PowerPoint to accompany
Philip Kotler,
Stewart Adam,
Linden Brown
& Gary
Armstrong
Kotler, Brown, Adam & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
Chapter 5
Consumer market behaviour
Kotler, Brown, Adam & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
Chapter objectives (1)
1. Name the elements in the stimulus-response
model of consumer behaviour.
2. Outline the major characteristics affecting
consumer behaviour, and list some of the
specific psychological, personal, cultural and
social factors that influence consumers.
3. Explain the buyer decision process and
discuss need recognition, information search,
evaluation of alternatives, the purchase
decision and post-purchase behaviour.
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Chapter objectives (2)
4. Identify and define the consumer buying roles of
initiator, influencer, decider, buyer and user.
5. Illustrate different types of buying decision
behaviour, including complex, dissonancereducing, habitual and variety seeking buying
behaviour.
6. Express the basics of the buyer decision process
for new products and identify stages in the
adoption process, individual differences in the
adoption of innovation, and the influence of
product characteristics on the rate of diffusion of
innovation.
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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What is a Consumer
Market?

The consumer market consists of all the
individuals and households who buy or acquire
goods and services for personal consumption.

Australian consumers vary tremendously in age,
income, education level, and tastes. And they buy
an incredible variety of goods and services. How
consumers make their choices among these
products takes us into a fascinating field comprised
of personal, cultural, and social influences.
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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A Model of Consumer
Behaviour

Consumers make buying decisions every day.
And they make many different types of
purchases.

Most marketers undertake consumer research to
try to learn more about: what consumers buy,
who buys, how they buy, when they buy, where
they buy and, most importantly, why they buy.

The central question is:

How do consumers respond to the various
marketing stimuli the marketing organisation might
use?
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Figure 5.1: A Model of
Buyer Behaviour
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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7
Characteristics Influencing
Consumer Behaviour
1. Consumer purchases are strongly influenced by
two groups of factors.
2. On one hand there are internal characteristics
that determine our behaviour:

psychological
 personal
3. And then there are external influences that
represent the environment in which the individual
behaviour takes place:

cultural and
 social
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Figure 5.2: Factors Influencing Consumer
Behaviour
Psychological
•Motivation
•Perception
•Learning (memory)
•Beliefs & attitudes
•Personality &
self-concept
Marketing programs
•Marketing objectives
•Marketing strategy
•Marketing mix
Personal
•Age & lifecycle stage
•Occupation
•Education
•Economic situation
Social
•Household type
•Reference groups
•Roles & status
Consumer
Buyers’ responses
•Product service &
category selection
BUYER DECISION
•Brand selection
PROCESS
•Reseller selection
Experiences •Purchase timing &
Lifestyle
repurchase intervals
•Purchase amount
Environmental influences
•Economic
•Technological
•Political
Cultural
•Culture
•Subculture
•Social Class
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Psychological Influences
1. Motivation
2. Perception
3. Learning
4. Beliefs and Attitudes
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Psychological Factors:
Motivation
 When consumers express interest in buying a
product there are a number of questions we
might ask.
 Why?
 What is the person really seeking?
 What needs is he or she trying to satisfy?
A person has many needs at any given time.
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Psychological Factors
Motivation Theories
 Sigmund Freud
assumes that people
are largely
unconscious about the
real psychological
forces shaping their
behaviour. He sees the
person as growing up
and repressing many
urges.
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Psychological Factors
Motivation Theories
 Abraham Maslow sought to explain why
people are driven by particular needs at
particular times. Why does one person
spend much time and energy on personal
safety and another on gaining the esteem
of others? Maslow's answer is that
human needs are arranged in a hierarchy,
from the most pressing to the least
pressing
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Figure 5.3:
Maslow’s Hierarchy of Needs
Self
Actualisation
Self-Esteem
Belongingness
Safety
Physiological
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Psychological Factors:
Perception
A motivated person is ready to act. How the person
acts is influenced by his or her perception of the
situation. Two people with similar motivation and
in the same situation might act quite differently
because they perceive the situation differently.
Perceptual Processes

Selective Exposure
 Selective Distortion
 Selective Retention
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Psychological Factors:
Learning

When people act, they learn. Learning describes
changes in an individual's behaviour arising from
experience.

