Copyright 2011 Pearson Education Consumer Buying Behaviour Philip

Consumer Buying Behaviour Philip Kotler & Gary Armstrong

Definitions Consumer Buying Behavior • Buying behavior of individuals and households that buy products for personal consumption. Consumer Market • 2 All individuals/households who buy products for personal consumption.

Model of Buyer Behavior 3 © Pearson Education 2011

Model of Consumer Behavior Stimulus Response Model • Marketing and other stimuli enter the buyer’s “black box” and produce certain choice / purchase responses. • Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses. 4 © Pearson Education 2011

Factors Influencing Consumer Behavior 5 © Pearson Education 2011

Characteristics Affecting Consumer Behavior Key Factors Cultural Social Personal Psychological 6 © Pearson Education 2011 Culture Subculture • Hispanic consumers • African Americans • Asian Americans • Mature consumers Social Class

Characteristics Affecting Consumer Behavior Key Factors Cultural Social Personal Psychological 7 © Pearson Education 2011 • Groups • Membership • Reference • Aspirational groups • Opinion leaders • Buzz marketing • Family • Kids can influence • Roles and Status

Characteristics Affecting Consumer Behavior Key Factors Age and life-cycle Occupation Cultural Social Personal Psychological 8 © Pearson Education 2011 Economic situation Lifestyle Activities, interests, and opinions Lifestyle segmentation Personality and self-concept Brand personality

Lifestyles: Jeep targets people who want to “leave the civilized world behind” What other types of images could be used to appeal to this lifestyle? 9 © Pearson Education 2011

Characteristics Affecting Consumer Behavior Key Factors Motivation Needs provide motives Motivation research Cultural Social Personal Psychological 10 © Pearson Education 2011 Maslow’s hierarchy of needs Perception Selective attention, selective distortion, selective retention Learning Drives, stimuli, cues, responses and reinforcement Beliefs and attitudes

Maslow’s Hierarchy 11 © Pearson Education 2011

The Buyer Decision Process 12 © Pearson Education 2011

The Buyer Decision Process Stages 13 • Need recognition Needs can be triggered by: • Information search • • Evaluation of alternatives • Purchase decision • Postpurchase behavior © Pearson Education 2011 Internal stimuli – • Normal needs become strong enough to drive behavior External stimuli – Advertisements – Friends of friends

The Buyer Decision Process Stages 14 • Need recognition • Information search • Evaluation of alternatives • Purchase decision • Postpurchase behavior © Pearson Education 2011 Consumers exhibit heightened attention or actively search for information. Sources of information: Personal, Commercial, Public, Experiential Word-of-mouth

The Buyer Decision Process Stages 15 • Need recognition • Information search • Evaluation of alternatives • Purchase decision • Postpurchase behavior © Pearson Education 2011 • Evaluation procedure depends on the consumer and the buying situation. • Most buyers evaluate multiple attributes, each of which is weighted differently. • At the end of the evaluation stage, purchase intentions are formed.

The Buyer Decision Process Stages 16 • Need recognition • Information search • Evaluation of alternatives • Purchase decision • Postpurchase behavior © Pearson Education 2011 Two factors intercede between purchase intentions and the actual decision: • Attitudes of others • Unexpected situational factors

The Buyer Decision Process Stages 17 Satisfaction is key: • Need recognition • Information search • Delighted consumers engage in positive word-ofmouth. • Evaluation of alternatives • Unhappy customers tell on average 11 other people. • Purchase decision • Postpurchase behavior © Pearson Education 2011 • It costs more to attract a new customer than it does to retain an existing customer

Buyer Decision Process for New Products Stages in the Adoption Process: 18 1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption © Pearson Education 2011

Buyer Decision Process for New Products 19 © Pearson Education 2011

Buyer Decision Process for New Products Product Characteristics 1. 2. 3. 4. 5. 20 Relative Advantage Compatibility Complexity Divisibility Communicability © Pearson Education 2011

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