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Chapter Five
Consumer	
  Markets	
  and	
  Consumer	
  
Buyer	
  Behavior	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Consumer Markets and Consumer
Buyer Behavior
•  Model	
  of	
  Consumer	
  Behavior	
  
•  Characteris8cs	
  Affec8ng	
  Consumer	
  
Behavior	
  
•  Types	
  of	
  Buying	
  Decision	
  Behavior	
  
•  The	
  Buyer	
  Decision	
  Process	
  
•  The	
  Buyer	
  Decision	
  Process	
  for	
  New	
  
Products	
  
Topic	
  Outline
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Consumer	
  buyer	
  behavior	
  :	
  the	
  buying	
  behavior	
  of	
  
final	
  consumers,	
  individuals	
  and	
  households,	
  
who	
  buy	
  goods	
  and	
  services	
  for	
  personal	
  
consump8on	
  
	
  
Consumer	
  market	
  :	
  all	
  of	
  the	
  personal	
  consump8on	
  
of	
  final	
  consumers	
  
Model of Consumer Behavior
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Model of Consumer Behavior
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
Factors	
  Influencing	
  Consumer	
  Behavior
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Culture	
  is	
  the	
  learned	
  values,	
  percep8ons,	
  
wants,	
  and	
  behavior	
  from	
  family	
  and	
  other	
  
important	
  ins8tu8ons	
  
Marketers	
  are	
  always	
  trying	
  to	
  spot	
  cultural	
  shi+s	
  to	
  discover	
  
new	
  products	
  that	
  might	
  be	
  wanted:	
  greater	
  concern	
  
about	
  health	
  and	
  fitness	
  has	
  created	
  a	
  huge	
  industry	
  for	
  
health-­‐and-­‐fitness	
  services,	
  exercise	
  equipment	
  and	
  
clothing,	
  organic	
  foods,	
  and	
  a	
  variety	
  of	
  diets	
  
Characteristics Affecting
Consumer Behavior
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
Subculture	
  are	
  groups	
  of	
  people	
  within	
  a	
  culture	
  
with	
  shared	
  value	
  systems	
  based	
  on	
  common	
  life	
  
experiences	
  
	
  	
  	
  	
  and	
  situa8ons	
  
•  Hispanic	
  American	
  
•  African	
  American	
  
•  Asian	
  American	
  
Cross-­‐Cultural-­‐	
  including	
  ethnic	
  themes	
  and	
  cross-­‐cultural	
  
perspec8ves	
  within	
  their	
  mainstream	
  marke8ng	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Social	
  classes	
  are	
  society s	
  rela8vely	
  
permanent	
  and	
  ordered	
  divisions	
  whose	
  
members	
  share	
  similar	
  values,	
  interests,	
  
and	
  behaviors.	
  	
  
•  Measured	
  by	
  a	
  combina8on	
  of	
  occupa8on,	
  
income,	
  educa8on,	
  wealth,	
  and	
  other	
  
variables	
  
Characteristics Affecting
Consumer Behavior
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Major American Social Classes
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
Membership
Groups
•  Groups with
direct
influence
and to which
a person
belongs
Aspirational
Groups
•  Groups an
individual
wishes to
belong to
Reference
Groups
•  Groups that
form a
comparison
or reference
in forming
attitudes or
behavior
Groups	
  and	
  Social	
  Networks
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
•  Word-­‐of-­‐mouth	
  influence	
  and	
  
buzz	
  marke8ng	
  
–  Opinion	
  leaders	
  are	
  people	
  
within	
  a	
  reference	
  group	
  who	
  
exert	
  social	
  influence	
  on	
  others	
  
–  Also	
  called	
  influen/als	
  or	
  
leading	
  adopters	
  
–  Marketers	
  iden8fy	
  them	
  to	
  use	
  
as	
  brand	
  ambassadors	
  
Groups	
  and	
  Social	
  Networks
	
  
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
•  Online	
  Social	
  Networks	
  are	
  
online	
  communi8es	
  where	
  
people	
  socialize	
  or	
  exchange	
  
informa8on	
  and	
  opinions	
  
•  Include	
  blogs,	
  social	
  
networking	
  sites	
  (facebook),	
  
virtual	
  worlds	
  (second	
  life)	
  
	
  
