Consumer Markets

and Consumer
Buyer Behavior

Chapter 6
 Objectives

Be able to define the

consumer market and
construct a simple model of
consumer buyer behavior.
Know the four major factors
that influence consumer
buyer behavior.
6-1
 Objectives

Understand the major types of

buying decision behavior and
the stages in the buyer decision
process.
Be able to describe the
adoption and diffusion process
for new products.
6-2
 Harley-Davidson
c

Harley “Hogs” Fiercely loyal

account for 1/5 of clientele revolves
U.S. cycle sales around 7 core
Sales have customer types
exceeded supply Harley owners use
for years their bikes to express
1986-2000: Four their lifestyle and
stock splits, attitudes
increase of Advertising reflects
7,100% the Harley mystique
6-3
 Definitions

Consumer Buying Behavior

 Buying behavior of individuals and
households that buy products for
personal consumption.
Consumer Market
 All individuals/households who buy
products for personal consumption.

6-4
 Figure 6-1:
Model of Buyer Behavior

6-5
 Model of
Consumer Behavior

Stimulus Response Model

 Marketing and other stimuli enter the
buyer’s “black box” and produce
certain choice / purchase responses.
 Marketers must figure out
what is inside of the buyer’s
“black box” and how stimuli
are changed to responses.
?
6-6
 Figure 6-2:
Factors Influencing
Consumer Behavior

6-7
Characteristics Affecting
Consumer Behavior

Key Factors Culture

Subculture
Cultural  Hispanic
consumers
Social  African Americans
 Asian Americans
Personal
 Mature consumers
Psychological Social Class

6-8
Characteristics Affecting
Consumer Behavior

Hispanics
 35 million consumers
purchase $425 billion
worth of goods and
services.
 Expected to grow 64%
in 20 years.
 Spanish media makes
group easy to reach.
 Brand loyal group.
6-9
Sears uses the Fiesta mobile to visit
Hispanic neighborhoods regularly

6 - 10
Characteristics Affecting
Consumer Behavior

African Americans
 35 million consumers
purchase $527 billion
worth of goods and
services.
 Growing more affluent /
sophisticated.
 Price and brand name
conscious; quality and
selection are important.
 Certain media target this
group.
6 - 11
Hallmark offers an Afrocentric line of greeting
cards called Mahogany. What other brands have
been targeted specifically to African Americans?

6 - 12
Characteristics Affecting
Consumer Behavior

Asian Americans
 10 million consumers
purchase $229 billion
worth of goods and
services.
 Fastest growing, most
affluent subculture.
 Many nationalities
comprise this group.
 Consumer packaged
goods firms now target
this group more heavily.
6 - 13
Characteristics Affecting
Consumer Behavior

Mature Consumers
 75 million consumers age 50+will grow to 115
million within 25 years.
 Mature consumers
control 50% of all
discretionary income.
 Attractive market for
travel, restaurant, and
cosmetics products,
among others.
6 - 14
Characteristics Affecting
Consumer Behavior

Key Factors Groups

 Membership
 Reference
Cultural  Aspirational
groups
Social  Opinion leaders
 Buzz marketing
Personal
Family
Psychological  Kids can influence
Roles and Status
6 - 15
Characteristics Affecting
Consumer Behavior

Key Factors Age and life-cycle

Occupation
Economic situation
Cultural Lifestyle
Social  Activities, interests, and
opinions
Personal  Lifestyle segmentation
Personality and self-
Psychological concept
 Brand personality
6 - 16
Lifestyles:
Jeep targets
people who
want to “leave
the civilized
world behind”

What other
types of images
could be used
to appeal to this
lifestyle?

6 - 17
 Figure 6-3:
VALS Lifestyle Classification

Learn more about

VALS and take the
VALS survey online
by clicking the web
link icon below.

