Transcript Personal Factors (continued)

Copyright © 2005 Pearson Education Canada Inc.
Consumer Markets and
Consumer Buyer Behaviour
•Chapter 7
•Powerpoint slides
•Extendit! version
•Instructor name
•Course name
•School name
•Date
Principles of Marketing: 6th Canadian Edition
Learning Objectives
7.2
Copyright © 2005 Pearson Education Canada Inc.
• After studying this chapter, you should be able to:
– Define the consumer market and construct a simple model of
consumer buyer behaviour
– Name the four major factors that influence consumer buyer
behaviour
– List and understand the
major types of buyingdecision behaviour and the
stages in the buyer
decision process
– Describe the adoption and
diffusion process for new
products
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Opening Vignette: Harley-Davidson
7.3
• One of the great American brands
• Market share: 1/5 of all North American motorbike sales, 1/2 of all
heavyweight segment
• Demand has exceeded supply since IPO in
1986; 17 years of record sales/income
• No longer just for stereotypical bike “gangs”
• Harley’s core clientele: older, affluent, and
better educated; “rubbies”
• Used focus groups and surveys to determine
core values and attitudes of customers
• Identified seven customer types
• Buying a bike, lifestyle, and an attitude
• Independence, freedom, and power
Principles of Marketing: 6th Canadian Edition
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Why Study Consumer Behaviour?
7.4
Have a better knowledge of the following
• Consumer buying behaviour:
– Buying behaviour of final consumers
– Purchase goods and services for personal consumption
• Consumer market:
– All individuals and
households
– Buy or acquire goods and
services for consumption
• Why are marketers interested in
this?
• Need to be able to understand
consumer behaviour before we
can (hope) to influence it
Principles of Marketing: 6th Canadian Edition
7.5
Model of Buyer Behaviour
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• Buyer behaviour model:
– Consumers are exposed to many stimuli including the marketing
mix and other external factors
– Buyer characteristics influence how these stimuli are perceived
and processed
– Buyer decision process results in behaviour
Figure 7.1
Principles of Marketing: 6th Canadian Edition
7.6
Cultural Factors
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• Culture:
–
–
–
–
Set of basic values, perceptions, wants and behaviours
Learned from family and important institutions
Core values remain stable, while secondary values change slowly
Growing sense of wanting to be distinct from the U.S., despite
media spillover
– Differences between cultures are important to international trade
• Subculture:
– Group of people with
shared value systems
– Based on common
life experiences and
situations
Figure 7.2
Principles of Marketing: 6th Canadian Edition
7.7
Cultural Factors (continued)
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• Canadian subcultures:
– 2001 census: english language roots 59%, french 23%, remainder a
mixture of many cultures of immigration
– Multilingual society: more than 100 languages reported in 2001
census, Chinese being the third most spoken language
• Groups of interest:
– Native Canadians: 1 million
– Ethnic groups: fastest
growing markets in
Canada; share values
of both cultures
– French Canadian:
values and behaviour
are different
Figure 7.2
Principles of Marketing: 6th Canadian Edition
Cultural Factors (continued)
7.8
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• Social classes:
– Relatively permanent and ordered divisions in a society
– Whose members share similar values, interests, and behaviours
– Measured by a combination of income, occupation, education,
wealth, and other variables
– Consumption behaviour may be to show membership in a class
– Marketers are interested
because consumption
behaviour tends to be
Figure 7.2
consistent within a
given social class
Principles of Marketing: 6th Canadian Edition
7.9
Social Factors
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• Social factors:
– Consumers belong to membership groups (parts of)
– Compare themselves to reference groups (outside) - may aspire to
becoming a member of a group
• Opinion leader:
– Person within a
reference group who has
kills, knowledge,
personality that exert
influence on others
Figure 7.2
Principles of Marketing: 6th Canadian Edition
7.10
Social Factors (continued)
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• Family:
– First and strongest influence on behavior
– Roles and influences within the family have been extensively
researched
– Past assumptions about gender influence are less valid today (men
versus women)
– Children learn consumption behavior early on (influencer)
• Roles and status:
– Consumers play many
roles, each requiring
some type of
consumption behaviour
– Products can be used to
show status
Figure 7.2
Principles of Marketing: 6th Canadian Edition
Personal Factors
7.11
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Personal factors:
Consumer needs change over their lifetimes in (somewhat)
predictable ways
• Family life cycle: combines age with marital status and
presence of children to classify consumers into groups
– Young families make different housing, food, and transportation
choices than mature couples with grown children gone (or back!)
– Marketers need to
consider current social
Figure 7.2
trends such an nontraditional living
arrangements, delayed
marriage, divorce rates,
single parents
Principles of Marketing: 6th Canadian Edition
7.12
Personal Factors (continued)
Copyright © 2005 Pearson Education Canada Inc.
