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Analyzing Consumer
Markets andConsumer Buyer Behavior
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Major aim of marketing:
to meet & satisfy customersneeds & wants.
The most importantthing is to forecastwhere customers aremoving, and be infront of them.
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Consumer Buying Behavior
The central question for marketers :
How do consumers respond to variousmarketing efforts the company mightuse?
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Model of Buyer Behavior
Marketing and
Other Stimuli
Marketing
Product
Price
Place
Promotion
OtherEconomic
Technological
Political
Cultural
Buyers Black Box
Buyer CharacteristicsCulturalSocialPersonalPsychological
Buyer Decision ProcessProblem recognitionInformation searchEvaluationDecisionPostpurchase behavior
Buyer Responses
Product Choice
Brand Choice
Dealer Choice
Purchase TimingPurchase Amount
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Factors Influencing Consumer
Behavior
Social
Referencegroups
Family
Rolesand
status
PersonalAge andlife-cycle
Occupation
Economicsituation
LifestylePersonality
andself-concept
Psycho-logical
Motivation
Perception
Learning
Beliefs andattitudes
BUYER
Culture
Sub-culture
Socialclass
Cultural
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Factors Influencing
Consumer Behavior: Cultural
CultureForms a persons wants and
behavior
SubcultureGroups with shared valuesystems
Social ClassSocietysdivisions whoshare values,
interests and behaviors
Culture
Subculture
Social class
Cultural
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Factors Influencing Consumer
Behavior: Social
Reference Groups Membership
Aspirational Opinion Leaders
Buzzmarketing
Family
Manyinfluencers Buyers vs. users
Roles and Status
Social
Referencegroups
Family
Roles & status
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Factors Influencing Consumer
Behavior: Social (cont.)
Ref. Groups : have a direct orindirect influence on thepersons attitudes or behavior
Membership Groups groupsto which a person belongs
primary groups secondary groups
Aspirational Groups groupsto which a person would like tobelong
Social
Referencegroups
Family
Roles & status
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Factors Influencing Consumer
Behavior: Social (cont.)
Opinion Leader personwithinareferencegroup
who exertinfluenceonothers
offersadviceorinformationaboutaspecific productorproductcategory,
can befoundinallsocialclasses
Social
Referencegroups
Family
Roles & status
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Factors Influencing Consumer
Behavior: Social (cont.) The most important consumer-
buying organization in t hesociety
Roles and relative influence offamily members in buyingdecisions
Buying roles vary in diff erentcountries and social classes
Buying roles change with evolvinglife-styles
joint decision making women arising as active buyers increasing roleof children
Social
Referencegroups
Family
Roles & status
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Factors Influencing Consumer
Behavior: Social (cont.)
The pe rsons position in eachgroup can be defined in
terms ofboth roleand status:
A Role consists of theactivitiesthat a person is expected toperform according to the pe ople
around him Each role carries a status
A Status is thegeneral esteemgiven a role by society
Social
Referencegroups
Family
Roles & status
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Factors Influencing Consumer
Behavior: Personal
Family Life Cycle stagesthroughoutwhich families passastheymatureovertime
1. bachelorstage2. newlymarriedcouples,nochildren3. fullnest1; youngestchildunder 64. fullnest2; youngestchild 6 orover5. fullnest3; oldermarriedcoupleswith
dependentchildren6. emptynest1; oldermarriedcouplesno
childrenwith them7. emptynest1; oldermarriedcouplesno
childrenathome; retired8. solitarysurvivor,working
9. solitarysurvivor,retired
Personal
Age andlife-cycle
Occupation
Economicsituation
LifestylePersonality
andself-concept
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Stages in Family Life Cycle
See textbook or complete table
1. Bachelor stage:
Young,single,notlivingathome
Fewfinancial burdens. Fashionopinionleaders.Recreationoriented. Buy: basic home equipment,furniture,cars, equipmentforthematinggame;vacations.
2. Newly marriedcouples:
Young,nochildren
Highestpurchaserateand highestaveragepurchaseofdurables:cars,appliances,furniture,vacations.
3. Full nest I:
Youngestchildundersix
Home purchasingatpeak. Liquidassetslow.Interestedinnew products,advertised products.Buy:washers,dryers,TV, babyfood,andcough
medicines, vitamins,dolls,wagons,sleds,skates.
4. Full nest II:
Youngestchildsix orover
Financial position better. Lessinfluenced byadvertising. Buylarger-size packages,multiple-unitdeals. Buy:manyfoods,cleaningmaterials,
bicycles,musiclessons, pianos.
