Consumer Markets and Consumer Buyer Behavior Chapter 6.

Consumer Markets Consumer Markets and Consumer and Consumer Buyer BehaviorBuyer Behavior

Chapter 6Chapter 6

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Objectives

Be able to define the consumer Be able to define the consumer market and construct a simple market and construct a simple model of consumer buyer behavior.model of consumer buyer behavior.

Know the four major factors that Know the four major factors that influence consumer buyer influence consumer buyer behavior.behavior.

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Objectives

Understand the major types of Understand the major types of buying decision behavior and the buying decision behavior and the stages in the buyer decision stages in the buyer decision process.process.

Be able to describe the adoption and Be able to describe the adoption and diffusion process for new products.diffusion process for new products.

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HarleyHarley “Hogs” “Hogs” account for 1/5 of U.S. account for 1/5 of U.S. cycle salescycle salesSales have exceeded Sales have exceeded supply for yearssupply for years1986-2000: Four stock 1986-2000: Four stock splits, increase of splits, increase of 7,100%7,100%

Fiercely loyal clientele Fiercely loyal clientele revolves around 7 core revolves around 7 core customer typescustomer typesHarley owners use their Harley owners use their bikes to express their bikes to express their lifestyle and attitudeslifestyle and attitudesAdvertising reflects the Advertising reflects the Harley mystiqueHarley mystique

cHarley-DavidsonHarley-Davidson

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Definitions

Consumer Buying BehaviorConsumer Buying Behavior Buying behavior of individuals and Buying behavior of individuals and

households that buy products for households that buy products for personal consumption.personal consumption.

Consumer MarketConsumer Market All individuals/households who buy All individuals/households who buy

products for personal consumption.products for personal consumption.

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Figure 6-1:

Model of Buyer Behavior

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Stimulus Response ModelStimulus Response Model Marketing and other stimuli enter the Marketing and other stimuli enter the

buyer’s “black box” and produce buyer’s “black box” and produce certain choice / purchase responses.certain choice / purchase responses.

Marketers must figure out Marketers must figure out what is inside of the buyer’s what is inside of the buyer’s “black box” and how stimuli “black box” and how stimuli are changed to responses.are changed to responses.

Model of Consumer Behavior

?

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Figure 6-2:

Factors Influencing Consumer Behavior

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Characteristics Affecting Consumer Behavior

CultureCulture

SubcultureSubculture Hispanic Hispanic

consumersconsumers African AmericansAfrican Americans Asian AmericansAsian Americans Mature consumersMature consumers

Social ClassSocial Class

CulturalCultural

SocialSocial

PersonalPersonal

PsychologicalPsychological

Key FactorsKey Factors

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HispanicsHispanics 35 million consumers 35 million consumers

purchase $425 billion purchase $425 billion worth of goods and worth of goods and services.services.

Expected to grow 64% Expected to grow 64% in 20 years.in 20 years.

Spanish media makes Spanish media makes group easy to reach.group easy to reach.

Brand loyal group.Brand loyal group.

Characteristics Affecting Consumer

Behavior

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Sears uses the Fiesta mobile to visit Hispanic neighborhoods regularly

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African AmericansAfrican Americans 35 million consumers 35 million consumers


Growing more affluent / Growing more affluent / sophisticated.sophisticated.

Price and brand name Price and brand name conscious; quality and conscious; quality and selection are important.selection are important.

Certain media target this Certain media target this group.group.


Behavior

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Hallmark offers an Afrocentric line of greeting cards called Mahogany. What other brands have been targeted specifically to African Americans?

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Asian AmericansAsian Americans 10 million consumers 10 million consumers


Fastest growing, most Fastest growing, most affluent subculture.affluent subculture.

Many nationalities Many nationalities comprise this group.comprise this group.

Consumer packaged Consumer packaged goods firms now target goods firms now target this group more heavily.this group more heavily.


Behavior

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Mature ConsumersMature Consumers 75 million consumers age 50+will grow to 115 75 million consumers age 50+will grow to 115

million within 25 years.million within 25 years. Mature consumers Mature consumers

control 50% of all control 50% of all discretionary income.discretionary income.

Attractive market for Attractive market for travel, restaurant, and travel, restaurant, and cosmetics products, cosmetics products, among others.among others.


Behavior

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GroupsGroups MembershipMembership ReferenceReference

Aspirational Aspirational groups groups

Opinion leadersOpinion leaders Buzz marketingBuzz marketing

FamilyFamily Kids can influenceKids can influence

Roles and StatusRoles and Status

CulturalCultural

SocialSocial

PersonalPersonal



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Age and life-cycleAge and life-cycle

OccupationOccupation

Economic situationEconomic situation

LifestyleLifestyle Activities, interests, and Activities, interests, and

opinionsopinions Lifestyle segmentationLifestyle segmentation

Personality and self-Personality and self-conceptconcept Brand personalityBrand personality

CulturalCultural

SocialSocial

PersonalPersonal



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Lifestyles:Jeep targets people who want to “leave the civilized world behind”

What other types of images could be used to appeal to this lifestyle?

