Ch05 consumer markets and consumer buyer behavior

Consumer Markets and Consumer Buyer Behavior

Chapter 5

2

Schedule – Before Midterm

4 Oct.8/9 Consumer Markets and Consumer Buyer Behavior

Ch.5 Case 3

5 Oct.15/16 Business Markets and Business Buyer Behavior

Ch.6 Case 4

6 Oct.22/23 Marketing Information System Ch.4 Case 5

3

Learning Goals

1. Define the consumer market and construct a model of consumer buyer behavior

2. Name the four factors that influence buyer behavior

3. List and understand the types of buying decision behavior and stages in the process

4. Describe the adoption and diffusion process for new products

Case StudyHarley Davidson

Building Success

Understanding the customers’ emotions and motivation

Determining the factors of loyalty

Translating this information to effective advertising

Measuring Success

Currently 22% of all U.S. bike sales

Demand above supply Sales doubled in the past

5 years with earnings tripled

5 - 4

5

Learning Goals





6

Definitions

Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption

All of these final consumers combine to make up the consumer market

8

Learning Goals





Model of Buyer Behavior

10

Characteristics Affecting Consumer Behavior

Culture Forms a person’s wants

and behavior Subculture

Groups with shared value systems

Social Class Society’s divisions who

share values, interests and behaviors

Cultural Social Personal Psychological

Key FactorsKey Factors

11


Groups Membership Reference

Aspirational Opinion leaders

Buzz marketing Family

Many influencers Roles and status



This advertiser knows teens are strongly influenced by groups when purchasing fashion items

13


Age and life cycle Occupation Economic situation Lifestyle

Activities, interests and opinions

Lifestyle segmentation Personality and self-concept



14

Personal Factors

Family Life Cycle stages throughout which families pass as they mature over time Stages in family life cycle:1.bachelor stage2.newly married couples, no children3.full nest 1; youngest child under 64.full nest 2; youngest child 6 or over5. full nest 3; older married couples with dependent children6.empty nest 1; older married couples no children with them7. empty nest 1; older married couples no children at home;retired8.solitary survivor, working9.solitary survivor, retired

15

Personal Factors

Personality ğ a person’s unique characteristics that lead to relatively consistent and lasting responses to his environment

Self-concept ğ the self image or general picture that people have of themselves

16

Personal Factors

Lifestyle a person’s pattern of living as expressed in his activities, interests and opinions Psychographics ğ technique of measuring lifestyles

and developing lifestyle classifications Major dimensions measured are:

Activities (work, hobbies, social events, entertainment, shopping, sports,vacation)

Interests (family, home, job, recreation, fashion, food, media, achievements)

Opinions (themselves, social issues, politics, business, economics, products, future)

17

Brand Personality Dimensions

Sincerity Ruggedness

Excitement Competence

Sophistication

18


Motivation Perception Learning Beliefs and attitudes



19

Psychological FactorsMotivation A motive is a need that is sufficiently

pressing to direct the person to seek satisfaction

Motivation research is based on Freud. Looks for hidden and subconscious motivation

Maslow ordered needs based on how pressing they are to the consumer

Maslow’s Hierarchy of Needs

This ad demonstrates a product meeting physiological and social needs

Discussion

What consumer products might fulfill multiple levels of the Hierarchy of Needs?

23

Psychological Factors Perception Perception is the process by which people

select, organize, and interpret information. Perception Includes:

Selective attention Consumers screen out information

Selective distortion People interpret to support beliefs

Selective retention People retain points to support attitudes

Discussion QuestionPerception

1. How many ads were you exposed to today?

2. Which ones do you remember? Why?

25

Psychological Factors Learning Learning describes changes in an individual’s

behavior arising from experience Learning occurs through

Drives Internal stimulus that calls for action

Stimuli Objects that move drive to motive

Cues Minor stimuli that affect response

Reinforcement Feedback on action

26

Psychological Factors Beliefs and Attitudes Belief

a descriptive thought about a brand or servicemay be based on real knowledge, opinion, or

faith Attitude

describes a person’s evaluations, feelings and tendencies toward an object or idea

