Consumer Market and Consumer Buyer Behavior Agenda 1
Consumer Market and Consumer Buyer Behavior
Agenda 1. Consumer buyer behavior vs Consumer market 2. Model of consumer behavior 3. Characteristics affecting consumer behavior q Cultural factors q Social factors q Personal factors q Psychological factors 4. Types of buying decision behavior 5. The buyer decision process 6. The buyer decision process for new products
n n Consumer buyer behavior refers to the buying behavior of final consumersindividuals and households who buy goods and services for personal consumption Consumer market: All the individuals and households who buy or acquire goods and services for personal consumption
Model of Consumer Behavior Marketing and other stimuli Marketing Other Product Economic Price Technological Place Political Promotion Cultural Buyer’s black box Buyer characteristics decision Buyer responses process Product choice Brand choice Dealer choice Purchase timing Purchase amount
Characteristics Affecting Consumers Behavior Cultural Culture Social Personal Reference groups Age and life cycle stage Occupation Subculture Family Roles and status Social class Economic situation Lifestyle Personality and selfconcept Psychological Motivation Perception Learning Beliefs and attitudes Buyer
Cultural factors Culture: - Culture: The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institution. - Understand the culture in each international market and adapt their marketing strategies accordingly
Cultural factors Subcultures - Subcultures: a group of people with shared value systems based on common life experiences and situations - Subcultures include nationalities, religions, racial groups, and geographic regions.
Cultural factors Social class - Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. - Example: The rich & the poor. They have different purchasing powers.
Cultural factors n Social classes: 7 classes q q q q Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers
Social Factors n Groups. n Family. n Social Roles & Status
Groups -Definition: Two or more people who interact to accomplish individual or mutual goals. -Classification: *Membership groups: direct influence + persons belong *Reference groups : direct or indirect influence + person who don’t belong =>expose a person to new behavior & lifestyles, attitudes, self-concept =>creating pressures to conform that may affect the person’s product & brand choices. So, marketers try to identify+ the reference gr of their target markets. + opinion leaders for their products& direct marketing efforts toward.
Family - Family members can strongly influence buyer behavior. - Children may also have a strong influence on family buying decisions. - is the most important consumers buying organization in society & has been extensively. =>Marketers are interested in the roles and influence of the husband, wife and children on the purchase of different products and services.
Roles & Status - The person’s position in each group can be defined in terms of both role and status - Role: the activities people are expected to perform according to the persons around them. And each role carries a status. - Status: the general esteem given to it by society. -The people often choose products that show their status in society. =>the marketers have to research roles and status of consumers whom they want to serve
Personal Factors n Age and Life-Cycle Stage. n Occupation. n Economic situation. n Lifestyle. n Personality and Self-concept
Age and Life-Cycle Stage n Life-Cycle stages include young singles + married couples + children. n Buying is also shaped by the stage of the family life-cycle (they mature over time). n Once consumers cross over different stages in the life-cycle, their demand for various products and services will change. =>Marketers often define their target markets in terms of life-cycle stage and develop appropriate products and marketing plans for each
Occupation A person’s occupation affects the goods and services bought. =>Marketers try to identify the occupation groups that have an above-average interest in their products and services. =>So, the company can even specialize in making products needed by a given occupational group
Urbanization n One of the most dominant trends in Asia is urbanization. Almost people are flocking to the cities Because: n Within these mega cities, people can find more opportunity for work and a comfortable life. =>So, the marketers should know the trends as well as the lifestyle of consumers to serve.
Lifestyle n n Definition: Lifestyle is a person’s pattern of living as express in his or her activities, interests, and opinions. People coming from the same subculture, social class or occupation may have quite different lifestyle. It involves measuring consumers’ major dimensions-activities, interest and opinion. And the method is used widely: VALS. n VALS (Values and lifestyles): +classify people according to how they spend their time and money. +dividing consumers into 8 groups based on 2 major dimension n *self-orientation *resources
Lifestyle( con’ t) n Self-orientation: - Principle-oriented: consumers who buy based on their views of the world. - Status-oriented: buyers who based their purchase on the actions and opinions of others. - Action-oriented: buyers who are driven by their desired for activity, variety, and risk talking. n Resources: - Abundant resources. - Minimal resources. =>depending on they have high or low levels of income, education, health, self-confidence and the other factors.
Personality & Self-concept n Þ n Personality is the unique psychological characteristics that lead to relatively consistent and lasting response to his or her own environment. Personality can be useful in analyzing consumers behavior for certain product or brand choices. Brand personality: the specific mix of human traits that may be attributed to a particular brand. And 5 brand personality traits: 1. Sincerity 2. Excitement 3. Competence 4. Sophistication 5. Ruggedness
Personality & Self-concept (con ’t) n Self-concept premises is that people’s possession contribute to and reflect their identities. n So, to understand consumer behavior, the marketer must first understand the relationship between consumers self-concept and possession.
