Consumer markets  Chapter 7 Markets
Consumer buying behaviour <ul><li>Defined as the buying behaviour of the final consumers, individuals and households who b...
Consumer market <ul><li>Consumer market is defined as all the individuals and households who buy or acquire goods and serv...
Influencers of consumer behaviour <ul><li>Cultural factors </li></ul><ul><li>Social factors  </li></ul><ul><li>Personal an...
Cultural factors <ul><ul><ul><li>Culture </li></ul></ul></ul><ul><ul><ul><ul><li>Basic cause of person’s wants and behavio...
Social factors <ul><ul><ul><li>Membership groups </li></ul></ul></ul><ul><ul><ul><ul><li>Primary groups   </li></ul></ul><...
Consumer buying roles <ul><li>Initiator </li></ul><ul><ul><li>Person who first suggests or thinks of the idea of buying a ...
Personal factors <ul><ul><li>Age and life cycle phase </li></ul></ul><ul><ul><li>Psychological life cycles </li></ul></ul>...
Psychological factors <ul><ul><li>Motivation </li></ul></ul><ul><ul><li>Perception </li></ul></ul><ul><ul><li>Learning </l...
Buying decision behaviour <ul><li>Dissonance-reducing buying behaviour </li></ul><ul><ul><li>Situations characterised by h...
Figure 7.5  Four types of buying behaviour Source : Adapted from Henry Assael,  Consumer Behaviour and Marketing Action , ...
Buyer decision process <ul><li>Need recognition </li></ul><ul><li>Information search </li></ul><ul><li>Evaluation of alter...
Figure 7.7  Steps between evaluation of alternatives and a purchase decision Typical consumer evaluation process
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Chapter 7

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Chapter 7

  1. 1. Consumer markets Chapter 7 Markets
  2. 2. Consumer buying behaviour <ul><li>Defined as the buying behaviour of the final consumers, individuals and households who buy goods and services for personal consumption. </li></ul>
  3. 3. Consumer market <ul><li>Consumer market is defined as all the individuals and households who buy or acquire goods and services for personal consumption. </li></ul><ul><li>The world consumer market consists of approx 6.3 billion people </li></ul><ul><ul><li>the billion people in North America, Western Europe and Japan make up 70% of the world’s spending power. </li></ul></ul>
  4. 4. Influencers of consumer behaviour <ul><li>Cultural factors </li></ul><ul><li>Social factors </li></ul><ul><li>Personal and psychological characteristics </li></ul>
  5. 5. Cultural factors <ul><ul><ul><li>Culture </li></ul></ul></ul><ul><ul><ul><ul><li>Basic cause of person’s wants and behaviour </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Human behaviour is predominantly learned behaviour from family and other important institutions </li></ul></ul></ul></ul><ul><ul><ul><li>Subculture </li></ul></ul></ul><ul><ul><ul><ul><li>Group sharing similar value systems based upon life experiences and situations </li></ul></ul></ul></ul><ul><ul><ul><li>Social class </li></ul></ul></ul><ul><ul><ul><ul><li>Relatively permanent and ordered divisions in a society whose members share similar values interests and behaviours. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Class systems differ in size and constituents </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lower social classes are more culture-bound </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Young people of all classes are less so </li></ul></ul></ul></ul>
  6. 6. Social factors <ul><ul><ul><li>Membership groups </li></ul></ul></ul><ul><ul><ul><ul><li>Primary groups </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>family, friends, neighbours </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Secondary groups </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>religious groups and professional associations </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Reference groups </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>direct or indirect influence on the person’s behaviour or attitudes </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Aspirational groups </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>reference group to which we want to belong </li></ul></ul></ul></ul></ul>
  7. 7. Consumer buying roles <ul><li>Initiator </li></ul><ul><ul><li>Person who first suggests or thinks of the idea of buying a particular product. </li></ul></ul><ul><li>Influencer </li></ul><ul><ul><li>A person whose views or advice will influence the product or service. </li></ul></ul><ul><li>Decider </li></ul><ul><ul><li>Buying decision maker of the product </li></ul></ul><ul><li>Buyer </li></ul><ul><ul><li>Ultimate purchaser </li></ul></ul><ul><li>User </li></ul><ul><ul><li>Ultimate user </li></ul></ul>
  8. 8. Personal factors <ul><ul><li>Age and life cycle phase </li></ul></ul><ul><ul><li>Psychological life cycles </li></ul></ul><ul><ul><ul><li>Changing interests </li></ul></ul></ul><ul><ul><li>Occupation </li></ul></ul><ul><ul><li>Economic circumstances </li></ul></ul><ul><ul><ul><li>Savings and buying power </li></ul></ul></ul><ul><ul><li>Lifestyle </li></ul></ul><ul><ul><ul><li>Pattern of living expressed in activities </li></ul></ul></ul><ul><ul><ul><li>Psychographics is the technique of measuring lifestyles </li></ul></ul></ul><ul><ul><li>Personality and self-concept </li></ul></ul>
  9. 9. Psychological factors <ul><ul><li>Motivation </li></ul></ul><ul><ul><li>Perception </li></ul></ul><ul><ul><li>Learning </li></ul></ul><ul><ul><li>Beliefs and attitudes </li></ul></ul>
  10. 10. Buying decision behaviour <ul><li>Dissonance-reducing buying behaviour </li></ul><ul><ul><li>Situations characterised by high involvement with an expensive, infrequent or risky purchase but few perceived differences among the brands. </li></ul></ul><ul><li>Habitual buying behaviour </li></ul><ul><ul><li>Characterised by low consumer involvement and few significant perceived brand differences </li></ul></ul><ul><li>Variety seeking buying behaviour </li></ul><ul><ul><li>Low consumer involvement but significant perceived brand differences </li></ul></ul>
  11. 11. 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.
  12. 12. Buyer decision process <ul><li>Need recognition </li></ul><ul><li>Information search </li></ul><ul><li>Evaluation of alternatives </li></ul><ul><li>Purchase decision </li></ul><ul><li>Post-purchase behaviour </li></ul>
  13. 13. Figure 7.7  Steps between evaluation of alternatives and a purchase decision Typical consumer evaluation process

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