Chapter Five

Consumer Markets and Consumer

Buyer Behavior
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Consumer Markets and Consumer

Buyer Behavior
Topic Outline

Model of Consumer Behavior

Characteris8cs Aec8ng Consumer
Behavior
Types of Buying Decision Behavior
The Buyer Decision Process
The Buyer Decision Process for New
Products
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Model of Consumer Behavior

Consumer buyer behavior : the buying behavior of
nal consumers, individuals and households,
who buy goods and services for personal
consump8on

Consumer market : all of the personal consump8on
of nal consumers

Copyright 2014 by Pearson Education, Inc. All rights reserved

Model of Consumer Behavior

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Characteristics Affecting
Consumer Behavior
Factors Inuencing Consumer Behavior

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Characteristics Affecting
Consumer Behavior
Culture is the learned values, percep8ons,
wants, and behavior from family and other
important ins8tu8ons
Marketers are always trying to spot cultural shi+s to discover
new products that might be wanted: greater concern
about health and tness has created a huge industry for
health-and-tness services, exercise equipment and
clothing, organic foods, and a variety of diets
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Characteristics Affecting
Consumer Behavior
Subculture are groups of people within a culture
with shared value systems based on common life
experiences
and situa8ons
Hispanic American
African American
Asian American
Cross-Cultural- including ethnic themes and cross-cultural
perspec8ves within their mainstream marke8ng
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Characteristics Affecting
Consumer Behavior
Social classes are society s rela8vely
permanent and ordered divisions whose
members share similar values, interests,
and behaviors.
Measured by a combina8on of occupa8on,
income, educa8on, wealth, and other
variables
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Major American Social Classes

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Characteristics Affecting
Consumer Behavior
Groups and Social Networks

Membership
Groups
Groups with
direct
influence
and to which
a person
belongs

Aspirational
Groups
Groups an
individual
wishes to
belong to

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Reference
Groups
Groups that
form a
comparison
or reference
in forming
attitudes or
behavior

Characteristics Affecting
Consumer Behavior
Groups and Social Networks

Word-of-mouth inuence and

buzz marke8ng

Opinion leaders are people
within a reference group who
exert social inuence on others
Also called inuen/als or
leading adopters
Marketers iden8fy them to use
as brand ambassadors
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Characteristics Affecting
Consumer Behavior
Groups and Social Networks

Online Social Networks are
online
communi8es where
people socialize or exchange
informa8on and opinions
Include blogs, social
networking sites (facebook),
virtual worlds (second life)

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Characteristics Affecting
Consumer Behavior
Social Factors

Family is the most important consumer-buying
organiza8on in society
Social roles and status are the groups, family, clubs,
and organiza8ons that a person belongs to that can
dene role and social status

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Characteristics Affecting
Consumer Behavior
Personal Factors

Age and life-cycle stage

RBC Royal Band stages

Youth: younger than 18
GeZng started: 1835
Builders: 3550
Accumulators: 5060
Preservers: over 60
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Characteristics Affecting
Consumer Behavior
Personal Factors

OccupaBon aects the goods and services

bought by consumers
Economic situa8on includes trends in:
Personal
income
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Savings

Interest
rates

Characteristics Affecting
Consumer Behavior
Personal Factors

Lifestyle is a person s pa_ern

of living as expressed in his
or her psychographics
Measures a consumer s
AIOs (ac8vi8es, interests,
opinions) to capture
informa8on about a
person s pa_ern of ac8ng
and interac8ng in the
environment
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Characteristics Affecting
Consumer Behavior
Personal Factors

Personality: the unique psychological

characteris8cs that lead to consistent and
las8ng responses to the consumer s
environment
Five brand personality traits: sincerity (down-to-earth,
honest, wholesome, and cheerful); excitement (daring,
spirited, imagina8ve, and up-to-date); competence
(reliable, intelligent, and successful); sophis/ca/on (upper
class and charming); and ruggedness (outdoorsy and
tough)

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Characteristics Affecting
Consumer Behavior

Personal
Factors

Defensiveness

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Dominance

Adaptability

Autonomy

Aggressiveness

Characteristics Affecting
Consumer Behavior
Psychological Factors
Motivation
Perception
Learning
Beliefs and attitudes

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Characteristics Affecting
Consumer Behavior
Psychological Factors
MoBvaBon

A moBve is a need that is suciently pressing

to direct the person to seek sa8sfac8on

MoBvaBon research refers to qualita8ve
research designed to probe consumers
hidden, subconscious mo8va8ons
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Characteristics Affecting
Consumer Behavior
Maslow s
Hierarchy of Needs

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Characteristics Affecting
Consumer Behavior
Psychological Factors

PercepBon is the process by

which people select,
organize, and interpret
informa8on to form a
meaningful picture of the
world from three perceptual
processes
Selec8ve a_en8on
Selec8ve distor8on
Selec8ve reten8on
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Characteristics Affecting
Consumer Behavior
Psychological Factors

SelecBve aHenBon is the tendency for people to

screen out most of the informa8on to which they
are exposed
SelecBve distorBon is the tendency for people to
interpret informa8on in a way that will support
what they already believe
SelecBve retenBon is the tendency to remember
good points made about a brand they favor and
forget good points about compe8ng brands
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Characteristics Affecting
Consumer Behavior
Psychological Factors

Learning is the change in an individual s

behavior arising from experience and
occurs through interplay of:

Drives
Stimuli
Cues

Responses
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Reinforcement

Example
A drive is a strong internal s8mulus that calls for ac8on. A drive becomes a
mo8ve when it is directed toward a par8cular s/mulus object. For example, a
person s drive for self-actualiza8on might mo8vate him or her to look into
buying a camera. The consumer s response to the idea of buying a camera is
condi8oned by the surrounding cues. Cues are minor s8muli that determine
when, where, and how the person responds. For example, the person might
spot several camera brands in a shop window, hear of a special sale price, or
discuss cameras with a friend. These are all cues that might inuence a
consumer s response to his or her interest in buying the product.
Suppose the consumer buys a Nikon camera. If the experience is rewarding,
the consumer will probably use the camera more and more, and his or her
response will be reinforced. Then the next 8me he or she shops for a camera,
or for binoculars or some similar product, the probability is greater that he or
she will buy a Nikon product.

