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Marketing   Consumer Buying Behaviour
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  • 1. Consumer Markets and Consumer Buyer Behavior
  • 2. Learning Goals
    • Define the consumer market and construct a model of consumer buyer behavior
    • Name the four factors that influence buyer behavior
    • List and understand the types of buying decision behavior and stages in the process
    • Describe the adoption and diffusion process for new products
  • 3. Case Study Harley Davidson
    • Building Success
    • Understanding the customers’ emotions and motivation
    • Determining the factors of loyalty
    • Translating this information to effective advertising
    • Measuring Success
    • Currently 22% of all U.S. bike sales
    • Demand above supply
    • Sales doubled in the past 5 years with earnings tripled
    5 -
  • 4. Learning Goals
    • Define the consumer market and construct a model of consumer buyer behavior
    • Name the four factors that influence buyer behavior
    • List and understand the types of buying decision behavior and stages in the process
    • Describe the adoption and diffusion process for new products
  • 5. Definitions
    • Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption
    • All of these final consumers combine to make up the consumer market
  • 6. Learning Goals
    • Define the consumer market and construct a model of consumer buyer behavior
    • Name the four factors that influence buyer behavior
    • List and understand the types of buying decision behavior and stages in the process
    • Describe the adoption and diffusion process for new products
  • 7. Model of Buyer Behavior Figure 5.1 5 -
  • 8. Characteristics Affecting Consumer Behavior
      • Culture
        • Forms a person’s wants and behavior
      • Subculture
        • Groups with shared value systems
      • Social Class
        • Society’s divisions who share values, interests and behaviors
    • Cultural
    • Social
    • Personal
    • Psychological
    Key Factors
  • 9. Characteristics Affecting Consumer Behavior
      • Groups
        • Membership
        • Reference
          • Aspirational
        • Opinion leaders
          • Buzz marketing
      • Family
        • Many influencers
      • Roles and status
    • Cultural
    • Social
    • Personal
    • Psychological
    Key Factors
  • 10. This advertiser knows teens are strongly influenced by groups when purchasing fashion items Marketing in Action 5 -
  • 11. Characteristics Affecting Consumer Behavior
      • Age and life cycle
      • Occupation
      • Economic situation
      • Lifestyle
        • Activities, interests and opinions
        • Lifestyle segmentation
      • Personality and self-concept
    • Cultural
    • Social
    • Personal
    • Psychological
    Key Factors
  • 12. VALS Figure 5.4 5 -
  • 13. Brand Personality Dimensions
    • Sincerity
    • Ruggedness
    • Excitement
    • Competence
    • Sophistication
  • 14. Characteristics Affecting Consumer Behavior
      • Motivation
      • Perception
      • Learning
      • Beliefs and attitudes
    • Cultural
    • Social
    • Personal
    • Psychological
    Key Factors
  • 15. Psychological Factors Motivation
    • A motive is a need that is sufficiently pressing to direct the person to seek satisfaction
    • Motivation research is based on Freud. Looks for hidden and subconscious motivation
    • Maslow ordered needs based on how pressing they are to the consumer
  • 16. Maslow’s Hierarchy of Needs Figure 5.5 5 -
  • 17. This ad demonstrates a product meeting physiological and social needs Marketing in Action 5 -
  • 18. Discussion
    • What consumer products might fulfill multiple levels of the Hierarchy of Needs?
    5 -
  • 19. Psychological Factors Perception
    • Perception is the process by which people select, organize, and interpret information.
    • Perception Includes:
      • Selective attention
        • Consumers screen out information
      • Selective distortion
        • People interpret to support beliefs
      • Selective retention
        • People retain points to support attitudes
  • 20. Discussion Question Perception
    • How many ads were you exposed to today?
    • Which ones do you remember? Why?