Groups	
  and	
  Social	
  Networks
	
  
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
•  Family	
  is	
  the	
  most	
  important	
  consumer-­‐buying	
  
organiza8on	
  in	
  society	
  
•  Social	
  roles	
  and	
  status	
  are	
  the	
  groups,	
  family,	
  clubs,	
  
and	
  organiza8ons	
  that	
  a	
  person	
  belongs	
  to	
  that	
  can	
  
define	
  role	
  and	
  social	
  status	
  
Social	
  Factors
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
•  Age	
  and	
  life-­‐cycle	
  stage	
  
•  RBC	
  Royal	
  Band	
  stages	
  
–  Youth:	
  younger	
  than	
  18	
  
–  GeZng	
  started:	
  18–35	
  
–  Builders:	
  35–50	
  
–  Accumulators:	
  50–60	
  
–  Preservers:	
  over	
  60	
  
Personal	
  Factors
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
OccupaBon	
  affects	
  the	
  goods	
  and	
  services	
  
bought	
  by	
  consumers	
  
Economic	
  situa8on	
  includes	
  trends	
  in:	
  
Personal	
  Factors
	
  
	
  
Personal
income
Savings
Interest
rates
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
Lifestyle	
  is	
  a	
  person s	
  pa_ern
	
  
of	
  living	
  as	
  expressed	
  in	
  his	
  
or	
  her	
  psychographics	
  
•  Measures	
  a	
  consumer s	
  
AIOs	
  (ac8vi8es,	
  interests,	
  
opinions)	
  to	
  capture	
  
informa8on	
  about	
  a	
  
person s	
  pa_ern	
  of	
  ac8ng	
  
and	
  interac8ng	
  in	
  the	
  
environment	
  
Personal	
  Factors
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
•  Personality:	
  the	
  unique	
  psychological	
  
characteris8cs	
  that	
  lead	
  to	
  consistent	
  and	
  
las8ng	
  responses	
  to	
  the	
  consumer s	
  
environment	
  
•  Five	
  brand	
  personality	
  traits:	
  sincerity	
  (down-­‐to-­‐earth,	
  
honest,	
  wholesome,	
  and	
  cheerful);	
  excitement	
  (daring,	
  
spirited,	
  imagina8ve,	
  and	
  up-­‐to-­‐date);	
  competence	
  
(reliable,	
  intelligent,	
  and	
  successful);	
  sophis/ca/on	
  (upper	
  
class	
  and	
  charming);	
  and	
  ruggedness	
  (outdoorsy	
  and	
  
tough)	
  
Personal	
  Factors
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
Personal
Factors Dominance Autonomy
Defensiveness Adaptability Aggressiveness
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
Psychological	
  Factors
	
  
Motivation
Perception
Learning
Beliefs and attitudes
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
A	
  moBve	
  is	
  a	
  need	
  that	
  is	
  sufficiently	
  pressing	
  
to	
  direct	
  the	
  person	
  to	
  seek	
  sa8sfac8on	
  
	
  
MoBvaBon	
  research	
  refers	
  to	
  qualita8ve	
  
research	
  designed	
  to	
  probe	
  consumers 	
  
hidden,	
  subconscious	
  mo8va8ons	
  
Psychological	
  Factors
	
  
MoBvaBon
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
Maslow s
	
  
Hierarchy	
  of	
  Needs
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
PercepBon	
  is	
  the	
  process	
  by	
  
which	
  people	
  select,	
  
organize,	
  and	
  interpret	
  
informa8on	
  to	
  form	
  a	
  
meaningful	
  picture	
  of	
  the	
  
world	
  from	
  three	
  perceptual	
  
processes	
  
–  Selec8ve	
  a_en8on	
  
–  Selec8ve	
  distor8on	
  
–  Selec8ve	
  reten8on	
  
Psychological	
  Factors
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
SelecBve	
  aHenBon	
  is	
  the	
  tendency	
  for	
  people	
  to	
  
screen	
  out	
  most	
  of	
  the	
  informa8on	
  to	
  which	
  they	
  
are	
  exposed	
  
SelecBve	
  distorBon	
  is	
  the	
  tendency	
  for	
  people	
  to	
  
interpret	
  informa8on	
  in	
  a	
  way	
  that	
  will	
  support	
  
what	
  they	
  already	
  believe	
  
SelecBve	
  retenBon	
  is	
  the	
  tendency	
  to	
  remember	
  
good	
  points	
  made	
  about	
  a	
  brand	
  they	
  favor	
  and	
  
forget	
  good	
  points	
  about	
  compe8ng	
  brands	
  
Psychological	
  Factors
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
•  Learning	
  is	
  the	
  change	
  in	
  an	
  individual s	
  
behavior	
  arising	
  from	
  experience	
  and	
  
occurs	
  through	
  interplay	
  of:	
  
