MARK4210, 2014 Spring, L1/L2

MARK4210: Strategic Marketing

2014 Spring, Section L1/L2

[Class #24]

Consumer Behavior

2 MARK4210, 2014 Spring, L1/L2

Consumer Buying Behavior

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Consumer Buying Behavior refers to the buying

behavior of final consumers – individuals &

households who buy goods and services for

personal consumption

The central question for marketers is: “How do

consumers respond to various marketing

efforts the company might use?”

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Five ‘Premises’ of Consumer

Behavior – Basis for Analysis

Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

Consumer behavior is purposeful and goal-oriented

Consumer has free choice

Consumer behavior is a process

Consumer behavior can be influenced

Consumers need to be educated

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A Model of Consumer Behavior

Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

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Factors Influencing Consumer

Behavior

Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

6 MARK4210, 2014 Spring, L1/L2

Influencing Consumer Behavior:

Cultural Factors

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Culture: social heritage of a group (organized

community or society); the most basic determinant

of a person’s wants and behavior

Subcultures: sub-groups of people with shared value

systems based on common life experiences and

situations

Social classes: relatively permanent & ordered

divisions in a society whose members share similar

values, interests, and behaviors

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Influencing Consumer Behavior:

Social Factors

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Reference groups: influence the person’s attitudes

and self-concept; they also create pressures to

conform that may affect the person’s choices

Family: consider the roles & influence of the

husband, wife, and children in the purchase decision

Social roles: the activities a person is expected to

perform according to the people around him or her

Status: the general esteem given to a role by

society; people often choose products that show

their status in society

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Influencing Consumer Behavior:

Personal Factors

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Age

Life-Cycle Stage

Occupation

Economic Situation

Lifestyle – a person’s pattern of living as expressed

in his or her activities, interests, and opinions

Personality – a person’s distinguishing psychological

characteristics that lead to relatively consistent and

lasting responses to his or her environment

Self-Concept – the complex mental pictures people

have of themselves; self-image

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Influencing Consumer Behavior:

Psychological Factors – Motivation

Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

Freud’s Theory

• Underlying psychology – psychological forces shaping

people’s behavior are largely unconscious, and that a

person cannot fully understand his or her own

motivations

Maslow’s Theory of Motivation

• Sought to explain why people are driven by particular

needs at particular times

Herzberg’s Theory

• States that there are certain factors that cause

satisfaction, while a separate set of factors cause

dissatisfaction

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Maslow’s Hierarchy of Needs

Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

11 MARK4210, 2014 Spring, L1/L2

Influencing Consumer Behavior:

Psychological Factors – Perception

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Perception is the process by which an individual

selects, organizes, and interprets information inputs

to create a meaningful picture of the world.

Perceptions vary widely among individuals exposed

to the same reality

In marketing, perceptions are often more important

than the reality, as it affects consumers’ actual

behavior

12 MARK4210, 2014 Spring, L1/L2

Buyer Decision Process

Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

13 MARK4210, 2014 Spring, L1/L2

Buyer Decision: Need Recognition

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

For the decision process to begin, a potential buyer

must first recognize a problem or need

Can be caused by internal or external stimuli

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Buyer Decision: Information

Sources

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Personal Sources

• Family, friends, neighbors, and acquaintances

Commercial Sources

• Advertising, salespeople, dealers, packaging, and

displays

Public Sources

• Restaurant reviews, editorials in the travel section,

consumer-rating organizations

Experience

• Handling, examining, using the product

15 MARK4210, 2014 Spring, L1/L2

Buyer Decision: Information Search

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Generally speaking the consumer receives the most

information about a product from commercial

sources

The most effective information often comes from

personal sources or public sources that are

independent authorities

The Internet has changed information search

16 MARK4210, 2014 Spring, L1/L2

Buyer Decision: Evaluation of

Alternatives

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Products are seen as bundles of product attributes

Customers rank attributes and form purchase

intentions

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Buyer Decision: Purchase Decisions

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

In executing a purchase intention, the consumer

may make up to five sub decisions:

• Brand

• Dealer

• Quantity

• Timing

• Payment-method

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Buyer Decision: Successive Sets

(Choices) in Brand Selection

Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

19 MARK4210, 2014 Spring, L1/L2

Buyer Decision: Purchase Decision

Perceived Risks

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Consumer’s decision to modify, postpone, or avoid a

purchase decision is heavily influenced by perceived

risk

Types of risks perceived by consumers:

• Functional risk

• Physical risk

• Financial risk

• Social risk

• Psychological risk

• Time risk

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Buyer Decision: Post Purchase

Behavior

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

The smaller the gap between customer expectations

and perceived performance, the greater the

customer’s satisfaction

"Cognitive dissonance" is buyer discomfort caused

by post purchase conflict

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Other Key Points on Buyer Decision

Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.

Consumers often view price as an indication of

quality (“price-quality inference”)

Dissatisfied customers may not complain (staff must

seek out consumer dissatisfaction)

Beyond minimizing dissatisfaction, consumers must

be motivated to purchase