This document provides an overview of consumer buyer behavior and the consumer decision-making process. It discusses key topics like the model of consumer behavior, characteristics that influence consumer decisions including cultural, social, personal, and psychological factors. It also outlines the stages in the buyer decision process: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Finally, it covers the adoption process for new products.

1. Chapter 5- slide 1
Chapter Five
Consumer Markets and Consumer Buyer
Behavior

2. Consumer Markets and Consumer
Buyer Behavior
• Model of Consumer Behavior
• Characteristics Affecting Consumer
Behavior
Topic Outline
Chapter 5- slide 2Copyright © 2010 Pearson Education, Inc.
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Behavior
• Types of Buying Decision Behaviors
• The Buyer Decision Process
• The Buyer Decision Process for New
Products

3. Consumer buyer behavior refers to the buying
behavior of final consumers—individuals and
households who buy goods and services for
personal consumption
Model of Consumer Behavior
Chapter 5- slide 3Copyright © 2010 Pearson Education, Inc.
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personal consumption
Consumer market all the individuals and
households who buy or acquire goods and
services for personal consumption.

4. Model of Consumer Behavior
Chapter 5- slide 4Copyright © 2010 Pearson Education, Inc.
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5. Characteristics Affecting
Consumer Behavior
Factors Influencing Consumer Behavior
Chapter 5- slide 5Copyright © 2010 Pearson Education, Inc.
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6. Culture is the learned values, perceptions,
wants, and behavior from family and other
Characteristics Affecting
Consumer Behavior
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wants, and behavior from family and other
important institutions

7. Characteristics Affecting
Consumer Behavior
Subcultures are groups of people within a culture
with shared value systems based on common life
experiences and situations
• Bengalis
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• Bengalis
• Gujaratis
• Punjabis

8. Social classes are society’s relatively
permanent and ordered divisions whose
members share similar values, interests,
Characteristics Affecting
Consumer Behavior
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members share similar values, interests,
and behaviors
• Measured by a combination of occupation,
income, education, wealth, and other
variables

9. Characteristics Affecting
Consumer Behavior
• Word-of-mouth influence
– Opinion leaders are people within a
reference group who exert social
influence on others
Groups and Social Networks
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influence on others
– Also called influentials or leading
adopters
– Marketers identify them to use as brand
ambassadors

10. Characteristics Affecting
Consumer Behavior
• Online Social Networks are
online communities where
people socialize or exchange
information and opinions
Groups and Social Networks
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information and opinions
• Include blogs, social
networking sites (facebook),
virtual worlds (second life)

11. Characteristics Affecting
Consumer Behavior
• Family is the most important consumer-
buying organization in society
• The groups, family, clubs, and organizations
that a person belongs to define his/her social
Social Factors
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that a person belongs to define his/her social
role and status

12. Characteristics Affecting
Consumer Behavior
• Age and life-cycle stage
• RBC Royal Band stages
– Youth: younger than 18
Personal Factors
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– Youth: younger than 18
– Getting started: 18–35
– Builders: 35–50
– Accumulators: 50–60
– Preservers: over 60

13. Characteristics Affecting
Consumer Behavior
Occupation affects the goods and services
bought by consumers
Personal Factors
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bought by consumers
Economic situation includes trends in:
Personal
income
Savings
Interest
rates

14. Characteristics Affecting
Consumer Behavior
Lifestyle is a person’s pattern of living
as expressed in his or her
psychographics
• Measures a consumer’s AIOs
Personal Factors
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• Measures a consumer’s AIOs
(activities, interests, opinions) to
capture information about a person’s
pattern of acting and interacting in the
environment

15. Characteristics Affecting
Consumer Behavior
• Personality and self-concept
– Personality refers to the unique psychological
Personal Factors
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– Personality refers to the unique psychological
characteristics that lead to consistent and
lasting responses to the consumer’s
environment

16. Characteristics Affecting
Consumer Behavior
Psychological Factors
Motivation
Perception
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Perception
Learning
Beliefs and attitudes

17. Characteristics Affecting
Consumer Behavior
A motive is a need that is sufficiently
pressing to direct the person to seek
Psychological Factors
Motivation
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pressing to direct the person to seek
satisfaction
Motivation research refers to qualitative
research designed to probe consumers’
hidden, subconscious motivations

18. Characteristics Affecting
Consumer Behavior
Maslow’s
Hierarchy of Needs
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19. Characteristics Affecting
Consumer Behavior
Perception is the process by which
people select, organize, and interpret
information to form a meaningful picture
of the world from three perceptual
Psychological Factors
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of the world from three perceptual
processes
– Selective attention
– Selective distortion
– Selective retention

20. Characteristics Affecting
Consumer Behavior
Selective attention is the tendency for people to
screen out most of the information to which they
are exposed
Selective distortion is the tendency for people to
Psychological Factors
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Selective distortion is the tendency for people to
interpret information in a way that will support
what they already believe
Selective retention is the tendency to remember
good points made about a brand they favor and
forget good points about competing brands

21. Characteristics Affecting
Consumer Behavior
• Learning is the change in an individual’s
behavior arising from experience and
occurs through interplay of:
Psychological Factors
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occurs through interplay of:
Drives Stimuli Cues
Responses Reinforcement

22. Characteristics Affecting
Consumer Behavior
Belief is a descriptive thought that a person
has about something based on:
Psychological Factors
Beliefs and Attitudes
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has about something based on:
• Knowledge
• Opinion
• Faith

23. Characteristics Affecting
Consumer Behavior
Attitudes describe a person’s relatively
consistent evaluations, feelings, and
tendencies toward an object or idea
Psychological Factors
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tendencies toward an object or idea

24. Types of Buying Decision
Behavior
Complex buying behavior
Dissonance-reducing buying behavior
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Dissonance-reducing buying behavior
Habitual buying behavior
Variety-seeking buying behavior

25. Types of Buying Decision
Behavior
Four Types of Buying Behavior
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26. The Buyer Decision Process
Buyer Decision Making Process
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27. The Buyer Decision Process
• Occurs when the buyer recognizes a
problem or need triggered by:
– Internal stimuli
Need Recognition
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– Internal stimuli
– External stimuli

28. The Buyer Decision Process
• Personal sources—family and friends
• Commercial sources—advertising, Internet
• Public sources—mass media, consumer
Information Search
Sources of Information
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• Public sources—mass media, consumer
organizations
• Experiential sources—handling, examining,
using the product

29. The Buyer Decision Process
• How the consumer processes information
to arrive at brand choices
Evaluation of Alternatives
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to arrive at brand choices

30. The Buyer Decision Process
• The act by the consumer to buy the most
preferred brand
• The purchase decision can be affected by:
Purchase Decision
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• The purchase decision can be affected by:
– Attitudes of others
– Unexpected situational factors

31. The Buyer Decision Process
• The satisfaction or dissatisfaction that the
consumer feels about the purchase
• Relationship between:
– Consumer’s expectations
Post-Purchase Decision
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– Consumer’s expectations
– Product’s perceived performance
• The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction
• Cognitive dissonance is the discomfort caused
by a post-purchase conflict

32. The Buyer Decision Process
Customer satisfaction is a key to building
profitable relationships with consumers—
to keeping and growing consumers and
Post-Purchase Decision
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to keeping and growing consumers and
reaping their customer lifetime value

33. The Buyer Decision Process for
New Products
Adoption process is the mental process an
individual goes through from first learning
about an innovation to final regular use.
Chapter 5- slide 33Copyright © 2010 Pearson Education, Inc.
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about an innovation to final regular use.
• Stages in the process include:
Awareness Interest Evaluation Trial Adoption