Slide 7.1 Consumer markets Chapter 7 Markets. Slide 7.2 Consumer buying behaviour Defined as the buying behaviour of the final consumers, individuals.

Slide 7.1

Consumer markets

Chapter 7

Markets

Slide 7.2

Consumer buying behaviour

• Defined as the buying behaviour of the final consumers, individuals and households who buy goods and services for personal consumption.

Slide 7.3

Consumer market

• Consumer market is defined as all the individuals and households who buy or acquire goods and services for personal consumption.

• The world consumer market consists of approx 6.3 billion people– the billion people in North America, Western Europe

and Japan make up 70% of the world’s spending power.

Slide 7.4

Influencers of consumer behaviour

• Cultural factors

• Social factors

• Personal and psychological characteristics

Slide 7.5

Cultural factors

• Culture– Basic cause of person’s wants and behaviour

– Human behaviour is predominantly learned behaviour from family and other important institutions

• Subculture– Group sharing similar value systems based upon life experiences

and situations

• Social class– Relatively permanent and ordered divisions in a society whose

members share similar values interests and behaviours.

– Class systems differ in size and constituents

– Lower social classes are more culture-bound

– Young people of all classes are less so

Slide 7.6

Social factors

• Membership groups– Primary groups

» family, friends, neighbours– Secondary groups

» religious groups and professional associations– Reference groups

» direct or indirect influence on the person’s behaviour or attitudes

– Aspirational groups » reference group to which we want to belong

Slide 7.7

Consumer buying roles

• Initiator– Person who first suggests or thinks of the idea of buying a

particular product.• Influencer

– A person whose views or advice will influence the product or service.

• Decider– Buying decision maker of the product

• Buyer– Ultimate purchaser

• User– Ultimate user

Slide 7.8

Personal factors

– Age and life cycle phase– Psychological life cycles

• Changing interests

– Occupation– Economic circumstances

• Savings and buying power

– Lifestyle• Pattern of living expressed in activities• Psychographics is the technique of measuring lifestyles

– Personality and self-concept

Slide 7.9RISC Research Agency of Paris

developed the 6 ‘Eurotypes’

The ‘traditionalist’ 18%Influenced by culture and socio-economic history, specific to their country

The ‘homebody’ 14%Strong attachment to roots and childhood environment

The ‘rationalist’ 23%Ability to cope with complex environments, entrepreneurialPersonal fulfilment based on self-expression rather than financial reward

The ‘pleasurist’ 17%Emphasises sensual and emotional experiences

The ‘striver’ 15%Holds beliefs, attitudes and values that underlie change

The ‘trend setter’ 13%Favours non-hierarchical structure and spontaneity

Slide 7.11

Buying decision behaviour

• Dissonance-reducing buying behaviour– Situations characterised by high involvement with an

expensive, infrequent or risky purchase but few perceived differences among the brands.

• Habitual buying behaviour– Characterised by low consumer involvement and few

significant perceived brand differences

• Variety seeking buying behaviour– Low consumer involvement but significant perceived

brand differences

Slide 7.12

Figure 7.5 Four types of buying behaviourSource: Adapted from Henry Assael, Consumer Behaviour and Marketing Action, 6th edition, p. 67 (Boston, MA: Kent Publishing Company, 1987) © Wadsworth Inc. 1987. Reprinted by permission of Kent Publishing Company, a division of Wadsworth Inc.

Slide 7.13

Buyer decision process

• Need recognition

• Information search

• Evaluation of alternatives

• Purchase decision

• Post-purchase behaviour

Slide 7.14

Figure 7.7 Steps between evaluation of alternatives and a purchase decision

Typical consumer evaluation process

Slide 7.15

Stages in the adoption process for new products

– Awareness– Interest– Evaluation– Trial– Adoption

Slide 7.16

Individual differences in innovativeness

Figure 7.8 Adopter categorisation on the basis of relative time of adoption of innovationsSource: Reprinted with permission of The Free Press, a Division of Simon & Schuster, Inc., by Everett M. Rogers. Copyright © 1995 by Everett M. Rogers from Diffusion of Innovations, fourth edition. Copyright © 1962, 1971, 1983 by The Free Press

Slide 7.17

Influence of product characteristics on rate of adoption

• Relative advantage– Innovation superior to existing products

• Compatibility– Fit of values and experiences of potential consumers

• Complexity– Ease or difficulty in using the technology or innovation

• Divisibility– Innovation trialled on a limited basis

• Communicability– Results of the innovation can be observed or described to

others.