consumer markets & buyer behavior analysis
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Consumer Markets & Consumer Markets & Buyer BehaviorBuyer Behavior
Analysis Analysis
Parva Soltani Parva Soltani & & Ali GolshaniAli Golshani
Content Content
Kinds of Markets Kinds of Markets Consumer Buying BehaviorConsumer Buying Behavior Factors Affecting Consumer BehaviorFactors Affecting Consumer Behavior Types of DecisionTypes of Decision Decision StepsDecision Steps How To Adopt a New Product How To Adopt a New Product
What is a Market ?What is a Market ?
PEOPLEPEOPLEBut not just any People, they have to But not just any People, they have to
have : have :
Willingness to buy Willingness to buy Purchasing Power ( Money)Purchasing Power ( Money) Authority Authority
Different Kinds Of MarketDifferent Kinds Of Market
B2BB2B : Business to Business which : Business to Business which
refers to doing Business mostly trading refers to doing Business mostly trading between companies and organizations . between companies and organizations .
B2CB2C : Business to Consumer is : Business to Consumer is referring to sell a service or a product to referring to sell a service or a product to the end user or consumer which is the the end user or consumer which is the main purpose of this presentation .main purpose of this presentation .
Bases for Segmenting Consumer Bases for Segmenting Consumer MarketsMarkets
Geography Geography Region of the worldRegion of the world CountryCountry Region of the countryRegion of the country StateState CityCity CountyCounty
Bases for Segmenting Bases for Segmenting Consumer MarketsConsumer Markets
DemographyDemography ageage
gendergender
family sizefamily size
family life cyclefamily life cycle
incomeincome
occupationoccupation
educationeducation
ethnicityethnicity
nationalitynationality
Bases for Segmenting Consumer Bases for Segmenting Consumer MarketsMarkets
PsychographicsPsychographics
social classsocial class
lifestylelifestyle
personalitypersonality
Bases for Segmenting Consumer Bases for Segmenting Consumer MarketsMarkets
BehaviorBehavior purchase occasionspurchase occasions benefits soughtbenefits sought user statususer status usage rateusage rate loyalty statusloyalty status readiness stagereadiness stage
Consumer Buying Consumer Buying BehaviorBehavior Consumer Buying BehaviorConsumer Buying Behavior refers to refers to
the buying behavior of final consumers the buying behavior of final consumers (individuals) who buy goods and (individuals) who buy goods and services for personal consumption.services for personal consumption.
Studying Buyer behavior is to answer:Studying Buyer behavior is to answer: ““How do consumers respond to How do consumers respond to
marketing efforts the company might marketing efforts the company might use?” use?”
But understanding Buyer Behavior is not But understanding Buyer Behavior is not easy at all .easy at all .
He says something …..He says something ….. He does something else .He does something else . In fact a wrong understanding of Motives , In fact a wrong understanding of Motives ,
Needs and Priorities of Buyers may leads Needs and Priorities of Buyers may leads to priceless mistakes . to priceless mistakes .
Model of Buyer BehaviorModel of Buyer BehaviorMarketing andOther Stimuli
Buyer’s Black Box
Buyer’s Response
ProductPricePlacePromotion
EconomicTechnologicalPoliticalCultural
Characteristics Affecting Consumer Behavior
Buyer’s Decision Process
Product ChoiceBrand ChoiceDealer Choice
Purchase TimingPurchase Amount
Characteristics Affecting Characteristics Affecting Consumer BehaviorConsumer Behavior
BuyerPsychological
Personal
Social
Culture
Factors Affecting Consumer Behavior:Factors Affecting Consumer Behavior:CultureCulture
Social Class• People within a social class tend to exhibit similar buying behavior.• Occupation• Income• Education• Wealth
Most basic cause of a person's wants Most basic cause of a person's wants and behavior.and behavior.