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Factors Influencing Consumer
Behavior: Personal (cont.)
Consumption patterns oftenshaped by:
occupation &
economiccircumstances:
spendableincome, savingsandassets,
debts,
attitudestowardsspending &saving.
Personal
Age andlife-cycle
Occupation
Economicsituation
LifestylePersonality
andself-concept
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Factors Influencing Consumer
Behavior: Personal (cont.)
Lifestyle a persons patternoflivingas expressedin hisactivities,
interestsandopinions Psychographics techniqueofmeasuring
lifestylesanddevelopinglifestyleclassifications
Major dimensions measured are:
Activities (work, hobbies,social
events, entertainment,shopping,sports,vacation)
Interests (family, home,job,recreation,fashion,food,media,achievements)
Opinions (themselves,socialissues,politics, business, economics, products,future)
Personal
Age andlife-cycle
Occupation
Economicsituation
LifestylePersonality
andself-concept
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The VALS segmentation system:
An8-parttypology
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Factors Influencing Consumer
Behavior: Personal (cont.)
Personality a personsuniquecharacteristicsthatleadtorelativelyconsistentandlastingresponsestotheenvironment
Brandpersonality specificmix ofhumantraitsthatmay beattributabletoaparticular brand
Self-concept theselfimageorgeneralpicturethatpeople haveofthemselves
Personsactualself-concept howshe viewsherself
Idealself-concept howshewouldliketo viewherself
Othersself-concept howshethinksothersseeher
Personal
Age andlife-cycle
Occupation
Economicsituation
LifestylePersonality
andself-concept
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Factors Influencing Consumer
Behavior: Psychological Freuds Theory :Psychological
forcesshaping peoples behaviorlargelyunconscious
A personcannotunderstandfully his/herownmotivations
Motivationresearch looksfor hiddenandsubconsciousmotivation
in-depth interviews/laddering
projectivetechniques(i.e. wordassociation,
sentencecompletion, pictureinterpretation,role playing)
Maslows Theory :Masloworderedneeds basedon how pressingtheyaretotheconsumer
Psychological
Motivation
Perception
LearningBeliefs &attitudes
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Research found:
Consumersresistprunes because prunesarewrinkled
lookingandremind peopleofoldage. Mensmokecigarsasanadultversionofthumbsucking.
Women prefer vegetableshorteningtoanimalfatsbecausethelatterarouseasenseofguiltoverkilling
animals.
Factors Influencing Consumer
Behavior: Psychological (cont.)
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PsychologicalFactors:
Maslows Hierarchyof Needs
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Factors Influencing Consumer
Behavior: Psychological (cont.)
Perception process by which peopleselect, organize and int erpret
information to form a meaningfulpictureof theworld
1.Selective attention tendency of peopleto eliminate most of t he information towhich they are exposed
2.Selective distortion to int erpretinformation in a way that will support whatthey already believe
3.Selective retention to retain only part oftheinformation to which they are exposed
Psychological
Motivation
Perception
LearningBeliefs &attitudes
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Factors Influencing Consumer
Behavior: Psychological (cont.)
Learning changes in a personsbehavior, arising from experience
Learning occurs through the interplayof: drives, stimuli, cues, responses andreinforcement
A drive: strong internal stimulus that callsfor action
Cues: minor stimuli that determine when,whereand how the person responds
If the expe rience is rewarding theresponsewill be positively reinforced
Psychological
Motivation
Perception
LearningBeliefs &attitudes
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Factors Influencing Consumer
Behavior: Psychological (cont.)
Through doing and learning people acquire beliefs and
attitudes have influence onbuying behavior
A Belief descriptivethoughtthataperson holdsaboutsomething
An Attitude a personsconsistentlyfavorableorunfavorable evaluations,feelingsandtendenciestowardanobjectoridea
Psychological
Motivation
Perception
LearningBeliefs &attitudes
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The Buying Decision
Process
Marketers havetoidentify:
Who makesthe buyingdecision
Thetypesofbuyingdecisions
Thestepsinthe buying process
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Buying Roles
Who makes the buying decision?
