Transcript Consumer Markets and Consumer Buyer Behavior

Chapter 5
Consumer Markets and
Consumer Buyer
Behavior
Schedule – Before Midterm
4
Oct.8/9
Consumer Markets and
Consumer Buyer Behavior
Ch.5
Case 3
5
Oct.15/16
Business Markets and Business
Buyer Behavior
Ch.6
Case 4
6
Oct.22/23
Marketing Information System
Ch.4
Case 5
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Learning Goals
1.
2.
3.
4.
Define the consumer market and construct a
model of consumer buyer behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the process
Describe the adoption and diffusion process
for new products
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Case Study
Harley Davidson
Measuring Success
Building Success
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Understanding the
customers’ emotions
and motivation
Determining the factors
of loyalty
Translating this
information to effective
advertising
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Currently 22% of all U.S.
bike sales
Demand above supply
Sales doubled in the past
5 years with earnings
tripled
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Learning Goals
1.
2.
3.
4.
Define the consumer market and construct a
model of consumer buyer behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the process
Describe the adoption and diffusion process
for new products
5
Definitions
Consumer buyer behavior refers to the
buying behavior 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
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Learning Goals
1.
2.
3.
4.
Define the consumer market and
construct a model of consumer buyer
behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the
process
Describe the adoption and diffusion
process for new products
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Model of Buyer Behavior
Characteristics Affecting
Consumer Behavior
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Key Factors
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Cultural
Social
Personal
Psychological
Culture
Subculture
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Forms a person’s wants and
behavior
Groups with shared value
systems
Social Class
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Society’s divisions who
share values, interests and
behaviors
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Characteristics Affecting
Consumer Behavior

Key Factors
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Cultural
Social
Personal
Psychological
Groups
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Family
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Membership
Reference
 Aspirational
Opinion leaders
 Buzz marketing
Many influencers
Roles and status
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This
advertiser
knows teens
are strongly
influenced by
groups when
purchasing
fashion items
Characteristics Affecting
Consumer Behavior
Key Factors
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Cultural
Social
Personal
Psychological
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Age and life cycle
 Occupation
 Economic situation
 Lifestyle
Activities,
interests and
opinions
Lifestyle segmentation

Personality and self-concept
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Personal Factors