ValuesValues PerceptionsPerceptions
Subculture• Groups of people with shared value systems based on common life experiences.• Nationalist Consumers• Religious Consumers• Geographic based Consumers• Mature Consumers
Factors Affecting Consumer Factors Affecting Consumer Behavior:Behavior:Social Social
Groups
• Membership
• Reference
Family• Husband, wife, kids• Influencer,
Roles and Status
Social Factors
Factors Affecting Consumer Factors Affecting Consumer Behavior:Behavior:PersonalPersonal Personal Influences
Age and Family Life CycleStage Occupation
Economic Situation
Lifestyle Identification
Activities Opinions
Interests
Personality & Self-Concept
Factors Affecting Consumer Behavior:Psychological
Psychological Factors
Motivation
Perception
Learning
Beliefs and Attitudes
Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
Esteem Needs(self-esteem, status)
Social Needs(sense of belonging, love)
Safety Needs(security, protection)
Physiological Needs(hunger, thirst)
Self Actualization
(Self-development)
Different types of needs drive Different types of needs drive behaviour to satisfy those behaviour to satisfy those needs in an order of needs in an order of precedence.precedence.
Most basic needs fulfilled first.Most basic needs fulfilled first.
Internal (psychological)
External(sociological)
culture
social class
reference groups
family
marketing mix
needs
motives
wants
awareness perception attitude preference
behavior
learning
personality
Buyer Behavior Model
Model of Buyer BehaviorModel of Buyer Behavior
Buyer BehaviorBuyer Behavior
Attitudes are anchored in behavior.Attitudes are anchored in behavior.
There are two ways to change attitudes:There are two ways to change attitudes:
……directly through awareness and perceptiondirectly through awareness and perception
… …indirectly through learning and the feedback loop.indirectly through learning and the feedback loop.
Attitude change is a key goal in marketingAttitude change is a key goal in marketing
Buyer BehaviorBuyer BehaviorMotivationMotivation
weight or importance of a needweight or importance of a need
- rational motives- rational motiveseconomy, efficiency, dependabilityeconomy, efficiency, dependabilityOf a ProductOf a Product
- emotional motives- emotional motivesattract opposite genderattract opposite gendercare of loved onescare of loved onesfear of rejectionfear of rejection
Buyer BehaviorBuyer Behavior
Motivation Motivation (cont..)(cont..)
use of emotional motives in marketing is one of use of emotional motives in marketing is one of the smart ways .the smart ways .
Buyer BehaviorBuyer Behavior
AwarenessAwareness
enter information searchenter information search
can come from internal or external Sourcescan come from internal or external Sources
more receptive to marketing information more receptive to marketing information flowsflows
Buyer BehaviorBuyer Behavior
PerceptionPerception
process by which one receives, interprets, process by which one receives, interprets, responds to stimuliresponds to stimuli
selective perceptionselective perception
cross-sensory perceptioncross-sensory perception
subliminal perceptionsubliminal perception
Buyer BehaviorBuyer Behavior
Sociological InfluencesSociological Influences
CultureCulture
set of learned responses from a societyset of learned responses from a society
enculturation versus acculturation enculturation versus acculturation
Buyer BehaviorBuyer Behavior
Sociological Influences Sociological Influences (cont..)(cont..)
Social ClassSocial Class
lifestyle divisions of society based on lifestyle divisions of society based on occupation, wealth, power, educationoccupation, wealth, power, education
in Iran, largest class is not the lowestin Iran, largest class is not the lowest
Buyer BehaviorBuyer Behavior
Sociological Influences (cont...)Sociological Influences (cont...)
reference groupsreference groupsinfluence attitudes, perceptions, motivesinfluence attitudes, perceptions, motivesreduce riskreduce riskprimary versus secondaryprimary versus secondaryformal versus informalformal versus informalFamily versus FriendsFamily versus Friends
Think about a specific major Think about a specific major purchase you’ve made recently.purchase you’ve made recently.
What buying process did you follow? What buying process did you follow?
What major factors influenced your What major factors influenced your decision?decision?
