- 1. A Global PerspectivePhilip Kotler Gary Armstrong Swee Hoon
Ang5Siew Meng Leong Chin Tiong TanOliver Yau Hon-Consumer Markets
andMingConsumer Buyer Behavior5-1
2. Learning ObjectivesAfter studying this chapter, you should be
able to:1. Define the consumer market and construct a simple
modelof consumer buyer behavior2. Name the four major factors that
influence consumer buyer behavior3. List and understand the major
types of buying decision behavior and the stages in the buyer
decision process4. Describe the adoption and diffusion process for
new products 5-2 3. Chapter Outline1. Model of Consumer Behavior2.
Characteristics Affecting Consumer Behavior3. Types of Buying
Decision Behavior4. The Buyer Decision Process5. The Buyer Decision
Process for New Products6. Consumer Behavior Across International
Borders5-3 4. Model of Consumer Behavior Consumer buyer behavior
refers to the buyingbehavior of final consumersindividuals
andhouseholds who buy goods and services forpersonal consumption.
Consumer market refers to all of the personalconsumption of final
consumers.5-4 5. Model of Consumer BehaviorMarketing stimuli
consists Other stimuli include:of the 4 Ps Economic forces Product
Technological forces Price Political forces Place Cultural forces
Promotion5-5 6. Model ofConsumerBehavior 5-6 7. Factors influencing
Consumer Behavior5-7 8. Characteristics Affecting Consumer
BehaviorCultural Factors Social Factors Buyers culture Reference
groups Buyers subculture Family Buyers social class Roles and
status5-8 9. Characteristics Affecting Consumer BehaviorPersonal
Factors Psychological Factors Age and life-cycle stage Motivation
Occupation Perception Economic situation Learning Lifestyle Beliefs
and attitudes Personality and self-concept 5-9 10. Characteristics
Affecting Consumer Behavior Culture is the learned
values,perceptions, wants, andbehavior from family andother
important institutions.5-10 11. Characteristics Affecting Consumer
BehaviorSubcultures are groups of people within a culturewith
shared value systems based on common lifeexperiences and
situations. Chinese Indians Malays Eurasians5-11 12.
Characteristics Affecting Consumer Behavior Social classes are
societys relatively permanent and ordered divisions whose members
share similar values, interests, and behaviors. Measured by a
combination of occupation, income, education, wealth, and other
variables5-12 13. Characteristics Affecting Consumer BehaviorThe
major social classes: Upper class Middle class Working class Lower
class 5-13 14. Characteristics Affecting Consumer BehaviorSocial
FactorsGroups Membership groups have a direct influence and to
which aperson belongs. Aspirational groups are groups to which an
individual wishesto belong. Reference groups are groups that form a
comparison orreference in forming attitudes or behavior. 5-14 15.
Characteristics Affecting Consumer BehaviorSocial FactorsGroups
Opinion leaders are people within a reference group withspecial
skills, knowledge, personality, or other characteristicsthat can
exert social influence on others. Buzz marketing enlists opinion
leaders to spread the word. Social networking is a new form of buzz
marketing MySpace.com Facebook.com 5-15 16. Characteristics
Affecting Consumer BehaviorSocial Factors Family is the most
important consumer-buyingorganization in society. Social roles and
status are the groups, family, clubs, andorganizations to which a
person belongs that can definerole and social status. 5-16 17.
Characteristics Affecting Consumer BehaviorPersonal Factors
Personal characteristics Age and life-cycle stage Occupation
Economic situation Lifestyle Personality and self-concept 5-17 18.
Characteristics Affecting Consumer BehaviorPersonal FactorsAge and
life-cycle stage RBC (Royal Bank of Canada) Royal Bank has
identified five life-stage segments: Youthyounger than 18 years
Getting started18-35 years Builders35-50 years Accumulators50-60
years Preserversover 60 years5-18 19. Characteristics Affecting
Consumer BehaviorPersonal Factors Occupation affects the goods and
services bought byconsumers. Economic situation includes trends in:
Personal income Savings Interest rates5-19 20. Characteristics
Affecting Consumer BehaviorPersonal Factors Lifestyle is a persons
pattern of living as expressed inhis or her psychographics.