Family Life Cycle stages throughout which
families pass as they mature over time
 Stages in family life cycle:
1.bachelor stage
2.newly married couples, no children
3.full nest 1; youngest child under 6
4.full nest 2; youngest child 6 or over
5. full nest 3; older married couples with dependent children
6.empty nest 1; older married couples no children with them
7. empty nest 1; older married couples no children at home;retired
8.solitary survivor, working
9.solitary survivor, retired
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Personal Factors
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Personality a person’s unique
characteristics that lead to relatively consistent
and lasting responses to his environment
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Self-concept the self image or general
picture that people have of themselves
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Personal Factors
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Lifestyle a person’s pattern of living as
expressed in his activities, interests and
opinions
technique of measuring lifestyles
and developing lifestyle classifications
 Major dimensions measured are:
 Activities (work, hobbies, social events, entertainment,
 Psychographics
shopping, sports,vacation)
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Interests (family, home, job, recreation, fashion, food,
media, achievements)
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Opinions (themselves, social issues, politics, business,
economics, products, future)
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Values and Lifestyles (VALS)
High Resources
Actualizers
High Innovation
Fulfilleds
Achievers
Experiencers
Believers
Strivers
Makers
Low Resources
Strugglers
Low Innovation17
Brand Personality Dimensions
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Sincerity
Ruggedness
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Excitement
Competence
Sophistication
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Characteristics Affecting Consumer
Behavior
Key Factors
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Cultural
Social
Personal
Psychological
 Motivation
 Perception
 Learning
 Beliefs
and attitudes
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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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Maslow’s Hierarchy of Needs
This ad
demonstrates a
product meeting
physiological
and social
needs
Discussion
What consumer
products might fulfill
multiple levels of the
Hierarchy of Needs?
Psychological Factors
Perception
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Perception is the process by which people
select, organize, and interpret information.
Perception Includes:
 Selective
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Consumers screen out information
 Selective
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distortion
People interpret to support beliefs
 Selective
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attention
retention
People retain points to support attitudes
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Discussion Question
Perception
1.
2.
How many ads were
you exposed to
today?
Which ones do you
remember? Why?
Psychological Factors
Learning
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Learning describes changes in an individual’s
behavior arising from experience
Learning occurs through
 Drives
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Internal stimulus that calls for action
 Stimuli
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Objects that move drive to motive
 Cues
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Minor stimuli that affect response
 Reinforcement
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Feedback on action
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Psychological Factors Beliefs
and Attitudes
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Belief
a
descriptive thought about a brand or service
 may be based on real knowledge, opinion, or
faith
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Attitude
 describes
a person’s evaluations, feelings and
tendencies toward an object or idea
 They are difficult to change
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Learning Goals
1.
2.
3.
4.
Define the consumer market and
construct a model of consumer buyer
behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the
process
Describe the adoption and diffusion
process for new products
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Types of Buying
Decision Behavior
The Buying Roles
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5 roles people might play in a buying decision
who first gives the idea of buying the
product or service
 Influencer whose view or advice influences the
decision
 Decider who decide on any component of buying
decision
 Buyer who makes the actual purchase
 User who uses the product or sevice purchased
 Initiator
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The Buyer Decision Process
The Buyer Decision
Process
Process Stages
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Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
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Needs can be triggered
by:
 Internal stimuli
 Normal needs
become strong
enough to drive
behavior
 External stimuli
 Advertisements
 Friends of friends
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The Buyer Decision
Process
Process Stages
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Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
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Consumers exhibit
heightened attention or
actively search for
information
Sources of information:
 Personal
 Commercial
 Public
 Experiential
 Word-of-mouth
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Information Search
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
•Family, friends, neighbors
•Most effective source of
information
•Advertising, salespeople
•Receives most information
from these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
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The Buyer Decision
Process
Process Stages
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Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
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Evaluation procedure
depends on the consumer
and the buying situation.
Most buyers evaluate
multiple attributes, each of
which is weighted
differently.
At the end of the evaluation
stage, purchase intentions
are formed.
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Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.
Consumers May Make Buying Decisions
Only After Consulting Others.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
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Decision Making Sets
Total
Set
Awareness
Set
Consideration
Set
Choice
Set
Decision
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The Buyer Decision
Process
Process Stages
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Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
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Two factors intercede
between purchase
intentions and the actual
decision:
 Attitudes of others
 Unexpected
situational factors
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Buyer Decision Process for
New Products
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New Products
 Good,
service or idea that is perceived by
customers as new.
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Stages in the Adoption Process
 Marketers
should help consumers move
through these stages.
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Stages in the Adoption Process
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks
Information about new product.
Evaluation: Consumer considers
trying new product.
Trial: Consumer tries new
product on a small scale.
Adoption: Consumer decides
to make regular use of product.
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Buyer Decision Process for
New Products
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Individual Differences in Innovativeness:
 Consumers
can be classified into five
adopter categories, each of which behaves
differently toward new products
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Early Majority
Innovators
Percentage of Adopters
Adopter Categories
Early
Adopters
34%
Late Majority
Laggards
34%
16%
13.5%
2.5%
Early
Time of Adoption
Late
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Buyer Decision Process for
New Products
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Product Characteristics influencing the adoption rate:
Advantage Is the innovation superior to
existing products?
 Compatibility Does the innovation fit the values and
experience of the target market?
 Complexity Is the innovation difficult to understand
or use?
 Divisibility Can the innovation be used on a trial
basis?
 Communicability Can results be easily observed or
described to others?
 Relative
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Buyer Decision Process for
New Products
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International Consumer Behavior
 Values,
attitudes and behaviors 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.
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Discussion Question
How is a site
like
Consumer
Reports
used in the
decisionmaking
process?
Discussion Question

Why might the
adoption process be
slow for a home
robot?
Source: Business Week
Source: Business Week
The Buyer Decision
Process
Process Stages
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Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
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Satisfaction is important:
 Delighted consumers
engage in positive wordof-mouth.
 Unhappy customers tell
on average 11 other
people.
Cognitive dissonance is
common
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Learning Goals
1.
2.
3.
4.
Define the consumer market and
construct a model of consumer buyer
behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the
process
Describe the adoption and diffusion
process for new products
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Ramazan Bayraminiz Kutlu & Mutlu
olsun!!!
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For Next Week
 Read
Chapter 6
 Be prepared for case 4 – Kodak discussion
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