6 - 0 Consumer Markets and Consumer Buyer Behavior.
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Transcript of 6 - 0 Consumer Markets and Consumer Buyer Behavior.
6 - 5
Definitions
• Consumer Buying BehaviorConsumer Buying Behavior Buying behavior of individuals Buying behavior of individuals
and households that buy and households that buy products for personal products for personal consumption.consumption.
Factors Influencing Buying Decisions
Social Factors
PersonalFactors
Psycho-logical Factors
Cultural Factors
CONSUMERDECISION-MAKINGPROCESS
BUY /
DON’T BUY
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Characteristics Affecting Consumer
Behavior
• CulturalCultural
• SocialSocial
• PersonalPersonal
• PsychologicalPsychological
• CultureCulture• SubcultureSubculture
Hispanic Hispanic consumersconsumers
African AmericansAfrican Americans Asian AmericansAsian Americans Mature consumersMature consumers
• Social ClassSocial Class
Key Factors Key Factors
Definition of Culture
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Culture Represents the behavior, beliefs, the way we act learned by interacting or observing other members of society. Shared behavior, passed along from one member of society to another.
Culture in MarketingThe philosophy of a company, a way to do business to insure customer satisfaction.
Components of Culture
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MythsMyths
LanguageLanguage
ValuesValues
CustomsCustoms
RitualsRituals
LawsLaws
Core American Values
SuccessSuccess
MaterialismMaterialism
FreedomFreedom
ProgressProgress
YouthYouth
CapitalismCapitalism
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• HispanicsHispanics 35 million consumers purchase 35 million consumers purchase
$425 billion worth of goods and $425 billion worth of goods and services.services.
Expected to grow 64% in 20 Expected to grow 64% in 20 years.years.
Spanish media makes group Spanish media makes group easy to reach.easy to reach.
Brand loyal group.Brand loyal group.
Subculture
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• African AmericansAfrican Americans
35 million consumers purchase $527 35 million consumers purchase $527 billion worth of goods and services.billion worth of goods and services.
Growing more affluent / sophisticated.Growing more affluent / sophisticated. Price and brand name conscious; quality Price and brand name conscious; quality
and selection are important.and selection are important. Certain media target this group.Certain media target this group.
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• Asian AmericansAsian Americans 10 million consumers purchase $229 10 million consumers purchase $229
billion worth of goods and services.billion worth of goods and services. Fastest growing, most affluent Fastest growing, most affluent
subculture.subculture. Many nationalities comprise this group.Many nationalities comprise this group. Consumer packaged goods companies Consumer packaged goods companies
now target this group more heavily.now target this group more heavily.
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• Mature ConsumersMature Consumers 75 million consumers aged 50+ will 75 million consumers aged 50+ will
grow to 115 million within 25 years.grow to 115 million within 25 years. Mature consumers control 50% of all Mature consumers control 50% of all
discretionary income.discretionary income. Attractive market for travel, Attractive market for travel,
restaurant, and cosmetics products, restaurant, and cosmetics products, among others. among others.
Social Class Measurements
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WealthWealth
Other VariablesOther Variables
IncomeIncome
EducationEducation
OccupationOccupation
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
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Characteristics Affecting Consumer
Behavior
• CulturalCultural
• SocialSocial
• PersonalPersonal
• PsychologicalPsychological
• GroupsGroups MembershipMembership ReferenceReference
Aspirational groupsAspirational groups Opinion leadersOpinion leaders
• FamilyFamily Children can Children can
influenceinfluence
• Roles and StatusRoles and Status
Key Factors Key Factors
Social Influences
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Reference Groups
Reference Groups
Opinion LeadersOpinion Leaders
Family MembersFamily
Members
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
A group in society that
influences an individual’s
purchasing behavior.
