Chapter Five Consumer Markets and Consumer Buyer Behavior
Chapter Five Consumer Markets and Consumer Buyer Behavior Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide
Consumer Markets and Consumer Buyer Behavior Topic Outline • Model of Consumer Behavior • Characteristics Affecting Consumer Behavior • Types of Buying Decision Behavior • The Buyer Decision Process for New Products Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 2
Model of consumer behavior • Consumers make many buying decisions everyday and buying decision is the focal point of the marketer’s effort. • Marketers can study actual consumer purchases to find out what they buy, where and how much, but learning the why’s of the consumer buying behavior is not easythe answer is locked deep within the consumer’s mind Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 3
Model of Consumer Behavior Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption Consumer market refers to all of the personal consumption of final consumers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 4
Model of Consumer Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 5
Buyer characteristics and the buyer decision process are two parts of _______. 1. 2. 3. 4. buyer’s black box buyer’s white box buyer’s red box buyer’s shopping box Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 6
Buyer characteristics and the buyer decision process are two parts of _______. 1. 2. 3. 4. buyer’s black box buyer’s white box buyer’s red box buyer’s shopping box Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 7
Characteristics Affecting Consumer Behavior Factors Influencing Consumer Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 8
Consumer purchases are influenced by cultural, _______, personal, and psychological characteristics. 1. 2. 3. 4. cost social health profit Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 9
Consumer purchases are influenced by cultural, _______, personal, and psychological characteristics. 1. 2. 3. 4. cost social health profit Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 10
Characteristics Affecting Consumer Behavior • Culture is the learned values, perceptions, wants, and behavior from family and other important institutions • Every group or society has a culture and cultural influences on buying behavior may vary greatly from one country to another • Marketers are always trying to spot cultural shifts in order to discover new products that might be wanted Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 11
Characteristics Affecting Consumer Behavior Subculture are groups of people within a culture with shared value systems based on common life experiences and situations • Hispanic • African American • Asian • Mature consumers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 12
Characteristics Affecting Consumer Behavior • Hispanic consumers: one third of the US population • Hispanic consumers tend to buy more branded, higher quality products • African-American consumers: they are motivated by quality and selection. Brands are important Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 13
Characteristics Affecting Consumer Behavior • Asian American: they are the second fastest growing population sub segment after the Hispanics. • More than 90% of the Asian American Go online regularly and are most comfortable with internet technology such as online banking Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 14
Characteristics Affecting Consumer Behavior • Mature consumers: very attractive market. The entire U. S baby boom generation, the largest and the wealthiest demographic cohort in the country. • Mature consumers are not stuck in their ways Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 15
Four examples of subculture groups include Hispanic, African American, Asian American, and ____. 1. 2. 3. 4. middle-class mature consumers RVers echo boomers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 16
Four examples of subculture groups include Hispanic, African American, Asian American, and ____. 1. 2. 3. 4. middle-class mature consumers RVers echo boomers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 17
Groups of people with shared value systems based on common life experiences are called ____. 1. 2. 3. 4. cohorts generations subcultures affiliate groups Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 18
Groups of people with shared value systems based on common life experiences are called ____. 1. 2. 3. 4. cohorts generations subcultures affiliate groups Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 19
The fastest-growing and most affluent subculture in the United States is the _____ population. 1. 2. 3. 4. Hispanic African American Asian American mature Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 20
The fastest-growing and most affluent subculture in the United States is the _____ population. 1. 2. 3. 4. Hispanic African American Asian American mature Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 21
Characteristics Affecting Consumer Behavior Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors • Measured by a combination of occupation, income, education, wealth, and other variables Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 22
Characteristics Affecting Consumer Behavior • In some social systems, members of different classes are reared for certain roles and cant change their social positions. In other country, however, the lines between social classes are not fixed and rigid, people can move to a higher social class or drop into a lower one. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 23
Characteristics Affecting Consumer Behavior • Marketers are interested in social class because within a given social class tend to exhibit similar buying behavior. Social classes show distinct product and brand preferences in areas such as clothing , home furnishings, and automobiles. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 24
