Learning Objectives After studying this chapter you should
Learning Objectives • After studying this chapter, you should be able to: • Define the consumer market and construct a simple model of consumer buyer behavior • Name the four major factors that influence consumer buyer behavior • List and understand the major types of buying-decision behavior and the stages in the buyer decision process • Describe the adoption and diffusion process for new products 10/29/2014 Jahanzaib Yousaf 2
Consumer buying behavior Mental decision process and physical activities an individual involves in while searching, evaluating, selecting, buying, using and disposing off goods & services for personal consumption 10/29/2014 Jahanzaib Yousaf 3
Model of Consumer Behavior “ An election goes on every minute of the business day across the counters of millions of stores and shops where the customers state their preferences and determine which manufacturer and which product shall be the leader today, and which shall lead tomorrow. ” (Bruce Barton) 10/29/2014 Jahanzaib Yousaf 4
Model of Consumer Behavior • Consumer Buying Decisions are vital 10/29/2014 Jahanzaib Yousaf 5
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Factors Influencing Consumer Behavior • Culture: • Basic values, perceptions, wants and behaviors • Learned from family and important institutions • Subculture: • Group of people with shared value systems • Based on common life experiences and situations • Social Class 10/29/2014 Jahanzaib Yousaf 7
Factors Influencing Consumer Behavior • Social factors: • • Groups: reference, membership, and aspirational groups Opinion leader Family Roles and Status 10/29/2014 Jahanzaib Yousaf 8
Factors Influencing Consumer Behavior • Personal factors: – – – Family life cycle Occupation Economic situation Lifestyle: activities, interests, and opinions (AIO’s) Personality and self-concept 10/29/2014 Jahanzaib Yousaf 9
Factors Influencing Consumer Behavior Psychological factors: • Motivation: needs and motives, Maslow’s Hierarchy of Needs • Perception: selective attention, distortion, and retention • Learning: drives, stimuli, cues, responses, and reinforcement • Beliefs and attitudes 10/29/2014 Jahanzaib Yousaf 10
Four Types of Buying Decision Behavior Based on: • Degree of involvement • Degree of perceived differences between brands 10/29/2014 Jahanzaib Yousaf 11
The Buyer Decision Process • Need recognition: • Triggered by internal or external stimuli • Must reach an intensity high enough to become a drive • Information search: • Memory (internal) search • External search: personal, commercial, public, experiential sources of information • Word-of-mouth sources are most influential
The Buyer Decision Process • Evaluation of alternatives: • The process of evaluating information to make a decision • Attributes and importance weights are chosen • Alternatives compared against the criteria • Purchase decision: • Attitudes of others and unexpected situational factors • May come between purchase intention and decision
The Buyer Decision Process • Post purchase behavior: • Relationship between consumer expectation and perceived performance • Cognitive dissonance • Customer satisfaction is key to customer loyalty
Adoption of New Product Innovations • Stages in the adoption process: • Awareness, interest, evaluation, trial, and adoption • Influence of product characteristics on rate of adoption: • • • Relative advantage Compatibility Complexity Divisibility Communicability
In Conclusion… • The learning objectives for this chapter were: • Define the consumer market and construct a simple model of consumer buyer behaviour • Name the four major factors that influence consumer buyer behaviour • List and understand the major types of buying-decision behaviour and the stages in the buyer decision process • Describe the adoption and diffusion process for new products
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