Consumer Markets and Buyer Behavior

1. Consumer Markets and
Buyer Behavior
Principles of Marketing
Chapter 5
M Fayyaz Rajput
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Email: mfayyazrajput1@gmail.com
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2. Consumer buyer behavior
The buying behavior of final consumers
individuals and households that buy
goods and services for personal
consumption.
Consumer market
All the individuals and households that
buy or acquire goods and services for
personal consumption.

3. Model of Consumer Behavior
Marketing stimuli
Product
Price
Place
Promotion
Other
Economic
Technological
Social
Cultural
The Environment Buyer’s black box
Buyer’s characteristics
Buyer’s decision process
Buying attitudes and preferences
Purchase behavior: what the buyer buys,
when, where, and how much
Brand engagements and relationships
Buyer responses

4. Characteristics Affecting
Consumer Behavior
Culture
Subculture
Social
class
Culture
Groups and
social
networks
Family
Roles and
status
Social
Age and life-
cycle stage
Occupation
Economic
situation
Lifestyle
Personality and
self-concept
Personal
Motivation
Perception
Learning
Beliefs and
attitudes
Psychological

5. Cultural Factors
Culture
The set of basic values, perceptions, wants,
and behaviors learned by a member of
society from family and other important
institutions.
Subculture
A group of people with shared value
systems based on common life
experiences and situations.

6. Cultural Factors
Social class
Relatively permanent and ordered divisions in a
society whose members share similar values,
interests, and behaviors.

7. A consumer’s behavior also is influenced by
social factors, such as the consumer’s small
groups, social networks, family, and social roles
and status.
Social Factors
Group
Two or more people who interact to accomplish
individual or mutual goals.
Family
Family members can strongly influence buyer
behavior. The family is the most important
consumer buying organization in society, and it has
been researched extensively.

8. Social Factors
Word-of-mouth influence
The impact of the personal words and recommendations of
trusted friends, family, associates, and other consumers on
buying behavior.
Opinion leader
A person within a reference group who, because of special
skills, knowledge, personality, or other characteristics, exerts
social influence on others.
Online social networks
Online social communities—blogs, online social media, brand
communities, and other online forums where people socialize
or exchange information and opinions.

9. Personal Factors
A buyer’s decisions also are influenced by personal
characteristics such as the buyer’s occupation, age and
stage, economic situation, lifestyle, and personality and
self-concept.
Lifestyle
A person’s pattern of living as expressed in his or
her activities, interests, and opinions.
Personality
The unique psychological characteristics that
distinguish a person or group.

10. Personal Factors
Occupation
A person’s occupation affects the goods
and services bought.
Age and Life Stage
People change the goods and services they
buy over their lifetimes.
Economic Situation
A person’s economic situation will affect
his or her store and product choices.

11. Psychological Factors
A person’s buying choices are further influenced by
four major psychological factors: motivation,
perception, learning, and beliefs and attitudes.
Motive (drive)
A need that is sufficiently pressing to direct the
person to seek satisfaction of the need.

12. Psychological Factors
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Physiological needs
Hunger, thirst
Safety needs
Security, protection
Social needs
Sense of belonging, love
Esteem needs
Self-esteem,
recognition,
status
Self-
actualization
needs
Self-development
and realization
Esteem need

13. Psychological Factors
Perception
The process by which,people select, organize, and interpret
information to form a meaningful picture of the world.
Learning
Changes in an individual’s behavior arising from experience.
Belief
A descriptive thought that a person holds about something.
Attitude
A person’s consistently favorable or unfavorable
evaluations, feelings, and tendencies toward an object or
idea.

14. Types of Buying Decision Behavior
Complex
buying
behavior
Variety-
seeking
buying behavior
Dissonance-
reducing
buying behavior
Habitual
buying
behavior
High involvement Low involvement
Significant
differences
between
brands
Few
differences
between
brands

15. Types of Buying Decision Behavior
Complex buying behavior
Consumer buying behavior in situations characterized by high
consumer involvement in a purchase and significant perceived
differences among brands.
Dissonance-reducing buying behavior
Consumer buying behavior in situations characterized by high
involvement but few perceived differences among brands.
habitual buying behavior
Consumer buying behavior in situations characterized by low
consumer involvement and few significant perceived brand
differences.
Variety-seeking buying behavior
Consumer buying behavior in situations characterized by low
consumer involvement but significant perceived brand differences.

16. The Buyer Decision Process
Need
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
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or
Need recognition
The first stage of the buyer decision process, in
which the consumer recognizes a problem or need.

17. The Buyer Decision Process
Information search
The stage of the buyer decision process in which the consumer is
motivated to search for more information.
Alternative evaluation
The stage of the buyer decision process in which the consumer
uses information to evaluate alternative brands in the choice set.
Purchase decision
The buyer’s decision about which brand to purchase.
Postpurchase behavior
The stage of the buyer decision process in which consumers take
further action after purchase, based on their satisfaction or
dissatisfaction.

18. The Buyer Decision Process for
New Products
New product
A good, service, or idea that is perceived by some
potential customers as new.
Adoption process
The mental process through which an individual
passes from first hearing about an innovation to
final adoption.