Types of Buying DecisionsTypes of Buying Decisions
ComplexBuying
BehaviorDissonance-
Reducing BuyingBehavior
Variety-SeekingBehavior
HabitualBuying
Behavior
HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement
The Buyer Decision The Buyer Decision ProcessProcess
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
The Buyer Decision ProcessStep 1. Need Recognition
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the environment
Internal Stimuli
• Hunger
• Thirst
• A person’s normal needs
Need RecognitionDifference between an actual state and a desired state
The Buyer Decision ProcessStep 2. Information Search
•Family, friends, neighbors•Most influential 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
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
The Buyer Decision ProcessStep 3. Evaluation of Alternatives
Product AttributesEvaluation of Quality, Price, & Features
Degree of ImportanceWhich attributes matter most to me?
Brand BeliefsWhat do I believe about each available brand?
Total Product SatisfactionBased on what I’m looking for, how satisfied
would I be with each product?
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
The Buyer Decision ProcessThe Buyer Decision ProcessStep 4. Purchase DecisionStep 4. Purchase Decision
Purchase IntentionDesire to buy the most preferred brand
Purchase Decision
Attitudes of others
Unexpected situational factors
The Buyer Decision ProcessStep 5. Postpurchase Behavior
Consumer’s Expectations of Product’s Performance
Dissatisfied Customer
Satisfied Customer!
Product’s Perceived Performance
Cognitive Dissonance
Post purchase EvaluationPost purchase Evaluation
Evaluation of product performance.Evaluation of product performance.
Cognitive dissonance.Cognitive dissonance.
Impacts future purchases.Impacts future purchases.
Impacts word-of-mouth communications.Impacts word-of-mouth communications.
Stages in the Adoption ProcessStages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
Adoption of InnovationsAdoption of InnovationsPe
rcen
tage
of A
dopt
ers
Time of AdoptionEarly Late
Inno
vato
rs
Early Adopters
Early Majority
2.5%13.5%
34% 34%
16%
Laggards
Late Majority
IInfluences on the Rate of Adoptionnfluences on the Rate of Adoptionof New Productsof New Products
Try abilityCan the innovation
be used on a trial basis?
CompatibilityDoes the innovation
fit the values and experience of the
target market?ComplexityIs the innovation
difficult tounderstand or use?
Relative AdvantageIs the innovation
superior to existing products?
Communicability Can results be easily
observed or described to others?
ProductCharacteristics
ConclusionConclusion
To Have a successful Sales and Marketing it is To Have a successful Sales and Marketing it is necessary to have a clear idea of your Target necessary to have a clear idea of your Target Market .Market .
With a very aggressive market researching find With a very aggressive market researching find out how consumers in your target market may out how consumers in your target market may react and decide about buying a new product or react and decide about buying a new product or service .service .
Try to influence very intelligently in to different Try to influence very intelligently in to different steps of decision making of consumers in your steps of decision making of consumers in your Target Market .Target Market .
AcknowledgmentsAcknowledgments Dr. Ehteshami for her valuable advices. Dr. Ehteshami for her valuable advices. Mr. Azadi and other colleagues of IMI for Mr. Azadi and other colleagues of IMI for
their great supports. their great supports.
ReferencesReferences
- Kotler Philip, a frame work for Marketing Management ,2003Kotler Philip, a frame work for Marketing Management ,2003- Birn Robin J ,The effective Use of Market research,2004Birn Robin J ,The effective Use of Market research,2004- D. Michman Ronald & M. Mazze Edward , Lifestyle Marketing ,2003D. Michman Ronald & M. Mazze Edward , Lifestyle Marketing ,2003- Jobber David, Priciples and practice of Marketing,2004Jobber David, Priciples and practice of Marketing,2004- www.statmarkgroup.com/html_english/consumer-buying-behavior.htm - www.statmarkgroup.com/html_english/consumer-buying-behavior.htm - www.lib.washington.edu/business/guides/cons.html www.lib.washington.edu/business/guides/cons.html - Webmarketingrecources.orgWebmarketingrecources.org
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