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5-1
Consumer Markets
and
Consumer Buyer Behavior
5-2
Consumer Buying Behavior
• Consumer 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 to
marketing efforts the company
might use?”
5-3
Consumer
Purchase
Decision
Motives
Personality
Needs
Perception
Learning
Attitudes
Business
Economic
Family
SIMPLE MODEL FOR CONSUMER BEHAVIOUR
5-4
Model of Consumer Behavior
Marketing and
Other Stimuli
Buyer’s Black Box
Buyer’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
5-5
Characteristics Affecting
Consumer Behavior
Buyer
Psychological
Personal
Social
Culture
5-6
Factors Affecting Consumer Behavior:
Culture
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
Subculture
• Groups of people with shared
value systems based on
common life experiences.
• North Indian Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers
5-7
Factors Affecting Consumer Behavior:
Social
Groups
•Membership
•Reference
Family
•Husband, wife, kids
•Influencer, buyer, user
Roles and Status
Social Factors
5-8
Factors Affecting Consumer Behavior:
Personal
Personal Influences
Age and Family Life Cycle
Stage
Occupation
Economic Situation
Lifestyle Identification
Activities Opinions
Interests
Personality & Self-Concept
5-9
Factors Affecting Consumer Behavior:
Psychological
Psychological
Factors
Motivation
Perception
Learning
Beliefs and
Attitudes
5-10
Maslow’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)
5-11
Types 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
5-12
The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
5-13
SITUATIONS
Problem
Recognition
Information
Search
Alternative Evaluation
and Selection
Outlet Selection
and Purchases
Post-purchase
Processes
SITUATIONS
EXTERNAL INFLUENCES
Culture
Subculture
Demographics
Social Status
Reference Groups
Family
Marketing Activities
INTERNAL INFLUENCES
Perception
Learning
Memory
Motives
Personality
Emotions
Attitudes
SELF-CONCEPT
and
LIFESTYLE
Desires
Experiences and Acquisitions
Experiences and Acquisitions
Needs
DECISION MAKING PROCESSES
5-14
The Buyer Decision Process
Step 1. Need Recognition
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the
environment
Internal Stimuli
• Hunger
• Thirst
• A person’s normal
needs
Need Recognition
Difference between an actual state and a desired state
5-15
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 Sources
Commercial Sources
Public Sources
Experiential Sources
5-16
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
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?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
5-17
The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors
5-18
The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Dissatisfied
Customer
Satisfied
Customer!
Product’s Perceived
Performance
Cognitive Dissonance
5-19
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
5-20
Adoption of Innovations
Percentage
of
Adopters
Time of Adoption
Early Late
Innovators
Early
Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
5-21
THANK YOU

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consumer-behaviour-1227857349058047-9.ppt

  • 2. 5-2 Consumer Buying Behavior • Consumer 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 to marketing efforts the company might use?”
  • 4. 5-4 Model of Consumer Behavior Marketing and Other Stimuli Buyer’s Black Box Buyer’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
  • 6. 5-6 Factors Affecting Consumer Behavior: Culture 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 Subculture • Groups of people with shared value systems based on common life experiences. • North Indian Consumers • African American Consumers • Asian American Consumers • Mature Consumers
  • 7. 5-7 Factors Affecting Consumer Behavior: Social Groups •Membership •Reference Family •Husband, wife, kids •Influencer, buyer, user Roles and Status Social Factors
  • 8. 5-8 Factors Affecting Consumer Behavior: Personal Personal Influences Age and Family Life Cycle Stage Occupation Economic Situation Lifestyle Identification Activities Opinions Interests Personality & Self-Concept
  • 9. 5-9 Factors Affecting Consumer Behavior: Psychological Psychological Factors Motivation Perception Learning Beliefs and Attitudes
  • 10. 5-10 Maslow’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. 5-11 Types 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. 5-12 The Buyer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior
  • 13. 5-13 SITUATIONS Problem Recognition Information Search Alternative Evaluation and Selection Outlet Selection and Purchases Post-purchase Processes SITUATIONS EXTERNAL INFLUENCES Culture Subculture Demographics Social Status Reference Groups Family Marketing Activities INTERNAL INFLUENCES Perception Learning Memory Motives Personality Emotions Attitudes SELF-CONCEPT and LIFESTYLE Desires Experiences and Acquisitions Experiences and Acquisitions Needs DECISION MAKING PROCESSES
  • 14. 5-14 The Buyer Decision Process Step 1. Need Recognition External Stimuli • TV advertising • Magazine ad • Radio slogan •Stimuli in the environment Internal Stimuli • Hunger • Thirst • A person’s normal needs Need Recognition Difference between an actual state and a desired state
  • 15. 5-15 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 Sources Commercial Sources Public Sources Experiential Sources
  • 16. 5-16 The Buyer Decision Process Step 3. Evaluation of Alternatives Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter most to me? 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? Evaluation Procedures Choosing a product (and brand) based on one or more attributes.
  • 17. 5-17 The Buyer Decision Process Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand Purchase Decision Attitudes of others Unexpected situational factors
  • 18. 5-18 The Buyer Decision Process Step 5. Postpurchase Behavior Consumer’s Expectations of Product’s Performance Dissatisfied Customer Satisfied Customer! Product’s Perceived Performance Cognitive Dissonance
  • 19. 5-19 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption
  • 20. 5-20 Adoption of Innovations Percentage of Adopters Time of Adoption Early Late Innovators Early Adopters Early Majority 2.5% 13.5% 34% 34% 16% Laggards Late Majority