Measures a consumers AIOs (activities, interests, and opinions) to
capture information about a persons pattern of acting and
interacting in the environment.5-20 21. Characteristics Affecting
Consumer BehaviorPersonal FactorsSRI Consultings Values and
Lifestyle (VALS) typology: Classifies people according to how they
spend moneyand time: Primary motivations Resources 5-21 22.
Characteristics Affecting Consumer BehaviorPersonal FactorsPrimary
motivations Ideals Achievement Self-expression 5-22 23.
Characteristics Affecting Consumer BehaviorPersonal
FactorsResources High resources Innovators exhibit all primary
motivations. Low resources Survivors do not exhibit strong
primarymotivation.5-23 24. VALS LifestyleClassifications5-24 25.
Characteristics Affecting Consumer BehaviorPersonal
FactorsPersonality and Self-Concept Personality refers to the
unique psychologicalcharacteristics that lead to consistent and
lastingresponses to the consumers environment.5-25 26.
Characteristics Affecting Consumer BehaviorPersonal
FactorsPersonality and Self-ConceptBrand personality refers to the
specific mix of human traitsthat may be attributed to a particular
brand: Sincerity Excitement Competence Sophistication Ruggedness
5-26 27. Characteristics Affecting Consumer BehaviorPersonal
FactorsPersonality and Self-Concept Self-concept refers to
peoplespossessions that contribute to andreflect their identities.
5-27 28. Characteristics Affecting Consumer BehaviorPsychological
Factors Motivation Perception Learning Beliefs and attitudes 5-28
29. Characteristics Affecting Consumer BehaviorPsychological
FactorsMotivation A motive is a need that is sufficiently pressing
to direct theperson to seek satisfaction. Motivation research
refers to qualitative research designedto probe consumers hidden,
subconscious motivations. 5-29 30. Characteristics Affecting
Consumer BehaviorPsychological FactorsAbraham Maslows Hierarchy of
Needs People are driven by particularneeds at particular times.
Human needs are arranged in ahierarchy from mostpressing to least
pressing. 5-30 31. Characteristics Affecting Consumer
BehaviorPsychological Factors Perception is the process by which
people select, organize,and interpret information to form a
meaningful picture ofthe world from three perceptual processes:
Selective attention Selective distortion Selective retention5-31
32. Characteristics Affecting Consumer BehaviorPsychological
Factors Selective attention is the tendency for people to screenout
most of the information to which they are exposed. Selective
distortion is the tendency for people tointerpret information in a
way that will support whatthey already believe. Selective retention
is the tendency to remember goodpoints made about a brand they
favor and to forgetgood points about competing brands. 5-32 33.
Characteristics Affecting Consumer BehaviorPsychological Factors
Learning is the changes in an individuals behavior arisingfrom
experience and occurs through interplay of: Drives Stimuli Cues
Responses Reinforcement5-33 34. Characteristics Affecting Consumer
BehaviorPsychological FactorsBeliefs and Attitudes Belief is a
descriptive thought that a person has aboutsomething based on:
Knowledge Opinion Faith5-34 35. Characteristics Affecting Consumer
BehaviorPsychological FactorsBeliefs and AttitudesAttitudes
describe a persons relatively consistentevaluations, feelings, and
tendencies toward an objector idea. 5-35 36. Four Types of Buying
Decision Behavior Complex buying behavior Dissonance-reducing
buying behavior Habitual buying behavior Variety-seeking buying
behavior5-36 37. Types of Buying Decision BehaviorComplex Buying
Behavior Occurs when consumers are highly motivated in a
purchaseand perceive significant differences among brands.
Purchasers are highly motivated when: Product is expensive Product
is risky Product is purchased infrequently Product is highly
self-expressive 5-37 38. Types of Buying Decision Behavior
Dissonance-reducing buying behavior occurs when consumers are
highly involved with an expensive, infrequent, or risky purchase,
but see little difference among brands. Post-purchase dissonance
occurs when the consumernotices certain disadvantages of the
product purchased orhears favorable things about a product not
purchased.5-38 39. Types of Buying Decision Behavior Habitual
buying behavior occurs when consumers have low involvement and
there is little significant brand difference. Variety-seeking
buying behavior occurs when consumers have low involvement and
there are significant brand differences. 5-39 40. The Buyer
Decision ProcessFive stages in the buyer decision process1. Need
recognition2. Information search3. Evaluation of alternatives4.
