Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Ch05 consumer markets and consumer buyer behavior

3,147 views

Published on

  • Be the first to comment

Ch05 consumer markets and consumer buyer behavior

  1. 1. Chapter 5 Consumer Markets and Consumer Buyer Behavior
  2. 2. Schedule – Before Midterm 4 Oct.8/9 5 Oct.15/16 6 Oct.22/23 Consumer Markets and Consumer Buyer Behavior Ch.5 Case 3 Business Markets and Business Buyer Behavior Ch.6 Case 4 Marketing Information System Ch.4 Case 5 2
  3. 3. Learning Goals 1. 2. 3. 4. Define the consumer market and construct a model of consumer buyer behavior Name the four factors that influence buyer behavior List and understand the types of buying decision behavior and stages in the process Describe the adoption and diffusion process for new products 3
  4. 4. Case Study Harley Davidson Measuring Success Building Success    Understanding the customers’ emotions and motivation Determining the factors of loyalty Translating this information to effective advertising    Currently 22% of all U.S. bike sales Demand above supply Sales doubled in the past 5 years with earnings tripled 5-4
  5. 5. Learning Goals 1. 2. 3. 4. Define the consumer market and construct a model of consumer buyer behavior Name the four factors that influence buyer behavior List and understand the types of buying decision behavior and stages in the process Describe the adoption and diffusion process for new products 5
  6. 6. Definitions Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption  All of these final consumers combine to make up the consumer market  6
  7. 7. 7
  8. 8. Learning Goals 1. 2. 3. 4. Define the consumer market and construct a model of consumer buyer behavior Name the four factors that influence buyer behavior List and understand the types of buying decision behavior and stages in the process Describe the adoption and diffusion process for new products 8
  9. 9. Model of Buyer Behavior
  10. 10. Characteristics Affecting Consumer Behavior Key Factors        Cultural Social Personal Psychological Culture Subculture   Forms a person’s wants and behavior Groups with shared value systems Social Class  Society’s divisions who share values, interests and behaviors 10
  11. 11. Characteristics Affecting Consumer Behavior  Key Factors     Cultural Social Personal Psychological Groups     Family   Membership Reference  Aspirational Opinion leaders  Buzz marketing Many influencers Roles and status 11
  12. 12. This advertiser knows teens are strongly influenced by groups when purchasing fashion items
  13. 13. Characteristics Affecting Consumer Behavior Key Factors     Cultural Social Personal Psychological Age and life cycle  Occupation  Economic situation  Lifestyle  Activities, interests and opinions Lifestyle segmentation  Personality and self-concept 13
  14. 14. Personal Factors  Family Life Cycle stages throughout which families pass as they mature over time  Stages in family life cycle: 1.bachelor stage 2.newly married couples, no children 3.full nest 1; youngest child under 6 4.full nest 2; youngest child 6 or over 5. full nest 3; older married couples with dependent children 6.empty nest 1; older married couples no children with them 7. empty nest 1; older married couples no children at home;retired 8.solitary survivor, working 9.solitary survivor, retired 14
  15. 15. Personal Factors  Personality ğ a person’s unique characteristics that lead to relatively consistent and lasting responses to his environment  Self-concept ğ the self image or general picture that people have of themselves 15
  16. 16. Personal Factors  Lifestyle a person’s pattern of living as expressed in his activities, interests and opinions ğ technique of measuring lifestyles and developing lifestyle classifications  Major dimensions measured are:  Activities (work, hobbies, social events, entertainment,  Psychographics shopping, sports,vacation)  Interests (family, home, job, recreation, fashion, food, media, achievements)  Opinions (themselves, social issues, politics, business, economics, products, future) 16
  17. 17. Brand Personality Dimensions   Sincerity Ruggedness    Excitement Competence Sophistication 17
  18. 18. Characteristics Affecting Consumer Behavior Key Factors     Cultural Social Personal Psychological  Motivation  Perception  Learning  Beliefs and attitudes 18
  19. 19. Psychological Factors Motivation A motive is a need that is sufficiently pressing to direct the person to seek satisfaction  Motivation research is based on Freud. Looks for hidden and subconscious motivation  Maslow ordered needs based on how pressing they are to the consumer  19
  20. 20. Maslow’s Hierarchy of Needs
  21. 21. This ad demonstrates a product meeting physiological and social needs
  22. 22. Discussion What consumer products might fulfill multiple levels of the Hierarchy of Needs?
  23. 23. Psychological Factors Perception   Perception is the process by which people select, organize, and interpret information. Perception Includes:  Selective  Consumers screen out information  Selective  distortion People interpret to support beliefs  Selective  attention retention People retain points to support attitudes 23
  24. 24. Discussion Question Perception 1. 2. How many ads were you exposed to today? Which ones do you remember? Why?
  25. 25. Psychological Factors Learning   Learning describes changes in an individual’s behavior arising from experience Learning occurs through  Drives  Internal stimulus that calls for action  Stimuli  Objects that move drive to motive  Cues  Minor stimuli that affect response  Reinforcement  Feedback on action 25
  26. 26. Psychological Factors Beliefs and Attitudes  Belief a descriptive thought about a brand or service  may be based on real knowledge, opinion, or faith  Attitude  describes a person’s evaluations, feelings and tendencies toward an object or idea  They are difficult to change 26
