5. Consumer markets and consumer buyer behaviour1. Model of
consumer behavior Consumer buyer behaviour:the buying behaviour of
final consumersindividuals andhouseholds that buy goods and
services for personal consumption. Consumer market: all the
individuals and households that buy or acquire goods andservices
for personal consumption.Models of consuming behavior
Review the black box model of buyer behavior. Which buyer
characteristics that affect buyer behavior influence the most when
selecting a restaurant? Are those the same characteristics that
would influence a customer when making a smartphone purchase?
Explain your answerStimulus-response model Environment (stimulus)We
can measure the inputs to consumer buying decisions Marketing
stimuli: Four Ps (product, price, promotion, place) Other stimuli:
major forces and events ex: economic, technological, political and
cultural Black box: Whys of consumer behavior How stimuli are
changes into response Buyers characteristics influence how he
perceives and reacts to stimuli2. Characteristics affecting
consumer behavior Factors affecting consumer behavior
Culture Culture= the learned values, perceptions, wants
andbehaviours from family and other important institutions. Try to
spot cultural shifts ex towards health and fitness lifestyle
hofstede Subculture= are groups of people within a culture with
shared value systems based on common lifeexperiences and
situations. Hispanic American African American Asian American
Mature consumersEx: nationalities, religions, racial groups and
geographic regions Social classes= relatively permanent and ordered
divisions in a society whose members share similarvalues, interests
and behaviours. Measured by a combination of occupation,
income,education, wealth and other variablesSocial class
Groups and social networks Reference groups serve as direct or
indirect points of comparison or reference in forming a persons
attitude or behavior Expose to new behavior, lifestyle, influence
the persons attitudes and self-concept (pressure to conform
Aspirational group (group you wish to belong to) Word-of mouth
influence and buzz marketing o Opinion leaders are people within a
reference group who exert social influence on others. o Also called
influential or leading adopters. o Marketers identify them to use
as brand ambassadors.Ex Playstation use communities to get new
videos out and encourage fans to share them Online social networks
= online communities where people socialize or exchange information
andopinions. Include blogs, social networking sites (Facebook) and
virtual worlds (second life). Family is the most important
consumer-buying organisation in society. But avoid insensitive
stereotyping Social roles and status= the groups, family, clubsand
organisations that a person belongs to that candefine role and
social status.Personal factors Age and life-cycle stage Life style
changing events (marriage, having children, divorce..) RBC Royal
Band stages o Youth: younger than 18 o Getting started: 1835 o
Builders: 3550 o Accumulators: 5060 o Preservers: over 60
Occupation affects the goods and services bought by consumers.
Economic situation includes trends in:
Lifestyle = a persons pattern of living as expressed in his or
her psychographics. Measures a consumers AIOs (activities,
interests, opinions) to capture information about a persons pattern
of acting and interacting in the environment. Personality and
self-concept= Personality refers to the unique psychological
characteristics that lead to consistent and lasting responses to
the consumers environment.
Brand personality =specific mix of human traits that may be
attributed to a particular brand Self-concept=peoples possessions
contribute and reflect their identities (we are what we
have)Psychological factors Motivation A motive = a need that is
sufficiently pressing to direct the person to seek satisfaction.
Motivation research =qualitative research designed to probe
consumers hidden, subconscious motivations. Uncover underlying
emotions and attitudes towards brands and buying situations
Perception= the process by which people select, organise and
interpret information to form ameaningful picture of the world from
three perceptual processes: Selective attention= the tendency for
people to screen out most of the information to which they are
exposed. Selective distortion= the tendency for people to interpret
information in a way that will supportwhat they already believe.
Selective retention= the tendency to remember good points made
about a brand they favour and forget good points about competing
brands. Subliminal advertising=affected by marketing messages
without even knowing it Learning= the change in an individuals
behavior arising from experience and occurs through the interplay
of Drives Stimuli Cues Responses Reinforcement A drive is a strong
internal stimuli that calls for actiona drive becomes a motive when
it is directed towards a particular stimulus object Cues are minor
stimuli that determine when, where an how a person responds Beliefs
and attitudes Belief is a descriptive thought that a person holds
about something based on Knowledge Opinion Faith Attitudes describe
a persons consistently favorable or unfavorable evaluations,
feelings and tendencies toward an object or idea.
