This document provides an overview of consumer buying behavior and the consumer decision-making process. It discusses factors that influence consumer behavior such as cultural, social, personal and psychological characteristics. A model of consumer behavior is presented showing how marketing stimuli interact with a consumer's characteristics to drive responses. The consumer decision process is also summarized, outlining the typical steps of need recognition, information search, evaluation of alternatives, purchase decision and post-purchase behavior. Key concepts in consumer behavior and motivation theories are defined.

1. TMarkPromo | M.Aldana ‘14
Consumer Markets and ConsumerConsumer Markets and Consumer
Buying BehaviorBuying Behavior

2. In groups of 8, discuss your process of buying.
Say you want to buy a new laptop, what steps do
you take? Start individually, and then synthesize
them as a group. Summarize them in 5 steps. Write
in a ¼ sheet of paper with the names of the
members.
Each group will then have a representative and
write it down in the blackboard and explain. (next
meeting)
ActivityActivity

3. Consumer Buying Behavior
 Consumer buying behavior refers to the buying
behavior of final consumers – individuals &
households who buy goods and services for personal
consumption
The central question for marketers is: ““How doHow do
consumers respond to various marketing efforts theconsumers respond to various marketing efforts the
company might use?”company might use?”

4. Five Premises of Consumer BehaviorFive Premises of Consumer Behavior
Consumer behavior is purposeful and goal
oriented
The consumer has free choice
Consumer behavior is a process
Consumer behavior can be influenced
There is a need for consumer education

5. A Model of Consumer BehaviorA Model of Consumer Behavior

6. The company that understands how customers respond to
different product features, prices, and advertising appeals
has a great advantage over its competitors.
Marketing stimuli consists of the 4 Ps: Product, Price,
Place and Promotion. Other stimuli include major forces
and events in the environment like: economic,
technological, political and cultural.
All these stimuli enter the buyer’s black box, where they
are turned into a set of observable buyer responses:
product choice, brand choice, dealer choice, purchase
timing, and purchase amount.
Model of Consumer BehaviorModel of Consumer Behavior

7. Personal Characteristics AffectingPersonal Characteristics Affecting
Consumer BehaviorConsumer Behavior
Cultural Factors
Social Factors
Personal Factors
Psychological Factors

8. Factors Influencing Consumer BehaviorFactors Influencing Consumer Behavior

9. Cultural FactorsCultural Factors
Culture is the most basic determinant of a person’s wants
and behavior
◦ It comprises the basic values, perceptions, wants, and behaviors
that a person learns continuously in a society

10. Cultural FactorsCultural Factors
Subcultures are groups of people with shared value
systems based on common life experiences and situations
•Each culture contains groups of people with shared value systems based on
common life experiences and situations
•Subcultures include nationalities, religions, racial groups, and geographic
regions

11. Cultural FactorsCultural Factors
◦ Social classes are relatively permanent
and ordered divisions in a society
whose members share similar values,
interests, and behaviors

12. Social FactorsSocial Factors
Consumer behavior is influenced by:
◦ Consumers’ groups
◦ Family
◦ Social roles
◦ Status

13. Consumer GroupsConsumer Groups
An individual’s attitudes and behavior are influenced
by many small groups
Types of groups
◦ Membership groups – ex. Clubs, religious groups etc.
◦ Reference groups – serve as direct or indirect points of
comparison or reference in the forming of a person’s
attitudes and behavior
◦ Aspirational groups – to which people do not belong but
would like to
 Opinion leaders – people who have special skills, knowledge,
personality or other characteristics, exert influence on others.

14. Family members have a strong influence on buyer
behavior
FamilyFamily

15. A person belongs to many groups: family, clubs,
and organizations
An individual’s position in each group can be
defined in terms of role and status
A role consists of the activities that a person is
expected to perform according to the persons
around him or her
Social RolesSocial Roles

16. Each role carries a status reflecting the general
esteem given to it by society
People often choose products that show their status
in society
StatusStatus

17. Online social
networks are online
communities where
people socialize or
exchange information
and opinions
Marketers must be
careful when tapping
into online social
networks
Online Social NetworksOnline Social Networks

18. Personal FactorsPersonal Factors
Age and Life-Cycle Stage
◦ The types of goods and services people buy change during their
lifetimes
◦ Preferences for leisure activities, travel destinations, food, and
entertainment are often age related
◦ Successful marketing to various age segments may require
specialized and targeted strategies
◦ This will almost certainly require segmented target publications
and database marketing
◦ Buying behavior is also shaped by the family life-cycle stages

19. Personal FactorsPersonal Factors
Occupation
◦ A person’s occupation affects the goods and services bought

20. Personal FactorsPersonal Factors
Economic Situation
◦ A person’s economic situation
greatly affects product choice
and the decision to purchase a
particular product

21. Personal FactorsPersonal Factors
Lifestyle
◦ People coming from the same subculture, social class,
and occupation may have quite different lifestyles
◦ A lifestyle is a person’s pattern of living as expressed in
his or her activities, interests, and opinions

22. Personal FactorsPersonal Factors
Personality is a person’s distinguishing psychological
characteristics that lead to relatively consistent and
lasting responses to his or her environment
Self-Concept is the complex mental pictures people
have of themselves, also known as self-image

23. Psychological FactorsPsychological Factors
Motivation
◦ Maslow’s Theory of Motivation
 Sought to explain why people are driven by particular needs at
particular times

24. Physiological Needs
(hunger, thirst)
Safety Needs
(security, protection)
Social Needs (sense
of belonging, love)
Esteem Needs
(self-esteem)
Self Actualization
Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

25. ◦ Herzberg’s Theory
 A two-two factor theory that distinguishes dissatisfiers (factors
that cause dissatisfaction) and satisfiers (factors that cause
satisfaction)
Herzberg’s TheoryHerzberg’s Theory

26. Herzberg’s TheoryHerzberg’s Theory

27. Psychological FactorsPsychological Factors
Perception
◦ Selective Attention
 Consumers are constantly bombarded with information and will
screen out stimuli
◦ Selective Distortion
 Messages to do not always come across in the same way the sender
indented.
◦ Selective Retention
 People will forget much that they learn but will tend to retain
information that supports their attitudes and beliefs

28. Psychological FactorsPsychological Factors
Learning describes changes in an individual’s
behavior arising from experience
A belief is a descriptive thought that a person holds
about something
An attitude describes a person’s relatively consistent
evaluations, feelings, and tendencies toward an object
or an idea

29. Buyer Decision ProcessBuyer Decision Process

30. Need RecognitionNeed Recognition
For the decision process to begin, a potential buyer
must first recognize a problem or need
Can be caused by internal or external stimuli

31. Information SearchInformation Search
 Information can be obtained from:
◦ Personal Sources
 Family, friends, neighbors, and acquaintances
◦ Commercial Sources
 Advertising, salespeople, dealers, packaging, and displays
◦ Public Sources
 Restaurant reviews, editorials in the travel section, consumer-
rating organizations

32. Evaluation of AlternativesEvaluation of Alternatives
Products are seen as bundles of product attributes
Customers rank attributes and form purchase
intentions

33. Purchase DecisionPurchase Decision

34. Post Purchase BehaviorPost Purchase Behavior
The smaller the gap between customer expectations
and perceived performance, the greater the customer’s
satisfaction
Cognitive dissonance is buyer discomfort caused by
post purchase conflict

35. THE ENDTHE END