2.fm 02 consumer behaviour

8/8/2019 2.FM 02 Consumer Behaviour

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Consumer Markets

andConsumer Buyer Behavior


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Define the consumer market and constructa simple model of consumer buyer behavior

Name the four major factors that influenceconsumer buyer behavior

List and understand the major types ofbuying decision behavior and the stages in

the buyer decision process Describe the adoption and diffusion

process for new products

After studying this , you should be

able to

After studying this , you should be

able to


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5-4

Id rather push the a Harley than

drive a honda

Id rather push the a Harley than

drive a honda Few brands engender such intense loyalty as that

found in the hearts of Harley Davidson owners

Harley buyers are granite like in their devotion tothe brand.

You dont see people tattooing Yamha on theirbodies

-Publisher,American Iron

For a lot of people , its not that they want amotorcycle, its that they want a Harley- the brandis that strong.


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5-5

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Exactly what motivates Hogs

customers buying?

Exactly what motivates Hogs

customers buying? Harley-Davidson Marketers spend a great

deal of time thinking about customers and

their buying behavior. They want to know who their customers

are,

What they think, how they feel , and whythey buy Hogs rather than a yamaha or aKawasaki.

What is it that makes Harley buyers so

fiercely loyal?


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Consumer Buying Behavior

Consumer Buying Behavior

Consumer Buying BehaviorConsumer Buying Behaviorrefers to the

buying behavior of final consumers(individuals & households) who buy goodsand services for personal consumption.

Study consumer behavior to answer:

How do consumers respond to marketingHow do consumers respond to marketingefforts the company might use?efforts the company might use?


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5-75-7Model of Consumer BehaviorModel of Consumer Behavior

Marketing andOther Stimuli

Marketing andOther Stimuli

Buyers Black BoxBuyers Black Box

Buyers ResponseBuyers Response

Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

Product Choice

Brand Choice

Dealer Choice

PurchaseTiming

Purchase

Amount

CharacteristicsAffectingConsumerBehavior

BuyersDecisionProcess


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5-85-8Characteristics Affecting

Consumer Behavior

Characteristics Affecting

Consumer Behavior

BuyerBuyer

Psychological

Personal

Social

Culture


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5-95-9Factors Affecting Consumer Behavior:

Culture

Factors Affecting Consumer Behavior:

Culture

Social Class

People within a social classtend to exhibit similar buying

behavior.Occupation

Income

Education

Wealth

Social Class

People within a social classtend to exhibit similar buying

behavior.

Occupation

Income

Education

Wealth

Most basic cause of a person's wants andbehavior.

Values

Perceptions

Most basic cause of a person's wants andbehavior.

Values

Perceptions

Subculture

Groups of people with sharedvalue systems based on common

life experiences. Hispanic Consumers

African American Consumers

Asian American Consumers

Mature Consumers

Subculture

Groups of people with sharedvalue systems based on commonlife experiences.

Hispanic Consumers

African American Consumers

Asian American Consumers

Mature Consumers


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5-105-10


Social


Social

Groups

Membership

Reference

Groups

Membership

Reference

Family

Husband, wife, kids

Influencer, buyer, user

Family

Husband, wife, kids

Influencer, buyer, user

Roles and StatusRoles and Status

Social FactorsSocial Factors


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5-115-11Factors Affecting Consumer Behavior:

Personal


Personal

Personal InfluencesPersonal Influences

Age and Family Life CycleStage

Age and Family Life CycleStage Occupation

Occupation

Economic SituationEconomic Situation

Lifestyle IdentificationLifestyle Identification

ActivitiesActivities OpinionsOpinions

InterestsInterests

Personality & Self-ConceptPersonality & Self-Concept


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5-125-12VALS 2VALS 2

Principle Oriented Status Oriented Action Oriented

AchieversAchievers

ActualizersActualizers

StrugglersStrugglers

StriversStrivers

ThinkersThinkers

BelieversBelievers

ExperiencersExperiencers

MakersMakers

Abundant ResourcesAbundant Resources

Minimal ResourcesMinimal Resources


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5-135-13


Psychological


Psychological

PsychologicalFactors

MotivationMotivation

PerceptionPerception

LearningLearning

Beliefs andAttitudes

Beliefs andAttitudes


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5-145-14Maslows Hierarchy of NeedsMaslows Hierarchy of Needs

