consumer buying behavior - final
TRANSCRIPT
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Definitions
Consumer Market
individuals and households who buygoods and services for personalconsumption
Consumer Buying Behavior refers to the buying behavior of
individuals and households that buyproducts/services for personalconsumption/interest.
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Stimulus Response ModelModel of Consumer Behavior
Marketing and other stimuli enter thebuyers black box and producecertain choice or purchaseresponses.
Marketers must figure out what isinside of the buyers black box and
how stimuli are changed to
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Product,Price,Place,
Promotion
Economic,Technological, Political,
Cultural
FactorsAffectingConsumerBehavior
BuyersDecisionProcess
ProductChoice,Brand
Choice,
DealerChoice
PurchaseTiming,
PurchaseAmount
MarketingStimuli
Buyers BlackBox
BuyersResponses
Stimulus Response Model
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Factors Affecting ConsumerBehavior
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Cultural Factors
Culture is the learned values,perceptions, wants, and behaviorfrom family and other important
institutions Exert broadest and deepest influence
Subcultureare groups of peoplewithin a culture with shared valuesystems based on common life
experiences and situations
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Cultural Factors (cont.)
Social classes are societysrelatively permanent and ordereddivisions whose members share
similar values, interests, andbehaviors
Measured by a combination ofoccupation, income, education, wealth,and other variables
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Social Factors
Family is the most importantconsumer-buying organization insociety
Social roles and statuses are the
groups, family, clubs, andorganizations that a person belongsto that can define role and socialstatus
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Social Factors (cont.)
Groups and social networks
Opinion leaders exert social influenceon others within a reference group
Also called influentials, leading adopters,brand ambassadors
Online social networks are onlinecommunities where people socialize orexchange information and opinions
Include blogs, social networking sites(Facebook)
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Personal Factors
Age and Life Cycle
Occupation - white color or blue color
workers
RBC Royal Band stages
Youth below 18 years oldGetting started 18-35
Builders 35-50
Accumulators 50-60
Preservers over 60
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Personal Factors
Lifestyle is a persons pattern ofliving as expressed in his activities,interest and opinions
Personality refers to the uniquepsychological characteristics that lead toconsistent and lasting responses to theconsumers environment
Brand Personality Dimensions:
sincerity, ruggedness, excitement,
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Psychological Factors
Motivation
Motive is a need that is sufficientlypressing to direct the person to seek
satisfaction
Perception is the process by which
people select, organize, and interpretinformation to form a meaningfulpicture of the world from threeperceptual processes:
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Processes of Perception
Selective attention is the tendencyfor people to screen out most of theinformation to which they are
exposed Selective distortion is the
tendency for people to interpret
information in a way that will supportwhat they already believe
Selective retention is the tendency
to remember good points made
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Psychological Factors (cont.)
Learning is the change in anindividuals behavior arising fromexperience and occurs through
interplay of drives, stimuli, cues,responses and reinforcement
Beliefs are descriptive thoughts that
a person has about something basedon knowledge, opinion and faith
Attitude describes a persons
relatively consistent evaluations,
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Types of Buyer (Roles)
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Types of Buyer (Roles)
Initiator: the person who first suggests orthinks of the idea of buying a particularproduct or service.
Influencer: a person whose views oradvice carry weight in making the finalbuying decision
Decider: the person who ultimatelymakes the final buying decision or anypart of it
Buyer: the person who makes the actual
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Types of Buying Behavior
HighInvolvemen
t
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolveme
nt
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Buyer Decision Process
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Need Recognition
Occurs when the buyer recognizes aproblem or need triggered by:
Internal stimuli - normal needsbecome strong enough to drive behavior
Hunger
Thirst
External stimuli - stimuli in theenvironment
Advertisements
Friends of friends
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Information Search
Consumers exhibit heightenedattention or actively search forinformation.
Sources of Information:
Personal - family, friends, neighbors;most influential
Commercial - advertising, salespeople;gives most
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Evaluation ofAlternatives
How the consumer processesinformation to arrive at brandchoices
Evaluation procedure depends on theconsumer and the buying situation.
Most buyers evaluate multipleattributes, each of which is weighteddifferently.
At the end of the evaluation stage,urchase intentions are formed.
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Purchase Decision
The act by the consumer to buy themost preferred brand
The purchase decision can beaffected by:
Attitudes of others Unexpected situational factors
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Post Purchase Decision
The satisfaction or dissatisfactionthat the consumer feels about thepurchase
Relationship between:
Consumers expectations Products perceived performance
The larger the gap between
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Post Purchase Decision (cont.)
Cognitive dissonance is thediscomfort caused by a postpurchase
conflict
As learned previously
Customer satisfaction is a key to buildingprofitable relationships with consumerstokeeping and growing consumers and reapingtheir customer lifetime value
It costs more to attract a new customer than it
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Buyer Decision Process for
New Products Adoption Process is the mental
process through which an individualpasses from first hearing about aninnovation to final adoption
Stages in the Adoption Process
Marketers should help consumers movethrough these stages.
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Stages in the Adoption Process
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Buyer Decision Process forNew Products (cont.)
Individual Differences inInnovativeness
Consumers can be classified into fiveadopter categories, each of whichbehaves differently toward newproducts.
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Buyer Decision Process forNew Products (cont.)
Product Characteristics and Adoption
Five product characteristics influencethe adoption rate.