	
  
	
  
Psychological	
  Factors
	
  
	
  
Drives Stimuli Cues
Responses Reinforcement
Copyright ©2014 by Pearson Education, Inc. All rights reserved
•  A	
  drive	
  is	
  a	
  strong	
  internal	
  s8mulus	
  that	
  calls	
  for	
  ac8on.	
  A	
  drive	
  becomes	
  a	
  
mo8ve	
  when	
  it	
  is	
  directed	
  toward	
  a	
  par8cular	
  s/mulus	
  object.	
  For	
  example,	
  a	
  
person s	
  drive	
  for	
  self-­‐actualiza8on	
  might	
  mo8vate	
  him	
  or	
  her	
  to	
  look	
  into	
  
buying	
  a	
  camera.	
  The	
  consumer s	
  response	
  to	
  the	
  idea	
  of	
  buying	
  a	
  camera	
  is	
  
condi8oned	
  by	
  the	
  surrounding	
  cues.	
  Cues	
  are	
  minor	
  s8muli	
  that	
  determine	
  
when,	
  where,	
  and	
  how	
  the	
  person	
  responds.	
  For	
  example,	
  the	
  person	
  might	
  
spot	
  several	
  camera	
  brands	
  in	
  a	
  shop	
  window,	
  hear	
  of	
  a	
  special	
  sale	
  price,	
  or	
  
discuss	
  cameras	
  with	
  a	
  friend.	
  These	
  are	
  all	
  cues	
  that	
  might	
  influence	
  a	
  
consumer s	
  response	
  to	
  his	
  or	
  her	
  interest	
  in	
  buying	
  the	
  product.	
  
•  Suppose	
  the	
  consumer	
  buys	
  a	
  Nikon	
  camera.	
  If	
  the	
  experience	
  is	
  rewarding,	
  
the	
  consumer	
  will	
  probably	
  use	
  the	
  camera	
  more	
  and	
  more,	
  and	
  his	
  or	
  her	
  
response	
  will	
  be	
  reinforced.	
  Then	
  the	
  next	
  8me	
  he	
  or	
  she	
  shops	
  for	
  a	
  camera,	
  
or	
  for	
  binoculars	
  or	
  some	
  similar	
  product,	
  the	
  probability	
  is	
  greater	
  that	
  he	
  or	
  
she	
  will	
  buy	
  a	
  Nikon	
  product.	
  	
  
Example
Characteristics Affecting
Consumer Behavior
Belief	
  is	
  a	
  descrip8ve	
  thought	
  that	
  a	
  person	
  
has	
  about	
  something	
  based	
  on:	
  
•  Knowledge	
  
•  Opinion	
  
•  Faith	
  
Psychological	
  Factors
	
  
Beliefs	
  and	
  AJtudes
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Characteristics Affecting
Consumer Behavior
AJtudes	
  
	
  
describe	
  a	
  person s	
  rela8vely	
  consistent	
  
evalua8ons,	
  feelings,	
  and	
  tendencies	
  
toward	
  an	
  object	
  or	
  idea
	
  
Psychological	
  Factors
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Types of Buying Decision
Behavior
Complex buying behavior
Dissonance-reducing buying behavior
Habitual buying behavior
Variety-seeking buying behavior
Copyright ©2014 by Pearson Education, Inc. All rights reserved
Types of Buying Decision
Behavior
Four	
  Types	
  of	
  Buying	
  Behavior
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
The Buyer Decision Process
Buyer	
  Decision	
  Making	
  Process
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
The Buyer Decision Process
•  Occurs	
  when	
  the	
  buyer	
  recognizes	
  a	
  
problem	
  or	
  need	
  triggered	
  by:	
  
–  Internal	
  s8muli	
  -­‐hunger	
  or	
  thirst	
  
–  External	
  s8muli-­‐	
  discussion	
  with	
  a	
  friend	
  	
  
Need	
  RecogniBon
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
The Buyer Decision Process
•  Personal	
  sources—family	
  and	
  friends	
  
