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Definitions

Consumer Market

individuals and households who buygoods and services for personalconsumption

Consumer Buying Behavior refers to the buying behavior of

individuals and households that buyproducts/services for personalconsumption/interest.

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Stimulus Response ModelModel of Consumer Behavior

Marketing and other stimuli enter thebuyers black box and producecertain choice or purchaseresponses.

Marketers must figure out what isinside of the buyers black box and

how stimuli are changed to

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Product,Price,Place,

Promotion

Economic,Technological, Political,

Cultural

FactorsAffectingConsumerBehavior

BuyersDecisionProcess

ProductChoice,Brand

Choice,

DealerChoice

PurchaseTiming,

PurchaseAmount

MarketingStimuli

Buyers BlackBox

BuyersResponses

Stimulus Response Model

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Factors Affecting ConsumerBehavior

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Cultural Factors

Culture is the learned values,perceptions, wants, and behaviorfrom family and other important

institutions Exert broadest and deepest influence

Subcultureare groups of peoplewithin a culture with shared valuesystems based on common life

experiences and situations

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Cultural Factors (cont.)

Social classes are societysrelatively permanent and ordereddivisions whose members share

similar values, interests, andbehaviors

Measured by a combination ofoccupation, income, education, wealth,and other variables

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Social Factors

Family is the most importantconsumer-buying organization insociety

Social roles and statuses are the

groups, family, clubs, andorganizations that a person belongsto that can define role and socialstatus

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Social Factors (cont.)

Groups and social networks

Opinion leaders exert social influenceon others within a reference group

Also called influentials, leading adopters,brand ambassadors

Online social networks are onlinecommunities where people socialize orexchange information and opinions

Include blogs, social networking sites(Facebook)

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Personal Factors

Age and Life Cycle

Occupation - white color or blue color

workers

RBC Royal Band stages

Youth below 18 years oldGetting started 18-35

Builders 35-50

Accumulators 50-60

Preservers over 60

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Personal Factors

Lifestyle is a persons pattern ofliving as expressed in his activities,interest and opinions

Personality refers to the uniquepsychological characteristics that lead toconsistent and lasting responses to theconsumers environment

Brand Personality Dimensions:

sincerity, ruggedness, excitement,

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Psychological Factors

Motivation

Motive is a need that is sufficientlypressing to direct the person to seek

satisfaction

Perception is the process by which

people select, organize, and interpretinformation to form a meaningfulpicture of the world from threeperceptual processes:

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Processes of Perception

Selective attention is the tendencyfor people to screen out most of theinformation to which they are

exposed Selective distortion is the

tendency for people to interpret

information in a way that will supportwhat they already believe

Selective retention is the tendency

to remember good points made

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Psychological Factors (cont.)

Learning is the change in anindividuals behavior arising fromexperience and occurs through

interplay of drives, stimuli, cues,responses and reinforcement

Beliefs are descriptive thoughts that

a person has about something basedon knowledge, opinion and faith

Attitude describes a persons

relatively consistent evaluations,

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Types of Buyer (Roles)

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Types of Buyer (Roles)

Initiator: the person who first suggests orthinks of the idea of buying a particularproduct or service.

Influencer: a person whose views oradvice carry weight in making the finalbuying decision

Decider: the person who ultimatelymakes the final buying decision or anypart of it

Buyer: the person who makes the actual

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Types of Buying Behavior

HighInvolvemen

t

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

LowInvolveme

nt

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Buyer Decision Process

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Need Recognition

Occurs when the buyer recognizes aproblem or need triggered by:

Internal stimuli - normal needsbecome strong enough to drive behavior

Hunger

Thirst

External stimuli - stimuli in theenvironment

Advertisements

Friends of friends

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Information Search

Consumers exhibit heightenedattention or actively search forinformation.

Sources of Information:

Personal - family, friends, neighbors;most influential

Commercial - advertising, salespeople;gives most

- -

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Evaluation ofAlternatives

How the consumer processesinformation to arrive at brandchoices

Evaluation procedure depends on theconsumer and the buying situation.

Most buyers evaluate multipleattributes, each of which is weighteddifferently.

At the end of the evaluation stage,urchase intentions are formed.

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Purchase Decision

The act by the consumer to buy themost preferred brand

The purchase decision can beaffected by:

Attitudes of others Unexpected situational factors

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Post Purchase Decision

The satisfaction or dissatisfactionthat the consumer feels about thepurchase

Relationship between:

Consumers expectations Products perceived performance

The larger the gap between

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Post Purchase Decision (cont.)

Cognitive dissonance is thediscomfort caused by a postpurchase

conflict

As learned previously

Customer satisfaction is a key to buildingprofitable relationships with consumerstokeeping and growing consumers and reapingtheir customer lifetime value

It costs more to attract a new customer than it

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Buyer Decision Process for

New Products Adoption Process is the mental

process through which an individualpasses from first hearing about aninnovation to final adoption

Stages in the Adoption Process

Marketers should help consumers movethrough these stages.

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Stages in the Adoption Process

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Buyer Decision Process forNew Products (cont.)

Individual Differences inInnovativeness

Consumers can be classified into fiveadopter categories, each of whichbehaves differently toward newproducts.

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Buyer Decision Process forNew Products (cont.)

Product Characteristics and Adoption

Five product characteristics influencethe adoption rate.