Consumer Markets and

Consumer Buying
Behavior

1
 Consumer Buying
 Behavior
Consumer Buying Behavior refers to
the buying behavior of final consumers
-individuals & households who buy
goods
and services for personal
consumption.
 All these consumers make up
the consumer market.
 The central question for
marketers is: 2
 Model of Buyer Behavior
(Fig. 5.1)
Marketing and Buyer’s Black Box Buyer
Other Responses
Stimuli
Buyer Characteristics Product Choice
Marketing Buyer Decision Process Brand Choice
Product
Dealer Choice
Place
Price
Promotion
Other Purchase Timing
Economic Purchase Amount
Technologic
al Political
Cultural

3
 Factors Influencing
Consumer Behavior (Fig.
5.2)
Cultural
Social
Personal
Age and Psycho-
Culture Reference life- cycle logical
group Motivation
s Occupatio
nEconomic Buyer
Sub-
culture Family situation Perception
Beliefs and
Learning
Role Lifestyle attitude
Personality
Social s
class san an
statu
d self- d
s concept

4
 Factors Affecting
Consumer Behavior:
Culture
Culture is the Most Basic Cause of a
Person's Wants and Behavior.
Subculture
• Group of people with
shared value systems
based on common life
experiences.
• Hispanic Consumers
• African American
Consumers
• Asian American
Consumers
5
•
 Factors Affecting Consumer
Behavior: Culture
Culture is the Set of Values, Perceptions, Wants
& Behavior Learned by a Member of Society from
Family.
Social Class
• Society’s relatively permanent
& ordered divisions whose
members share similar
interests, and
values,
• rs. behavio
Meas red by: tio
Income,
u Occupa
Education, Wealth
n, and
Other Variables.

6
 Factors Affecting Consumer
Behavior: Social
Groups
• Membership
• Reference

Family (most
important)
• Husband, wife, Social
• kids
Influencer, buyer, Factors
user
Family Buying Influence
Children can exert a
strong influence on

Roles and
family buying decisions.
Johnson & Johnson reminds
customer’s of its commitment
to the American Family.

Status What other companies use

children to influence
family buying decisions?

7
C
l
i
c
k
o
 Factors Affecting Consumer
Behavior: Personal
Personal
Personal Influences
Influences
Age
Ageand
andLife Econom
Econo Personality
Personality &
Cycle Occupation
Occupati ic Self-
Life Cycle mic & Self-
Stage
Stage on Situation
Situatio Concept
Concept
n
Lifestyle
Lifestyle Identification
Identification

Activities
Activiti Interests
Interes Opinions
Opinio
es ts ns
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 SRI Values and Lifestyles
(VALS) (Fig. 5.3)
High Resources Actualizer High Innovation
s

Fulfilled Achievers Experience

s rs

Believer Striver Maker

s s s

Struggler
Low Resources s
Lo w
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 Factors Affecting Consumer
Behavior: Psychological
Motivatio
n

Psychologi
cal Factors
Beliefs and Affecting Percepti
Attitudes Buyers on
Choices

Learning
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Maslow’s Hierarchy of Needs
(Fig. 5.4)
Self
Actualization
(Self-development)
Esteem
Needs (self-
esteem)

Social Needs
(sense of
belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
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 Types of Buying Decision
Behavior (Fig. 5.5)
High Low
Involveme Involveme
Signific nt nt Variety-
ant Complex Seeking
differenc Buying Behavior
es Behavior
between Habitual
brands Dissonance- Buying
Fe Reducing Buying Behavio
w Behavior
differenc r
es
between
brands

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 Buyer Decision Process

Purchas
e
Evaluatio DecisionP
n postpurchase
of Alternatives o
Information Behavior
Search

Need
Recogniti 13
 Buyer Decision Process
Step 1. Need
Recognition
Buyer
Needs Arising
State Where Recogniz
From:
the Buyer’s es
Needs are a Internal
Fulfilled and Proble Stimuli –
the Buyer is m or a
Need. Hunger
Satisfied.
External
Stimuli-
Friends
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The Buyer Decision
Process Step 2.
Information Search
Personal •Family, friends,
•Most effective source
neighbors
Sources ofinformatio
n
•Advertising,
Commercial •Receives most information
salespeople
Sources these
from
sources
Public •Mass
•Consumer-rating
Media
Sources groups
•Handling the
Experiential •Examining
product the
•Using the
Sources product
product
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 The Buyer Decision
Process
Step 4. 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 16
The Buyer Decision
Process
Step 5. Purchase
Decision
Purchase Intention
Desire to buy the most preferred
brand

Attitudes Unexpect
of ed
Others Situational
Factors

Purchase
Decision 17
The Buyer Decision
Process
Step 6. Postpurchase
Behavior
Satisfied Customer!

Consumer’s
Expectations of Product’s
Performance.
Product’s Perceived

Dissonance
Performance.

Cognitive
Dissatisfied
Customer
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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. 19
 Adopter Categories (Fig.
5.7)
Percentage of Adopters

Early Majority Late Majority

Innovator

Early Laggards
Adopters 34% 34%
s

13.5 16%
%
2. Time of Adoption
5% Late
Early

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 Influence of
Product
Characteristics
on Rate of
Communicability Relative Advantage
Adoption
Can results be easily
observed or described
Is the innovation
superior to
to others? existing products?

Divisibility Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the
innovation
difficult to
understand or 21
use?
 Review of Concept
Connections
 Define the consumer market and construct
a simple model of consumer buyer
behavior.
 Name the four major factors that
influence consumer buyer behavior.
 List and understand the stages in the
buyer decision process.
 Describe the adoption and diffusion
process for new products. 22