviors.

Relatively homogenous, enduring divisions in a society, hierarchically ordered with members sharing similar values, interests, and behaviors.

American Social Classes Upper Upper 1% Lower Upper 2% Upper Middle 12% Middle 32% Working 38% Upper Lower 9% Lower Lower 7%

Upper Upper 1%

Lower Upper 2%

Upper Middle 12%

Middle 32%

Working 38%

Upper Lower 9%

Lower Lower 7%

Group Influences Strong Weak Strong Weak Brand Choice Product Choice Private Necessities Mattresses Floor Lamps Refrigerators Public Necessities Wrist Watch Automobiles Dress Clothes Private Luxuries TV Video Games Ice Makers Trash Compactors Public Luxuries Golf Clubs Snow Skis Sail Boat

Family Influence on Buying Behavior Husband-Dominant Wife-Dominant Equal

Husband-Dominant

Wife-Dominant

Equal

Culture & Subcultures Cultures The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment Subcultures Groups of individuals who have similar value and behavior patterns within the group but differ from those in other groups.

Cultures

The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment

Subcultures

Groups of individuals who have similar value and behavior patterns within the group but differ from those in other groups.

Adoption Process Awareness Interest Evaluation Trial Decision Confirmation

Awareness

Interest

Evaluation

Trial

Decision

Confirmation

Examples of Buying Motives: Psychological or Functional? A senior wants to impress his date at the prom . His primary motive is …? Psychological

A senior wants to impress his date at the prom .

His primary motive is …?

Examples of Buying Motives: Psychological or Functional? A girl wants to remember her grandmother on her birthday. Her primary motive is…? Psychological

A girl wants to remember her grandmother on her birthday.

Her primary motive is…?

Examples of Buying Motives: Psychological or Functional? A homemaker needs a new washing machine and has had good experiences with Sears. Her primary motive is …? Functional

A homemaker needs a new washing machine and has had good experiences with Sears.

Her primary motive is …?

Examples of Buying Motives: Psychological or Functional? A teacher wants to buy a practical car to be used for family transportation. Her/His primary motive is …? Functional

A teacher wants to buy a practical car to be used for family transportation.

Her/His primary motive is …?

Examples of Buying Motives: Psychological or Functional? A career woman always buys Liz Claiborne clothes. Her primary motive is…? Psychological

A career woman always buys Liz Claiborne clothes.

Her primary motive is…?

Examples of Buying Motives: Psychological or Functional? An overweight 40 year old man wants to loose weight so that he can reduce his blood pressure. His primary motive is…? Functional

An overweight 40 year old man wants to loose weight so that he can reduce his blood pressure.

His primary motive is…?

Examples of Buying Motives: Psychological or Functional? A homeowner needs to mow their lawn. Their primary motive is…? Functional

A homeowner needs to mow their lawn.

Their primary motive is…?

Consumer Buying Behavior Competency Ninety-day warranty. Serving you since 1971. Diamonds are forever. It never needs ironing. The price is 40 cents off the regular price. Psychological Motive Functional Motive

Consumer Buying Behavior Competency A watch—a gift she will treasure always. Steel-belted radial tires warranted for 40,000 miles Wheaties—the breakfast of champions! It’s all the rage—colored action wear and style. Running shoe with built-in arch. Psychological Motive Functional Motive

Learning Objectives--Reviewed Understand the major factors influencing consumer behavior Know and recognize the types of buying decision behavior Understand the stages in the buying decision process

Understand the major factors influencing consumer behavior

Know and recognize the types of buying decision behavior

Understand the stages in the buying decision process

Consumer Buying Behavior THE END

Consumer Buying Decision Process Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Evaluation