Movie stars Sports figures Celebrities Political figures
Social Factors
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LO6
Direct IndirectReferenceGroups Primary Secondary Aspirational Non-aspirational
OpinionLeaders
Peopleyou know
Socialization Process
Family
Celebrities/Political
Initiators Decision Makers
Influencers Purchasers
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Characteristics Affecting Consumer
Behavior
• CulturalCultural
• SocialSocial
• PersonalPersonal
• PsychologicalPsychological
• Age and life cycleAge and life cycle• OccupationOccupation• Economic situationEconomic situation• LifestyleLifestyle
Activities, interests, Activities, interests, and opinionsand opinions
• Personality and self-Personality and self-conceptconcept Brand personalityBrand personality
Key Factors Key Factors
Family Life Cycle Stages
Full Nest IFull Nest IFull Nest IFull Nest I
Single ParentsSingle ParentsSingle ParentsSingle Parents
Divorced and AloneDivorced and AloneDivorced and AloneDivorced and Alone
Middle-aged MarriedMiddle-aged MarriedMiddle-aged MarriedMiddle-aged Married
Full Nest IIFull Nest IIFull Nest IIFull Nest II
Empty NestEmpty NestEmpty NestEmpty Nest
Older SingleOlder SingleOlder SingleOlder Single
BachelorBachelorBachelorBachelor
Nine stages with
different buying behavior
Nine stages with
different buying behavior
Young MarriedYoung MarriedYoung MarriedYoung Married
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Characteristics Affecting Consumer
Behavior
• CulturalCultural
• SocialSocial
• PersonalPersonal
• PsychologicalPsychological
• Age and life cycleAge and life cycle• OccupationOccupation• Economic situationEconomic situation• LifestyleLifestyle
Activities, interests, Activities, interests, and opinionsand opinions
• Personality and self-Personality and self-conceptconcept Brand personalityBrand personality
Key Factors Key Factors
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Characteristics Affecting Consumer
Behavior
• CulturalCultural
• SocialSocial
• PersonalPersonal
• PsychologicalPsychological
• MotivationMotivation Needs provide motives for Needs provide motives for
consumer behaviorconsumer behavior Motivation researchMotivation research Maslow’s hierarchy of needsMaslow’s hierarchy of needs
• PerceptionPerception Selective attention, selective Selective attention, selective
distortion, selective distortion, selective retentionretention
• LearningLearning Drives, stimuli, cues, Drives, stimuli, cues,
responses and reinforcementresponses and reinforcement
• Beliefs and attitudesBeliefs and attitudes
Key Factors Key Factors
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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
Characteristics Affecting Consumer
Behavior
Self-actualizationSelf-actualization
Esteem NeedsEsteem Needs
Social NeedsSocial Needs
Safety NeedsSafety Needs
Physiological NeedsPhysiological Needs
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Examples
• LunestaLunesta- “Soothing rest for mind - “Soothing rest for mind and body and body
• ““VolvoVolvo-Protect the body ignite the -Protect the body ignite the soul” soul”
• Smackers Lip Gloss “All the Smackers Lip Gloss “All the flavor of being a girl”flavor of being a girl”
• LexusLexus automobiles “The relentless automobiles “The relentless pursuit of perfection” pursuit of perfection”
• DePaul University- DePaul University- “Turning goals “Turning goals into acomplishments” into acomplishments”
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Objectives
• Understand the major types Understand the major types of buying decision behavior of buying decision behavior and the stages in the buyer and the stages in the buyer decision process.decision process.
• Be able to describe the Be able to describe the adoption and diffusion adoption and diffusion process for new products.process for new products.
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• Five Stages:Five Stages: Need recognitionNeed recognition Information searchInformation search Evaluation of alternativesEvaluation of alternatives Purchase decisionPurchase decision Postpurchase behaviorPostpurchase behavior
The Buyer Decision Process
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The Buyer Decision Process
• Need recognitionNeed recognition
• Information searchInformation search
• Evaluation of Evaluation of alternativesalternatives
• Purchase decisionPurchase decision
• Postpurchase behaviorPostpurchase behavior
• Needs can be Needs can be triggered by:triggered by: Internal stimuliInternal stimuli
Recall information in Recall information in memorymemory
External stimuliExternal stimuli AdvertisementsAdvertisements Friends of friendsFriends of friends
Process Process Stages Stages
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The Buyer Decision Process
• Need recognitionNeed recognition
• Information searchInformation search
• Evaluation of Evaluation of alternativesalternatives
• Purchase decisionPurchase decision
• Postpurchase behaviorPostpurchase behavior
• Consumers exhibit Consumers exhibit heightened attention heightened attention or actively search for or actively search for information.information.
