Marketing - Consumer Buying Behavior

1. Chapter 2
Consumer Buying Behavior
Prepared by:
Nor Izzuddin Bin Norrahman
Lecturer of Management, Banking & Islamic Finance
Astin College

2. Content…
• Consumer Buying Behavior (CBB)
• Characteristics Affecting Consumer Behavior
– Cultural
– Social
– Personal
– Psychological

3. Definition of CBB…
• Refers to the BUYING BEHAVIOR of final
consumers or market
• Consumer market consists of all the
individuals and households who buy or
acquire goods and services for personal
consumption.

4. Model of consumer behavior
Marketing
& Other
Stimuli
Product
Price
Place
Promotion
Buyer’s
Black
Box
Buyer
Characteristics
Buying
decision
process
Buyer
Response

5. Characteristics Affecting CBB…
• Cultural Factors
– Exert the broadest and deepest influence on
consumer behavior.
– Marketer needs to understand the role played by
the buyer’s culture, subculture, and social class.
Cultural
factors
Culture Subculture
Social
Class

6. • Culture
– The most basic cause of a person’s wants and
behavior.
– Growing up in society, a child learns basic values,
perceptions, wants, and behaviors from family and
other important institutions.
– Cultural values are widely held beliefs that state
what is desirable and have some influence on
behavior.
– It also influence our consumption.

7. • Subculture
– Each culture contains smaller subcultures, or
group of people with shared value system based
on common life experiences and situations.
– Includes nationalities, religions, racial groups, and
geographic regions.
– Many subcultures make up important market
segments.
– Marketer usually design their products and
services according to the subcultures needs.

8. • Social Class
– Almost all society has some form of social class
structure.
– Social classes are society’s relatively permanent
and ordered divisions whose members share
similar values, interests, and behaviors.
– It is not determined by a single factor (Exm:
Income)
– It is measured by a combination of occupation,
income, education, wealth and other variables.

9. Characteristics Affecting CBB…
• Social factors
– Consumer’s behavior also influenced by social
factors, such as the consumer’s small groups,
family, social roles and status.
Social
factors
Small
groups
Family
Roles &
status

10. • Groups
– Groups have direct influence and to which person
belongs are called membership groups.
– In contrast, reference groups serve as direct (Face-
to-face) or indirect points of comparison or
reference in forming person’s attitudes.
– People often are influenced by reference groups
to which they do not belong.
– Example: Teenager who played soccer hopes to
play for the national team.

11. • Family
– Family members can strongly influence buyer
behavior.
– There is roles and influence of the husband, wife,
and children on the purchase of different products
and services.
– Husband-wife involvement varies widely by
product category and by stage in the buying
process.
– Buying roles change with evolving consumer
lifestyles.

12. • Roles and status
– A person belongs to many groups – family, clubs,
organizations.
– The person’s position in each group can be
defined in terms of both roles and status.
– A role consists of the activities people are
expected to perform according to the persons
around them.
– Each role carries a status reflecting the general
esteem given to it by society.

13. Characteristics Affecting CBB…
• Personal Factors
– A buyer’s decisions also are influenced by
personal characteristics such as the buyer’s:
• Age
• Occupation
• Economic
• Situation
• Lifestyle
• Personality
• Self-Concept

14. • Age and life-cycle stage
– People change the goods and services they buy
over their lifetimes.
– Buying is also shaped by the stage of the family
life cycles, the stages through which families might
pass as they mature over time.
– However, today marketers prefer to focus on
alternative, non-traditional stages. (Exp: unmarried
couples, single parents, childless parents)

15. • Occupation
– Occupation affects buying behavior. (white vs blue
collar)
• Economic Situation
– Recess in economic will resulting consumers tent to
save money rather than spending
• Lifestyle
– Involving Activities, Interest and Opinion (AIO)
• Personality and self-concept
– Unique psychological characteristics.
– Self-confidence, dominance, sociability

16. Characteristics Affecting CBB…
• Psychological Factors
– A person’s buying choices are further influenced
by four major psychological factors.
Psychological
Factors
Motivation Perception Learning
Beliefs &
Attitudes

17. • Motivation
– Can be viewed as an internal force that directs
people to act in a particular way to satisfy a
particular need.
– Arising from the need.
– Needs become motive when it is aroused to a
sufficient level of intensity.
– Motive will direct person to seek satisfaction.

18. Maslow's hierarchy of needs:

19. • Perception
– Is the process by which people select, organize,
and interpret information to form a meaningful
picture of the world.
– A motivated person is READY to act.
– HOW the person acts is influenced by his/her
perception of the situation.
– All people receive info from 5 senses,
– But interpret the info in individual way

20. TUTORIAL 2
• Types of perception:
– Selective exposure
– Selective distortion
– Selective retention

21. • Learning
– Describes changes in an individual’s behavior
arising from experience.
– Learning occurs interplay of:
• Stimulus
– Environment that capable of eliciting a response
• Drive
– Is a motivating force that directs behavior
• Response
– Reaction to the stimulus and drive
• Reinforcement
– Reward or punishment receive as a result of your response

22. • Beliefs & Attitudes
– Belief : a descriptive thought that a person has
about something.
– Example?
– Attitude: person’s relatively consistent
evaluations, feelings, and tendencies toward an
object or idea.
– Example?

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