•  Commercial	
  sources—adver8sing,	
  Internet	
  
•  Public	
  sources—mass	
  media,	
  consumer	
  organiza8ons	
  
•  Experien8al	
  sources—handling,	
  examining,	
  using	
  the	
  
product	
  
InformaBon	
  Search
	
  
Sources	
  of	
  InformaBon
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
The Buyer Decision Process
•  How	
  the	
  consumer	
  processes	
  informa8on	
  
to	
  arrive	
  at	
  brand	
  choices	
  
EvaluaBon	
  of	
  AlternaBves
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
The Buyer Decision Process
•  The	
  act	
  by	
  the	
  consumer	
  to	
  buy	
  the	
  most	
  
preferred	
  brand	
  
•  The	
  purchase	
  decision	
  can	
  be	
  affected	
  by:	
  	
  
–  AZtudes	
  of	
  others	
  
–  Unexpected	
  situa8onal	
  factors	
  
Purchase	
  Decision
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
The Buyer Decision Process
•  The	
  sa8sfac8on	
  or	
  dissa8sfac8on	
  that	
  the	
  
consumer	
  feels	
  about	
  the	
  purchase	
  
•  Rela8onship	
  between:	
  
–  Consumer s	
  expecta8ons	
  
–  Product s	
  perceived	
  performance	
  
•  The	
  larger	
  the	
  gap	
  between	
  expecta8on	
  and	
  
performance,	
  the	
  greater	
  the	
  consumer s	
  
dissa8sfac8on	
  
•  Cogni8ve	
  dissonance	
  is	
  the	
  discomfort	
  caused	
  
by	
  a	
  post-­‐purchase	
  conflict	
  
Post-­‐Purchase	
  Decision
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
The Buyer Decision Process
Customer	
  saBsfacBon	
  is	
  a	
  key	
  to	
  building	
  
profitable	
  rela8onships	
  with	
  consumers—
to	
  keeping	
  and	
  growing	
  consumers	
  and	
  
reaping	
  their	
  customer	
  life8me	
  value	
  
Post-­‐Purchase	
  Decision
	
  
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
The Buyer Decision Process for
New Products
AdopBon	
  process	
  is	
  the	
  mental	
  process	
  an	
  
individual	
  goes	
  through	
  from	
  first	
  learning	
  
about	
  an	
  innova8on	
  to	
  final	
  regular	
  use.	
  
•  Stages	
  in	
  the	
  process	
  include:	
  
Awareness Interest Evaluation Trial Adoption
Copyright ©2014 by Pearson Education, Inc. All rights reserved
•  Consumers	
  go	
  through	
  five	
  stages	
  in	
  the	
  
process	
  of	
  adop8ng	
  a	
  new	
  prod	
  
•  Awareness:	
  The	
  consumer	
  becomes	
  aware	
  of	
  the	
  new	
  product	
  but	
  
lacks	
  informa8on	
  about	
  it.	
  
•  Interest:	
  The	
  consumer	
  seeks	
  informa8on	
  about	
  the	
  new	
  product.	
  
•  Evalua/on:	
  The	
  consumer	
  considers	
  whether	
  trying	
  the	
  new	
  product	
  
makes	
  sense.	
  
•  Trial:	
  The	
  consumer	
  tries	
  the	
  new	
  product	
  on	
  a	
  small	
  scale	
  to	
  improve	
  
his	
  or	
  her	
  es8mate	
  of	
  its	
  value.	
  
•  Adop/on:	
  The	
  consumer	
  decides	
  to	
  make	
  full	
  and	
  regular	
  use	
  of	
  the	
  
new	
  product.	
  
Stages in the Adoption Process
The Buyer Decision Process for
New Products
•  Innovators	
  
•  Early	
  Adopters	
  
•  Early	
  Majority	
  
•  Late	
  Majority	
  
•  Laggards	
  
Differences	
  in	
  InnovaBvenessAdopter	
  
Categories
	
  
Copyright ©2014 by Pearson Education, Inc. All rights reserved
•  Innovators	
  are	
  venturesome—they	
  try	
  new	
  ideas	
  at	
  some	
  
risk.	
  Early	
  adopters	
  are	
  guided	
  by	
  respect—they	
  are	
  
opinion	
  leaders	
  in	
  their	
  communi8es	
  and	
  adopt	
  new	
  ideas	
  
early	
  but	
  carefully.	
  The	
  early	
  majority	
  is	
  deliberate—
although	
  they	
  rarely	
  are	
  leaders,	
  they	
  adopt	
  new	
  ideas	
  
before	
  the	
  average	
  person.	
  The	
  late	
  majority	
  is	
  skep8cal—
they	
  adopt	
  an	
  innova8on	
  only	
  aher	
  a	
  majority	
  of	
  people	
  
have	
  tried	
  it.	
  Finally,	
  laggards	
  are	
  tradi8on	
  bound—they	
  
are	
  suspicious	
  of	
  changes	
  and	
  adopt	
  the	
  innova8on	
  only	
  
when	
  it	
  has	
  become	
  something	
  of	
  a	
  tradi8on	
  itself.	
  