Esteem Needs(self-esteem, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst)

SelfActualization

(Self-development)


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5-155-15Types of Buying DecisionsTypes of Buying Decisions

ComplexBuying

Behavior

Dissonance-

Reducing Buying

Behavior

Variety-Seeking

Behavior

Habitual

BuyingBehavior

HighInvolvement

Significant

differencesbetween

brands

Fewdifferences

between

brands

LowInvolvement


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5-165-16The Buyer Decision ProcessThe Buyer Decision Process

Need RecognitionNeed Recognition

Information SearchInformation Search

Evaluation of AlternativesEvaluation of Alternatives

Purchase DecisionPurchase Decision

Postpurchase BehaviorPostpurchase Behavior


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5-175-17The Buyer Decision ProcessStep 1. Need Recognition

The Buyer Decision ProcessStep 1. Need Recognition

External Stimuli

TV advertising

Magazine ad

Radio slogan

Stimuli in the

environment

External Stimuli

TV advertising

Magazine ad

Radio slogan

Stimuli in the

environment

Internal Stimuli

Hunger

Thirst

A persons normalneeds

Internal Stimuli

Hunger

Thirst

A persons normalneeds

Need RecognitionDifference between an actualstate and a desiredstate

Need RecognitionDifference between an actualstate and a desiredstate

Th B D i i P


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5-185-18The Buyer Decision ProcessStep 2. Information Search

The Buyer Decision ProcessStep 2. Information Search

Family, friends, neighborsMost influential source of information

Advertising, salespeopleReceives most information

from these sources

Mass MediaConsumer-rating groups

Handling the productExamining the productUsing the product

Personal SourcesPersonal Sources

Commercial SourcesCommercial Sources

Public SourcesPublic Sources

Experiential SourcesExperiential Sources


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Th B D i i P


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5-205-20The Buyer Decision ProcessStep 4. Purchase Decision

The Buyer Decision ProcessStep 4. Purchase Decision

Purchase IntentionDesire to buy the most preferred brand

Purchase IntentionDesire to buy the most preferred brand

Purchase DecisionPurchase Decision

Attitudes

of others

Unexpected

situational

factors

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Th B D i i P


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5-215-21The Buyer Decision ProcessStep 5. Postpurchase Behavior

The Buyer Decision ProcessStep 5. Postpurchase Behavior

Consumers Expectations of

Products Performance

Consumers Expectations of

Products Performance

Dissatisfied

Customer

Dissatisfied

CustomerSatisfied

Customer!

Satisfied

Customer!

Products Perceived

Performance

Products Perceived

Performance

Cognitive Dissonance

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St i th Ad ti P


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5-225-22Stages in the Adoption ProcessStages in the Adoption Process

AwarenessAwareness

InterestInterest

EvaluationEvaluation

TrialTrial

AdoptionAdoption

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Ad ti f I ti


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5-235-23Adoption of InnovationsAdoption of Innovations

Percentage

of

Adopt e

rs

Time of AdoptionEarly Late

Innova

tors

EarlyAdopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority

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I fl th R t f Ad ti


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5-245-24Influences on the Rate of Adoption

of New Products

Influences on the Rate of Adoption

of New Products

DivisibilityCan the innovation

be used on a

trial basis?

CompatibilityDoes the

innovation

fit the values andexperience of thetarget market?Complexity

Is the innovationdifficult to

understand oruse?

Relative AdvantageIs the innovation

superior to existingproducts?

CommunicabilityCan results be easily

observed or describedto others?

ProductCharacteristics

2.fm 02 consumer behaviour

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