Characteristics Affecting Consumer Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 25
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors is referred to as ____. 1. 2. 3. 4. subculture families social class reference groups Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 26
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors is referred to as ____. 1. 2. 3. 4. subculture families social class reference groups Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 27
Which of the following is not one of the major American social classes? 1. 2. 3. 4. Upper class Working class Lower-upper class Lower-working class Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 28
Which of the following is not one of the major American social classes? 1. 2. 3. 4. Upper class Working class Lower-upper class Lower-working class Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 29
Characteristics Affecting Consumer Behavior Groups and Social Networks Membership Groups • Groups with direct influence and to which a person belongs Aspirational Groups • Groups an individual wishes to belong to Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Reference Groups • Groups that form a comparison or reference in forming attitudes or behavior Chapter 5 - slide 30
Characteristics Affecting Consumer Behavior Groups and Social Networks • Word-of-mouth influence and buzz marketing – Opinion leaders are people within a reference group who exert social influence on others – Also called influentials or leading adopters – Marketers identify them to use as brand ambassadors Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 31
A person within a reference group who, because of special skills, knowledge, or other characteristics, exerts social influence on others is called a(n) ____. 1. 2. 3. 4. opinion leader mature consumer marketer upper class citizen Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 32
A person within a reference group who, because of special skills, knowledge, or other characteristics, exerts social influence on others is called a(n) ____. 1. 2. 3. 4. opinion leader mature consumer marketer upper class citizen Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 33
Characteristics Affecting Consumer Behavior Groups and Social Networks • Online Social Networks are online communities where people socialize or exchange information and opinions • Include blogs, social networking sites (facebook), virtual worlds (second life) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 34
Characteristics Affecting Consumer Behavior Social Factors ( family ) • Family is the most important consumerbuying organization in society • Marketers are interested in the roles and influence of the husband, wife and children on the purchase of different products and services • The wife traditionally has been the main purchasing agent for the family. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 35
Characteristics Affecting Consumer Behavior Social Factors ( family ) • Children may also have a strong influence on family buying decisions • Studies found that kids influence family decisions about where they take vacations , what cars or cell phones they buy. As a result , marketers of cars , full service restaurants , cell phones are now placing ads on the children oriented TV networks Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 36
Characteristics Affecting Consumer Behavior Social Factors (roles and status) • Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status • A role consists of the activities that people expected to perform according to the persons around them Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 37
Characteristics Affecting Consumer Behavior Social Factors (roles and status) • Each role carries a status reflecting the general esteem given to it by society. • People usually choose products appropriate to their roles and status. Consider the roles a working mother plays Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 38
Characteristics Affecting Consumer Behavior Personal Factors • Age and life-cycle stage People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture and recreation are age related. Buying Is also shaped by the stage of the family life cycle “ the stages through which families might pass as they mature over time” Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 39
Characteristics Affecting Consumer Behavior Personal Factors • Traditional family life cycle stages include young singles and married couples with children. • The nontraditional stages such as unmarried couples, singles marrying later in life, single parents , extended parents ( those with young adult children returning home ) and others Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 40
Characteristics Affecting Consumer Behavior Personal Factors • RBC Royal Bank stages – Youth: younger than 18 – Getting started: 18– 35 who are going through first experiences, first credit card, first car , first child – Builders: 35– 50 in their peak earning years, as they build careers and family, they tend to borrow more than they invest Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 41
Characteristics Affecting Consumer Behavior Personal Factors • Accumulators: 50– 60 Worry about saving for retirement and invested wisely. • Preservers: over 60 Want to maximize their retirement income to maintain a desired lifestyle. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 42
Characteristics Affecting Consumer Behavior Personal Factors • Occupation affects the goods and services bought by consumers • Blue workers tend to buy more rugged work clothes, whereas executives buy more business suits. • A company can specialize in making products needed by a given occupational group. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 43