The five adopter groups
The Buyer Decision Process for
New Products
Influence	
  of	
  Product	
  CharacterisBcs
	
  
	
  on	
  Rate	
  of	
  AdopBon
	
  
	
  
Relative
advantage
Compatibility Complexity
Divisibility Communicability
Copyright ©2014 by Pearson Education, Inc. All rights reserved
•  Rela/ve	
  advantage:	
  The	
  degree	
  to	
  which	
  the	
  innova8on	
  appears	
  superior	
  to	
  
exis8ng	
  products.	
  HDTV	
  offers	
  substan8ally	
  improved	
  picture	
  quality.	
  This	
  
accelerated	
  its	
  rate	
  of	
  adop8on.	
  
•  Compa/bility:	
  The	
  degree	
  to	
  which	
  the	
  innova8on	
  fits	
  the	
  values	
  and	
  
experiences	
  of	
  poten8al	
  consumers.	
  HDTV,	
  for	
  example,	
  is	
  highly	
  compa8ble	
  
with	
  the	
  lifestyles	
  of	
  the	
  TV-­‐watching	
  public.	
  However,	
  in	
  the	
  early	
  years,	
  HDTV	
  
was	
  not	
  yet	
  compa8ble	
  with	
  programming	
  and	
  broadcas8ng	
  systems,	
  which	
  
slowed	
  adop8on.	
  Now,	
  as	
  high	
  defini8on	
  programs	
  and	
  channels	
  have	
  become	
  
the	
  norm,	
  the	
  rate	
  of	
  HDTV	
  adop8on	
  has	
  increased	
  rapidly.	
  
•  Complexity:	
  The	
  degree	
  to	
  which	
  the	
  innova8on	
  is	
  difficult	
  to	
  understand	
  or	
  
use.	
  HDTVs	
  are	
  not	
  very	
  complex.	
  Therefore,	
  as	
  more	
  programming	
  has	
  
become	
  available	
  and	
  prices	
  have	
  fallen,	
  the	
  rate	
  of	
  HDTV	
  adop8on	
  has	
  
increased	
  faster	
  than	
  that	
  of	
  more	
  complex	
  innova8ons.	
  
Rate of adoption 1
•  Divisibility:	
  The	
  degree	
  to	
  which	
  the	
  innova8on	
  may	
  be	
  
tried	
  on	
  a	
  limited	
  basis.	
  Early	
  HDTVs	
  and	
  HD	
  cable	
  and	
  
satellite	
  systems	
  were	
  very	
  expensive,	
  which	
  slowed	
  the	
  
rate	
  of	
  adop8on.	
  As	
  prices	
  have	
  fallen,	
  adop8on	
  rates	
  
have	
  increased.	
  
•  Communicability:	
  The	
  degree	
  to	
  which	
  the	
  results	
  of	
  using	
  
the	
  innova8on	
  can	
  be	
  observed	
  or	
  described	
  to	
  others.	
  
Because	
  HDTV	
  lends	
  itself	
  to	
  demonstra8on	
  and	
  
descrip8on,	
  its	
  use	
  will	
  spread	
  faster	
  among	
  consumers.	
  
