5-1

Consumer Markets
and
Consumer Buyer
Behavior
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?”
 5-3
SIMPLE MODEL FOR CONSUMER BEHAVIOUR

r e So
ltu c ial
Cu Motives
Attitudes

Needs Consumer
Purchase
Business

Decision Learning

Family
Perception

Personality

Economic
Model of Consumer Behavior 5-4

Product Marketing and Economic

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
Characteristics Affecting 5-5

Consumer Behavior
Culture
Social
Personal
Psychological
Buyer
Factors Affecting Consumer Behavior: 5-6

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.
• North Indian Consumers • Occupation
• African American Consumers • Income
• Asian American Consumers • Education
• Mature Consumers • Wealth
Factors Affecting Consumer Behavior: 5-7

Social

Groups
Membership
•

Reference
•

Family
Husband, wife, kids
Social Factors
• •

Influencer, buyer, user

Roles and Status

Factors Affecting Consumer Behavior: 5-8

Personal
Personal Influences

Age and Family Life Cycle

Occupation
Stage

Economic Situation Personality & Self-Concept

Lifestyle Identification

Activities Opinions

Interests
VALS 2 5-9

Actualizers Abundant Resources

Principle Oriented Status Oriented Action Oriented

Fulfilleds Achievers Experiencers

Believers Strivers Makers

Strugglers
Minimal Resources
Factors Affecting Consumer Behavior: 5-10

Psychological

Motivation

Beliefs and Psychological

Factors Perception
Attitudes

Learning
Maslow’s Hierarchy of Needs 5-11

Self
Actualization
(Self-development)

Esteem Needs
( self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
Types of Buying Decisions 5-12

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
The Buyer Decision Process 5-13

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior
 5-14
DECISION MAKING PROCESSES

EXTERNAL INFLUENCES Experiences and Acquisitions SITUATIONS

Culture
Problem
Subculture
Recognition
Demographics
Social Status
Information
Reference Groups
Search
Family
Marketing Activities
SELF-CONCEPT Alternative Evaluation
Desires
and and Selection
LIFESTYLE Needs
INTERNAL INFLUENCES Outlet Selection
Perception and Purchases
Learning
Memory Post-purchase
Motives Processes
Personality
SITUATIONS
Emotions Experiences and Acquisitions
Attitudes
The Buyer Decision Process 5-15

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
The Buyer Decision Process 5-16

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
 5-17
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.
The Buyer Decision Process 5-18

Step 4. Purchase Decision

Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of others situational
factors

Purchase Decision
The Buyer Decision Process 5-19

Step 5. Postpurchase Behavior

Consumer’s Expectations of
Product’s Performance

Product’s Perceived
Performance

Satisfied Dissatisfied
Customer! Customer

Cognitive Dissonance
Stages in the Adoption Process 5-20

Awareness

Interest

Evaluation

Trial

Adoption
Adoption of Innovations
Percentage of Adopters
5-21

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late
Influences on the Rate of Adoption 5-22

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?