Characteristics Affecting Consumer Behavior Personal Factors Economic situation includes trends in: Personal income Savings Interest rates • If economic indicators point to a recession, marketers can take steps to redesign , and reprice their products closely. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 44
Characteristics Affecting Consumer Behavior Personal Factors Lifestyle is a person’s pattern of living as expressed in his or her psychographics • Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 45
Characteristics Affecting Consumer Behavior Personal Factors • Personality and self-concept – Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment – Personality is described in terms of traits. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 46
Characteristics Affecting Consumer Behavior Personal Factors Dominance Autonomy Defensiveness Adaptability Aggressiveness Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 47
Characteristics Affecting Consumer Behavior • A brand personality is the specific mix of the human traits that may be attributed to a particular brand. One researcher identified five brand personality traits: 1. Sincerity ( honest, wholesome, and cheerful) 2. Excitement ( imaginative and up-to date) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 48
Characteristics Affecting Consumer Behavior 3. Competence ( reliable , intelligent and successful ) 4. Sophistication ( upper class and charming) 5. Ruggedness ( tough and outdoorsy) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 49
A person’s _____ is his/her unique set of psychological characteristics that are relatively consistent and lasting. 1. 2. 3. 4. self-esteem self-concept lifestyle personality Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 50
A person’s _____ is his/her unique set of psychological characteristics that are relatively consistent and lasting. 1. 2. 3. 4. self-esteem self-concept lifestyle personality Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 51
Which of the following is not one of the five brand personality traits? 1. 2. 3. 4. Ruggedness Sophistication Self-concept Sincerity Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 52
Which of the following is not one of the five brand personality traits? 1. 2. 3. 4. Ruggedness Sophistication Self-concept Sincerity Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 53
Characteristics Affecting Consumer Behavior Psychological Factors Motivation Perception Learning Beliefs and attitudes Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 54
Characteristics Affecting Consumer Behavior Psychological Factors Motivation • A person has may needs at any given time. Some are biological, arising from the states of tension such as hunger, thirst or discomfort. Others are psychological arising from the need for recognition , esteem , or belonging. • A need becomes a motive when it’s aroused to a sufficient level of intensity Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 55
Characteristics Affecting Consumer Behavior Psychological Factors Motivation A motive is a need that is sufficiently pressing to direct the person to seek satisfaction Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 56
Characteristics Affecting Consumer Behavior • Psychologists have developed theories of human motivation, two of the most popular - theories of psychologists Frued and Maslow. • Frued’s theory suggests that a person’s buying decisions are affected by subconscious motives that even the buyer mayn’t fully understand. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 57
Characteristics Affecting Consumer Behavior Maslow’s Hierarchy of Needs Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 58
Maslow’s hierarchy of needs are psychological, safety, ____, esteem, and selfactualization. 1. 2. 3. 4. social economic lifestyle education Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 59
Maslow’s hierarchy of needs are psychological, safety, ____, esteem, and selfactualization. 1. 2. 3. 4. social economic lifestyle education Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 60
Characteristics Affecting Consumer Behavior Psychological Factors Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes – Selective attention – Selective distortion – Selective retention Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 61
The process by which people select, organize, and interpret information to form a meaningful picture of the world is ____. 1. 2. 3. 4. sensation learning perception motivation Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 62
The process by which people select, organize, and interpret information to form a meaningful picture of the world is ____. 1. 2. 3. 4. sensation learning perception motivation Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 63
Characteristics Affecting Consumer Behavior Psychological Factors Selective attention is the tendency for people to screen out most of the information to which they are exposed, marketers must work hard to attract the consumer’s attention Selective distortion is the tendency for people to interpret information in a way that will support what they already believe Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 64
Characteristics Affecting Consumer Behavior Psychological Factors • Learning is the change in an individual’s behavior arising from experience and occurs through interplay of: Drives Responses Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Stimuli Cues Reinforcement Chapter 5 - slide 65
Characteristics Affecting Consumer Behavior Psychological Factors • A drive : a strong internal stimulus that calls for action. • A drive becomes a motive when its directed towards a particular stimulus object. • Cues are minor stimuli that determine when, where and how the person responds • The consumer’s response to his or her interest in buying the product Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 66