6 - 18
Characteristics Affecting
Consumer Behavior
Brand Personality Dimensions

Sincerity Excitement
Ruggedness Competence
Sophistication

6 - 19
Think about Tide
detergent.
What brand
personality
seems to
describe Tide
best?
Can you think of
examples of
brands that fit
each personality
type?

6 - 20
Characteristics Affecting
Consumer Behavior
Motivation
Key Factors  Needs provide motives
 Motivation research
 Maslow’s hierarchy of
needs
Cultural Perception
 Selective attention,
Social selective distortion,
selective retention
Personal Learning
 Drives, stimuli, cues,
Psychological responses and
reinforcement
Beliefs and attitudes
6 - 21
 Figure 6-4:
Maslow’s Hierarchy

6 - 22
The milk
moustache
campaign
changed
attitudes
toward milk.

6 - 23
 Figure 6-5:
Types of Buying Behavior

6 - 24
 Figure 6-6:
The Buyer Decision Process

6 - 25
The Buyer Decision Process
Stages Needs can be
triggered by:
Need recognition  Internal stimuli
Information search Normal needs
Evaluation of become strong
alternatives enough to drive
behavior
Purchase decision
 External stimuli
Postpurchase
Advertisements
behavior
Friends of friends
6 - 26
Attempt to stimulate need recognition

6 - 27
The Buyer Decision Process
Stages Consumers exhibit
heightened attention or
Need recognition actively search for
information.
Information search
Sources of information:
Evaluation of  Personal
alternatives  Commercial
Purchase decision  Public
 Experiential
Postpurchase
behavior Word-of-mouth

6 - 28
The Buyer Decision Process
Stages Evaluation procedure
depends on the
consumer and the buying
Need recognition situation.
Information search Most buyers evaluate
Evaluation of multiple attributes, each
of which is weighted
alternatives differently.
Purchase decision At the end of the
Postpurchase evaluation stage,
purchase intentions are
behavior
formed.

6 - 29
The Buyer Decision Process
Stages Two factors
intercede between
Need recognition
purchase
Information search
intentions and the
Evaluation of
alternatives actual decision:
Purchase decision  Attitudes of others
Postpurchase  Unexpected
behavior situational factors

6 - 30
The Buyer Decision Process
Stages Satisfaction is key:
 Delighted consumers
Need recognition engage in positive
word-of-mouth.
Information search  Unhappy customers
Evaluation of tell on average 11
alternatives other people.
Purchase decision  It costs more to attract
a new customer than it
Postpurchase does to retain an
behavior existing customer.
Cognitive dissonance
6 - 31
Buyer Decision Process for
New Products

New Products
 Good, service or
idea that is
perceived by
customers as new.

6 - 32
Buyer Decision Process for
New Products

Stages in the Adoption

Process
 Marketers should help
consumers move from
awareness to adoption.

6 - 33
 Buyer Decision Process
for New Products
Stages in the Adoption Process

Awareness Evaluation
Interest Trial
Adoption

6 - 34
Buyer Decision Process for
New Products

Individual Differences
in Innovativeness
 Consumers can be
classified into five
adopter categories,
each of which behaves
differently toward new
products.

6 - 35
 Figure 6-7:
Adopter Categories Based
on Relative Time of Adoption

6 - 36
Buyer Decision Process for
New Products

Product Characteristics
and Adoption
 Five product
characteristics
influence the
adoption rate.

6 - 37
Buyer Decision Process
for New Products
Product Characteristics
Relative Advantage
Compatibility
Complexity
Divisibility
Communicability
6 - 38
 Discussion Question

Describe how each

of the five product-
related innovation
characteristics will
influence the rate of
the adoption for this
product.

6 - 39
Buyer Decision Process for
New Products

International Consumer Behavior

 Values, attitudes and behaviors differ greatly
in other countries.
 Physical differences exist that require
changes in the marketing mix.
 Customs vary from country to country.
 Marketers must decide the degree to which
they will adapt their marketing efforts.

6 - 40