Transcript Consumer Behavior: People in the Marketplace

Chapter 7
Analyzing Consumer
Markets and Buyer Behavior
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Chapter Objectives
 In this chapter, we focus on two questions:
 How do the buyers’ characteristics – cultural,
social, personal, and psychological – influence
buying behavior?
 How does the buyer make purchasing
decisions?
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Influencing Buyer Behavior
 The field of consumer behavior studies how
individuals, groups, and organizations select,
buy, use and dispose of goods, services, ideas or
experiences to satisfy their needs and desires.
 Understanding consumer behavior and “knowing
customers” is never simple.
 Studying customers behavior provides clues for
developing new products, product features,
prices, channels, messages, and other marketing
mix elements.
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Influencing Buyer Behavior
 A Consumer’s buying behavior is influenced
by:
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Cultural factors
Social factors
Personal factors
Psychological factors
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(1) Cultural Factors:
 Culture, subculture and social class are important in buying
behavior.
 Culture is the fundamental determinant of a person’s wants and
behavior.
 Each culture consists of subcultures that provide more specific
identification and socialization for their members (nationalities,
religions, racial groups, geographic regions)
 Social classes are those divisions in the community who share
the same values, interests and behavior.
 Social classes reflect income, education, occupation and
residence.
 Social classes differ in dress, speech patterns, recreational
preferences and many other characteristics.
 Social classes show distinct product and brand preferences in
many areas including clothing, home furnishings, leisure
activities and autombiles.
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(2) Social Factors:
 Reference Groups:
 Consumer’s buying behavior is influenced by social factors as
reference groups, family, and social roles and statuses.
 Membership groups are groups having a direct influence on a
person (family, friends, neighbors and co-workers) with whom
the person interacts continuously and informally.
 Secondary groups takes more formal and requires less
continuous interaction (religious, professional and trade
unions).
 Reference groups influence a person’s buying behavior by
exposing him to new behavior or lifestyles, brand choice and
self concept.
 People influenced by groups to which they do not belong
(Aspirational groups & dissociative groups).
 Opinion leader is the person who offers advice or information
about a specific product or service.
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(2) Social Factors:
 Family:
 Family is the most important consumer-buying organization in
society, and family members constitute the most influential
primary reference group.
 There are to kinds of families in buyer’s life: family of
orientation (parents and siblings), and family of procreation
(spouse and children).
 Internet ethics for targeting kids.
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Roles and Statuses:
A role consists of the activities a person is expected to perform.
Each role carries a status.
People choose products that communicate their roles and
statuses.
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(2) Personal Factors:
 Age and stage in the life cycle:
 People buy different goods and services over a lifetime.
 Marketers should pay close attention to changing life
circumstances, divorce, widowhood, remarriage and their effect
on consumption.
 Occupation and economic circumstances:
 Consumption and buying behavior influenced by occupation,
income, savings, debts, borrowing power.
 Lifestyle:
 Marketers should search for relationship between their products
and lifestyle groups.
 Psychographics is the science of using psychology and
demographics to better understand consumers.
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(2) Personal Factors:
 Personality and self-concept:
 Consumers are likely to choose brands whose personalities
match their own.
 Brand personality is the specific mix of human traits that my be
attributed to a particular brand.
 Self-concept theory has had a mixed record of success in
predicting consumer responses to brand images.
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Psychological Factors
 Motivation
 Perception
 Learning
 Beliefs and attitudes
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Psychological Factors
 Motivation:
 A need becomes a motive when it is aroused to a
sufficient level of intensity.
 A motive is a need that is sufficiently pressing to
drive the person to act.
 Three theories of human motivation for
consumer analysis and marketing strategy:
 Freud’s Theory.
 Maslow’s Theory.
 Hersberg’s Theory.
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Psychological Factors
 Freud’s Theory:
 Psychological forces are unconscious and a person
can’t understand his own motivations.
 Laddering technique: trace a person’s motivations
from the instrumental ones to the more terminal
ones.
 Methods used to uncover deeper motives are: word
association, sentence completion, picture
interpretation and role playing.
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Psychological Factors
 Maslow’s Theory: helps marketers understand how various
products fit into the plans, goals, and lives of consumers.
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Psychological Factors
 Herzberg’s Theory
 Dissatisfiers: factors that cause dissatisfaction.
 Satisfiers: factors that cause satisfaction.
 The absence of disatisfier is not enough, satisfiers
must be actively present to motivate a purchase.
