Chapter Five

Consumer and Business Buyer Behavior

Roadmap: Previewing the Concepts

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1. Understand the consumer market and the major factors that influence consumer buyer behavior.

2. Identify and discuss the stages in the buyer decision process.

3. Describe the adoption and diffusion process for new products.

4. Define the business market and identify the major factors that influence business buyer behavior.

5. List and define the steps in the business buying decision process.

Case Study

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Building Success Offers good bikes,

upgraded showrooms and sales tactics.

Research has helped to understand customers’ emotions and motivation.

Consumer emotions, motivations, and lifestyle have been translated into effective advertising.

Harley-Davidson – Devoted Harley-Davidson – Devoted ConsumersConsumers

Case StudyCase Study

Measuring Success Currently has 23% of all

U.S. bike sales and 50% of heavyweight segment.

Demand above supply with waiting lists up to 2 years.

Sales doubled in the past six years while earnings have tripled.

2005: 19th straight year of record sales and income.

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Consumer Buying Behavior

Refers to the buying behavior of people who buy goods and services for personal use.

These people make up the consumer market.

The central question for marketers is:– “How do consumers respond to various

marketing efforts the company might use?”

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Model of Buying Behavior Buyer responses influence choice of the product,

brand, vendor, as well as the timing and amount of purchase.

Stimulus Response Model

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Culture

Culture is the most basic cause of a person's wants and behavior.– Culture is learned from family, church,

school, peers, colleagues.– Culture reflects basic values, perceptions,

wants, and behaviors.– Cultural shifts create opportunities for new

products or may otherwise influence consumer behavior.

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Culture

Subculture– Groups of people with

shared value systems based on common life experiences.

Major Groups in US– Hispanic Consumers– African-American

Consumers– Asian-American

Consumers– Mature Consumers

THAI SUBCULTUREMajor groups:

CHINESE CULTUREINDIAN CULTUREYOUNG GENERATIONOLDER GENERATIONTOURIST/WESTERN

CULTURE

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Social Class

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.

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Social Factors

Groups:– Membership, Reference (Opinion Leaders),

Aspirational Family:

– Most important consumer buying organization

Roles and Status:– Role = Expected activities– Status = Esteem given to role by society

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Personal Factors

Age and Life-Cycle Stage– People change the goods they buy over

their lifetimes. Occupation

– Occupation influences the purchase of clothing and other goods.

Economic Situation– Some goods and services are especially

income-sensitive.

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Personality factors

Lifestyle:– Pattern of living

as expressed in psychographics• Activities• Interests• Opinions

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Personality & Self-Concept

Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment.

Generally defined in terms of traits. Self-concept suggests that people’s

possessions contribute to and reflect their identities.

Psychological factors

A person’s buying choices are further influenced by four major psychological factors.

They are motivation, perception, learning, beliefs and attitudes.

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Motives and Needs

Maslow’s hierarchy of needs implies that lower level needs must be satisfied prior to higher level needs.– Physiological needs– Safety needs– Social needs– Esteem needs– Self-Actualization

A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction.

Maslow’s hierarchy of needs explains why people are driven by needs at particular times.

Maslow’s hierarchy of needs

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Need for a Car

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Buying Decision Process

Step-1:Need recognition

The buying process starts with need recognition.

The buyer recognizes a problem or need.

Marketers may use sales personnel, advertising, and packaging to trigger recognition of needs or problems.

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Step-II: Sources of Information

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Step-III: Alternative Evaluation

Consumer is now confronted with a number of options

Choice involves element of risk Consumer will evaluate product

options based on different “evaluative criteria” or attributes

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Alternative Evaluation

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Step-IV: Purchase Decision

Factors that influence purchase decision:– Attitudes of others– Unexpected

situational factors

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Step V: Post Purchase

Consumer could experience satisfaction, dissatisfaction or dissonance.

Marketers job is to reduce customers fear of negative outcomes and provide post purchase (after sales) services

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Post Purchase

Consumer satisfaction is a function of consumer expectations and perceived product performance.– Performance < Expectations ----- Disappointment– Performance = Expectations ----- Satisfaction– Performance > Expectations ----- Delight

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Buying Decision Process

Cognitive dissonance: a buyer’s doubts shortly after a purchase about whether it was the right decision.