  27. 27. Learning Goals 1. 2. 3. 4. Define the consumer market and construct a model of consumer buyer behavior Name the four factors that influence buyer behavior List and understand the types of buying decision behavior and stages in the process Describe the adoption and diffusion process for new products 27
  28. 28. 28
  29. 29. Types of Buying Decision Behavior
  30. 30. The Buying Roles  5 roles people might play in a buying decision ğ who first gives the idea of buying the product or service  Influencer ğwhose view or advice influences the decision  Decider ğwho decide on any component of buying decision  Buyer ğwho makes the actual purchase  User ğwho uses the product or sevice purchased  Initiator 30
  31. 31. The Buyer Decision Process
  32. 32. The Buyer Decision Process Process Stages      Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior  Needs can be triggered by:  Internal stimuli  Normal needs become strong enough to drive behavior  External stimuli  Advertisements  Friends of friends 32
  33. 33. The Buyer Decision Process Process Stages      Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior   Consumers exhibit heightened attention or actively search for information Sources of information:  Personal  Commercial  Public  Experiential  Word-of-mouth 33
  34. 34. Information Search Personal Sources Personal Sources Commercial Sources Commercial Sources Public Sources Public Sources Experiential Sources Experiential Sources •Family, friends, neighbors •Most effective 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 34
  35. 35. The Buyer Decision Process Process Stages      Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior    Evaluation procedure depends on the consumer and the buying situation. Most buyers evaluate multiple attributes, each of which is weighted differently. At the end of the evaluation stage, purchase intentions are formed. 35
  36. 36. Evaluation of Alternatives Consumer May Use Careful Consumer May Use Careful Calculations & Logical Thinking Calculations & Logical Thinking Consumers May Buy on Impulse and Consumers May Buy on Impulse and Rely on Intuition Rely on Intuition Consumers May Make Buying Decisions Consumers May Make Buying Decisions on Their Own. on Their Own. Consumers May Make Buying Decisions Consumers May Make Buying Decisions Only After Consulting Others.. Only After Consulting Others Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives 36
  37. 37. Decision Making Sets Total Set Awareness Set Consideration Set Choice Set Decision 37
  38. 38. The Buyer Decision Process Process Stages      Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior  Two factors intercede between purchase intentions and the actual decision:  Attitudes of others  Unexpected situational factors 38
  39. 39. Buyer Decision Process for New Products  New Products  Good, service or idea that is perceived by customers as new.  Stages in the Adoption Process  Marketers should help consumers move through these stages. 39
  40. 40. Stages in the Adoption Process Awareness::Consumer is aware of Awareness Consumer is aware of product, but lacks information. product, but lacks information. Interest:: Consumer seeks Interest Consumer seeks Information about new product. Information about new product. Evaluation::Consumer considers Evaluation Consumer considers trying new product. trying new product. Trial: Consumer tries new product on a small scale. Adoption: Consumer decides to make regular use of product. 40
  41. 41. Buyer Decision Process for New Products  Individual Differences in Innovativeness:  Consumers can be classified into five adopter categories, each of which behaves differently toward new products 41
  42. 42. Early Majority Innovators Percentage of Adopters Adopter Categories Early Adopters 34% Late Majority 16% 13.5% 2.5% Early Laggards 34% Time of Adoption Late 42
  43. 43. Buyer Decision Process for New Products  Product Characteristics influencing the adoption rate: Advantage ğ Is the innovation superior to existing products?  Compatibility ğ Does the innovation fit the values and experience of the target market?  Complexity ğ Is the innovation difficult to understand or use?  Divisibility ğ Can the innovation be used on a trial basis?  Communicability ğ Can results be easily observed or described to others?  Relative 43
  44. 44. Buyer Decision Process for New Products  International Consumer Behavior  Values, attitudes and behaviors differ greatly in other countries.  Physical differences exist which require changes in the marketing mix.  Customs vary from country to country.  Marketers must decide the degree to which they will adapt their marketing efforts. 44
  45. 45. Discussion Question How is a site like Consumer Reports used in the decisionmaking process?
  46. 46. Discussion Question  Why might the adoption process be slow for a home robot? Source: Business Week
  47. 47. The Buyer Decision Process Process Stages      Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior   Satisfaction is important:  Delighted consumers engage in positive wordof-mouth.  Unhappy customers tell on average 11 other people. Cognitive dissonance is common 47
  48. 48. Learning Goals 1. 2. 3. 4. Define the consumer market and construct a model of consumer buyer behavior Name the four factors that influence buyer behavior List and understand the types of buying decision behavior and stages in the process Describe the adoption and diffusion process for new products 48
  49. 49. 49
  50. 50. Ramazan Bayraminiz Kutlu & Mutlu olsun!!!  For Next Week  Read Chapter 6  Be prepared for case 4 – Kodak discussion 50

×