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Chap5
- 1. 5-15-1 Chapter 5Chapter 5 PRINCIPLESOF MARKETING Consumer Markets and Consumer Buyer Behavior
- 2. 5-25-2 Consumer Buying BehaviorConsumerBuying Behavior • Consumer Buying BehaviorConsumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption. • Study consumer behavior to answer: ““How do consumers respond toHow do consumers respond to marketing efforts the companymarketing efforts the company might use?”might use?”
- 3. 5-35-3 Model of ConsumerBehaviorModel of Consumer Behavior Marketing and Other Stimuli Marketing and Other Stimuli Buyer’s Black BoxBuyer’s Black Box Buyer’s ResponseBuyer’s Response Product Price Place Promotion Economic Technological Political Cultural Characteristics Affecting Consumer Behavior Buyer’s Decision Process Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount
- 4. 5-45-4 Characteristics Affecting Consumer Behavior CharacteristicsAffecting Consumer Behavior BuyerBuyer Psychological Personal Social Culture
- 5. 5-55-5 Factors Affecting ConsumerBehavior: Culture Factors Affecting Consumer Behavior: Culture Social Class • People within a social class tend to exhibit similar buying behavior. • Occupation • Income • Education • Wealth Social Class • People within a social class tend to exhibit similar buying behavior. • Occupation • Income • Education • Wealth • Most basic cause of a person's wants and behavior. • Values • Perceptions • Most basic cause of a person's wants and behavior. • Values • Perceptions Subculture • Groups of people with shared value systems based on common life experiences. • Hispanic Consumers • African American Consumers • Asian American Consumers • Mature Consumers Subculture • Groups of people with shared value systems based on common life experiences. • Hispanic Consumers • African American Consumers • Asian American Consumers • Mature Consumers
- 6. 5-65-6 Factors Affecting ConsumerBehavior: Social Factors Affecting Consumer Behavior: Social Groups • Membership • Reference Groups • Membership • Reference Family • Husband, wife, kids • Influencer, buyer, user Family • Husband, wife, kids • Influencer, buyer, user Roles and StatusRoles and Status Social FactorsSocial Factors
- 7. 5-75-7 Factors Affecting ConsumerBehavior: Personal Factors Affecting Consumer Behavior: Personal Personal InfluencesPersonal Influences Age and Family Life Cycle Stage Age and Family Life Cycle Stage OccupationOccupation Economic SituationEconomic Situation Lifestyle IdentificationLifestyle Identification ActivitiesActivities OpinionsOpinions InterestsInterests Personality & Self-ConceptPersonality & Self-Concept
- 8. 5-85-8 VALS 2VALS 2 PrincipleOriented Status Oriented Action Oriented AchieversAchievers ActualizersActualizers StrugglersStrugglers StriversStrivers FulfilledsFulfilleds BelieversBelievers ExperiencersExperiencers MakersMakers Abundant ResourcesAbundant Resources Minimal ResourcesMinimal Resources
- 9. 5-95-9 Factors Affecting ConsumerBehavior: Psychological Factors Affecting Consumer Behavior: Psychological Psychological Factors MotivationMotivation PerceptionPerception LearningLearning Beliefs and Attitudes Beliefs and Attitudes
- 10. 5-105-10 Maslow’s Hierarchy ofNeedsMaslow’s Hierarchy of Needs Esteem Needs (self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Self Actualization (Self-development)
- 11. 5-115-11 Types of BuyingDecisionsTypes of Buying Decisions Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Behavior Habitual Buying Behavior High Involvement Significant differences between brands Few differences between brands Low Involvement
- 12. 5-125-12 The Buyer DecisionProcessThe Buyer Decision Process Need RecognitionNeed Recognition Information SearchInformation Search Evaluation of AlternativesEvaluation of Alternatives Purchase DecisionPurchase Decision Postpurchase BehaviorPostpurchase Behavior
- 13. 5-135-13 The Buyer DecisionProcess Step 1. Need Recognition The Buyer Decision Process Step 1. Need Recognition External Stimuli • TV advertising • Magazine ad • Radio slogan •Stimuli in the environment External Stimuli • TV advertising • Magazine ad • Radio slogan •Stimuli in the environment Internal Stimuli • Hunger • Thirst • A person’s normal needs Internal Stimuli • Hunger • Thirst • A person’s normal needs Need Recognition Difference between an actual state and a desired state Need Recognition Difference between an actual state and a desired state
- 14. 5-145-14 The Buyer DecisionProcess Step 2. Information Search The Buyer Decision Process Step 2. Information Search •Family, friends, neighbors •Most influential source of information •Advertising, salespeople •Receives most information from these sources •Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product Personal SourcesPersonal Sources Commercial SourcesCommercial Sources Public SourcesPublic Sources Experiential SourcesExperiential Sources
- 15. 5-155-15 The Buyer DecisionProcess Step 3. Evaluation of Alternatives The Buyer Decision Process Step 3. Evaluation of Alternatives Product Attributes Evaluation of Quality, Price, & Features Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter most to me? Degree of Importance Which attributes matter most to me? Brand Beliefs What do I believe about each available brand? Brand Beliefs What do I believe about each available brand? Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Evaluation Procedures Choosing a product (and brand) based on one or more attributes. Evaluation Procedures Choosing a product (and brand) based on one or more attributes.
- 16. 5-165-16 The Buyer DecisionProcess Step 4. Purchase Decision The Buyer Decision Process Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand Purchase Intention Desire to buy the most preferred brand Purchase DecisionPurchase Decision Attitudes of others Unexpected situational factors
- 17. 5-175-17 The Buyer DecisionProcess Step 5. Postpurchase Behavior The Buyer Decision Process Step 5. Postpurchase Behavior Consumer’s Expectations of Product’s Performance Consumer’s Expectations of Product’s Performance Dissatisfied Customer Dissatisfied Customer Satisfied Customer! Satisfied Customer! Product’s Perceived Performance Product’s Perceived Performance Cognitive Dissonance
- 18. 5-185-18 Stages in theAdoption ProcessStages in the Adoption Process AwarenessAwareness InterestInterest EvaluationEvaluation TrialTrial AdoptionAdoption
- 19. 5-195-19 Adoption of InnovationsAdoptionof InnovationsPercentageofAdopters Time of Adoption Early Late Innovators Early Adopters Early Majority 2.5% 13.5% 34% 34% 16% Laggards Late Majority
- 20. 5-205-20 Influences on theRate of Adoption of New Products Influences on the Rate of Adoption of New Products Divisibility Can the innovation be used on a trial basis? Compatibility Does the innovation fit the values and experience of the target market? Complexity Is the innovation difficult to understand or use? Relative Advantage Is the innovation superior to existing products? Communicability Can results be easily observed or described to others? Product Characteristics