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Consumer Markets and Consumer Buyer Behavior
Chapter 5
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Schedule – Before Midterm
4 Oct.8/9 Consumer Markets and Consumer Buyer Behavior
Ch.5 Case 3
5 Oct.15/16 Business Markets and Business Buyer Behavior
Ch.6 Case 4
6 Oct.22/23 Marketing Information System Ch.4 Case 5
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Learning Goals
1. Define the consumer market and construct a model of consumer buyer behavior
2. Name the four factors that influence buyer behavior
3. List and understand the types of buying decision behavior and stages in the process
4. Describe the adoption and diffusion process for new products
Case StudyHarley Davidson
Building Success
Understanding the customers’ emotions and motivation
Determining the factors of loyalty
Translating this information to effective advertising
Measuring Success
Currently 22% of all U.S. bike sales
Demand above supply Sales doubled in the past
5 years with earnings tripled
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Learning Goals
1. Define the consumer market and construct a model of consumer buyer behavior
2. Name the four factors that influence buyer behavior
3. List and understand the types of buying decision behavior and stages in the process
4. Describe the adoption and diffusion process for new products
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Definitions
Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption
All of these final consumers combine to make up the consumer market
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Learning Goals
1. Define the consumer market and construct a model of consumer buyer behavior
2. Name the four factors that influence buyer behavior
3. List and understand the types of buying decision behavior and stages in the process
4. Describe the adoption and diffusion process for new products
Model of Buyer Behavior
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Characteristics Affecting Consumer Behavior
Culture Forms a person’s wants
and behavior Subculture
Groups with shared value systems
Social Class Society’s divisions who
share values, interests and behaviors
Cultural Social Personal Psychological
Key FactorsKey Factors
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Characteristics Affecting Consumer Behavior
Groups Membership Reference
Aspirational Opinion leaders
Buzz marketing Family
Many influencers Roles and status
Cultural Social Personal Psychological
Key FactorsKey Factors
This advertiser knows teens are strongly influenced by groups when purchasing fashion items
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Characteristics Affecting Consumer Behavior
Age and life cycle Occupation Economic situation Lifestyle
Activities, interests and opinions
Lifestyle segmentation Personality and self-concept
Cultural Social Personal Psychological
Key FactorsKey Factors
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Personal Factors
Family Life Cycle stages throughout which families pass as they mature over time Stages in family life cycle:1.bachelor stage2.newly married couples, no children3.full nest 1; youngest child under 64.full nest 2; youngest child 6 or over5. full nest 3; older married couples with dependent children6.empty nest 1; older married couples no children with them7. empty nest 1; older married couples no children at home;retired8.solitary survivor, working9.solitary survivor, retired
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Personal Factors
Personality ğ a person’s unique characteristics that lead to relatively consistent and lasting responses to his environment
Self-concept ğ the self image or general picture that people have of themselves
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Personal Factors
Lifestyle a person’s pattern of living as expressed in his activities, interests and opinions Psychographics ğ technique of measuring lifestyles
and developing lifestyle classifications Major dimensions measured are:
Activities (work, hobbies, social events, entertainment, shopping, sports,vacation)
Interests (family, home, job, recreation, fashion, food, media, achievements)
Opinions (themselves, social issues, politics, business, economics, products, future)
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Brand Personality Dimensions
Sincerity Ruggedness
Excitement Competence
Sophistication
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Characteristics Affecting Consumer Behavior
Motivation Perception Learning Beliefs and attitudes
Cultural Social Personal Psychological
Key FactorsKey Factors
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Psychological FactorsMotivation A motive is a need that is sufficiently
pressing to direct the person to seek satisfaction
Motivation research is based on Freud. Looks for hidden and subconscious motivation
Maslow ordered needs based on how pressing they are to the consumer
Maslow’s Hierarchy of Needs
This ad demonstrates a product meeting physiological and social needs
Discussion
What consumer products might fulfill multiple levels of the Hierarchy of Needs?
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Psychological Factors Perception Perception is the process by which people
select, organize, and interpret information. Perception Includes:
Selective attention Consumers screen out information
Selective distortion People interpret to support beliefs
Selective retention People retain points to support attitudes
Discussion QuestionPerception
1. How many ads were you exposed to today?
2. Which ones do you remember? Why?
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Psychological Factors Learning Learning describes changes in an individual’s
behavior arising from experience Learning occurs through
Drives Internal stimulus that calls for action
Stimuli Objects that move drive to motive
Cues Minor stimuli that affect response
Reinforcement Feedback on action
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Psychological Factors Beliefs and Attitudes Belief
a descriptive thought about a brand or servicemay be based on real knowledge, opinion, or
faith Attitude
describes a person’s evaluations, feelings and tendencies toward an object or idea
They are difficult to change
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Learning Goals
1. Define the consumer market and construct a model of consumer buyer behavior
2. Name the four factors that influence buyer behavior
3. List and understand the types of buying decision behavior and stages in the process
4. Describe the adoption and diffusion process for new products
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Types of Buying Decision Behavior
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The Buying Roles
5 roles people might play in a buying decision Initiator ğ who first gives the idea of buying the
product or service Influencer ğwhose view or advice influences the
decision Decider ğwho decide on any component of buying
decision Buyer ğwho makes the actual purchase User ğwho uses the product or sevice purchased
The Buyer Decision Process
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The Buyer Decision Process
Need recognition Information search Evaluation of
alternatives Purchase decision Postpurchase behavior
Needs can be triggered by: Internal stimuli
Normal needs become strong enough to drive behavior
External stimuli Advertisements Friends of friends
Process Process Stages Stages
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The Buyer Decision Process
Need recognition Information search Evaluation of
alternatives Purchase decision Postpurchase behavior
Consumers exhibit heightened attention or actively search for information
Sources of information: Personal Commercial Public Experiential Word-of-mouth
Process Process Stages Stages
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•Family, friends, neighbors•Most effective 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 Personal Sources
Commercial SourcesCommercial Sources
Public SourcesPublic Sources
Experiential SourcesExperiential Sources
Information Search
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The Buyer Decision Process
Need recognition Information search Evaluation of
alternatives Purchase decision Postpurchase behavior
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.
Process Process Stages Stages
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Consumer May Use Careful Calculations & Logical ThinkingConsumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and Rely on Intuition
Consumers May Buy on Impulse and Rely on Intuition
Consumers May Make Buying Decisionson Their Own.
Consumers May Make Buying Decisionson Their Own.
Consumers May Make Buying DecisionsOnly After Consulting Others.
Consumers May Make Buying DecisionsOnly After Consulting Others.
Marketers Must Study Buyers to Find Out How They Evaluate Brand
Alternatives
Evaluation of Alternatives
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TotalSet
Decision Making Sets
Aware-nessSet
Consid-eration
SetChoice
Set Decision
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The Buyer Decision Process
Need recognition Information search Evaluation of
alternatives Purchase decision Postpurchase behavior
Two factors intercede between purchase intentions and the actual decision: Attitudes of others Unexpected
situational factors
Process Process Stages Stages
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Buyer Decision Process for New Products
New ProductsGood, service or idea that is perceived by
customers as new. Stages in the Adoption Process
Marketers should help consumers move through these stages.
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Awareness: Consumer is aware of
product, but lacks information.
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks Information about new product.
Interest: Consumer seeks Information about new product.
Evaluation: Consumer considerstrying new product.
Evaluation: Consumer considerstrying new product.
Trial: Consumer tries new product on a small scale.
Adoption: Consumer decides to make regular use of product.
Stages in the Adoption Process
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Buyer Decision Process for New Products
Individual Differences in Innovativeness:
Consumers can be classified into five adopter categories, each of which behaves differently toward new products
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Adopter CategoriesP
erc
en
tag
e o
f A
dop
ters
Time of AdoptionEarly Late
Inn
ovato
rs
Early Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
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Buyer Decision Process for New Products Product Characteristics influencing the adoption rate:
Relative Advantage ğ Is the innovation superior to existing products?
Compatibility ğ Does the innovation fit the values and experience of the target market?
Complexity ğ Is the innovation difficult to understand or use?
Divisibility ğ Can the innovation be used on a trial basis?
Communicability ğ Can results be easily observed or described to others?
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Buyer Decision Process for New Products
International Consumer Behavior
Values, attitudes and behaviors differ greatly in other countries.
Physical differences exist which require changes in the marketing mix.
Customs vary from country to country. Marketers must decide the degree to which they will
adapt their marketing efforts.
Discussion Question
How is a site like
Consumer Reports
used in the decision- making
process?
Why might the adoption process be slow for a home robot?
Discussion Question
Source: Business Week
Source: Business Week
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The Buyer Decision Process
Need recognition Information search Evaluation of
alternatives Purchase decision Postpurchase behavior
Satisfaction is important: Delighted consumers
engage in positive word-of-mouth.
Unhappy customers tell on average 11 other people.
Cognitive dissonance is common
Process Process Stages Stages
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Learning Goals
1. Define the consumer market and construct a model of consumer buyer behavior
2. Name the four factors that influence buyer behavior
3. List and understand the types of buying decision behavior and stages in the process
4. Describe the adoption and diffusion process for new products
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Ramazan Bayraminiz Kutlu & Mutlu olsun!!! For Next Week
Read Chapter 6Be prepared for case 4 – Kodak discussion