Characteristics Affecting Consumer Behavior Psychological Factors Beliefs and Attitudes Belief is a descriptive thought that a person has about something based on: • Knowledge • Opinion • Faith Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 67
Characteristics Affecting Consumer Behavior • Marketers are interested in the beliefs that people formulate about specific products and services, because these beliefs make up product and brand images that affect buying behavior. • If some of the beliefs are wrong and prevent purchase , the marketer will want to launch a campaign to correct them. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 68
Characteristics Affecting Consumer Behavior Psychological Factors Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 69
Characteristics Affecting Consumer Behavior Psychological Factors • Attitudes put people into a frame of mind of liking or disliking things, or moving toward or away from them • Attitudes are difficult to change, a company should usually try to fit its products into existing attitudes rather than an attempt to change the attitudes. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 70
Types of Buying Decision Behavior Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 71
Complex buying behavior • When consumers are highly involved in a purchase and perceive significant differences among the brands. Consumers maybe highly involved when the product is expensive, risky and purchased infrequently • Marketers need to help buyers learn about product-class attributes& their relative importance. They need to differentiate their brand features, by describing them using print media with long copy Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 72
Dissonance-reducing buying behavior • Occurs when consumers are highly involved with an expensive , risky purchase but see little differences among brands • Consumers might experience post purchase dissonance when they notice certain disadvantages of the purchased brand or hear favorable things about brands not purchased Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 73
Habitual buying behavior • Occurs under conditions of low consumer involvement and little significant brand difference • Consumers appear to have low involvement with most low cost, frequently purchased products • Ad repetition creates brand familiarity rather than brand conviction “ consumers don’t form strong attitudes toward a brand, they select the brand because its familiar Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 74
Types of Buying Decision Behavior Four Types of Buying Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 75
Variety-seeking buying behavior • In situations characterized by low consumer involvement but significant perceived brand differences. In such cases consumers often do a lot of brand switching • Brand switching occurs for the sake of variety rather than because of dissatisfaction. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 76
A consumer purchasing fine furniture (which is expensive and for which a brand’s name matters) would probably result in ____ buying behavior. 1. 2. 3. 4. dissonance-reducing variety-seeking complex habitual Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 77
A consumer purchasing fine furniture (which is expensive and for which a brand’s name matters) would probably result in ____ buying behavior. 1. 2. 3. 4. dissonance-reducing variety-seeking complex habitual Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 78
____ buying behavior is characterized by low consumer involvement but significant perceived brand differences. 1. 2. 3. 4. Dissonance-reducing Variety-seeking Complex Habitual Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 79
____ buying behavior is characterized by low consumer involvement but significant perceived brand differences. 1. 2. 3. 4. Dissonance-reducing Variety-seeking Complex Habitual Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 80
The Buyer Decision Process Buyer Decision Making Process Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 81
The Buyer Decision Process Need Recognition • The first stage of the buyer decision process, in which the consumer recognizes a problem or need. • The need can be triggered by internal stimuli when one of the person’s normal needs rises to a level high enough to become a drive. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 82
The Buyer Decision Process Need Recognition • A need can be triggered by external stimuli • For example , an advertisement or a discussion with a friend might get you thinking about buying a new car. At this stage the marketer should research consumers to find out what kinds of needs or problem arise. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 83
The Buyer Decision Process Information Search • An interested consumer may or mayn’t search for more information, if the consumer’s drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not the consumer may store the need in the memory or undertake an information search. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 84
The Buyer Decision Process Information Search • The stage of the buyer decision process in which the consumer is aroused to search for more information, the consumer may simply heightened attention or may go into an active information search. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 85
The Buyer Decision Process • • Information Search Sources of Information Personal sources—family, friends and neighbors Commercial sources— advertising, Internet, salespeople Public sources—mass media, consumer organizations, internet searches Experiential sources—handling, examining, using the product Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 86
