Chapter Five

Chapter 5- slide 1Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Five

Consumer Markets and Consumer Buyer Behavior


Consumer Markets and Consumer Buyer Behavior

• Model of Consumer Behavior• Characteristics Affecting Consumer

Behavior• Types of Buying Decision Behavior• The Buyer Decision Process• The Buyer Decision Process for New

Products

Topic Outline


• Consumers make many buying decisions everyday and buying decision is the focal point of the marketer’s effort.

• Marketers can study actual consumer purchases to find out what they buy, where and how much, but learning the why’s of the consumer buying behavior is not easy- the answer is locked deep within the consumer’s mind

Model of consumer behavior


Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption

Consumer market refers to all of the personal consumption of final consumers

Model of Consumer Behavior


Model of Consumer Behavior


Buyer characteristics and the buyer decision process are two parts of _______.1. buyer’s black box2. buyer’s white box3. buyer’s red box4. buyer’s shopping box


Buyer characteristics and the buyer decision process are two parts of _______.1. buyer’s black box2. buyer’s white box3. buyer’s red box4. buyer’s shopping box


Characteristics Affecting Consumer BehaviorFactors Influencing Consumer Behavior


Consumer purchases are influenced by cultural, _______, personal, and psychological characteristics.1. cost2. social3. health4. profit


Consumer purchases are influenced by cultural, _______, personal, and psychological characteristics.1. cost2. social3. health4. profit


• Culture is the learned values, perceptions, wants, and behavior from family and other important institutions

• Every group or society has a culture and cultural influences on buying behavior may vary greatly from one country to another

• Marketers are always trying to spot cultural shifts in order to discover new products that might be wanted

Characteristics Affecting Consumer Behavior



Subculture are groups of people within a culture with shared value systems based on common life experiences

and situations• Hispanic• African American• Asian• Mature consumers


• Hispanic consumers: one third of the US population

• Hispanic consumers tend to buy more branded, higher quality products

• African-American consumers: they are motivated by quality and selection. Brands are important



• Asian American: they are the second fastest growing population sub segment after the Hispanics.

• More than 90% of the Asian American Go online regularly and are most comfortable with internet technology such as online banking



• Mature consumers: very attractive market. The entire U.S baby boom generation, the largest and the wealthiest demographic cohort in the country.

• Mature consumers are not stuck in their ways



Four examples of subculture groups include Hispanic, African American, Asian American, and ________.1. middle-class2. mature consumers3. RVers4. echo boomers


Four examples of subculture groups include Hispanic, African American, Asian American, and ________.1. middle-class2. mature consumers3. RVers4. echo boomers


Groups of people with shared value systems based on common life experiences are called ________.1. cohorts2. generations3. subcultures4. affiliate groups


Groups of people with shared value systems based on common life experiences are called ________.1. cohorts2. generations3. subcultures4. affiliate groups


The fastest-growing and most affluent subculture in the United States is the _____ population.1. Hispanic2. African American3. Asian American4. mature


The fastest-growing and most affluent subculture in the United States is the _____ population.1. Hispanic2. African American3. Asian American4. mature


Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors

• Measured by a combination of occupation, income, education, wealth, and other variables



• In some social systems, members of different classes are reared for certain roles and cant change their social positions. In other country, however, the lines between social classes are not fixed and rigid, people can move to a higher social class or drop into a lower one.



• Marketers are interested in social class because within a given social class tend to exhibit similar buying behavior. Social classes show distinct product and brand preferences in areas such as clothing , home furnishings, and automobiles.





Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors is referred to as ________.1. subculture2. families3. social class4. reference groups


Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors is referred to as ________.1. subculture2. families3. social class4. reference groups


Which of the following is not one of the major American social classes?1. Upper class2. Working class3. Lower-upper class4. Lower-working class


Which of the following is not one of the major American social classes?1. Upper class2. Working class3. Lower-upper class4. Lower-working class



Groups and Social Networks



• Word-of-mouth influence and buzz marketing– Opinion leaders are people

within a reference group who exert social influence on others

– Also called influentials or leading adopters

– Marketers identify them to use as brand ambassadors



A person within a reference group who, because of special skills, knowledge, or other characteristics, exerts social influence on others is called a(n) ________.1. opinion leader2. mature consumer3. marketer4. upper class citizen


A person within a reference group who, because of special skills, knowledge, or other characteristics, exerts social influence on others is called a(n) ________.1. opinion leader2. mature consumer3. marketer4. upper class citizen



• Online Social Networks are online communities where people socialize or exchange information and opinions

• Include blogs, social networking sites (facebook), virtual worlds (second life)




• Family is the most important consumer-buying organization in society

• Marketers are interested in the roles and influence of the husband, wife and children on the purchase of different products and services

• The wife traditionally has been the main purchasing agent for the family.

Social Factors ( family )



• Children may also have a strong influence on family buying decisions

• Studies found that kids influence family decisions about where they take vacations , what cars or cell phones they buy. As a result , marketers of cars , full service restaurants , cell phones are now placing ads on the children oriented TV networks

Social Factors ( family )



• Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status

• A role consists of the activities that people expected to perform according to the persons around them

Social Factors (roles and status)



• Each role carries a status reflecting the general esteem given to it by society.

• People usually choose products appropriate to their roles and status. Consider the roles a working mother plays

Social Factors (roles and status)



• Age and life-cycle stagePeople change the goods and services they

buy over their lifetimes. Tastes in food, clothes, furniture and recreation are age related. Buying Is also shaped by the stage of the family life cycle “ the stages through which families might pass as they mature over time”

Personal Factors



• Traditional family life cycle stages include young singles and married couples with children.

• The nontraditional stages such as unmarried couples, singles marrying later in life, single parents , extended parents ( those with young adult children returning home ) and others

Personal Factors



• RBC Royal Bank stages– Youth: younger than 18– Getting started: 18–35 who are going through

first experiences, first credit card, first car , first child

– Builders: 35–50 in their peak earning years, as they build careers and family, they tend to borrow more than they invest

Personal Factors



• Accumulators: 50–60

Worry about saving for retirement and invested wisely.

• Preservers: over 60

Want to maximize their retirement income to maintain a desired lifestyle.

Personal Factors



• Occupation affects the goods and services bought by consumers

• Blue workers tend to buy more rugged work clothes, whereas executives buy more business suits.

• A company can specialize in making products needed by a given occupational group.

Personal Factors



Economic situation includes trends in:

• If economic indicators point to a recession, marketers can take steps to redesign , and reprice their products closely.

Personal Factors



Lifestyle is a person’s pattern of living as expressed in his or her psychographics

• Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment

Personal Factors



• Personality and self-concept– Personality refers to the unique psychological

characteristics that lead to consistent and lasting responses to the consumer’s environment

– Personality is described in terms of traits .

Personal Factors




• A brand personality is the specific mix of the human traits that may be attributed to a particular brand. One researcher identified five brand personality traits:

1.Sincerity ( honest, wholesome, and cheerful)

2.Excitement ( imaginative and up-to date)



3. Competence ( reliable , intelligent and successful )

4. Sophistication ( upper class and charming)5. Ruggedness ( tough and outdoorsy)



A person’s _____ is his/her unique set of psychological characteristics that are relatively consistent and lasting.1. self-esteem2. self-concept3. lifestyle4. personality


A person’s _____ is his/her unique set of psychological characteristics that are relatively consistent and lasting.1. self-esteem2. self-concept3. lifestyle4. personality


Which of the following is not one of the five brand personality traits?1. Ruggedness2. Sophistication3. Self-concept4. Sincerity


Which of the following is not one of the five brand personality traits?1. Ruggedness2. Sophistication3. Self-concept4. Sincerity



Psychological Factors



• A person has may needs at any given time. Some are biological, arising from the states of tension such as hunger, thirst or discomfort. Others are psychological arising from the need for recognition , esteem , or belonging .

