2. What they buy?
Why they buy?
When they buy?
Where they buy?
How often they buy and use a product or
service?
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3. Why Study Consumer Behavior?
Consumer Behavior Determines the
Economic Health of a Nation
Consumer Behavior Determines the
Success of Marketing Programs
Consumer Behavior Determines the
Economic Health of Everyone
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4. Consumer Behavior
• The behavior that consumers display in searching for,
purchasing, using, evaluating, and disposing of products and
services that they expect will satisfy their needs.
Chapter One Slide
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5. Two Consumer Entities
Personal Consumer
• The individual who
buys goods and
services for his or her
own use, for
household use, for
the use of a family
member, or for a
friend.
Organizational
Consumer
• A business,
government agency,
or other institution
(profit or nonprofit)
that buys the goods,
services, and/or
equipment necessary
for the organization to
function.
Chapter One Slide
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10. Consumer Buying Decision Process
Understand
• Buying roles
• Buying behavior
• Buying decision process
• Five stages in the
consumer buying
process
• The amount of time
spent in each stage
varies according to
several factors
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12. Need Recognition
• Need/Problem Recognition
• Can be triggered by internal or external stimuli
• Needs become wants, which lead to behavior
• Marketing stimuli can stimulate a desire for
information
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13. Information Search (1of2)
• Sources of information:
• Internal Sources
• Personal Sources
• External Sources
• Time, effort and expense dedicated to information search
depends on:
• Degree of risk involved in the purchase
• Amount of expertise with the product category
• Actual cost of the search
• Evoked set:
• A narrowed down set of alternatives that the customer is
considering
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14. Consumer Buying Decision Process
Successive Sets Involved in Consumer Decision Making
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15. Evaluation of Alternatives
• Customers evaluate products as bundles of attributes
• Brand attributes
• Product features
• Aesthetic attributes
• Price
• Customers place different levels of importance on
attributes
• Important considerations in the evaluation stage:
• Products must be in the evoked set
• Consumers’ choice criteria must be understood
• Marketing programs must be designed to influence consumers’
opinions about product or brand image
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16. Purchase Decision
• Purchase intention and the act of buying are distinct
concepts
• Potential intervening factors between intention and
buying (car example):
• Unforeseen circumstances
• Angered by the salesperson or sales manager
• Unable to obtain financing
• Customer changes mind
• Key issues in the purchase decision stage:
• Product availability
• Possession utility
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17. PostpurchaseEvaluation
• Four possible outcomes in the postpurchase stage:
• (1) Delight
• (2) Satisfaction
• (3) Dissatisfaction
• (4) Cognitive Dissonance
• Firm’s ability to manage dissatisfaction and cognitive
dissonance is:
• A key to creating customer satisfaction
• A major influence on word-of-mouth communication
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18. Factors Influencing Consumer
Buying Behavior
• Cultural Factors
• Culture: A set of rules, values, beliefs, behavior and concepts that is
common to and binds members of society.
• Subculture: Every culture has its own set of sun cultures
• Social Class
• Upper Class
• Upper Middle Class
• Middle Class
• Lower Class
• , Religion
• Geographic area
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19. Personal Factors
• Age and Lifecycle Stage
• Occupation and Financial Status
• Life Style
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20. Psychological Factors
Motivation
A motive is a strong urge that drives a person’s
activities towards unfulfilled needs and wants.
• Maslow , need can be classified as
• 1. Physiological Needs
• 2. Security Needs
• 3. Social Needs
• 4. Esteem Needs
• 5. Self-Actualization Needs
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21. Social Factors
Reference Groups
Primary Reference Group
Membership Reference Group
Aspiration Reference Group
Disclaimant Reference Group
Avoidance Reference Group
Secondary Reference Group
Family
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22. Perception
Perception is a process by which an individual selects,
organizes, and interprets stimuli into meaningful thoughts and
pictures.
Customer Perceives their environment through the sense of touch,
smell, risk etc.
Customer buying behavior are also influenced by the risk factors
involved.
Understanding the customer's perception helps the marketers
position their product better than that of the competitors.
Beliefs and Attitude
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23. Promotion and the AIDA Model
Exhibit 14-4
Promotion Objectives Adoption Process AIDA Model
Informing
Persuading
Reminding
Attention
Interest
Desire
Action
Awareness
Interest
Evaluation
Trial
Decision
Confirmation
}
}
{
14-9
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