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Figure 6-3:

VALS Lifestyle Classification

Learn more about VALS and take the VALS survey online by clicking the web link icon below.

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Brand Personality DimensionsBrand Personality Dimensions

SinceritySincerity

RuggednessRuggedness

ExcitementExcitement

CompetenceCompetence

SophisticationSophistication

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Think about Tide detergent.

What brand personality seems to describe Tide best?

Can you think of examples of brands that fit each personality type?

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MotivationMotivation Needs provide motivesNeeds provide motives Motivation researchMotivation research Maslow’s hierarchy of Maslow’s hierarchy of

needsneeds

PerceptionPerception Selective attention, Selective attention,

selective distortion, selective distortion, selective retentionselective retention

LearningLearning Drives, stimuli, cues, Drives, stimuli, cues,

responses and responses and reinforcementreinforcement

Beliefs and attitudesBeliefs and attitudes

CulturalCultural

SocialSocial

PersonalPersonal



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Figure 6-4:

Maslow’s Hierarchy

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The milk moustache campaign changed attitudes toward milk.

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Figure 6-5:

Types of Buying Behavior

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Figure 6-6:

The Buyer Decision Process

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Need recognitionNeed recognition

Information searchInformation search

Evaluation of Evaluation of alternativesalternatives

Purchase decisionPurchase decision

Postpurchase Postpurchase behaviorbehavior

Needs can be Needs can be triggered by:triggered by: Internal stimuliInternal stimuli

Normal needs become Normal needs become strong enough to drive strong enough to drive behaviorbehavior

External stimuliExternal stimuliAdvertisementsAdvertisementsFriends of friendsFriends of friends

StagesStages

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Attempt to stimulate need recognition

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Consumers exhibit Consumers exhibit heightened attention or heightened attention or actively search for actively search for information.information.

Sources of information:Sources of information: PersonalPersonal CommercialCommercial PublicPublic ExperientialExperiential

Word-of-mouthWord-of-mouth

StagesStages

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Evaluation procedure Evaluation procedure depends on the consumer depends on the consumer and the buying situation.and the buying situation.Most buyers evaluate Most buyers evaluate multiple attributes, each of multiple attributes, each of which is weighted which is weighted differently.differently.At the end of the At the end of the evaluation stage, purchase evaluation stage, purchase intentions are formed.intentions are formed.

StagesStages

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Two factors Two factors intercede between intercede between purchase intentions purchase intentions and the actual and the actual decision:decision: Attitudes of othersAttitudes of others Unexpected Unexpected

situational factorssituational factors

StagesStages

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Satisfaction is key:Satisfaction is key: Delighted consumers Delighted consumers

engage in positive word-of-engage in positive word-of-mouth.mouth.

Unhappy customers tell on Unhappy customers tell on average 11 other people.average 11 other people.

It costs more to attract a It costs more to attract a new customer than it does new customer than it does to retain an existing to retain an existing customer.customer.

Cognitive dissonanceCognitive dissonance

StagesStages

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Buyer Decision Process for New Products

New ProductsNew Products Good, service or Good, service or

idea that is idea that is perceivedperceived by by customers as new.customers as new.

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Stages in the Adoption Stages in the Adoption ProcessProcess Marketers should help Marketers should help

consumers move from consumers move from awareness to adoption.awareness to adoption.

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Stages in the Adoption ProcessStages in the Adoption Process

AwarenessAwareness

InterestInterest

EvaluationEvaluation

TrialTrial

AdoptionAdoption

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Individual Differences Individual Differences in Innovativenessin Innovativeness Consumers can be Consumers can be

classified into five classified into five adopter categories, adopter categories, each of which behaves each of which behaves differently toward new differently toward new products.products.

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Figure 6-7:

Adopter Categories Based on Relative Time of

Adoption

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Product Characteristics Product Characteristics and Adoptionand Adoption Five product Five product

characteristics characteristics influence the influence the adoption rate.adoption rate.

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Product CharacteristicsProduct Characteristics

Relative AdvantageRelative Advantage CompatibilityCompatibility ComplexityComplexity DivisibilityDivisibility CommunicabilityCommunicability

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Describe how each Describe how each of the five product-of the five product-related innovation related innovation characteristics will characteristics will influence the rate of influence the rate of the adoption for this the adoption for this product. product.

Discussion Question

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International ConsumerInternational Consumer BehaviorBehavior Values, attitudes and behaviors differ greatly Values, attitudes and behaviors differ greatly

in other countries.in other countries. Physical differences exist that require Physical differences exist that require

changes in the marketing mix.changes in the marketing mix. Customs vary from country to country.Customs vary from country to country. Marketers must decide the degree to which Marketers must decide the degree to which

they will adapt their marketing efforts.they will adapt their marketing efforts.

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Consumer Markets and Consumer Buyer Behavior Chapter 6.

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