• A need becomes a motive when it’s aroused to a sufficient level of intensity

Psychological FactorsMotivation



A motive is a need that is sufficiently pressing to direct the person to seek satisfaction

Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations

Psychological FactorsMotivation


• Psychologists have developed theories of human motivation, two of the most popular- the theories of psychologists Frued and Maslow.

• Frued’s theory suggests that a person’s buying decisions are affected by subconscious motives that even the buyer mayn’t fully understand.




Maslow’sHierarchy of Needs


Maslow’s hierarchy of needs are psychological, safety, ________, esteem, and self-actualization.1. social2. economic3. lifestyle4. education


Maslow’s hierarchy of needs are psychological, safety, ________, esteem, and self-actualization.1. social2. economic3. lifestyle4. education



Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes– Selective attention– Selective distortion– Selective retention



The process by which people select, organize, and interpret information to form a meaningful picture of the world is ________.1. sensation2. learning3. perception4. motivation


The process by which people select, organize, and interpret information to form a meaningful picture of the world is ________.1. sensation2. learning3. perception4. motivation



Selective attention is the tendency for people to screen out most of the information to which they are exposed, marketers must work hard to attract the consumer’s attention

Selective distortion is the tendency for people to interpret information in a way that will support what they already believe

Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands




• Learning is the change in an individual’s behavior arising from experience and occurs through interplay of:




• A drive : a strong internal stimulus that calls for action.

• A drive becomes a motive when its directed towards a particular stimulus object.

• Cues are minor stimuli that determine when, where and how the person responds

• The consumer’s response to his or her interest in buying the product




Belief is a descriptive thought that a person has about something based on:

• Knowledge• Opinion• Faith

Psychological FactorsBeliefs and Attitudes


• Marketers are interested in the beliefs that people formulate about specific products and services, because these beliefs make up product and brand images that affect buying behavior.

• If some of the beliefs are wrong and prevent purchase , the marketer will want to launch a campaign to correct them.




Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea




• Attitudes put people into a frame of mind of liking or disliking things, or moving toward or away from them

• Attitudes are difficult to change, a company should usually try to fit its products into existing attitudes rather than an attempt to change the attitudes.



Types of Buying Decision Behavior


• When consumers are highly involved in a purchase and perceive significant differences among the brands. Consumers maybe highly involved when the product is expensive, risky and purchased infrequently

• Marketers need to help buyers learn about product-class attributes& their relative importance. They need to differentiate their brand features, by describing them using print media with long copy

Complex buying behavior


• Occurs when consumers are highly involved with an expensive , risky purchase but see little differences among brands

• Consumers might experience post purchase dissonance when they notice certain disadvantages of the purchased brand or hear favorable things about brands not purchased

Dissonance-reducing buying behavior


• Occurs under conditions of low consumer involvement and little significant brand difference

• Consumers appear to have low involvement with most low cost, frequently purchased products

• Ad repetition creates brand familiarity rather than brand conviction “ consumers don’t form strong attitudes toward a brand, they select the brand because its familiar

Habitual buying behavior


Types of Buying Decision Behavior

Four Types of Buying Behavior


• In situations characterized by low consumer involvement but significant perceived brand differences. In such cases consumers often do a lot of brand switching

• Brand switching occurs for the sake of variety rather than because of dissatisfaction .

Variety-seeking buying behavior


A consumer purchasing fine furniture (which is expensive and for which a brand’s name matters) would probably result in ________ buying behavior.1. dissonance-reducing 2. variety-seeking3. complex4. habitual


A consumer purchasing fine furniture (which is expensive and for which a brand’s name matters) would probably result in ________ buying behavior.1. dissonance-reducing 2. variety-seeking3. complex4. habitual


________ buying behavior is characterized by low consumer involvement but significant perceived brand differences.1. Dissonance-reducing 2. Variety-seeking3. Complex4. Habitual


________ buying behavior is characterized by low consumer involvement but significant perceived brand differences.1. Dissonance-reducing 2. Variety-seeking3. Complex4. Habitual


The Buyer Decision Process

Buyer Decision Making Process



• The first stage of the buyer decision process, in which the consumer recognizes a problem or need.

• The need can be triggered by internal stimuli when one of the person’s normal needs rises to a level high enough to become a drive.