The Buyer Decision Process Information Search • The consumer receives the most information about a product from commercial sources. • Commercial sources inform the buyer , but personal sources evaluate the product for the buyer • As more information is obtained, the consumer’s awareness of the brands increase Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 87
The Buyer Decision Process Evaluation of Alternatives • The marketer needs to know about alternative evaluation • How the consumer processes information to arrive at brand choices. • The consumer arrives at attitudes towards different brands through some evaluation procedure. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 88
The Buyer Decision Process Evaluation of Alternatives • Sometimes consumers make buying decisions on their own, sometimes they turn to friends, consumer guides or salespeople for buying advice. • Marketers should study buyers to find out how they actually evaluate brand alternatives. If they know what evaluation processes go on, marketers can take steps to influence the buyer’s decision Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 89
The Buyer Decision Process Purchase Decision • The buyer’s decision about which brand to purchase. • Two factors can come between the purchase intention and the purchase decision Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 90
The Buyer Decision Process Purchase Decision • The act by the consumer to buy the most preferred brand • The purchase decision can be affected by: – Attitudes of others – Unexpected situational factors Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 91
The Buyer Decision Process Post-Purchase Decision • The stage of the buyer decision process in which the consumers take further action after purchase, based on their satisfaction or dissatisfaction Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 92
The Buyer Decision Process Post-Purchase Decision • The satisfaction or dissatisfaction that the consumer feels about the purchase • Relationship between: – Consumer’s expectations – Product’s perceived performance • The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction • Cognitive dissonance is the discomfort caused by a post-purchase conflict Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 93
The Buyer Decision Process Post-Purchase Decision Customer satisfaction is a key to building profitable relationships with consumers— to keeping and growing consumers and reaping their customer lifetime value Satisfied customers talk favorably about the product, pay less attention to competing brands Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 94
The Buyer Decision Process for New Products Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. New product: a good, service , or idea that’s perceived by some potential customers as new • Stages in the process include: Awareness Interest Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Evaluation Trial Adoption Chapter 5 - slide 95
Stages in the adoption process • Awareness : the consumer becomes aware of the new product, but lacks information about it • Interest: the consumer seeks information about the new product • Evaluation: the consumer considers whether trying the new product makes sense Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 96
Stages in the adoption process • Trial: the consumers tries the new product on a small scale to his or her estimate of its value • Adoption : the consumer decides to make full and regular use of the new product. * This model suggests that the new product marketer should think about how to help consumers move through these stages Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 97
Individual differences in Innovativeness • There are five adopters groups which are : 1. Innovators(venturesome) : they try new ideas at some risk 2. Early adopters: they are opinion leaders in their communities and adopt new ideas early but carefully 3. Early majority(deliberate): they rarely are leaders, they adopt new ideas before the average person Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 98
Individual differences in Innovativeness 4. Late majority( skeptical) : they adopt an innovation only after a majority of people have tried it 5. Laggards(tradition bound) : they are suspicious of changes and adopt the innovation only when it has become sth. Of a tradition itself. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 99
What are the two largest statistical populations in the adoption process? 1. 2. 3. 4. Innovators and early majority Early adopters and early majority Early majority and late majority Innovators and laggards Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 100
What are the two largest statistical populations in the adoption process? 1. 2. 3. 4. Innovators and early majority Early adopters and early majority Early majority and late majority Innovators and laggards Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 101
The Buyer Decision Process for New Products Influence of Product Characteristics on Rate of Adoption Relative advantage Compatibility Divisibility Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Complexity Communicability Chapter 5 - slide 102
Influence of Product Characteristics on Rate of Adoption • Relative advantage: the degree to which the innovation appears superior to existing products • Compatibility: the degree to which the innovation fits the values and experiences of potential consumers • Complexity: the degree to which the innovation is difficult to understand or use Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 103
Influence of Product Characteristics on Rate of Adoption • Divisibility : the degree to which the innovation maybe tried on a limited basis • Communicability : the degree to which the results of using the innovation can be observed or described to others Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5 - slide 104
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