• Occupation:
– The type of work performed may necessitate different consumption
patterns, such as blue collar versus white collar
– Will also indirectly affect how much income is available
• Economic situation:
– How much income (or ability to borrow) is available for
consumption
– Economic indicators
such as employment,
inflation, interest rates,
and consumer debt
levels are used to
predict changes in
buying power
Figure 7.2
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Personal Factors (continued)
7.13
• Lifestyle:
– A person’s pattern of living as
expressed by their activities (work,
hobbies, sports, social events),
interests (food, fashion, family,
events), and opinions (themselves,
social issues, business)(AIO’s)
– Number of different lifestyle
or psychographic
classification systems
(reference only)
– SRI’s VALS2 uses selforientation and access to
resources to produce eight
different groups
Figure 7.3
Principles of Marketing: 6th Canadian Edition
7.14
Personal Factors (continued)
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• Personality and self-concept:
– A person’s distinguishing psychological characteristics that lead to
relatively consistent and lasting responses to his/her own
environment (self-confidence, dominance, sociability, autonomy) –
example – sports, Second cup
• Brand personality:
– The specific mix of human traits that may be attributed to a
particular brand ( beer)
– Match brand
personality to the
consumer’s personality
– Also known as
positioning; see
Chapter 9
Figure 7.2
Principles of Marketing: 6th Canadian Edition
7.15
Psychological Factors
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• Motivation:
– Humans are characterized by goal-directed behaviour
– Different needs/wants produces different behaviour
• Motive:
– A need that is sufficiently pressing to direct the person to seek
satisfaction
• Freud’s work focused on unconscious
urges directing our behaviour
• Maslow’s hierarchy of needs focuses on
how needs can be classified and ordered in
terms of importance
• Individuals are motivated to satisfy needs
at a particular level before moving on
Figure 7.4
Principles of Marketing: 6th Canadian Edition
Psychological Factors (continued)
7.16
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• Perception:
– The process by which people select, organize, and interpret
information
– To form a meaningful picture of the world
– All perception is selective, subject to distortion, and retained only
when it has meaning or importance to the perceiver
– To the consumer,
perception is reality
– Age-old controversy
Figure 7.2
over subliminal
advertising
(communication needs
to be louder to get
noticed, not quieter)
Principles of Marketing: 6th Canadian Edition
7.17
Psychological Factors (continued)
Copyright © 2005 Pearson Education Canada Inc.
• Learning:
– Changes in an individual’s behavior arising from experience
– Consumers learn what satisfies their needs and what does not
• Beliefs:
– A descriptive thought about something (perception)
• Attitudes:
Figure 7.2
– A person’s consistently
favourable or
unfavourable
evaluations, feelings,
and tendencies towards
something (politicians)
Principles of Marketing: 6th Canadian Edition
7.18
Types of Buying Decision Behaviour
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• Degree of involvement:
– How much the consumer cares about the purchase decision
– Higher levels for products that are expensive, risky, purchased
infrequently, and highly self-expressive
• Degree of perceived differences between brands
• The type of decision
will influence the
promotional strategy
most likely to be
effective
Figure 7.5
Principles of Marketing: 6th Canadian Edition
Copyright © 2005 Pearson Education Canada Inc.
Types of Buying Decision Behaviour
7.19
• Complex buying behavior – computers (educate,
explain)
• Dissonance-reducing buying behavior – refrigerator
(feel to have bought the best product)
• Habitual buying behavior – mayonnaise (brand
belonging)
Figure 7.5
• Variety seeking behavior – cookies (can change brands
for variety sake)
Principles of Marketing: 6th Canadian Edition
7.20
The Buyer Decision Process
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• Need recognition:
– Triggered by internal or external stimuli
– Must reach an intensity high enough to become a drive
– Needs are basic, wants are learned behaviour to satisfy them
• Information search:
– Influenced by level of involvement (interest) in the decision
– Memory (internal) search
– External search: personal, commercial, public, experiential
sources of information
– Word-of-mouth sources are most influential (credibility)
Figure 7.6
Principles of Marketing: 6th Canadian Edition
The Buyer Decision Process (continued)
7.21
Copyright © 2005 Pearson Education Canada Inc.
• Evaluation of alternatives:
–
–
–
–
The process of evaluating information to make a decision
Attributes and importance weights are chosen as criteria
Alternatives compared against the criteria
Marketers can influence this stage; personal selling
• Purchase decision:
– Attitudes of others and unexpected situational factors
– May come between purchase intention and decision to buy
– Making a decision commits the buyer
Figure 7.6
Principles of Marketing: 6th Canadian Edition
7.22
The Buyer Decision Process (continued)
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• Postpurchase behaviour:
– What the consumer thinks and does after purchasing and using the
product or service
– Relationship between consumer expectation and perceived
performance
• Cognitive dissonance:
– Buyer discomfort caused by postpurchase conflict
– Customers want to believe that they make good decisions; will
look for proof and discount information to the contrary
– A good reason for customer follow-up programs
Figure 7.6
Principles of Marketing: 6th Canadian Edition
Adoption of New Product Innovations
7.23
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Not all consumers like to try new things; due to risk
•
Stages in the adoption process:
– Awareness (know about product, but no information), interest
(looks for information), evaluation (makes sense?), trial (tries
for estimation), and adoption
•
What can influence the rate of adoption
–
–
•
Individual differences (see figure)
Product characteristics
Influence of product characteristics on rate of adoption:
–
–
–
–
–
Relative advantage (superior to
existing products)
Compatibility (fits values and
lifestyles)
Complexity ( Difficult to
understand)
Divisibility (can be tried on limited
basis)
Communicability( observed or
well described advantages)
Figure 7.7
Principles of Marketing: 6th Canadian Edition
In Conclusion…
7.24
Copyright © 2005 Pearson Education Canada Inc.
• The learning objectives for this chapter were:
– Define the consumer market and construct a simple model of
consumer buyer behaviour
– Name the four major factors that influence consumer buyer
behaviour
– List and understand the major types
of buying-decision behaviour and the
stages in the buyer decision process
– Describe the adoption and diffusion
process for new products
Principles of Marketing: 6th Canadian Edition