consumer and business buyer behavior 5. 5-2 consumer buying behavior refers to the buying behavior...

Consumer and Business Consumer and Business Buyer BehaviorBuyer Behavior

5

5-2

Consumer Buying Behavior

• Refers to the buying behavior of Refers to the buying behavior of people who buy goods and services people who buy goods and services for personal use.for personal use.

• These people make up the These people make up the consumer marketconsumer market..

• The central question for marketers is:The central question for marketers is:– ““How do consumers respond to various How do consumers respond to various

marketing efforts the company might marketing efforts the company might use?”use?”

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Model of Buyer Behavior

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Factors Influencing Consumer Behavior

Cultural

Culture

Subculture

Social Class

Social

Reference Groups

Family

Roles & Status

Personal

Age & Life-Cycle Stage

Occupation

Economic Situation

Lifestyle

Personality & Self-Concept

Psychological

Motivation

Perception

Learning

Beliefs & Attitudes

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Culture Culture is the ___________of a

Person's Wants and Behavior.

Culture is learned from family, church, school, peers, colleagues.

Culture includes basic values, perceptions, wants, and behaviors.

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Culture

Subculture• Groups of people with

shared value systems based on common life experiences.

Major Groups• Hispanic Consumers• African-American

Consumers• Asian-American

Consumers• Mature Consumers

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Culture

Social ClassSocial Class• Society’s relatively Society’s relatively

permanent and ordered permanent and ordered divisions whose divisions whose members share similar members share similar values, interests, and values, interests, and behaviors.behaviors.

• Measured by a Measured by a combination of: combination of: occupation, income, occupation, income, education, wealth, and education, wealth, and other variables.other variables.

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Social Factors Membership

Reference (opinion leaders) Aspirational

Groups

Family

Roles & Status

Role =Expected activities Status =

Esteem given to role by society

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Personal Factors

Age and Life-Cycle Stage

Occupation

Economic Situation

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Personal Factors

Lifestyle

Pattern of Living as Expressedin Psychographics

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• Shows how a person’s Shows how a person’s lifestyle can help lifestyle can help marketers understand marketers understand consumer values and consumer values and their impact on their impact on buying behavior. buying behavior.

• Ad targets people who Ad targets people who want to “leave the want to “leave the civilized world civilized world behind.”behind.”

Jeep

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Personality & Self-Concept

• Personality refers to the unique Personality refers to the unique psychological characteristics that psychological characteristics that lead to relatively consistent and lead to relatively consistent and lasting responses to one’s own lasting responses to one’s own environment.environment.

• Generally defined in terms of traits.Generally defined in terms of traits.• Self-concept suggests that people’s Self-concept suggests that people’s

possessions contribute to and reflect possessions contribute to and reflect their identities.their identities.

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Maslow’s Hierarchy of Needs

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Perception

• PerceptionPerception– Information InputsInformation Inputs– InterpretationInterpretation– Selective ExposureSelective Exposure– Selective DistortionSelective Distortion– Selective RetentionSelective Retention

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•Information inputsInformation inputs are the are the sensations received through sensations received through the sense organs.the sense organs.

•PerceptionPerception is the process of is the process of selecting, organizing, and selecting, organizing, and interpreting information inputs interpreting information inputs to produce meaning.to produce meaning.

Perception

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• Selective Attention:Selective Attention: the process the process of selecting some inputs to attend of selecting some inputs to attend to while ignoring others.to while ignoring others.

• An input is more likely to reach a An input is more likely to reach a person’s awareness if it relates to person’s awareness if it relates to an anticipated event.an anticipated event.

Perception

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• Selective distortionSelective distortion is an is an individual’s changing or twisting of individual’s changing or twisting of information when it is inconsistent information when it is inconsistent with personal feelings or beliefs.with personal feelings or beliefs.

• Selective retentionSelective retention is is remembering information that remembering information that supports personal feelings and supports personal feelings and beliefs and forgetting inputs that beliefs and forgetting inputs that do not.do not.

Perception

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Learning• Learning:Learning: a relatively permanent a relatively permanent

change in behavior due to experience.change in behavior due to experience.• Interplay of drives, stimuli, cues, Interplay of drives, stimuli, cues,

responses, and reinforcement.responses, and reinforcement.• Strongly influenced by the Strongly influenced by the

consequences of an individual’s consequences of an individual’s behaviorbehavior– Behaviors with satisfying results tend to Behaviors with satisfying results tend to

be repeated.be repeated.– Behaviors with unsatisfying results tend Behaviors with unsatisfying results tend

notnot to be repeated. to be repeated.

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Beliefs & Attitudes•A beliefbelief is a descriptive thought that

a person holds about something.

• AttitudeAttitude describes a person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.