The significance of learning theory to marketers
is that they can build demand for a product by
associating it with strong drives, using motivating
cues and providing positive reinforcement.
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Psychological Factors:
Beliefs and Attitudes
 Through acting and
learning, people acquire
their beliefs and attitudes
 A belief is a descriptive
thought or conviction that a
person holds about
something, and involves
holding an opinion.
 Incorrect beliefs about
product features or brand
image can block sales.
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Psychological Factors:
Beliefs and Attitudes
 An attitude describes a person’s relatively
consistent evaluations, feelings and
tendencies towards an object or idea
 People have attitudes towards political
parties, music and food types as well as
companies and brands
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Tricomponent attitude
model
 Cognitive-thought driven, rational influences
on attitudes
 Affective- emotionally driven attitudes
 Conative- behavioural
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Personal Influences

A buyer's decisions are also influenced by
personal characteristics such as:






Age and life-cycle stage
Occupation
Education
Economic situation
Personality & Self Concept
Consumer lifestyle
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Lifestyles and Psychographics

Activities, Interests and Opinions (AIO)

SRI Values and Lifestyles (VALS)

Inner-directed and Outer-directed

Roy Morgan Lifestyles groups (10 groups that
describe ‘typical’ Australian lifestyles)
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Cultural Factors
 Cultural factors exert the broadest and
deepest influence on consumer behaviour.
Marketers need to understand the role played
by:
 culture,
 subculture
 social class
http://www.corona-extra.net/n_gallery/gcoro015.jpg
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Social influences

A consumer's behaviour is also influenced by
social factors, such as the consumer's household
type and reference groups, as well as social roles
and status.
 These social factors can strongly affect consumer
responses, companies must take them into
account when designing their marketing
strategies.
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Social influences

Household types: changing lifestyles and buying
roles affect marketing decisions

Groups

Membership groups
 Reference groups

Opinion leaders

Roles and Status
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Figure 5.4: Extent of group influence
on product and brand choice
Group Influence on Product Choice
Group Influence on Brand Choice
Strong
Weak
Strong
Public
Luxuries
Private
Luxuries
Weak
Public
Necessities
Private
Necessities
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Family and Lifestyle
Influences
Family Influences
Occupation
Age and Life Cycle Stage
Economic Situation
Lifestyle Identification
Opinions
Activities
Interests
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Figure 5.5: Consumer
Buying Roles
User
Buyer
Initiator
Key
Family
Decision
Roles
Influencer
Decider
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Types of Buying Decisions
1. Complex Buying Behaviour
2. Dissonance-Reducing Buying Behaviour
3. Habitual Buying Behaviour
4. Variety-Seeking Buying Behaviour
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Figure 5.6: Types of Buying
Decisions
High
Involvement
Low
Involvement
Significant
differences
between
brands
Complex
Buying
Behaviour
VarietySeeking
Behaviour
Few
differences
between
brands
DissonanceReducing Buying
Behaviour
Habitual
Buying
Behaviour
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Figure 5.7: The Buyer
Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-purchase Behaviour
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Example: Loveable:
Purchases are influenced by
those around us
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Stages in the Adoption
Process
Awareness
Interest
Evaluation
Trial
Adoption
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Early Majority
Innovators
Percentage of Adopters
Figure 5.8: Adoption of
Innovations
Early
Adopters
34%
Late Majority
Laggards
34%
16%
13.5%
2.5%
Early
Time of Adoption
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Influences on Rate of
Adoption
Communicability
Relative
Advantage
Influences
Divisibility
Compatibility
Complexity
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Influence of Product
Characteristics on Rate of Adoption
 The characteristics of the new product
affect its rate of adoption. Some products
are adopted almost overnight (Internet-50
million users in 4 years), some are fast
(mobile telephones), others take longer to
gain acceptance (personal computers-50
million users in 16 years).
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Influence of Product Characteristics
on Rate of Adoption





Relative Advantage: the degree to which an
innovation appears superior to existing products
Compatibility: the degree to which the innovation
fits the values and experiences of potential
consumers
Complexity: the degree to which the innovation is
difficult to understand or use
Divisibility: the degree to which the innovation
may be tried on a limited basis
Communicability: the degree to which the results
of using the innovation can be observed or
described to others
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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Consumer behaviour across
international borders

Consumers in different countries may have some
things in common but their values, attitudes and
behaviours may vary a lot
 Marketers often adjust their products and
communications to reflect the differences
 Differences are often subtle and may result from
physical differences in consumers and their
environment
 Other differences may include gestures, body
posture and manners
Kotler, Adam, Brown & Armstrong: International Marketing 3e © 2006 Pearson Education Australia
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