Consumer Markets and
Consumer Buyer
Behavior

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
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1.
2.
3.
4.
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products
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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

1.
2.
3.
4.
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products
5

 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
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7

1.
2.
3.
4.
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products
8

Model of Buyer Behavior

Characteristics Affecting
Consumer Behavior
Key Factors
 Cultural
 Social
 Personal
 Psychological
 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
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Characteristics Affecting
Consumer Behavior
Key Factors
 Cultural
 Social
 Personal
 Psychological
 Groups
 Membership
 Reference

 Aspirational
Opinion leaders
 Buzz marketing
 Family
 Many influencers
 Roles and status
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This advertiser knows teens are strongly influenced by groups when purchasing fashion items

Characteristics Affecting
Consumer Behavior
Key Factors
 Cultural
 Social
 Personal
 Psychological
 Age and life cycle
 Occupation
 Economic situation
 Lifestyle
 Activities, interests and opinions

Lifestyle segmentation
 Personality and self-concept
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Personal Factors
 Family Life Cycle stages throughout which families pass as they mature over time
 Stages in family life cycle:
1.bachelor stage
2.newly married couples, no children
3.full nest 1; youngest child under 6
4.full nest 2; youngest child 6 or over
5. full nest 3; older married couples with dependent children
6.empty nest 1; older married couples no children with them
7. empty nest 1; older married couples no children at home;retired
8.solitary survivor, working
9.solitary survivor, retired
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Personal Factors
 Personality  a person’s unique characteristics that lead to relatively consistent and lasting responses to his environment
 Self-concept  the self image or general picture that people have of themselves
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Personal Factors
 Lifestyle a person’s pattern of living as expressed in his activities, interests and opinions
 Psychographics  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)
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Values and Lifestyles (VALS)
High Innovation
High Resources
Actualizers
Fulfilleds
Believers
Achievers
Strivers
Strugglers
Experiencers
Makers
Low Resources Low Innovation
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 Sincerity
 Ruggedness


Excitement
Competence
 Sophistication
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Characteristics Affecting Consumer
Behavior
Key Factors
 Cultural
 Social
 Personal
 Psychological
 Motivation
 Perception
 Learning
 Beliefs and attitudes
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 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
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Maslow’s Hierarchy of Needs

This ad demonstrates a product meeting physiological and social needs

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

 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
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Discussion Question
Perception
1.
2.
How many ads were you exposed to today?
Which ones do you remember? Why?

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
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 Belief
 a descriptive thought about a brand or service
 may 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
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1.
2.
3.
4.
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products
28

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Types of Buying
Decision Behavior

The Buying Roles
 5 roles people might play in a buying decision
 Initiator  who first gives the idea of buying the product or service
 Influencer  decision
 Decider  decision
 Buyer 
 User 
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The Buyer Decision
Process
Process Stages





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
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The Buyer Decision
Process
Process Stages





Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior


Consumers exhibit heightened attention or actively search for information
Sources of information:
 Personal
 Commercial
 Public
 Experiential
 Word-of-mouth
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Information Search
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
•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
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The Buyer Decision
Process
Process Stages





Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior



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.
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Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Rely on Intuition
Consumers May Make Buying Decisions on Their Own.
Consumers May Make Buying Decisions
Only After Consulting Others .
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
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Decision Making Sets
Total
Set
Awareness
Set
Consideration
Set
Choice
Set Decision
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The Buyer Decision
Process
Process Stages





Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
 Two factors intercede between purchase intentions and the actual decision:
 Attitudes of others
 Unexpected situational factors
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Buyer Decision Process for
New Products
 New Products
 Good, service or idea that is perceived by customers as new.
 Stages in the Adoption Process
 Marketers should help consumers move through these stages.
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Stages in the Adoption Process
Awareness : Consumer is aware of product, but lacks information.
Interest : Consumer seeks
Information about new product.
Evaluation : Consumer considers trying new product.
Trial : Consumer tries new product on a small scale.
Adoption : Consumer decides to make regular use of product.
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Buyer Decision Process for
New Products
 Individual Differences in Innovativeness:
 Consumers can be classified into five adopter categories , each of which behaves differently toward new products
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Adopter Categories
Early Majority
2.5%
Early
Early
Adopters
13.5%
34%
Late Majority
34%
Time of Adoption
Laggards
16%
Late
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Buyer Decision Process for
New Products
 Product Characteristics influencing the adoption rate:





Relative Advantage  Is the innovation superior to existing products?
Compatibility  Does the innovation fit the values and experience of the target market?
Complexity  Is the innovation difficult to understand or use?
Divisibility  Can the innovation be used on a trial basis?
Communicability  Can results be easily observed or described to others?
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Buyer Decision Process for
New Products
 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.
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Discussion Question
How is a site like
Consumer
Reports used in the decisionmaking process?

Discussion Question
 Why might the adoption process be slow for a home robot?
Source: Business Week
Source: Business Week

The Buyer Decision
Process
Process Stages 


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Satisfaction is important:
 Delighted consumers engage in positive wordof-mouth.
 Unhappy customers tell on average 11 other people.
Cognitive dissonance is common

Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
48

1.
2.
3.
4.
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products
49

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Ramazan Bayraminiz Kutlu & Mutlu olsun!!!
 For Next Week
 Read Chapter 6
 Be prepared for case 4 – Kodak discussion
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