Rate of Adoption 2

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Chap 5

  • 1. Chapter Five Consumer  Markets  and  Consumer   Buyer  Behavior   Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 2. Consumer Markets and Consumer Buyer Behavior •  Model  of  Consumer  Behavior   •  Characteris8cs  Affec8ng  Consumer   Behavior   •  Types  of  Buying  Decision  Behavior   •  The  Buyer  Decision  Process   •  The  Buyer  Decision  Process  for  New   Products   Topic  Outline   Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 3. Consumer  buyer  behavior  :  the  buying  behavior  of   final  consumers,  individuals  and  households,   who  buy  goods  and  services  for  personal   consump8on     Consumer  market  :  all  of  the  personal  consump8on   of  final  consumers   Model of Consumer Behavior Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 4. Model of Consumer Behavior Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 5. Characteristics Affecting Consumer Behavior Factors  Influencing  Consumer  Behavior     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 6. Culture  is  the  learned  values,  percep8ons,   wants,  and  behavior  from  family  and  other   important  ins8tu8ons   Marketers  are  always  trying  to  spot  cultural  shi+s  to  discover   new  products  that  might  be  wanted:  greater  concern   about  health  and  fitness  has  created  a  huge  industry  for   health-­‐and-­‐fitness  services,  exercise  equipment  and   clothing,  organic  foods,  and  a  variety  of  diets   Characteristics Affecting Consumer Behavior Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 7. Characteristics Affecting Consumer Behavior Subculture  are  groups  of  people  within  a  culture   with  shared  value  systems  based  on  common  life   experiences          and  situa8ons   •  Hispanic  American   •  African  American   •  Asian  American   Cross-­‐Cultural-­‐  including  ethnic  themes  and  cross-­‐cultural   perspec8ves  within  their  mainstream  marke8ng   Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 8. Social  classes  are  society s  rela8vely   permanent  and  ordered  divisions  whose   members  share  similar  values,  interests,   and  behaviors.     •  Measured  by  a  combina8on  of  occupa8on,   income,  educa8on,  wealth,  and  other   variables   Characteristics Affecting Consumer Behavior Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 9. Major American Social Classes Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 10. Characteristics Affecting Consumer Behavior Membership Groups •  Groups with direct influence and to which a person belongs Aspirational Groups •  Groups an individual wishes to belong to Reference Groups •  Groups that form a comparison or reference in forming attitudes or behavior Groups  and  Social  Networks     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 11. Characteristics Affecting Consumer Behavior •  Word-­‐of-­‐mouth  influence  and   buzz  marke8ng   –  Opinion  leaders  are  people   within  a  reference  group  who   exert  social  influence  on  others   –  Also  called  influen/als  or   leading  adopters   –  Marketers  iden8fy  them  to  use   as  brand  ambassadors   Groups  and  Social  Networks       Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 12. Characteristics Affecting Consumer Behavior •  Online  Social  Networks  are   online  communi8es  where   people  socialize  or  exchange   informa8on  and  opinions   •  Include  blogs,  social   networking  sites  (facebook),   virtual  worlds  (second  life)     Groups  and  Social  Networks       Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 13. Characteristics Affecting Consumer Behavior •  Family  is  the  most  important  consumer-­‐buying   organiza8on  in  society   •  Social  roles  and  status  are  the  groups,  family,  clubs,   and  organiza8ons  that  a  person  belongs  to  that  can   define  role  and  social  status   Social  Factors     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 14. Characteristics Affecting Consumer Behavior •  Age  and  life-­‐cycle  stage   •  RBC  Royal  Band  stages   –  Youth:  younger  than  18   –  GeZng  started:  18–35   –  Builders:  35–50   –  Accumulators:  50–60   –  Preservers:  over  60   Personal  Factors     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 15. Characteristics Affecting Consumer Behavior OccupaBon  affects  the  goods  and  services   bought  by  consumers   Economic  situa8on  includes  trends  in:   Personal  Factors     Personal income Savings Interest rates Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 16. Characteristics Affecting Consumer Behavior Lifestyle  is  a  person s  pa_ern   of  living  as  expressed  in  his   or  her  psychographics   •  Measures  a  consumer s   AIOs  (ac8vi8es,  interests,   opinions)  to  capture   informa8on  about  a   person s  pa_ern  of  ac8ng   and  interac8ng  in  the   environment   Personal  Factors     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 17. Characteristics Affecting Consumer Behavior •  Personality:  the  unique  psychological   characteris8cs  that  