They are difficult to change

27

Learning Goals





Types of Buying Decision Behavior

30

The Buying Roles

5 roles people might play in a buying decision Initiator ğ who first gives the idea of buying the

product or service Influencer ğwhose view or advice influences the

decision Decider ğwho decide on any component of buying

decision Buyer ğwho makes the actual purchase User ğwho uses the product or sevice purchased

The Buyer Decision Process

32


Need recognition Information search Evaluation of

alternatives Purchase decision Postpurchase behavior

Needs can be triggered by: Internal stimuli

Normal needs become strong enough to drive behavior

External stimuli Advertisements Friends of friends

Process Process Stages Stages

33




Consumers exhibit heightened attention or actively search for information

Sources of information: Personal Commercial Public Experiential Word-of-mouth


34

•Family, friends, neighbors•Most effective source of information•Advertising, salespeople•Receives most information from these sources

•Mass Media•Consumer-rating groups

•Handling the product•Examining the product•Using the product

Personal Sources Personal Sources

Commercial SourcesCommercial Sources

Public SourcesPublic Sources

Experiential SourcesExperiential Sources

Information Search

35




Evaluation procedure depends on the consumer and the buying situation.

Most buyers evaluate multiple attributes, each of which is weighted differently.

At the end of the evaluation stage, purchase intentions are formed.


36

Consumer May Use Careful Calculations & Logical ThinkingConsumer May Use Careful

Calculations & Logical Thinking

Consumers May Buy on Impulse and Rely on Intuition

Consumers May Buy on Impulse and Rely on Intuition

Consumers May Make Buying Decisionson Their Own.

Consumers May Make Buying Decisionson Their Own.

Consumers May Make Buying DecisionsOnly After Consulting Others.

Consumers May Make Buying DecisionsOnly After Consulting Others.

Marketers Must Study Buyers to Find Out How They Evaluate Brand

Alternatives

Evaluation of Alternatives

37

TotalSet

Decision Making Sets

Aware-nessSet

Consid-eration

SetChoice

Set Decision

38




Two factors intercede between purchase intentions and the actual decision: Attitudes of others Unexpected

situational factors


39

Buyer Decision Process for New Products

New ProductsGood, service or idea that is perceived by

customers as new. Stages in the Adoption Process

Marketers should help consumers move through these stages.

40

Awareness: Consumer is aware of

product, but lacks information.

Awareness: Consumer is aware of

product, but lacks information.

Interest: Consumer seeks Information about new product.

Interest: Consumer seeks Information about new product.

Evaluation: Consumer considerstrying new product.

Evaluation: Consumer considerstrying new product.

Trial: Consumer tries new product on a small scale.

Adoption: Consumer decides to make regular use of product.

Stages in the Adoption Process

41


Individual Differences in Innovativeness:

Consumers can be classified into five adopter categories, each of which behaves differently toward new products

42

Adopter CategoriesP

erc

en

tag

e o

f A

dop

ters

Time of AdoptionEarly Late

Inn

ovato

rs

Early Adopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority

43

Buyer Decision Process for New Products Product Characteristics influencing the adoption rate:

Relative Advantage ğ Is the innovation superior to existing products?

Compatibility ğ Does the innovation fit the values and experience of the target market?

Complexity ğ Is the innovation difficult to understand or use?

Divisibility ğ Can the innovation be used on a trial basis?

Communicability ğ Can results be easily observed or described to others?

44


International Consumer Behavior

Values, attitudes and behaviors differ greatly in other countries.

Physical differences exist which require changes in the marketing mix.

Customs vary from country to country. Marketers must decide the degree to which they will

adapt their marketing efforts.

Discussion Question

How is a site like

Consumer Reports

used in the decision- making

process?

http://www.consumerreports.org/

Why might the adoption process be slow for a home robot?

Discussion Question

Source: Business Week

Source: Business Week

47




Satisfaction is important: Delighted consumers

engage in positive word-of-mouth.

Unhappy customers tell on average 11 other people.

Cognitive dissonance is common


48

Learning Goals





50

Ramazan Bayraminiz Kutlu & Mutlu olsun!!! For Next Week

Read Chapter 6Be prepared for case 4 – Kodak discussion

Ch05 consumer markets and consumer buyer behavior

Marketing

Transcript of Ch05 consumer markets and consumer buyer behavior