Chapter 5 Analyzing Consumer Markets and Buyer Behavior

Chapter 5 Analyzing Consumer Markets and Buyer Behavior By Ung Veasna, DBA candidate

Kotler on Marketing The most important thing is to forecast where customers are moving, and be in front of them.

The consumer market • Ultimate consumers buy goods and services for their own personal or households

Behavioral Fundamentals: B = ƒ(P, E) Personal interaction + Environment Behavior

Consumer Buying Behavior • Consumer Buying Behavior refers to the buying behavior of final consumers individuals & households who buy goods and services for personal consumption. • All these consumers make up the consumer market. • The central question for marketers is: – “How do consumers respond to various marketing efforts the company might use? ”

Model of Consumer Behavior Marketing and Other Stimuli Buyer’s Black Box ? Buyer’s Response ?

Model of Buyer Behavior Marketing and Other Stimuli Marketing Product Price Place Promotion Buyer’s Black Box Buyer Responses Buyer’s Characteristics Buyer’s Decision Process Product Choice Brand Choice Dealer Choice Other Economic Technological Political Cultural Purchase Timing Purchase Amount

Model of Buying Behavior Marketing Other stimuli Product Price Place Promotion Economic Technological Political Cultural Buyer’s decision characteristics process Cultural Social Personal Psychological Problem recognition Information search Evaluation of Alternative Purchase decision Post-purchase behavior Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount

INFLUENCING BUYER BEHAVIOR Cultural Factors Culture Subculture Social Class Buyer

Social Factors Reference Groups Family Roles & Statuses

Personal Influences Age and Family Life Cycle Stage Occupation & Economic Circumstances Lifestyle Personality & Self-Concept

Psychological Factors Motivation Beliefs & Attitudes Perception Learning

Figure 5 -1 Maslow’s Hierarchy of Needs

The Buying Decision Process ¡ Buying Roles l l l Initiator Influencer Decider Buyer User

The Buying Decision Process. Buying behavior – Complex Buying Behavior – Dissonance-Reducing Buyer Behavior – Habitual Buying Behavior – Variety-Seeking Buying Behavior

Buyer Decision Process Purchase Decision Evaluation of Alternatives Information Search Need Recognition Post-purchase Behavior

The Buyer Decision Process Step 1. Need Recognition Desired State Buyer Recognize State Where a the Buyer’s Problem Needs are or a Fulfilled and the Need. Buyer is Satisfied. Actual State Needs Arising From: Internal Stimuli -- Hunger External Stimuli -- Friends

The Buyer Decision Process Step 2. Information Search Personal Sources • Family, friends, neighbors • Most effective source of information Commercial Sources • Advertising, salespeople • Receives most information from these sources Public Sources Experiential Sources • Mass Media • Consumer groups • Handling the product • Examining the product • Using the product

The Buyer Decision Process Step 3. Evaluation of Alternatives Consumer May Use Careful Calculations & Logical Thinking Consumers May Buy on Impulse and Rely on Intuition Consumers May Make Buying Decisions on Their Own. Consumers May Make Buying Decisions Only After Consulting Others. Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives

The Buyer Decision Process Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand Attitudes of Others Unexpected Situational Factors Purchase Decision

The Buyer Decision Process Step 5. Postpurchase Behavior Consumer’s Expectations of Product’s Performance. Product’s Perceived Performance. Dissatisfied Customer Cognitive Dissonance Satisfied Customer!