lead  to  consistent  and   las8ng  responses  to  the  consumer s   environment   •  Five  brand  personality  traits:  sincerity  (down-­‐to-­‐earth,   honest,  wholesome,  and  cheerful);  excitement  (daring,   spirited,  imagina8ve,  and  up-­‐to-­‐date);  competence   (reliable,  intelligent,  and  successful);  sophis/ca/on  (upper   class  and  charming);  and  ruggedness  (outdoorsy  and   tough)   Personal  Factors     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 18. Characteristics Affecting Consumer Behavior Personal Factors Dominance Autonomy Defensiveness Adaptability Aggressiveness Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 19. Characteristics Affecting Consumer Behavior Psychological  Factors   Motivation Perception Learning Beliefs and attitudes Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 20. Characteristics Affecting Consumer Behavior A  moBve  is  a  need  that  is  sufficiently  pressing   to  direct  the  person  to  seek  sa8sfac8on     MoBvaBon  research  refers  to  qualita8ve   research  designed  to  probe  consumers   hidden,  subconscious  mo8va8ons   Psychological  Factors   MoBvaBon     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 21. Characteristics Affecting Consumer Behavior Maslow s   Hierarchy  of  Needs   Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 22. Characteristics Affecting Consumer Behavior PercepBon  is  the  process  by   which  people  select,   organize,  and  interpret   informa8on  to  form  a   meaningful  picture  of  the   world  from  three  perceptual   processes   –  Selec8ve  a_en8on   –  Selec8ve  distor8on   –  Selec8ve  reten8on   Psychological  Factors     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 23. Characteristics Affecting Consumer Behavior SelecBve  aHenBon  is  the  tendency  for  people  to   screen  out  most  of  the  informa8on  to  which  they   are  exposed   SelecBve  distorBon  is  the  tendency  for  people  to   interpret  informa8on  in  a  way  that  will  support   what  they  already  believe   SelecBve  retenBon  is  the  tendency  to  remember   good  points  made  about  a  brand  they  favor  and   forget  good  points  about  compe8ng  brands   Psychological  Factors   Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 24. Characteristics Affecting Consumer Behavior •  Learning  is  the  change  in  an  individual s   behavior  arising  from  experience  and   occurs  through  interplay  of:       Psychological  Factors     Drives Stimuli Cues Responses Reinforcement Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 25. •  A  drive  is  a  strong  internal  s8mulus  that  calls  for  ac8on.  A  drive  becomes  a   mo8ve  when  it  is  directed  toward  a  par8cular  s/mulus  object.  For  example,  a   person s  drive  for  self-­‐actualiza8on  might  mo8vate  him  or  her  to  look  into   buying  a  camera.  The  consumer s  response  to  the  idea  of  buying  a  camera  is   condi8oned  by  the  surrounding  cues.  Cues  are  minor  s8muli  that  determine   when,  where,  and  how  the  person  responds.  For  example,  the  person  might   spot  several  camera  brands  in  a  shop  window,  hear  of  a  special  sale  price,  or   discuss  cameras  with  a  friend.  These  are  all  cues  that  might  influence  a   consumer s  response  to  his  or  her  interest  in  buying  the  product.   •  Suppose  the  consumer  buys  a  Nikon  camera.  If  the  experience  is  rewarding,   the  consumer  will  probably  use  the  camera  more  and  more,  and  his  or  her   response  will  be  reinforced.  Then  the  next  8me  he  or  she  shops  for  a  camera,   or  for  binoculars  or  some  similar  product,  the  probability  is  greater  that  he  or   she  will  buy  a  Nikon  product.     Example
  • 26. Characteristics Affecting Consumer Behavior Belief  is  a  descrip8ve  thought  that  a  person   has  about  something  based  on:   •  Knowledge   •  Opinion   •  Faith   Psychological  Factors   Beliefs  and  AJtudes   Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 27. Characteristics Affecting Consumer Behavior AJtudes     describe  a  person s  rela8vely  consistent   evalua8ons,  feelings,  and  tendencies   toward  an  object  or  idea   Psychological  Factors     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 28. Types of Buying Decision Behavior Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 29. Types of Buying Decision Behavior Four  Types  of  Buying  Behavior   Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 30. The Buyer Decision Process Buyer  Decision  Making  Process   Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 31. The Buyer Decision Process •  Occurs  when  the  buyer  recognizes  a   problem  or  need  triggered  by:   –  Internal  s8muli  -­‐hunger  or  thirst   –  External  s8muli-­‐  discussion  with  a  friend     Need  RecogniBon     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 32. The Buyer Decision Process •  Personal  sources—family  and  friends   •  Commercial  sources—adver8sing,  Internet   •  Public  sources—mass  media,  consumer  organiza8ons   •  Experien8al  sources—handling,  