Chapter6 analyzing consumer markets
- 1. ANALYZING CONSUMER MARKETS Understanding Consumer Buying Behavior Delza B. Castillo
- 2. Outline What is consumer behavior? What influences consumer buying behavior? The buying decision process : Five-Stage Model
- 3. What is consumer behavior? Consumer behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
- 4. What influences consumer buying behavior? A consumer’s buying behavior is influenced by: 1. Cultural factors - culture, subculture and social class 2. Social factors - reference groups, family and social roles and statuses 3. Personal factors - age, stage in the life cycle, occupation, economic situation, lifestyle, personality and self-concept
- 5. What influences consumer behavior? 1. Cultural factors Buyer’s culture - learned values, perceptions, wants and behavior from family and other important institutions. Buyer’s subculture – groups of people within a culture with shared value systems based on common life experiences and situations.
- 6. What influences consumer behavior? 1. Cultural factors Buyer’s social class – society’s relatively permanent and ordered divisions whose members share similar values, interests and behaviors.
- 7. What influences consumer behavior? 2. Social factors Reference groups – groups that form a comparison or reference in forming attitudes or behavior. Family – most important consumer-buying organization in society. Social roles and status – groups, family, club and organizations to which a person belongs that can define role and social status.
- 8. What influences consumer behavior? 3. Personal factors Age and life-cycle stage Occupation affects the goods and services bought by consumers. Economic situation includes trends in personal income, savings and interest rate. Lifestyle - person’s pattern of living as expressed in activities, interests and opinions.
- 9. What influences consumer behavior? 3. Personal factors Personality - refers to unique psychological characteristics that lead to consistent and lasting responses to consumer’s environment. Self-concept - refers to people’s possessions that contribute to and reflect their identities.
- 10. Buying decision process: Five-Stage Model Problem recognition Cultural, social, and personal factors affect all steps Information search Evaluation of alternatives Purchase decision Postpurchase behavior
- 11. Buying decision process: Five-Stage Model Problem recognition Cultural, social, and personal factors affect all steps A buying process starts when a buyer recognizes a problem or need triggered internal or external stimulus.
- 12. Buying decision process: Five-Stage Model Problem recognition Cultural, social, and personal factors affect all steps Information search Information can be obtained from personal, commercial or public sources .
- 13. Buying decision process: Five-Stage Model Problem recognition Cultural, social, and personal factors affect all steps Information search Evaluation of alternatives Consumer processes competitive brand information and make final value judgment.
- 14. Buying decision process: Five-Stage Model Problem recognition Cultural, social, and personal factors affect all steps Information search Evaluation of alternatives Purchase decision The consumer executes a purchase intention.
- 15. Buying decision process: Five-Stage Model Problem recognition Cultural, social, and personal factors affect all steps The buyer makes postpurchase evaluation. Information search Evaluation of alternatives Purchase decision Postpurchase behavior
- 16. IN ANALYZING CONSUMER MARKETS Be aware of the Consumer’s NEEDS, WANTS and DEMANDS