Transcript here - Pearson Canada

Chapter 6
Consumer Markets
and Consumer
Buyer Behaviour
Copyright © 2008 Pearson Education Canada
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Define the consumer market and construct a
simple model of consumer buyer behaviour
2. Name the four major factors that influence
buyer behaviour
3. List and understand the types of buying
decision behaviour and stages in the buying
decision process
4. Describe the adoption and diffusion process
for new products
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Principles of Marketing, Seventh Canadian Edition
Case Study
Harley Davidson
Measuring Success
Building Success
• Understanding the
customers’ emotions and
motivation
• Determining the factors
of loyalty
• Translating this
information to effective
advertising
• 1/5 of all North
American motorbike
sales, 1/2 of all
heavyweight segment
• Demand above supply
• 19 years of record
sales/income
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Principles of Marketing, Seventh Canadian Edition
Case Study
Harley Davidson
• No longer just for stereotypical bike “gangs”
• Harley’s core clientele: older, affluent, and better
educated; “rubbies”
• Used focus groups and surveys to identify core values
and attitudes of customers
• Identified seven customer types
• Buying a bike, lifestyle, and an attitude
• Independence, freedom, and power
Copyright © 2008 Pearson Education Canada
6-4
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Define the consumer market and construct a
simple model of consumer buyer behaviour
2. Name the four major factors that influence
buyer behaviour
3. List and understand the types of buying
decision behaviour and stages in the buying
decision process
4. Describe the adoption and diffusion process
for new products
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Definitions
• Consumer buyer behaviour refers to the
buying behaviour of final consumers –
individuals and households who buy
goods and services for personal
consumption
• All of these final consumers combine to
make up the consumer market
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Define the consumer market and construct a
simple model of consumer buyer behaviour
2. Name the four major factors that influence
buyer behaviour
3. List and understand the types of buying
decision behaviour and stages in the buying
decision process
4. Describe the adoption and diffusion process
for new products
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Factors Affecting
Consumer Behaviour
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•
•
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• Culture
Cultural
Social
Personal
Psychological
– Influence a person’s
wants and behaviour
• Subculture
– Smaller groups with
shared value systems
• Social Class
– Society’s divisions
who share values,
interests and
behaviours
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Principles of Marketing, Seventh Canadian Edition
Factors Affecting
Consumer Behaviour
•
•
•
•
Cultural
Social
Personal
Psychological
• Groups
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–
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Membership
Reference
Aspirational
Opinion leaders
Buzz marketing
• Family
– Many influencers
• Roles and status
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Principles of Marketing, Seventh Canadian Edition
Factors Affecting
Consumer Behaviour
•
•
•
•
• Age and life-cycle
stage
• Occupation
• Economic situation
• Lifestyle
Cultural
Social
Personal
Psychological
– AIO - Activities,
interests and opinions
– VALS
– Lifestyle segmentation
• Personality and selfconcept
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Principles of Marketing, Seventh Canadian Edition
Brand Personality Dimensions
• The specific mix of human traits that may be
attributed to a particular brand
• Match brand personality to the consumer’s
personality
• Brand personality traits
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Sincerity
Excitement
Competence
Sophistication
Ruggedness
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Principles of Marketing, Seventh Canadian Edition
Factors Affecting
Consumer Behaviour
•
•
•
•
Cultural
Social
Personal
Psychological
• Motivation
– A need that drives the person to
seek satisfaction of the need
• Perception
– The process by which people
select, organize, and interpret
information
• Learning
– Changes in an individual’s
behaviour arising from experience
• Beliefs
– A descriptive thought about
something
• Attitudes
– A person’s consistently favourable
or unfavourable evaluations,
feelings, and tendencies towards
something
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Principles of Marketing, Seventh Canadian Edition
Psychological Factors
Motivation
• A motive is a need that is sufficiently pressing to
direct the person to seek satisfaction
• Motivation research is based on Freud. Looks
for hidden and subconscious motivation
• Maslow ordered needs based on how pressing
they are to the consumer
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Principles of Marketing, Seventh Canadian Edition
Discussion Question
What consumer
products might fulfill
multiple levels of the
Hierarchy of Needs?