examining,  using  the   product   InformaBon  Search   Sources  of  InformaBon     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 33. The Buyer Decision Process •  How  the  consumer  processes  informa8on   to  arrive  at  brand  choices   EvaluaBon  of  AlternaBves     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 34. The Buyer Decision Process •  The  act  by  the  consumer  to  buy  the  most   preferred  brand   •  The  purchase  decision  can  be  affected  by:     –  AZtudes  of  others   –  Unexpected  situa8onal  factors   Purchase  Decision     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 35. The Buyer Decision Process •  The  sa8sfac8on  or  dissa8sfac8on  that  the   consumer  feels  about  the  purchase   •  Rela8onship  between:   –  Consumer s  expecta8ons   –  Product s  perceived  performance   •  The  larger  the  gap  between  expecta8on  and   performance,  the  greater  the  consumer s   dissa8sfac8on   •  Cogni8ve  dissonance  is  the  discomfort  caused   by  a  post-­‐purchase  conflict   Post-­‐Purchase  Decision     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 36. The Buyer Decision Process Customer  saBsfacBon  is  a  key  to  building   profitable  rela8onships  with  consumers— to  keeping  and  growing  consumers  and   reaping  their  customer  life8me  value   Post-­‐Purchase  Decision     Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 37. The Buyer Decision Process for New Products AdopBon  process  is  the  mental  process  an   individual  goes  through  from  first  learning   about  an  innova8on  to  final  regular  use.   •  Stages  in  the  process  include:   Awareness Interest Evaluation Trial Adoption Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 38. •  Consumers  go  through  five  stages  in  the   process  of  adop8ng  a  new  prod   •  Awareness:  The  consumer  becomes  aware  of  the  new  product  but   lacks  informa8on  about  it.   •  Interest:  The  consumer  seeks  informa8on  about  the  new  product.   •  Evalua/on:  The  consumer  considers  whether  trying  the  new  product   makes  sense.   •  Trial:  The  consumer  tries  the  new  product  on  a  small  scale  to  improve   his  or  her  es8mate  of  its  value.   •  Adop/on:  The  consumer  decides  to  make  full  and  regular  use  of  the   new  product.   Stages in the Adoption Process
  • 39. The Buyer Decision Process for New Products •  Innovators   •  Early  Adopters   •  Early  Majority   •  Late  Majority   •  Laggards   Differences  in  InnovaBvenessAdopter   Categories   Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 40. •  Innovators  are  venturesome—they  try  new  ideas  at  some   risk.  Early  adopters  are  guided  by  respect—they  are   opinion  leaders  in  their  communi8es  and  adopt  new  ideas   early  but  carefully.  The  early  majority  is  deliberate— although  they  rarely  are  leaders,  they  adopt  new  ideas   before  the  average  person.  The  late  majority  is  skep8cal— they  adopt  an  innova8on  only  aher  a  majority  of  people   have  tried  it.  Finally,  laggards  are  tradi8on  bound—they   are  suspicious  of  changes  and  adopt  the  innova8on  only   when  it  has  become  something  of  a  tradi8on  itself.   The five adopter groups
  • 41. The Buyer Decision Process for New Products Influence  of  Product  CharacterisBcs    on  Rate  of  AdopBon     Relative advantage Compatibility Complexity Divisibility Communicability Copyright ©2014 by Pearson Education, Inc. All rights reserved
  • 42. •  Rela/ve  advantage:  The  degree  to  which  the  innova8on  appears  superior  to   exis8ng  products.  HDTV  offers  substan8ally  improved  picture  quality.  This   accelerated  its  rate  of  adop8on.   •  Compa/bility:  The  degree  to  which  the  innova8on  fits  the  values  and   experiences  of  poten8al  consumers.  HDTV,  for  example,  is  highly  compa8ble   with  the  lifestyles  of  the  TV-­‐watching  public.  However,  in  the  early  years,  HDTV   was  not  yet  compa8ble  with  programming  and  broadcas8ng  systems,  which   slowed  adop8on.  Now,  as  high  defini8on  programs  and  channels  have  become   the  norm,  the  rate  of  HDTV  adop8on  has  increased  rapidly.   •  Complexity:  The  degree  to  which  the  innova8on  is  difficult  to  understand  or   use.  HDTVs  are  not  very  complex.  Therefore,  as  more  programming  has   become  available  and  prices  have  fallen,  the  rate  of  HDTV  adop8on  has   increased  faster  than  that  of  more  complex  innova8ons.   Rate of adoption 1
  • 43. •  Divisibility:  The  degree  to  which  the  innova8on  may  be   tried  on  a  limited  basis.  Early  HDTVs  and  HD  cable  and   satellite  systems  were  very  expensive,  which  slowed  the   rate  of  adop8on.  As  prices  have  fallen,  adop8on  rates   have  increased.   •  Communicability:  The  degree  to  which  the  results  of  using   the  innova8on  can  be  observed  or  described  to  others.   Because  HDTV  lends  itself  to  demonstra8on  and   descrip8on,  its  use  will  spread  faster  among  consumers.   Rate of Adoption 2