Initiator whofirstgivestheideaof
buyingthe productorservice Influencer whose vieworadviceinfluences
thedecision
Decider whodecideonanycomponentofbuyingdecision
Buyer whomakestheactual purchase
User whousesthe productorsevice
purchased
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HighInvolvement
Significant
differencesbetween
brands
Few
differencesbetweenbrands
LowInvolvement
Types of Buying Behavior
Complex
Buying
Behavior
Variety-
Seeking
Behavior
Dissonance-
Reducing BuyingBehavior
Habitual
BuyingBehavior
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Stages of the Buying Decision
Process
Postpurchase
Behavior
Purchase
Decision
Information
Search
Problem
Recognition
Evaluation
of Alternatives
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The Buyer Decision Process
Stage 1. Problem Recognition
State where the
buyers needs are
fulfilled and the
buyer is satisfied.
Needs Arising from:
Internal Stimuli
(hunger)
or
External Stimuli
(friends)
Buyerrecognizes
a problem
or
a need
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The Buyer Decision ProcessSuccessive Sets Involved in Customer Decision Making
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ConsumerMay Use CarefulCalculations & Logical Thinking
ConsumerMay Use CarefulCalculations & Logical Thinking
Consumers May Buy on Impulse andRely on Intuition
Consumers May Buy on Impulse andRely on Intuition
Consumers May Make Buying Decisionson Their Own.
Consumers May Make Buying Decisionson Their Own.
Consumers May Make Buying DecisionsOnly After Consulting Others.
Consumers May Make Buying DecisionsOnly After Consulting Others.
Marketers must study buyers to find out how theyevaluate brand alternatives
The Buyer Decision Process
Stage 3. Evaluation ofAlternatives
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Consumer Evaluation Process Theconsumeristryingtosatisfyaneed
Theconsumerislookingforcertain benefitsfromthe
productsolution Theconsumersees each productasa bundle of
attributes Theattributesofinterestto buyers vary by product
Consumersdifferastowhich productattributestheyseeasmostrelevantandtheimportancetheyattach to eachattribute
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ConsumerEvaluationProcess (cont.)
Theconsumerdevelops asetofbrandbeliefs aboutwhere each brandstandson each attribute(seetable, nextpage)
Thesetofbeliefsabouta brandmakeup brandimage
Theconsumerarrivesatattitudes (judgments
/preferences)towarddifferentbrandsthrough anattribute evaluation procedure.
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Example: AConsumersBrandBeliefs
aboutComputers
Attribute
Computer MemoryCapacity
GraphicsCapability
SizeandWeight Price
A 10 8 6 4
B 8 9 8 3
C 6 8 10 5
D 4 3 7 8
ComputerA: 0.4(10)+0.3(8)+0.2(6)+0.1(4) = 8.0
Choicewill bemade basedonthehighestperceived value
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ConsumerEvaluationProcess (cont.)
Strategiesdesignedtoinfluence buyerdecisions:
Redesignthe product realpositioning
Alter beliefsaboutthe brand psychologicalpositioning
Alter beliefsaboutcompetitorsbrands competitive
positioning Altertheimportanceweights
Callattentiontoneglectedattributes
Shiftthe buyersideas
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The Buyer Decision Process
Stage 4. Purchase Decision
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The Buyer Decision Process
Stage 5. Postpurchase Behavior
Satisfied Customer!
Consumers
Expectations of Products Performance ---
Products Perceived
Performance.
Dissatisfied Customer
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Problem Recognition
General Need Description
Product Specification-Product value analysis-
Supplier Search
Proposal Solicitation
Supplier Selection*
Order Routine Specification
Performance Review
Stages ofStages ofBusinessBusiness
BuyingBuying
ProcessProcess
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*Example-- SupplierAnalysis
R a t i n g S c a l e
Attributes Importance
Weights
Poor
(1)
Fair
(2)
Good
(3)
Excellent
(4)
Price .30 x
Supplierreputation .20 x
Product reliability .30 x
Service reliability .10 x
Supplierflexibility .10 x
Total score: .30(4) + .20(3) + .30(4) + .10(2) + .10(3) = 3.5
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Buygrid Framework -- Major Stages(Buyphases) of Business Buying Process in
Relation to Major Buying Situations (Buyclasses)
Buyclasses
New Modified Straight
Task Rebuy Rebuy
1. Problem recognition Yes Maybe No
2. General needdescription
Yes Maybe No
3. Product specification Yes Yes Yes
Buyphases 4. Supplier search Yes Maybe No
5. Proposal solicitation Yes Maybe No
6. Supplier selection Yes Maybe No
7. Order-routinespecification
Yes Maybe No
8. Performance review Yes Yes Yes