Transcript 4. consumer behaviour

5-1
Consumer
Markets
and
Consumer
Buyer
Behavior
Consumer Buying Behavior
• Consumer Buying Behavior refers to the
buying behavior of final consumers
(individuals & households) who buy goods and
services for personal consumption.
• Consumer Market: All the individuals and
households who buy or acquire goods and
services for personal consumption.
5-2
5-3
Understanding Consumer Behaviour
• Consumers make many buying decisions
everyday.
• Most large companies research consumer buying
decisions in detail to know what consumers buy,
where they buy, how and how much they buy.
• The central question for marketers is how do
consumers react to various marketing efforts that
the company might use:
Model of Consumer Behavior
Product
Price
Marketing and
Other Stimuli
5-4
Economic
Technological
Place
Political
Promotion
Cultural
Buyer’s
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Buyer’s Black Box
Buyer’s Response
Characteristics
Affecting
Consumer
Behavior
Purchase
Timing
Purchase
Amount
5-5
• The marketing and other stimuli enter the black box, where
are turned into a set of observable buyer responses:
product choice, brand choice, dealer choice, purchase
timing and purchase amount.
• Marketers must figure out what is in the buyer’s black box.
• He wants to understand how the stimuli are changed into
responses inside the buyer’s black box.
• This has two parts. The buyer characteristics influence
how he or she perceives and react to the stimuli.
• Second the buyer decision process affects the buyer’s
behaviour.
Characteristics Affecting
Consumer Behavior
Culture
Social
Personal
Psychological
Buyer
5-6
Factors Affecting Consumer Behavior:
Culture
• Most basic cause of a person's wants and
behavior.
• Culture: Set of basic values, perceptions, learned by a member
of society from family & other institutions.
Subculture
Social Class
• Groups of people with shared
value systems based on
common life experiences.
• People within a social class
tend to exhibit similar buying
behavior.
• Hispanic Consumers
• Occupation
• African American Consumers
• Income
• Asian American Consumers
• Education
• Wealth
5-7
Factors Affecting Consumer Behavior:
Social
5-8
Groups
•Membership
•Reference, opinion
leader
Family
•Husband, wife, kids
•Influencer, buyer, user
Roles and Status : activities
people are expected to perform. Each
role carries a status reflecting the
general esteem given to it by society.
Social Factors
Factors Affecting Consumer Behavior:
Personal
5-9
Personal Influences
Age and Family Life Cycle
Stage
Occupation
Economic Situation
Personality & Self-Concept
Lifestyle Identification
Activities
Opinions
Interests
5-10
Lifestyle
• Lifestyle: Lifestyle is a person’s pattern of living as
expressed in his or her activities, interests, and opinions.
• Activities: Work, hobbies, shopping, sports, social events.
• Interests: Food, fashion, family, recreation
• Opinions: About themselves , social issues, business,
products
Factors Affecting Consumer Behavior:
Psychological
Motivation
Beliefs and
Attitudes
Psychological
Factors
Learning
Perception
5-11
5-12
Psychological Factors
• Motivation: Inner drive to fulfill a need
• Perception: The way people organise and interpret things
• Learning: Changes in an individual’s behaviour arising
from experience
• Beliefs : Descriptive thought
• Attitudes: A person’s favourable or unfavourable
evaluations or feelings toward an object or idea.
Maslow’s Hierarchy of Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
5-13
5-14
Consumer Decision-Making
Process
Need Recognition
Information Search
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
Evaluation
of Alternatives
Purchase
Postpurchase
Behavior
5-15
Need Recognition
Marketing helps
consumers recognize
(or create) an imbalance
between present status
and preferred state
•
When a current product isn’t
performing properly
•
When the consumer is running
out of an product
•
When another product seems
Preferred State
superior to the one currently used
The Buyer Decision Process
5-16
Step 1. Need Recognition
Need Recognition
Difference between an actual state and a desired state
Internal Stimuli
External Stimuli
• Hunger
• TV advertising
• Thirst
• Magazine ad
• A person’s normal
needs
• Radio slogan
•Stimuli in the
environment
The Buyer Decision Process
5-17
Step 2. Information Search
Personal Sources
•Family, friends, neighbors
•Most influential source of
information
Commercial Sources
•Advertising, salespeople
•Receives most information
from these sources
Public Sources
Experiential Sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
The Buyer Decision Process
5-18
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes
of others
Unexpected
situational
factors
Purchase Decision
5-19
The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived
Performance
Satisfied
Customer!
Dissatisfied
Customer
Cognitive Dissonance
5-20
5-21
Postpurchase Behavior
Cognitive Dissonance
Can minimize through:
Did I make a good decision?
Did I buy the right product?
Did I get a good value?
Effective Communication
Follow-up
Guarantees
Warranties
Underpromise &
overdeliver
5-22
Sour Grapes–
a story of
cognitive
dissonance
…after being unable to reach the grapes the fox said, “these
grapes are probably sour, and if I had them I would not eat
them.”
--Aesop
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
5-23
Early Majority
Innovators
Percentage of Adopters
Adoption of Innovations
Early
Adopters
34%
Late Majority
Early
Laggards
34%
16%
13.5%
2.5%
5-24
Time of Adoption
Late
Influences on the Rate of Adoption
of New Products
Communicability
Relative Advantage
Can results be easily
observed or described
to others?
Is the innovation
superior to existing
products?
Divisibility
Product
Characteristics
Can the innovation
be used on a
trial basis?
Complexity
Is the innovation
difficult to
understand or
use?
5-25
Compatibility
Does the innovation
fit the values and
experience of the
target market?