1. 5-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter 5
Consumer Markets
and
Consumer Buyer Behavior
© Copyright 1999 Prentice Hall

2. Consumer Buying Behavior 5-2
• 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?”
© Copyright 1999 Prentice Hall

3. Model of Consumer Behavior 5-3
Product Economic
Marketing and
Price Other Stimuli Technological
Place Political
Promotion Cultural
Buyer’s Characteristics
Decision Affecting
Process
Buyer’s Black Box Consumer
Behavior
Product Choice Purchase
Timing
Brand Choice Buyer’s Response
Purchase
Dealer Choice Amount
© Copyright 1999 Prentice Hall

4. Characteristics Affecting 5-4
Consumer Behavior
Culture
Social
Personal
Psychological
Buyer
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5. Factors Affecting Consumer Behavior: 5-5
Culture
• Most basic cause of a person's wants and
behavior.
• Values
• Perceptions
Subculture Social Class
• Groups of people with shared • People within a social class
value systems based on common tend to exhibit similar buying
life experiences. behavior.
• Hispanic Consumers • Occupation
• African American Consumers • Income
• Asian American Consumers • Education
• Mature Consumers • Wealth
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6. Factors Affecting Consumer Behavior: 5-6
Social
Groups
Membership
•
Reference
•
Family
Husband, wife, kids
Social Factors
• •
Influencer, buyer, user
Roles and Status
© Copyright 1999 Prentice Hall

7. Factors Affecting Consumer Behavior: 5-7
Personal
Personal Influences
Age and Family Life Cycle
Occupation
Stage
Economic Situation Personality & Self-Concept
Lifestyle Identification
Activities Opinions
Interests
© Copyright 1999 Prentice Hall

8. VALS 2 5-8
Actualizers Abundant Resources
Principle Oriented Status Oriented Action Oriented
Fulfilleds Achievers Experiencers
Believers Strivers Makers
Strugglers
Minimal Resources
© Copyright 1999 Prentice Hall

9. Factors Affecting Consumer Behavior: 5-9
Psychological
Motivation
Beliefs and Psychological
Factors Perception
Attitudes
Learning
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10. Maslow’s Hierarchy of Needs 5-10
Self
Actualization
(Self-development)
Esteem Needs
( self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
© Copyright 1999 Prentice Hall

11. Types of Buying Decisions 5-11
High Low
Involvement Involvement
Significant
differences Complex Variety-
between Buying Seeking
brands
Behavior Behavior
Few
differences Dissonance- Habitual
between Reducing Buying Buying
brands
Behavior Behavior
© Copyright 1999 Prentice Hall

12. The Buyer Decision Process 5-12
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
© Copyright 1999 Prentice Hall

13. The Buyer Decision Process 5-13
Step 1. Need Recognition
Need Recognition
Difference between an actual state and a desired state
Internal Stimuli External Stimuli
• Hunger • TV advertising
• Thirst • Magazine ad
• A person’s normal • Radio slogan
needs
•Stimuli in the
environment
© Copyright 1999 Prentice Hall

14. The Buyer Decision Process 5-14
Step 2. Information Search
•Family, friends, neighbors
Personal Sources •Most influential source of
information
•Advertising, salespeople
Commercial Sources •Receives most information
from these sources
•Mass Media
Public Sources •Consumer-rating groups
•Handling the product
Experiential Sources •Examining the product
•Using the product
© Copyright 1999 Prentice Hall

15. 5-15
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.
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16. The Buyer Decision Process 5-16
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes Unexpected
of others situational
factors
Purchase Decision
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17. The Buyer Decision Process 5-17
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived
Performance
Satisfied Dissatisfied
Customer! Customer
Cognitive Dissonance
© Copyright 1999 Prentice Hall

18. Stages in the Adoption Process 5-18
Awareness
Interest
Evaluation
Trial
Adoption
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19. Adoption of Innovations 5-19
Percentage of Adopters
Early Majority Late Majority
Innovators
Early
34% 34% Laggards
Adopters
13.5% 16%
2.5% Time of Adoption
Early Late
© Copyright 1999 Prentice Hall

20. Influences on the Rate of Adoption 5-20
of New Products
Communicability Relative Advantage
Can results be easily Is the innovation
observed or described superior to existing
to others? products?
Product
Characteristics Compatibility
Divisibility Does the innovation
Can the innovation fit the values and
be used on a experience of the
trial basis? target market?
Complexity
Is the innovation
difficult to
understand or use?
© Copyright 1999 Prentice Hall