chap5

Chapter 5: 

Chapter 5 PRINCIPLES OF MARKETING Consumer Markets and Consumer Buyer Behavior

Consumer Buying 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. Study consumer behavior to answer: “How do consumers respond to marketing efforts the company might use?”

Model of Consumer Behavior: 

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

Characteristics Affecting Consumer Behavior: 

Characteristics Affecting Consumer Behavior Buyer Psychological Personal Social Culture

Factors Affecting Consumer Behavior: Culture: 

Factors Affecting Consumer Behavior: Culture Social Class People within a social class tend to exhibit similar buying behavior. Occupation Income Education Wealth Most basic cause of a person's wants and behavior. Values Perceptions Subculture Groups of people with shared value systems based on common life experiences. Hispanic Consumers African American Consumers Asian American Consumers Mature Consumers

Factors Affecting Consumer Behavior: Social : 

Factors Affecting Consumer Behavior: Social Groups Membership Reference Family Husband, wife, kids Influencer, buyer, user Roles and Status Social Factors

Factors Affecting Consumer Behavior: Personal: 

Factors Affecting Consumer Behavior: Personal Personal Influences Age and Family Life Cycle Stage Occupation Economic Situation Lifestyle Identification Activities Opinions Interests Personality & Self-Concept

VALS 2: 

VALS 2 Principle Oriented Status Oriented Action Oriented Achievers Actualizers Strugglers Strivers Fulfilleds Believers Experiencers Makers Abundant Resources Minimal Resources

PowerPoint Presentation: 

Factors Affecting Consumer Behavior: Psychological Psychological Factors Motivation P erception Learning Beliefs and Attitudes

Maslow’s Hierarchy of Needs: 

Maslow’s Hierarchy of Needs Esteem Needs ( self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Self Actualization (Self-development )

Types of Buying Decisions: 

Types of Buying Decisions Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Behavior Habitual Buying Behavior High Involvement Significant differences between brands Few differences between brands Low Involvement

The Buyer Decision Process: 

The Buyer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior

PowerPoint Presentation: 

The Buyer Decision Process Step 1. Need Recognition External Stimuli TV advertising Magazine ad Radio slogan Stimuli in the environment Internal Stimuli Hunger Thirst A person’s normal needs Need Recognition Difference between an actual state and a desired state

The Buyer Decision Process Step 2. Information Search: 

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

PowerPoint Presentation: 

The Buyer Decision Process Step 3. Evaluation of Alternatives Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter most to me? Brand Beliefs What do I believe about each available brand? Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Evaluation Procedures Choosing a product (and brand) based on one or more attributes.

The Buyer Decision Process Step 4. Purchase Decision: 

The Buyer Decision Process Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand Purchase Decision Attitudes of others Unexpected situational factors

PowerPoint Presentation: 

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

Stages in the Adoption Process: 

Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption

Adoption of Innovations: 

Adoption of Innovations Percentage of Adopters Time of Adoption Early Late Innovators Early Adopters Early Majority 2.5% 13.5% 34% 34% 16% Laggards Late Majority

Influences on the Rate of Adoption of New Products: 

Influences on the Rate of Adoption of New Products Divisibility Can the innovation be used on a trial basis? Compatibility Does the innovation fit the values and experience of the target market? Complexity Is the innovation difficult to understand or use? Relative Advantage Is the innovation superior to existing products? Communicability Can results be easily observed or described to others? Product Characteristics