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Principles of Marketing, Seventh Canadian Edition
Psychological Factors
Perception
• Perception is the process by which people select,
organize, and interpret information.
• Perception Includes:
– Selective attention
• Consumers screen out information
– Selective distortion
• People interpret to support beliefs
– Selective retention
• People retain points to support attitudes
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Principles of Marketing, Seventh Canadian Edition
Discussion Question
Perception
1. How many ads
were you exposed
to today?
2. Which ones do you
remember? Why?
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Principles of Marketing, Seventh Canadian Edition
Psychological Factors
Learning
• Learning describes changes in an individual’s
behaviour arising from experience
• Learning occurs through
– Drives
• A strong internal stimulus that calls for action
– Stimuli
• Objects that move drive to motive
– Cues
• Minor stimuli that affect response
– Reinforcement
• Feedback on action
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Psychological Factors Beliefs
and Attitudes
• Belief
– a descriptive thought about a brand or service
– may be based on real knowledge, opinion, or
faith
• Attitude
– describes a person’s evaluations, feelings and
tendencies toward an object or idea
– They are difficult to change
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Define the consumer market and construct a
simple model of consumer buyer behaviour
2. Name the four major factors that influence
buyer behaviour
3. List and understand the types of buying
decision behaviour and stages in the buying
decision process
4. Describe the adoption and diffusion process
for new products
Copyright © 2008 Pearson Education Canada
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Principles of Marketing, Seventh Canadian Edition
Types of Buying Decision
Behaviour
• 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
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Principles of Marketing, Seventh Canadian Edition
The Buyer Decision Process
• Need Recognition
– Triggered by internal (person’s normal needs)
or external stimuli (advertisements, friends)
– Must reach an intensity high enough to
become a drive
– Needs are basic, wants are learned behaviour
to satisfy them
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The Buyer Decision Process
• 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)
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The Buyer Decision Process
• Evaluation of Alternatives
– Evaluation procedure depends on the
consumer and the buying situation
– Attributes and importance weights are chosen
as criteria
– Alternatives compared against the criteria
– Marketers can influence this stage; personal
selling
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The Buyer Decision Process
• Purchase Decision
– Two factors intercede between purchase
intentions and the actual decision:
• Attitudes of others
• Unexpected situational factors
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Principles of Marketing, Seventh Canadian Edition
The Buyer Decision Process
• Postpurchase Behaviour
– What the consumer thinks and does after
purchasing and using the product or service
– Satisfaction: relationship between consumer
expectation and perceived performance
• Delighted consumers engage in positive word-ofmouth.
• Unhappy customers tell on average 11 other
people.
– Cognitive dissonance
Copyright © 2008 Pearson Education Canada
6-25
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Define the consumer market and construct a
simple model of consumer buyer behaviour
2. Name the four major factors that influence
buyer behaviour
3. List and understand the types of buying
decision behaviour and stages in the buying
decision process
4. Describe the adoption and diffusion process
for new products
Copyright © 2008 Pearson Education Canada
6-26
Principles of Marketing, Seventh Canadian Edition
Buyer Decision Process
for New Products
• New Products
– Good, service or idea that is perceived by customers
as new.
• The Adoption Process
– Mental process through which an individual passes
from first hearing about an innovation to final
adoption.
• Five Stages in the Adoption Process
– Awareness, interest, evaluation, trial, and adoption.
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Principles of Marketing, Seventh Canadian Edition
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.
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Principles of Marketing, Seventh Canadian Edition
Buyer Decision Process
for New Products
• Influence of Product Characteristics on
Rate of Adoption
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Relative Advantage
Compatibility
Complexity
Divisibility
Communicability
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Principles of Marketing, Seventh Canadian Edition
Buyer Decision Process
for New Products
• Consumer Behaviour Across International
Borders
– Values, attitudes and behaviours differ greatly in
other countries.
– Physical differences exist which 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.
Copyright © 2008 Pearson Education Canada
6-30
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Define the consumer market and construct a
simple model of consumer buyer behaviour
2. Name the four major factors that influence
buyer behaviour
3. List and understand the types of buying
decision behaviour and stages in the buying
decision process
4. Describe the adoption and diffusion process
for new products
Copyright © 2008 Pearson Education Canada
6-31
Principles of Marketing, Seventh Canadian Edition