Transcript Markets Slide 7.2 Consumer buying behaviour

Slide 7.1
Markets
Consumer markets
Chapter 7
Slide 7.2
Consumer buying behaviour
• Defined as the buying behaviour of the final
consumers, individuals and households who
buy goods and services for personal
consumption.
Slide 7.3
Consumer market
• Consumer market is defined as all the individuals and
households who buy or acquire goods and services
for personal consumption.
• The world consumer market consists of approx 6.3
billion people
– the billion people in North America, Western Europe
and Japan make up 70% of the world’s spending
power.
Slide 7.4
Influencers of consumer behaviour
• Cultural factors
• Social factors
• Personal and psychological characteristics
Slide 7.5
Cultural factors
• Culture
– Basic cause of person’s wants and behaviour
– Human behaviour is predominantly learned behaviour from
family and other important institutions
• Subculture
– Group sharing similar value systems based upon life experiences
and situations
• Social class
– Relatively permanent and ordered divisions in a society whose
members share similar values interests and behaviours.
– Class systems differ in size and constituents
– Lower social classes are more culture-bound
– Young people of all classes are less so
Slide 7.6
Social factors
• Membership groups
– Primary groups
» family, friends, neighbours
– Secondary groups
» religious groups and professional associations
– Reference groups
» direct or indirect influence on the person’s behaviour
or attitudes
– Aspirational groups
» reference group to which we want to belong
Slide 7.7
Consumer buying roles
• Initiator
– Person who first suggests or thinks of the idea of buying a
particular product.
• Influencer
– A person whose views or advice will influence the product or
service.
• Decider
– Buying decision maker of the product
• Buyer
– Ultimate purchaser
• User
– Ultimate user
Slide 7.8
Personal factors
– Age and life cycle phase
– Psychological life cycles
• Changing interests
– Occupation
– Economic circumstances
• Savings and buying power
– Lifestyle
• Pattern of living expressed in activities
• Psychographics is the technique of measuring lifestyles
– Personality and self-concept
Slide 7.9
RISC Research Agency of Paris
developed the 6 ‘Eurotypes’
The ‘traditionalist’ 18%
Influenced by culture and socio-economic history, specific to their
country
The ‘homebody’ 14%
Strong attachment to roots and childhood environment
The ‘rationalist’ 23%
Ability to cope with complex environments, entrepreneurial
Personal fulfilment based on self-expression rather than financial reward
The ‘pleasurist’ 17%
Emphasises sensual and emotional experiences
The ‘striver’ 15%
Holds beliefs, attitudes and values that underlie change
The ‘trend setter’ 13%
Favours non-hierarchical structure and spontaneity
Slide 7.11
Buying decision behaviour
• Dissonance-reducing buying behaviour
– Situations characterised by high involvement with an
expensive, infrequent or risky purchase but few
perceived differences among the brands.
• Habitual buying behaviour
– Characterised by low consumer involvement and few
significant perceived brand differences
• Variety seeking buying behaviour
– Low consumer involvement but significant perceived
brand differences
Slide 7.12
Figure 7.5 Four types of buying behaviour
Source: Adapted from Henry Assael, Consumer Behaviour and Marketing Action, 6th edition, p. 67
(Boston, MA: Kent Publishing Company, 1987) © Wadsworth Inc. 1987. Reprinted by permission of Kent
Publishing Company, a division of Wadsworth Inc.
Slide 7.13
Buyer decision process
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Need recognition
Information search
Evaluation of alternatives
Purchase decision
Post-purchase behaviour
Slide 7.14
Typical consumer evaluation process
Figure 7.7 Steps between evaluation of alternatives and a purchase decision
Slide 7.15
Stages in the adoption process
for new products
– Awareness
– Interest
– Evaluation
– Trial
– Adoption
Slide 7.16
Individual differences in innovativeness
Figure 7.8 Adopter categorisation on the basis of relative time of adoption of
innovations
Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster, Inc., by Everett
M. Rogers. Copyright © 1995 by Everett M. Rogers from Diffusion of Innovations, fourth edition.
Copyright © 1962, 1971, 1983 by The Free Press
Slide 7.17
Influence of product characteristics on
rate of adoption
• Relative advantage
– Innovation superior to existing products
• Compatibility
– Fit of values and experiences of potential consumers
• Complexity
– Ease or difficulty in using the technology or innovation
• Divisibility
– Innovation trialled on a limited basis
• Communicability
– Results of the innovation can be observed or described to
others.