Consumer Markets Purchasers and individuals in households Purchases are for personal consumption, not profit Business Markets Individuals and groups that purchase products for resale, direct use to produce other products, or use in daily business operations Purchasers classed as producers, resellers, government, and institutional markets

Buying Behavior –The decision processes and acts of people involved in buying and using products Consumer Buying Behavior –Buying behavior of people who purchase products for personal use and not for business purposes

Model of Consumer Behavior

What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors

Subcultures Nationalities Religions Racial groups Geographic regions

Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers

Social Factors Reference groups Social roles Statuses Family

Roles and Status What degree of status is associated with various occupational roles?

Personal Factors Age Values Life cycle stage Occupation Personality Self- concept Wealth Lifestyle

The Family Life Cycle

Key Psychological Processes Motivation MemoryLearning Perception

Motivation Freud’s Theory Behavior is guided by subconscious motivations Maslow’s Hierarchy of Needs Behavior is driven by the lowest, unmet need Herzberg’s Two-Factor Theory Behavior is guided by motivating and hygiene factors

Maslow’s Hierarchy of Needs

Herzberg’s Two-Factor Theory

Perception Selective Attention Subliminal Perception Selective Retention Selective Distortion

Learning Changes in an individual’s thought processes and behavior caused by information and experience Behaviors that produce satisfying consequences are likely to be repeated. Consumers learn about products by experiencing the products personally. gaining additional product knowledge from seller-provided information. indirect information from other purchasers/users

Level of Involvement and Consumer Problem-Solving Processes Level of Involvement –An individual’s intensity of interest in a product and the importance of the product for that person Routinized Response Behavior –The process used when buying frequently purchased, low-cost items that require little search-and-decision effort

Limited Problem Solving –The process that buyers use when purchasing products occasionally or when they need information about an unfamiliar brand in a familiar product category Extended Problem Solving –The process employed when purchasing unfamiliar, expensive, or infrequently bought products Impulse Buying –An unplanned buying behavior resulting from a powerful urge to buy something immediately

Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior

Consumer Buying Decision Process Problem Recognition –Occurs when a buyer becomes aware of a difference between a desired state and an actual condition –May occur rapidly or slowly Information Search –Internal search Buyers search their memories for information about products that might solve their problem –External search Buyers seek information from outside sources

Evaluation of Alternatives –Consideration set A group of brands that the buyer views as alternatives for possible purchase –Evaluative criteria Objective and subjective characteristics that are important to a buyer –Framing the alternatives Describing the alternatives and their attributes in a certain manner to make a particular characteristic appear more important especially to the inexperienced buyer

Purchase –Choosing the product or brand to be bought based on the outcome of the evaluation stage –The choice of seller may affect the final product selection. –Factors such as terms of sale, price, delivery, and warranties may affect the sale.

Postpurchase Evaluation –Cognitive dissonance A buyer’s doubts shortly after a purchase about whether the decision was the right one –Buyers are mostly likely to seek reassurance after the purchase of an expensive, high- involvement product