Consumer and Business Buyer Behavior

Model of Buyer Behavior

Factors Influencing Consumer Behavior

Culture

Culture is the most basic cause of a person's wants and behavior, and it includes basic values, perceptions, wants, and behaviors. Chinese: 孝順、風水、 4 or 10 Taiwan: appreciation of the hair → PANTENE Pro-

V Esso in Japan & Thailand 中國白象牌電池 → white elephant

Subculture

Subculture: Groups of people with shared value systems based on common life experiences. Hispanic market (35 million) African-American market (35 million) Asian-American market (12 million)

Social Factors

Reference Groups Family Roles and Statuses

Reference Group

Primary Secondary Opinion leader

1/10 Marketing implication

Aspirational group & dissociative group Congruity theory

Family

Whereas women make up 40% of drivers, they influence more than 80% of car-buying decisions.

In all, women make almost 85% of all purchases, spending 6 trillion each year. Lowe’s Anti-smoking campaign in Thailand

Children’s influence

Roles and Status

A role consists of the activities people are expected to perform according to the people around them.

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

People often choose products that show their status in society.

Marketers must be aware of the status-symbol potential of products and brands.

Examples: Singapore’s 5 Cs; Mitsukoshi.

Personal Factors

Age and life-cycle stage Baby boomers, generation X or Y Family life cycle

Occupation Economic situation Lifestyle

SRI’s VALS

Personality and self-concept Brand personality, ex. sincerity, excitement, competence,

sophistication, ruggedness.

VALS

Psychological Factors

Motivation Perception Learning Beliefs and Attitudes

Motivation

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

Freud’s theory, Maslow’s hierarchy of needs.

Freud’s Theory

Assume that people are largely unconscious the real psychological forces shaping their behavior.

Motive research: qualitative research designed to probe consumers’ hidden, subconscious motivations.

Marketing at Work 5.2

Ads with Sexual Hint

Maslow’s Hierarchy of Needs

Human needs are arranged in a hierarchy.

A person tries to satisfy the most important need first.

Perception

Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

Country-of-origin effect Beer in China Selective attention, selective distortion, and

selective retention. Subliminal advertising

Learning

Learning describes changes in an individual’s behavior arising from experience.

Classical Conditioning Operant Conditioning

Positive reinforcement, negative reinforcement, and punishment.

Cognitive Learning Rehearsal and Elaboration

Beliefs and Attitudes

A belief is a descriptive thought that a person has about something.

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

Ex. National Milk Processors Education Program – 01, 02, 03.

Buyer Decision Process

1. Need recognition

2. Information search

3. Evaluation of alternatives

4. Purchase decision

5. Postpurchase behavior

Decision Rules – Compensatory

Simple Additive Rule Weighted Additive Rule

Fishbein-Ajzen Model

k: consumer, j: brand, i: attribute, n: number of attribute, W: weight, B: belief, A: attitude.

1

n

kj ki kijiA W B

A Consumer’s Brand Beliefs about Computers

Computer Attribute

Memory Capacity

Graphics Capability

Size and Weight Price

A 10 8 6 4

B 8 9 8 3

C 6 8 10 5

D 4 3 7 8

Ads for Consumers Who Use Weighted Additive Rule

Marketing Strategies

Redesign the product: repositioning. Alter beliefs about the brand: psychological

repositioning. Alter beliefs about competitor’s brands:

competitive positioning. Alter the important weights. Call attention to neglected attributes.

Case: Beaujolais (薄酒萊 )

產地： South of Burgundy 品種： Gamay Noir 一般品嚐葡萄酒常強調陳年、厚實。 薄酒萊強調新鮮、果香，利用行銷策略、舉辦「新酒節」等方式，使消費者接受其訴求。

Decision Rule – Noncompensatory

The Lexicographic Rule The Elimination-by-Aspects Rule The Conjunctive Rule

A Consumer’s Brand Beliefs about Computers

Computer Attribute

Memory Capacity

Graphics Capability

Size and Weight Price

A 10 8 6 4

B 8 9 8 3

C 6 8 10 5

D 4 3 7 8

Postpurchase Behavior

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

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

Toll-free numbers & Web sites

Stages in the Adoption Process

1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Adoption

Three Basic Stages

Cognitive stage: what the receiver knows or perceives about the particular product or brand.

Affective stage: the receiver’s feelings or affect level for the particular product or brand.

Behavioral (or Conative) stage: the receiver’s action toward the particular product or brand.

Implications of the Traditional Hierarchy Models

Potential buyers may be at different stages in the hierarchy, so the advertiser will face different sets of communication problems. Cognitive: DHC, 斯斯 , 南山人壽 , 安泰人壽,

Rejoice Affective: 全國電子 , 保誠人壽 , 泰國人壽, 三菱

Savrin, San Miguel Behavioral: Heineken, 肯德基

Think

In spite of C→A→B, is there another type of response process?

Figure 5.6: Adopter Categorization on the Basis of Relative Time of Adoption of Innovations

Characteristics of Innovators

Relatively younger, better educated, higher income.

More receptive to unfamiliar things, rely more on their own values and judgment, more willing to take risk

Less brand-loyal, more likely to take advantage of special promotions such as discounts, coupons, and samples.

Influence of Product Characteristics on Rate of Adoption

Relative Advantage: Is the innovation superior to existing products?

Compatibility: Does the innovation fit the values and experience of the target market?

Complexity: Is the innovation difficult to understand or use?

Divisibility: Can the innovation be used on a limited basis?

Communicability: Can results be easily observed or described to others?