Need Recognition



• A need can be triggered by external stimuli• For example , an advertisement or a

discussion with a friend might get you thinking about buying a new car. At this stage the marketer should research consumers to find out what kinds of needs or problem arise.

Need Recognition



• An interested consumer may or mayn’t search for more information, if the consumer’s drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not the consumer may store the need in the memory or undertake an information search.

Information Search



• The stage of the buyer decision process in which the consumer is aroused to search for more information, the consumer may simply heightened attention or may go into an active information search.

Information Search



• Personal sources—family, friends and neighbors

• Commercial sources—advertising, Internet, salespeople

• Public sources—mass media, consumer organizations, internet searches

• Experiential sources—handling, examining, using the product

Information SearchSources of Information



• The consumer receives the most information about a product from commercial sources.

• Commercial sources inform the buyer , but personal sources evaluate the product for the buyer

• As more information is obtained, the consumer’s awareness of the brands increase

Information Search



• The marketer needs to know about alternative evaluation

• How the consumer processes information to arrive at brand choices.

• The consumer arrives at attitudes towards different brands through some evaluation procedure.

Evaluation of Alternatives



• Sometimes consumers make buying decisions on their own, sometimes they turn to friends, consumer guides or salespeople for buying advice.

• Marketers should study buyers to find out how they actually evaluate brand alternatives. If they know what evaluation processes go on, marketers can take steps to influence the buyer’s decision

Evaluation of Alternatives



• The buyer’s decision about which brand to purchase.

• Two factors can come between the purchase intention and the purchase decision

Purchase Decision



• The act by the consumer to buy the most preferred brand

• The purchase decision can be affected by: – Attitudes of others– Unexpected situational factors

Purchase Decision



• The stage of the buyer decision process in which the consumers take further action after purchase, based on their satisfaction or dissatisfaction

Post-Purchase Decision



• The satisfaction or dissatisfaction that the consumer feels about the purchase

• Relationship between:– Consumer’s expectations– Product’s perceived performance

• The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction

• Cognitive dissonance is the discomfort caused by a post-purchase conflict




Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value

Satisfied customers talk favorably about the product, pay less attention to competing brands



The Buyer Decision Process for New Products

Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use.

New product: a good, service , or idea that’s perceived by some potential customers as new

• Stages in the process include:


• Awareness : the consumer becomes aware of the new product, but lacks information about it

• Interest: the consumer seeks information about the new product

• Evaluation: the consumer considers whether trying the new product makes sense

Stages in the adoption process


• Trial: the consumers tries the new product on a small scale to his or her estimate of its value

• Adoption : the consumer decides to make full and regular use of the new product.

* This model suggests that the new product marketer should think about how to help consumers move through these stages

Stages in the adoption process


• There are five adopters groups which are :1.Innovators(venturesome) : they try new

ideas at some risk2.Early adopters:they are opinion leaders in

their communities and adopt new ideas early but carefully

3.Early majority(deliberate): they rarely are leaders, they adopt new ideas before the average person

Individual differences in Innovativeness


4. Late majority( skeptical) : they adopt an innovation only after a majority of people have tried it

5. Laggards(tradition bound) : they are suspicious of changes and adopt the innovation only when it has become sth. Of a tradition itself.

Individual differences in Innovativeness


What are the two largest statistical populations in the adoption process?1. Innovators and early majority 2. Early adopters and early majority3. Early majority and late majority 4. Innovators and laggards


What are the two largest statistical populations in the adoption process?1. Innovators and early majority 2. Early adopters and early majority3. Early majority and late majority 4. Innovators and laggards


The Buyer Decision Process for New Products

Influence of Product Characteristics on Rate of Adoption


• Relative advantage: the degree to which the innovation appears superior to existing products

• Compatibility: the degree to which the innovation fits the values and experiences of potential consumers

• Complexity: the degree to which the innovation is difficult to understand or use



• Divisibility : the degree to which the innovation maybe tried on a limited basis

• Communicability : the degree to which the results of using the innovation can be observed or described to others


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Chapter Five

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