Characteristics Affecting
Consumer Behavior
Psychological Factors
Beliefs and AJtudes

Belief is a descrip8ve thought that a person

has about something based on:
Knowledge
Opinion
Faith

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Characteristics Affecting
Consumer Behavior
Psychological Factors

AJtudes
describe a person s rela8vely consistent
evalua8ons, feelings, and tendencies
toward an object or idea

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Types of Buying Decision

Behavior
Complex buying behavior
Dissonance-reducing buying behavior
Habitual buying behavior
Variety-seeking buying behavior

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Types of Buying Decision

Behavior
Four Types of Buying Behavior

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The Buyer Decision Process

Buyer Decision Making Process

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The Buyer Decision Process

Need RecogniBon

Occurs when the buyer recognizes a

problem or need triggered by:
Internal s8muli -hunger or thirst
External s8muli- discussion with a friend

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The Buyer Decision Process

InformaBon Search
Sources of InformaBon
Personal sourcesfamily and friends
Commercial sourcesadver8sing, Internet
Public sourcesmass media, consumer organiza8ons
Experien8al sourceshandling, examining, using the
product

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The Buyer Decision Process

EvaluaBon of AlternaBves

How the consumer processes informa8on

to arrive at brand choices

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The Buyer Decision Process

Purchase Decision

The act by the consumer to buy the most

preferred brand
The purchase decision can be aected by:
AZtudes of others
Unexpected situa8onal factors

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The Buyer Decision Process

Post-Purchase Decision

The sa8sfac8on or dissa8sfac8on that the

consumer feels about the purchase
Rela8onship between:
Consumer s expecta8ons
Product s perceived performance

The larger the gap between expecta8on and

performance, the greater the consumer s
dissa8sfac8on
Cogni8ve dissonance is the discomfort caused
by a post-purchase conict
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The Buyer Decision Process

Post-Purchase Decision

Customer saBsfacBon is a key to building

protable rela8onships with consumers
to keeping and growing consumers and
reaping their customer life8me value

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The Buyer Decision Process for

New Products
AdopBon process is the mental process an
individual goes through from rst learning
about an innova8on to nal regular use.
Stages in the process include:
Awareness

Interest

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Evaluation

Trial

Adoption

Stages in the Adoption Process

Consumers go through ve stages in the
process of adop8ng a new prod
Awareness: The consumer becomes aware of the new product but
lacks informa8on about it.
Interest: The consumer seeks informa8on about the new product.
Evalua/on: The consumer considers whether trying the new product
makes sense.
Trial: The consumer tries the new product on a small scale to improve
his or her es8mate of its value.
Adop/on: The consumer decides to make full and regular use of the
new product.

The Buyer Decision Process for

New Products
Dierences in InnovaBvenessAdopter
Categories

Innovators
Early Adopters
Early Majority
Late Majority
Laggards
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The five adopter groups

Innovators are venturesomethey try new ideas at some
risk. Early adopters are guided by respectthey are
opinion leaders in their communi8es and adopt new ideas
early but carefully. The early majority is deliberate
although they rarely are leaders, they adopt new ideas
before the average person. The late majority is skep8cal
they adopt an innova8on only aher a majority of people
have tried it. Finally, laggards are tradi8on boundthey
are suspicious of changes and adopt the innova8on only
when it has become something of a tradi8on itself.

The Buyer Decision Process for

New Products
Inuence of Product CharacterisBcs
on Rate of AdopBon

Relative
Compatibility
Complexity
advantage

Divisibility

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Communicability

Rate of adoption 1
Rela/ve advantage: The degree to which the innova8on appears superior to
exis8ng products. HDTV oers substan8ally improved picture quality. This
accelerated its rate of adop8on.
Compa/bility: The degree to which the innova8on ts the values and
experiences of poten8al consumers. HDTV, for example, is highly compa8ble
with the lifestyles of the TV-watching public. However, in the early years, HDTV
was not yet compa8ble with programming and broadcas8ng systems, which
slowed adop8on. Now, as high deni8on programs and channels have become
the norm, the rate of HDTV adop8on has increased rapidly.
Complexity: The degree to which the innova8on is dicult to understand or
use. HDTVs are not very complex. Therefore, as more programming has
become available and prices have fallen, the rate of HDTV adop8on has
increased faster than that of more complex innova8ons.

Rate of Adoption 2
Divisibility: The degree to which the innova8on may be
tried on a limited basis. Early HDTVs and HD cable and
satellite systems were very expensive, which slowed the
rate of adop8on. As prices have fallen, adop8on rates
have increased.
Communicability: The degree to which the results of using
the innova8on can be observed or described to others.
Because HDTV lends itself to demonstra8on and
descrip8on, its use will spread faster among consumers.