Transcript Chapter 6

Part 2: Understanding markets
Chapter 6: Consumer behaviour
Step 4: Analyse buyer behaviour
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PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
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When we finish this lecture you should
• Understand the ‘economic person’ model of buyer
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behaviour
Realise that buyer behaviour is heavily influenced by
demographic factors both globally and domestically
Understand how psychological variables affect an
individual’s buying behaviour
Understand how social influences affect both an
individual and a household’s buying behaviour
Understand why the purchase situation has an influence
on consumer behaviour
Recognise that buyer behaviour often differs between
countries
Know how consumers use problem-solving processes
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Economic influences
• Economic needs
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Making the best use of time and money from the
consumer’s perspective
• Value for money
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Not necessarily lower prices
• Convenience
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Carefully planned distribution can make it easier and
faster for people to make decisions
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Demographic influences
• Demographics
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The description of people and population
• They are an essential tool for marketers
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Understanding market segments and developing
marketing mixes.
• They are important for determining the size of
consumer target markets
• Demographic trends help identify opportunities
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Shifts in age distribution
Geographic growth/decline
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Global population—statistics and
trends
• Many marketers ignore opportunities outside their
own countries
• World population—now over 6 billion
• Australian population—now 20 million
• Less-developed countries experience a greater rate
of growth
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Population concentration
• Density is important to marketers
• Distribution costs can eliminate markets from being
profitable
• Urbanisation differs
• Communication systems differ
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Income
• Profitable markets require income
• Gross domestic product (GDP)
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Total wealth produced domestically in an economy in a
given period
• Gross national product (GNP)
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Total wealth produced both domestically and overseas by
an economy in a given period
• Hard to compare
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Literacy levels
• The proportion of a population able to read and
write
• Literacy levels affect the way in which information
is delivered
• Low literacy levels have required some companies
to use pictures instead of words
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Figure 6.3 Australian and New Zealand growth
projection to 2051
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The greying of Australian and New
Zealand consumer markets
• Average age is increasing
• Lifespan has lengthened
• Post-World War II ‘baby boomers’—about 25% of
the population
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Now in the 44–58 age range
• The 45 years, and older, age group will grow
dramatically in the next decade
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Figure 6.4 Changes in population age and
demand, 1991–2031
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Location of consumers
• Shift to urban and suburban areas
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Access to large population
• Mobile consumers
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Some people stay only a while before moving again
• Typical household composition
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Traditional household of married couple with two children
is only 50% of total households
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Location of consumers (continued)
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34.1% of couples are now choosing not to have children
Later marriages, with fewer children
A third of marriages end in divorce
Single-adults are now about 25% of all households
Unmarried couples are increasing
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Variations in spending based on
income and family life cycle
• Disposable income—income that is left after taxes
• Discretionary income—what is left of disposable
income after ‘necessities’
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Figure 6.5 Stages in modern family life cycles
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Ethnic dimensions of the Australian
and New Zealand markets
• People from different backgrounds may be
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influenced by different cultural variables
They may have different needs and ways of
thinking about expenditure
In Australia, 61% of both partners are born in
Australia
In Australia, 20% of the population speaks a
language (other than English) at home
Brand preferences differ in some ethnic groups
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Psychological influences
• Motivation
• Perception
• Learning
• Attitudes and beliefs
• Personality
• Lifestyle analysis (Psychographics)
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Figure 6.6 Possible needs motivating a person to
some action
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Figure 6.7 The PSSP hierarchy of needs
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Figure 6.8 The learning process
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Figure 6.9 Lifestyle dimensions (and some related
demographic dimensions)
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Social influences
• Family decision-making
• Social class
• Reference groups and opinion leaders
• Culture
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Situational influences
• Communication situation
• Purchase situation
• Consumption situation
• Situational influences include
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Time dimension
Physical environment
Social dimension
Task definition
Antecedent states (mood, hunger and so forth)
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Figure 6.10 A model of buyer behaviour
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Figure 6.11 Grid of evaluative criteria for three
holiday destinations
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Figure 6.12 Problem-solving continuum
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Figure 6.13 Relationship between the problemsolving process and learning
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Alternative models of consumer
behaviour
• Consumer behaviour applies findings from
psychology and sociology to specific consumptionrelated behaviours
• Others models use input-output processes
predicting purchase choices based on the specific
stimuli to which they have been exposed
• Others have attempted to understand behaviour
from a social, cultural and inter-personal point of
view
• Many approaches are available
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What we will be doing in the next
chapter
• In the following chapter we will be discussing
business-to-business marketing, including
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‘Multiple influences’ on business customers
The effect of e-commerce on business buying
The importance of relationships in business situations
Different types of companies
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