• Sources of information:Sources of information: PersonalPersonal CommercialCommercial PublicPublic Experiential/ConceptualExperiential/Conceptual
• Word-of-mouthWord-of-mouth
Process Process Stages Stages
Consumer Buying Decisions andConsumer Involvement
More Involvement
LessInvolvement
RoutineResponseBehavior
RoutineResponseBehavior
LimitedDecisionMaking
LimitedDecisionMaking
ExtensiveDecisionMaking
ExtensiveDecisionMaking
Five Factors of Consumer Involvement
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1. Level of consumer involvement1. Level of consumer involvement
2. Length of time to make decision2. Length of time to make decision
3. Cost of good or service3. Cost of good or service
4. Degree of information search4. Degree of information search
5. Number of alternatives considered5. Number of alternatives considered
Copyright 2010 by Cengage Learning Inc. All Rights ved Reser
Types of Learning
ExperientialExperiential
ConceptualConceptual
An experience changes behaviorAn experience changes behavior
Not learned through direct experience
Not learned through direct experience
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The Buyer Decision Process
• Need recognitionNeed recognition
• Information searchInformation search
• Evaluation of Evaluation of alternativesalternatives
• Purchase decisionPurchase decision
• Postpurchase behaviorPostpurchase behavior
• Evoked Brands: Group Evoked Brands: Group of brands resulting from of brands resulting from an information searchan information search
• Most buyers evaluate Most buyers evaluate multiple attributes, multiple attributes, each of which is each of which is weighted differently.weighted differently.
• At the end of the At the end of the evaluation stage, evaluation stage, purchase intentions are purchase intentions are formed.formed.
Process Process Stages Stages
Evaluation of Alternativesand Purchase
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Evoked SetEvoked Set
Purchase!Purchase!
Analyze product attributesAnalyze product attributes
Rank attributes byimportance
Rank attributes byimportance
Use cutoff criteriaUse cutoff criteria
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
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The Buyer Decision Process
• Need recognitionNeed recognition
• Information searchInformation search
• Evaluation of Evaluation of alternativesalternatives
• Purchase decisionPurchase decision
• Postpurchase behaviorPostpurchase behavior
• Two factors Two factors intercede between intercede between purchase purchase intentions and the intentions and the actual decision:actual decision: Attitudes of othersAttitudes of others Unexpected Unexpected
situational factorssituational factors
Process Process Stages Stages
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The Buyer Decision Process
• Need recognitionNeed recognition
• Information searchInformation search
• Evaluation of Evaluation of alternativesalternatives
• Purchase decisionPurchase decision
• Postpurchase behaviorPostpurchase behavior
• Satisfaction is Satisfaction is important:important: Delighted consumers Delighted consumers
engage in positive word-engage in positive word-of-mouth.of-mouth.
Unhappy customers tell Unhappy customers tell on average 11 other on average 11 other people.people.
It costs more to attract a It costs more to attract a new customer than it new customer than it does to retain an existing does to retain an existing customer.customer.
• Cognitive dissonance is Cognitive dissonance is commoncommon
Process Process Stages Stages
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Cognitive DissonanceCognitive Dissonance
Did I make a good decision?Did I make a good decision?
Did I buy the right product?Did I buy the right product?
Did I get a good value?Did I get a good value?
Consumer post purchase evaluation process
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LO3
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
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Buyer Decision Process for New
Products• New ProductsNew Products
Good, service or idea that is Good, service or idea that is perceived by customers as new.perceived by customers as new.
• Stages in the Adoption ProcessStages in the Adoption Process Marketers should help consumers Marketers should help consumers
move through these stages.move through these stages.
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Stages in the Adoption Stages in the Adoption ProcessProcess
Buyer Decision Process for New
Products
• AwarenessAwareness
• EvaluationEvaluation
• InterestInterest
• TrialTrial
• AdoptionAdoption
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Buyer Decision Process for New
Products• Individual Differences in InnovativenessIndividual Differences in Innovativeness
Consumers can be classified into five Consumers can be classified into five adopter categories, each of which behaves adopter categories, each of which behaves differently toward new products.differently toward new products.
• Product Characteristics and AdoptionProduct Characteristics and Adoption Five product characteristics influence the Five product characteristics influence the
adoption rate.adoption rate.
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Adopter CategoriesAdopter Categories
Buyer Decision Process for New
Products
• InnovatorsInnovators
• Early MajorityEarly Majority
• Early AdoptersEarly Adopters
• Late MajorityLate Majority
• LaggardsLaggards
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Innovators – venturesome, educated, creative, multiple information sources
Early adopters – social leaders, popular, educated; try out new ideas but in a careful way
Early majority –thoughtful people, careful but accepting change more quickly than the average
Late majority – skeptical, traditional, lower socio-economic status; accepts new products when the majority are using it
Laggards – traditional people, caring, but like “the old ways,” are critical of new ideas, neighbors and friends are main information sources, may also have a fear of debt.