    5 -
  • 21. Psychological Factors Learning
    • Learning describes changes in an individual’s behavior arising from experience
    • Learning occurs through
      • Drives
        • Internal stimulus that calls for action
      • Stimuli
        • Objects that move drive to motive
      • Cues
        • Minor stimuli that affect response
      • Reinforcement
        • Feedback on action
  • 22. Psychological Factors Beliefs and Attitudes
    • Belief
      • a descriptive thought about a brand or service
      • may be based on real knowledge, opinion, or faith
    • Attitude
      • describes a person’s evaluations, feelings and tendencies toward an object or idea
      • They are difficult to change
  • 23. Learning Goals
    • Define the consumer market and construct a model of consumer buyer behavior
    • Name the four factors that influence buyer behavior
    • List and understand the types of buying decision behavior and stages in the process
    • Describe the adoption and diffusion process for new products
  • 24. Types of Buying Decision Behavior Figure 5.6 5 -
  • 25. The Buyer Decision Process Figure 5.7 5 -
  • 26. The Buyer Decision Process
    • Need recognition
    • Information search
    • Evaluation of alternatives
    • Purchase decision
    • Postpurchase behavior
    • Needs can be triggered by:
      • Internal stimuli
        • Normal needs become strong enough to drive behavior
      • External stimuli
        • Advertisements
        • Friends of friends
    Process Stages
  • 27. The Buyer Decision Process
    • Need recognition
    • Information search
    • Evaluation of alternatives
    • Purchase decision
    • Postpurchase behavior
    • Consumers exhibit heightened attention or actively search for information
    • Sources of information:
      • Personal
      • Commercial
      • Public
      • Experiential
      • Word-of-mouth
    Process Stages
  • 28. The Buyer Decision Process
    • Need recognition
    • Information search
    • Evaluation of alternatives
    • Purchase decision
    • Postpurchase behavior
    • Evaluation procedure depends on the consumer and the buying situation.
    • Most buyers evaluate multiple attributes, each of which is weighted differently.
    • At the end of the evaluation stage, purchase intentions are formed.
    Process Stages
  • 29. The Buyer Decision Process
    • Need recognition
    • Information search
    • Evaluation of alternatives
    • Purchase decision
    • Postpurchase behavior
    • Two factors intercede between purchase intentions and the actual decision:
      • Attitudes of others
      • Unexpected situational factors
    Process Stages Video Snippet Wild Planet realizes that kids and parents make the decision for toys
  • 30. The Buyer Decision Process
    • Need recognition
    • Information search
    • Evaluation of alternatives
    • Purchase decision
    • Postpurchase behavior
    • Satisfaction is important:
      • Delighted consumers engage in positive word-of-mouth.
      • Unhappy customers tell on average 11 other people.
    • Cognitive dissonance is common
    Process Stages
  • 31. Discussion Question
    • How is a site like Consumer Reports used in the decision- making process?
    5 - Marketing in Action Click on screenshot for website
  • 32. Learning Goals
    • Define the consumer market and construct a model of consumer buyer behavior
    • Name the four factors that influence buyer behavior
    • List and understand the types of buying decision behavior and stages in the process
    • Describe the adoption and diffusion process for new products
  • 33. Buyer Decision Process for New Products
    • New Products
      • Good, service or idea that is perceived by customers as new.
    • Stages in the Adoption Process
      • Marketers should help consumers move through these stages.
  • 34. Stages in the Adoption Process
    • Awareness
    • Evaluation
    • Interest
    • Trial
    • Adoption
  • 35. Buyer Decision Process for New Products
    • Individual Differences in Innovativeness
      • Consumers can be classified into five adopter categories, each of which behaves differently toward new products.
    • Product Characteristics and Adoption
      • Five product characteristics influence the adoption rate.
  • 36. Adoption Process Figure 5.8 5 -
  • 37. Product Characteristics
    • Relative Advantage
    • Compatibility
    • Complexity
    • Divisibility
    • Communicability
  • 38.
    • Why might the adoption process be slow for a home robot?
    Discussion Question Source: Business Week Marketing in Action Source: Business Week 5 -
  • 39. Buyer Decision Process for New Products
    • International Consumer Behavior
      • Values, attitudes and behaviors differ greatly in other countries.
      • Physical differences exist which require changes in the marketing mix.
      • Customs vary from country to country.
      • Marketers must decide the degree to which they will adapt their marketing efforts.
  • 40. Learning Goals
    • Define the consumer market and construct a model of consumer buyer behavior
    • Name the four factors that influence buyer behavior
    • List and understand the types of buying decision behavior and stages in the process
    • Describe the adoption and diffusion process for new products