 Two implications of the theory:
 Sellers should avoid disatisfiers.
 Manufacurers should identify the major satisfiers of
purchase in the market and then supply them.
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Psychological Factors
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Perception
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In marketing, the people’s perceptions are more
important than the reality.
 People differ in their perceptions of the same object
because of three perceptional processes:
1. Selective attention
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People are more likely to notice stimuli than relate to a current
need
People are more likely to notice stimuli than they anticipate
People are more likely to notice stimuli whose deviations are
large in relation to the normal size of the stimuli
Selective distortion
Selective retention
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Psychological Factors
 Learning
 Learning is produced through the interplay of
drivers, stimuli, cues, responses, and reinforcement.
 A drive is a strong internal stimulus impelling
action. Cues are minor stimuli that determine when,
where, and how a person responds (ex. IBM).
 Discrimination means that a person has learned to
recognize differences in sets of similar stimuli and
can adjust responses accordingly.
 Marketers should build up demand for a product by
associating it with strong drives, using motivating
cues, and providing positive reinforcement.
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Psychological Factors
 Beliefs and Attitudes
 A belief is a descriptive thought that a person holds
about something.
 Attitude is a person’s enduring favorable or
unfavorable evaluations, emotional feelings, and
action tendencies toward some object or idea.
 People’s beliefs about a product or brand influence
their buying decisions.
 Brand beliefs exist in consumer’s memory.
 A company should fit its product into existing
attitudes rather than to try to change people’s
attitudes.
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The purchase of a product from a Company A
turns out to be a positive experience. You are
looking for a loosely related product, which is also
offered by Company A. Do you assume that you
will again have a positive experience with
Company A’s offering, or do you
look for the “best of breed,”
regardless of which
company offers it?
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The Buying Decision Process
 Buying Roles
 Initiator: suggest the idea of buying.
 Influencer: whose views influence the decision.
 Decider: who decide whether, what, how, where to
buy.
 Buyer: who makes the actual purchase.
 User: consumes/uses the product/service.
 Buying behavior
 Consumer decision making varies with the type of
buying decision.
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Table 7.3: Four Types of Buying Behavior
High Involvement
Low Involvement
Significant Differences
between Brands
Complex buying
behavior
Variety-seeking
buying behavior
Few Differences between
Brands
Dissonance-reducing
buying behavior
Habitual buying
behavior
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What marketers can do? (strategies)
 Complex Buying Behavior
 Understand consumers’ information gathering ad evaluation behavior.
 Assist buyer to learn about the product’s attributes and importance.
 Differentiate brand’s features, use print media and motivate sales personnel.
 Dissonance-Reducing Buyer Behavior
 Marketing communication should supply beliefs and evaluations that help
buyer feel good about his/her brand choice.
 Habitual Buying Behavior
 Use price and sales promotions to stimulate product trial (TV advertising).
 Variety-Seeking Buying Behavior
 Offering lower prices, deals, coupons, free samples and advertising.
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Stages in the Buying Decision Process
 How marketers learn about the stages?
 Introspective method: think about how they themselves would act.
 Retrospective method: interview a small number of recent buyers
and ask them to recall the events making their choice.
 Prospective method: locate consumers who plan to buy and ask them
to think out loud about their buying process.
 Prescriptive method: ask consumer about the ideal way to buy.
 Understanding by mapping the customer’s
 Consumption system
 Customer activity cycle
 Customer scenario
 Metamarket
 Metamediaries
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Stages of the Buying
Decision Process
 Problem recognition
 Information search
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Personal sources
Commercial sources
Public sources
Experiential sources
Figure 7.4:
Five-Stage
Model of the
Consumer
Buying
Process
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Figure 7.5: Successive Sets Involved in Customer
Decision Making
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The Buying Decision Process
 Evaluation of Alternatives
 There is no single process used by one/all
consumers in all buying situations.
 Brand beliefs
 Brand image
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The Buying Decision Process
 Purchase Decision
Figure 7.6: Steps Between Evaluation of
Alternatives and a purchase decision
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The Buying Decision Process
 Informediaries
 Consumer Reports
 Zagats
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Unanticipated situational factors
Perceived risk
Brand decision
Vendor decision
Quantity decision
Timing decision
Payment-method decision
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The Buying Decision Process
 Postpurchase Behavior
 Postpurchase Satisfaction
 Disappointed
 Satisfied
 Delighted
 Postpurchase Actions
 Postpurchase Use and Disposal
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Figure 7.7: How Customers Dispose of Products
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