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Buying Decision Process

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Step #1 = Need RecognitionStep #1 = Need Recognition• Buyer becomes aware of a Buyer becomes aware of a

difference between a desired state difference between a desired state and an actual condition.and an actual condition.

• Marketers may use sales personnel, Marketers may use sales personnel, advertising, and packaging to trigger advertising, and packaging to trigger recognition of needs or problems.recognition of needs or problems.

• Recognition speed can be slow or Recognition speed can be slow or fast.fast.

Buying Decision Process

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Step #2 = Information SearchStep #2 = Information Search• This stage begins after the This stage begins after the

consumer becomes aware of the consumer becomes aware of the problem or need.problem or need.

• The search for information about The search for information about products will help resolve the products will help resolve the problem or satisfy the need.problem or satisfy the need.

• There are various sources of There are various sources of information.information.

Buying Decision Process

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Sources of Information - - Family, friends, neighbors

Personal

Commercial

Public

- Advertising, salespeople - Receives the most information from these sources

- Mass Media - Consumer-rating groups

Experiential - - Examining the product - Using the product

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Buying Decision Process

Consumers May Use Careful Calculations & Logical Thinking

Consumers May Buy on Impulse and Rely on Intuition

Consumers May Make Buying Decisions on Their Own

Consumer May Make Decisions After Talking With Others

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Buying Decision Process

Factors That Influence Purchase Decision

AttitudesOf

Others

UnexpectedSituational

Factors

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Buying Decision Process

Consumer satisfaction is a function of consumer expectations and perceived product performance.

Performance < Expectations Disappointment

Performance = Expectations Satisfaction

Performance > Expectations Delight

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• Cognitive dissonance:Cognitive dissonance: a buyer’s a buyer’s doubts shortly after a purchase about doubts shortly after a purchase about whether it was the right decision.whether it was the right decision.

Buying Decision Process

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Stages in the Adoption Process

1.1.AwarenessAwareness:: Consumer becomes aware of the Consumer becomes aware of the new product, but lacks information about it.new product, but lacks information about it.

2.2.InterestInterest:: Consumer seeks information about Consumer seeks information about new product.new product.

3.3.EvaluationEvaluation:: Consumer considers whether Consumer considers whether trying the new product makes sense.trying the new product makes sense.

4.4.TrialTrial:: Consumer tries new product on a small Consumer tries new product on a small scale to improve his or her estimate of its value.scale to improve his or her estimate of its value.

5.5.AdoptionAdoption:: Consumer decides to make full and Consumer decides to make full and regular use of the new product.regular use of the new product.

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Product Adopter Categories

• When an organization introduces a When an organization introduces a new product, people do not begin the new product, people do not begin the adoption process at the same time, adoption process at the same time, nor do they move through it at the nor do they move through it at the same speed. same speed.

• AdoptersAdopters are divided into five are divided into five categories.categories.

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2.5% Innovators

13.5% Early Adopters

34% Early Majority34% Late Majority

16% Laggards

• Product Adopter Categories

Product Adopter Categories

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Product Adopter Categories

Group #1 - InnovatorsGroup #1 - Innovators

• InnovatorsInnovators are the first adopters of are the first adopters of new products. new products.

• They are venturesome They are venturesome – they try new – they try new ideas at some risk.ideas at some risk.

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Product Adopter Categories

Group #2 – Early AdoptersGroup #2 – Early Adopters

• Early adoptersEarly adopters are guided by are guided by respect. respect.

• They are opinion leaders in their They are opinion leaders in their communities and adopt new ideas communities and adopt new ideas early but carefully.early but carefully.

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Product Adopter Categories

Group #3 – Early MajorityGroup #3 – Early Majority

• Early majorityEarly majority are deliberate. are deliberate. • Although they rarely are leaders, Although they rarely are leaders,

they adopt new ideas before the they adopt new ideas before the average person.average person.

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Product Adopter Categories

Group #4 – Late MajorityGroup #4 – Late Majority

• Late majorityLate majority are skeptical. are skeptical.• They adopt an innovation only after a They adopt an innovation only after a

majority of people have tried it.majority of people have tried it.

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Product Adopter Categories

Group #5 - LaggardsGroup #5 - Laggards

• LaggardsLaggards are tradition bound. are tradition bound. • They are suspicious of changes and They are suspicious of changes and

adopt the innovation only when it adopt the innovation only when it has become something of a tradition has become something of a tradition itself.itself.

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DivisibilityCan the innovation

be used on a limited basis?

ComplexityIs the innovation

difficult tounderstand or use?

Communicability Can results be easily

observed or described to others?

CompatibilityDoes the innovation

fit the values and experience of the

target market?

Relative AdvantageIs the innovation

superior to existing products?

Influence of Product Characteristics on Rate of Adoption