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Chapter 2 consumer buying behavior

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Marketing - Consumer Buying Behavior

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Chapter 2 consumer buying behavior

  1. 1. Chapter 2 Consumer Buying Behavior Prepared by: Nor Izzuddin Bin Norrahman Lecturer of Management, Banking & Islamic Finance Astin College
  2. 2. Content… • Consumer Buying Behavior (CBB) • Characteristics Affecting Consumer Behavior – Cultural – Social – Personal – Psychological
  3. 3. Definition of CBB… • Refers to the BUYING BEHAVIOR of final consumers or market • Consumer market consists of all the individuals and households who buy or acquire goods and services for personal consumption.
  4. 4. Model of consumer behavior Marketing & Other Stimuli Product Price Place Promotion Buyer’s Black Box Buyer Characteristics Buying decision process Buyer Response
  5. 5. Characteristics Affecting CBB… • Cultural Factors – Exert the broadest and deepest influence on consumer behavior. – Marketer needs to understand the role played by the buyer’s culture, subculture, and social class. Cultural factors Culture Subculture Social Class
  6. 6. • Culture – The most basic cause of a person’s wants and behavior. – Growing up in society, a child learns basic values, perceptions, wants, and behaviors from family and other important institutions. – Cultural values are widely held beliefs that state what is desirable and have some influence on behavior. – It also influence our consumption.
  7. 7. • Subculture – Each culture contains smaller subcultures, or group of people with shared value system based on common life experiences and situations. – Includes nationalities, religions, racial groups, and geographic regions. – Many subcultures make up important market segments. – Marketer usually design their products and services according to the subcultures needs.
  8. 8. • Social Class – Almost all society has some form of social class structure. – Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. – It is not determined by a single factor (Exm: Income) – It is measured by a combination of occupation, income, education, wealth and other variables.
  9. 9. Characteristics Affecting CBB… • Social factors – Consumer’s behavior also influenced by social factors, such as the consumer’s small groups, family, social roles and status. Social factors Small groups Family Roles & status
  10. 10. • Groups – Groups have direct influence and to which person belongs are called membership groups. – In contrast, reference groups serve as direct (Face- to-face) or indirect points of comparison or reference in forming person’s attitudes. – People often are influenced by reference groups to which they do not belong. – Example: Teenager who played soccer hopes to play for the national team.
  11. 11. • Family – Family members can strongly influence buyer behavior. – There is roles and influence of the husband, wife, and children on the purchase of different products and services. – Husband-wife involvement varies widely by product category and by stage in the buying process. – Buying roles change with evolving consumer lifestyles.
  12. 12. • Roles and status – A person belongs to many groups – family, clubs, organizations. – The person’s position in each group can be defined in terms of both roles and status. – A role consists of the activities people are expected to perform according to the persons around them. – Each role carries a status reflecting the general esteem given to it by society.
  13. 13. Characteristics Affecting CBB… • Personal Factors – A buyer’s decisions also are influenced by personal characteristics such as the buyer’s: • Age • Occupation • Economic • Situation • Lifestyle • Personality • Self-Concept
  14. 14. • Age and life-cycle stage – People change the goods and services they buy over their lifetimes. – Buying is also shaped by the stage of the family life cycles, the stages through which families might pass as they mature over time. – However, today marketers prefer to focus on alternative, non-traditional stages. (Exp: unmarried couples, single parents, childless parents)
  15. 15. • Occupation – Occupation affects buying behavior. (white vs blue collar) • Economic Situation – Recess in economic will resulting consumers tent to save money rather than spending • Lifestyle – Involving Activities, Interest and Opinion (AIO) • Personality and self-concept – Unique psychological characteristics. – Self-confidence, dominance, sociability
  16. 16. Characteristics Affecting CBB… • Psychological Factors – A person’s buying choices are further influenced by four major psychological factors. Psychological Factors Motivation Perception Learning Beliefs & Attitudes
  17. 17. • Motivation – Can be viewed as an internal force that directs people to act in a particular way to satisfy a particular need. – Arising from the need. – Needs become motive when it is aroused to a sufficient level of intensity. – Motive will direct person to seek satisfaction.
  18. 18. Maslow's hierarchy of needs:
  19. 19. • Perception – Is the process by which people select, organize, and interpret information to form a meaningful picture of the world. – A motivated person is READY to act. – HOW the person acts is influenced by his/her perception of the situation. – All people receive info from 5 senses, – But interpret the info in individual way
  20. 20. TUTORIAL 2 • Types of perception: – Selective exposure – Selective distortion – Selective retention
  21. 21. • Learning – Describes changes in an individual’s behavior arising from experience. – Learning occurs interplay of: • Stimulus – Environment that capable of eliciting a response • Drive – Is a motivating force that directs behavior • Response – Reaction to the stimulus and drive • Reinforcement – Reward or punishment receive as a result of your response
  22. 22. • Beliefs & Attitudes – Belief : a descriptive thought that a person has about something. – Example? – Attitude: person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. – Example?
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