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Chapter #5
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1Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Five Consumer Markets and Consumer Buyer Behavior
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2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Consumer Markets and Consumer Buyer Behavior • Model of Consumer Behavior • Characteristics Affecting Consumer Behavior • Types of Buying Decision Behavior • The Buyer Decision Process • The Buyer Decision Process for New Products Topic Outline
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3Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • Consumer buyer behavior refers to the buying behavior of final consumers— individuals and households who buy goods and services for personal consumption • Consumer market refers to all of the personal consumption of final consumers Model of Consumer Behavior
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4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Culture is the learned values, perceptions, wants, and behavior from family and other important institutions Characteristics Affecting Consumer Behavior
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5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • Subculture are groups of people within a culture with shared value systems based on common life experiences and situations – Hispanic – African American – Asian – Mature consumers Characteristics Affecting Consumer Behavior
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6Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors • Measured by a combination of occupation, income, education, wealth, and other variables Characteristics Affecting Consumer Behavior
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7Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
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8Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior • Word-of-mouth influence and buzz marketing – Opinion leaders are people within a reference group who exert social influence on others – Also called influentials or leading adopters – Marketers identify them to use as brand ambassadors Groups and Social Networks
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9Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior • Online social networks are online communities where people socialize or exchange information and opinions • Include blogs, social networking sites (facebook), virtual worlds (second life) Groups and Social Networks
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10Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior • Family is the most important consumer- buying organization in society • Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status Social Factors
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11Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior • Age and life-cycle stage • RBC Royal Band stages – Youth—younger than 18 – Getting started—18-35 – Builders—35-50 – Accumulators—50–60 – Preservers—over 60 Personal Factors
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12Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Occupation affects the goods and services bought by consumers Economic situation includes trends in: Personal Factors Personal income Savings Interest rates
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13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Lifestyle is a person’s pattern of living as expressed in his or her psychographics • Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment Personal Factors
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14Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior • Personality and Self-Concept – Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment Personal Factors
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15Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Personal Factors Dominance Autonomy Defensiveness Adaptability Aggressiveness
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16Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Psychological Factors Motivation Perception Learning Beliefs and attitudes
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17Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior A motive is a need that is sufficiently pressing to direct the person to seek satisfaction Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations Psychological Factors Motivation
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18Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes – Selective attention – Selective distortion – Selective retention Psychological Factors
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19Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Selective attention is the tendency for people to screen out most of the information to which they are exposed Selective distortion is the tendency for people to interpret information in a way that will support what they already believe Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands Psychological Factors
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20Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
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21Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Belief is a descriptive thought that a person has about something based on: • Knowledge • Opinion • Faith Psychological Factors Beliefs and Attitudes
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22Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea Psychological Factors
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23Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Types of Buying Decision Behavior Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior
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24Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process • Occurs when the buyer recognizes a problem or need triggered by: – Internal stimuli – External stimuli Need Recognition
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25Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process • Personal sources—family and friends • Commercial sources—advertising, Internet • Public sources—mass media, consumer organizations • Experiential sources—handling, examining, using the product Information Search Sources of Information
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26Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process • How the consumer processes information to arrive at brand choices Evaluation of Alternatives
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27Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process • The act by the consumer to buy the most preferred brand • The purchase decision can be affected by: – Attitudes of others – Unexpected situational factors Purchase Decision
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28Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process • The satisfaction or dissatisfaction that the consumer feels about the purchase • Relationship between: – Consumer’s expectations – Product’s perceived performance • The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction • Cognitive dissonance is the discomfort caused by a postpurchase conflict Postpurchase Decision
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29Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value Post-Purchase Decision
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30Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process for New Products Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. • Stages in the process include: Awareness Interest Evaluation Trial Adoption
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31Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process for New Products Influence of Product Characteristics on Rate of Adoption
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32Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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