Purchase decision5. Post-purchase behavior5-40 41. The Buyer
Decision ProcessNeed Recognition Need recognition occurs when the
buyer recognizes a problem or need triggered by: Internal stimuli
External stimuli5-41 42. The Buyer Decision ProcessInformation
SearchInformation search is the amount of information neededin the
buying process and depends on: The strength of the drive, The
amount of information you start with, The ease of obtaining the
information, The value placed on the additional information, and
The satisfaction from searching. 5-42 43. The Buyer Decision
ProcessInformation SearchSources of information: Personal
sourcesfamily and friends Commercial sourcesadvertising, Internet
Public sourcesmass media, consumerorganizations Experiential
sourceshandling, examining, usingthe product5-43 44. Sources and
Role of Information5-44 45. The Buyer Decision ProcessEvaluation of
AlternativesEvaluation of alternatives is how the consumerprocesses
information to arrive at brand choices.5-45 46. The Buyer Decision
ProcessPurchase Decision The purchase decision is the act by the
consumer to buy the most preferred brand. The purchase decision can
be affected by: Attitudes of others Unexpected situational
factors5-46 47. The Buyer Decision ProcessPost-Purchase Decision
The post-purchase decision is the satisfaction or dissatisfaction
the consumer feels about the purchase. Relationship between:
Consumers expectations Products perceived performance5-47 48. The
Buyer Decision ProcessPost-Purchase Decision The larger the gap
between expectation and performance, the greater the consumers
dissatisfaction. Cognitive dissonance is the discomfort caused by a
post-purchase conflict 5-48 49. The Buyer Decision
ProcessPost-Purchase Decision Customer satisfaction is a key to
building profitable relationships with consumersto keeping and
growing consumers and reaping their customer lifetime value.5-49
50. The Buyer Decision Process forNew Products New product is a
good, service, or idea that isperceived by some potential customers
as new. Adoption process is the mental process anindividual goes
through from first learning about aninnovation to final regular
use. 5-50 51. The Buyer Decision Process forNew ProductsStages in
the Adoption Process1. Awareness2. Interest3. Evaluation4. Trial5.
Adoption 5-51 52. The Buyer Decision Process forNew ProductsStages
in the Adoption Process Awareness is when the consumer becomes
awareof the new product but lacks information. Interest is when the
consumer seeks informationabout the new product.5-52 53. The Buyer
Decision Process forNew ProductsStages in the Adoption Process
Evaluation is when the consumer considerswhether trying the new
product makes sense. Trial is when the consumer tries the new
productto improve his or her estimate of value. Adoption is when
the consumer decides to makefull and regular use of the product
5-53 54. The Buyer Decision Process forNew ProductsIndividual
Differences in Innovation Early adopters are opinion leaders and
adopt new ideasearly but cautiously. Early majority are deliberate
and adopt new ideas beforethe average person. Late majority are
skeptical and adopt new ideas only afterthe majority of people have
tried it. Laggards are suspicious of changes and adopt new
ideasonly when they become tradition. 5-54 55. The Buyer Decision
Process forNew ProductsIndividual Differences in Innovation 5-55
56. The Buyer Decision Process forNew ProductsInfluence of Product
Characteristics on Rate of Adoption Relative advantage is the
degree to which an innovation appears to be superior to existing
products. Compatibility is the degree to which an innovation fits
the values and experiences of potential consumers. 5-56 57. The
Buyer Decision Process forNew ProductsInfluence of Product
Characteristics on Rate of Adoption Complexity is the degree to
which the innovation is difficult to understand or use.
Divisibility is the degree to which the innovation may be tried on
a limited basis. 5-57 58. Consumer Behavior Across
InternationalBorders Differences can include: Values Attitudes
Behaviors The question for marketers is whether to adapt
orstandardize the marketing.5-58