Psychological factors n n A person’s buying choice are further influenced by 4 majors psychological factors : Motivation Perception Learning Belief and attitude
Psychological factors n Motivation buyer want something to respond their need. And Maslow’s hierarchy of needs divide human’s need for 5 steps
Psychological factors - Perception select, organize, and interpret information to form a meaningful picture of the world. - Learning changes in an individual’s behavior arising form experience - Belief and attitude - Belief : a descriptive through that a person holds about something - Attitude : a person’s consistently favorable or unfavorable evaluation, feeling, and tendencies toward an object or idea
Types of buying decision behavior n Based on the degree of buyer involvement and the degree of difference among brand - Complex buying behavior - Dissonance reducing buying behavior - Variety seeking buying behavior - Habitual buying behavior
The buyer decision process Consists of 5 stages: n Need recognition n Information search n Evaluation of alternatives n Purchase decision n Post purchase behavior Consumer can skip or reverse some of these stages.
Need recognition n Means: the buyer recognizes a problem/need n Triggered by: internal stimuli external stimuli
Information search Means: consumer is aroused to search for more information , the consumer may simply have heightened attention or may go into active information search. n Consumers obtain information by: Personal sources Commercial sources Public sources Experiential sources n
Evaluation of alternatives n Means: consumers use information to evaluate alternative brands in the choice set. Depends on: Individual consumer The specific buying situation n
Purchase decision n Means: the buyer’s decision about which brand to purchase. Distinguish: Purchase intention Purchase decision n
Post purchase behavior n Means: Consumers take further action after purchase, based on their satisfaction or dissatisfaction. n Cognitive dissonance.
The buyer decision process for new products New product : A good, service or idea that is perceived by some potential customers as new. Adoption process: process The mental process through which an individual pass from first hearing about an innovation to final adoption.
The buyer decision process for new products Stages in the adoption process: Awareness Interest Evaluation Trial Adoption n
The buyer decision process for new products Individual differences in innovativeness: 5 adopter groups have differing values: Innovator Early adopter Early majority Late majority Laggard n
The buyer decision process for new products Influence of product characteristics o rate of adoption: Relative advantage Compatibility Complexity Divisibility Communicability n
The buyer decision process for new products Consumer behavior across international borders: International marketers must understand such differences and adjust their product and marketing programs accordingly Marketers must decide on the degree to which they’ll adapt their products and marketing programs to meet the unique cultures and needs of consumers in various markets. n
n. Let’s do a quiz
Giving characteristics that affect consumers behavior? A) Culture and Society B) Personality and Psychology C) A and B D) None of above Correct - Click anywhere or press Control Your Y to continue answer: Incorrect - Click anywhere or press Control Y to continue You did not answer this You answered this correctly! The correct is: question completely You mustanswer the question before continuing Submit Clear
What does model of consumer behavior include? A) Maketing and other stimuli B) Buyer's black box C) Buyer responses D) A and B E) None of above Correct - Click anywhere or press Control Your Y to continue answer: Incorrect - Click anywhere or press Control Y to continue You did not answer this You answered this correctly! The correct is: question completely You mustanswer the question before continuing Submit Clear
What does consumer buyer behavior refer to? A) Behavior that buyers behave B) Behavior that sellers behave C) the buying behavior of final consumers individuals and households who buy goods and services for personal consumption D) None of above Correct - Click anywhere or press Control Your Y to continue answer: Incorrect - Click anywhere or press Control Y to continue You did not answer this You answered this correctly! The correct is: question completely You mustanswer the question before continuing Submit Clear
Social classes are society’s relatively permanent and ordered divisions whose members share unsimilar values, interests, and behaviors. A) True B) False Correct - Click anywhere or press Control Your Y to continue answer: Incorrect - Click anywhere or press Control Y to continue You did not answer this You answered this correctly! The correct is: question completely You mustanswer the question before continuing Submit Clear
Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institution. A) True B) False Correct - Click anywhere or press Control Your Y to continue answer: Incorrect - Click anywhere or press Control Y to continue You did not answer this You answered this correctly! The correct is: question completely You mustanswer the question before continuing Submit Clear
Complete the sentence below by filling in the blanks. . interested in the. . . influence of the. . . the purchase of different products and services. Correct - Click anywhere or press Control Your Y to continue answer: are and on Incorrect - Click anywhere or press Control Y to continue You did not answer this You answered this correctly! The correct is: question completely You mustanswer the question before continuing Submit Clear
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