3. Types of buying decision behavior Complex buying
behaviorExpensive, risky purchased infrequently and highly
self-expressiveMuch to learn about the product category Cycle of
information gathering and brand evaluation process
(belief-attitude-behavior) Dissonance-reducing buying behaviorGood
pricing or purchase convenience Ex carpeting Habitual buying
behaviorBrand familiarityPrice differences and promotionsEx table
salt Variety-seeking buying behaviorA lot of brand switchingEx
cookies Encouraging habitual buying behavior by dominating shelf
space, keeping shelves fully stocked and running frequently
reminder advertisingNew firms: offer low prices, special deals,
coupons, free samples to encourage variety seekers
4. The buyer decision process
1) Need recognitionOccurs when the buyer recognizes a problem or
needtriggered by:o Internal stimuli ex hungero External stimuli ex
advertisement2) Information sources Personal sourcesfamily and
friends Commercial sourcesadvertising, Internet Public sourcesmass
media, consumer organisations Experiential sourceshandling,
examining, using the3) Evaluation of alternatives= How the consumer
processes information to arrive atbrand choices.4) Purchase
decision= The act by the consumer to buy the most preferredbrand.
can be affected by: o attitudes of others o unexpected situational
factors.5) Postpurchase behavior The satisfaction or
dissatisfaction that theconsumer feels about the purchase.
Relationship between:o Consumers expectationso Products perceived
performance. The larger the gap between expectation andperformance,
the greater the consumersdissatisfaction. Cognitive dissonance is
buyer discomfortcaused by postpurchase conflict Customer
satisfaction = a key to building profitable relationships with
consumersto keeping and growingconsumers and reaping their customer
lifetime value5. The buyer decision process for new products
Adoption process = the mental process an individual goes through
from first learning about an innovation tofinal regular use.
Individual differences in innovativeness
Innovators: try new things at some risk Early adopters: quided
by respect; they are opinion leaders Early majority: deliberate
Late majority: skeptical Laggards: tradition bound New-product
marketers often target innovators and early adopters, who in turn
influence later adopters Influence of products characteristics on
rate of adaptation Relative advantageAppears superior to existing
productspositive relation Compatibility=fits into your behavior and
your other product experience, can integrate it easily into your
lifethan rate of adoption is going up Complexityf too difficult to
use dont buy it =>Philips slogan = simplicity DivisibilityCan
try it on a limited basis and you can talk/ communicate about this
new innovation CommunicabilityResult can be observed or described
to others=>Ex IKEA wants furniture that can charge your
phoneCertain characteristics can affect its rate of adiption. Which
characteristics will impact how quickly the new services described
above and explain why => first mention the 5 characteristics and
prove it with sentences of the textBook p 67 1. Four Ps (marketing
mix): Promotion and environmental factors , black box = Stimulus
response model in that black box there are different
characteristics that affect buying
behaviorcultural/social/personal/psychological Clothing: social
because of the reference group Computer: personal education ex
technological model, income2. opinion leader = people in a
reference group and their opinion will affect the rest of the
reference because they have special skills, knowledge, other
characteristics..=> they try to identify the opinion leaders and
through this medium they try to influence reference group ex become
brand ambassadors (blogs)3. Name and describe the types of consumer
buying behaviour- complex : lot of differences between the brands
ex choosing a mobile phone : high involvement and a lot of
different products- dissonance-reducing- variety-seeking frozen
diner: you have a lot of differences between the brands but low
involvement- habitual4. Explain the stages of the consumer buyer
decision process
Need for recognitionidea missing something: internal/external
stimuli Information searchcommercial, relatives or family, public
sources Evaluation of alternativesSee model in book Purchase
decision Postpurchase behaviorpost purchase conflict6. Name and
describe the adopter categories and explain how a marketer of 3D
television can use this knowledge in its marketing targeting
decisions Innovators Opinion leaders= Early adopters .. ..7.
Trigger events ex having a child (car seats, baby furniture),
wedding, divorce (IKEA: single market), death
Ex apple: lifestyledell: service, technologyHP: All different
atmosphere, whole branding is different