Consumer and Business Market Dr. Ananda Sabil Hussein

What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors

What is Culture? Culture is the fundamental determinant of a person ’ s wants and behaviors acquired through socialization processes with family and other key institutions.

Subcultures Nationalities Religions Racial groups Geographic regions

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

Characteristics of Social Classes Within a class, people tend to behave alike Within a class, people tend to behave alike Social class conveys perceptions of inferior or superior position Social class conveys perceptions of inferior or superior position Class may be indicated by a cluster of variables (occupation, income, wealth) Class may be indicated by a cluster of variables (occupation, income, wealth) Class designation is mobile over time Class designation is mobile over time

Social Factors Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-7 Reference groups Social roles Statuses Family

Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups

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

The Family Life Cycle

Brand Personality Sincerity Excitement Competence Sophistication Ruggedness

Model of Consumer Behavior

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

Perception Selective Attention Subliminal Perception Selective Retention Selective Distortion

Figure 6.4 Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior

Sources of Information Personal ExperientialPublic Commercial

Figure 6.6 Stages between Evaluation of Alternatives and Purchase

Perceived Risk Functional Physical Financial Social Psychological Time

Other Theories of Consumer Decision Making Involvement Elaboration Likelihood Model Elaboration Likelihood Model Low-involvement marketing strategies Low-involvement marketing strategies Variety-seeking buying behavior Variety-seeking buying behavior Decision Heuristics Availability Representativeness Anchoring and adjustment

Characteristics of Business Markets Fewer, larger buyers Fewer, larger buyers Close supplier-customer relationships Close supplier-customer relationships Professional purchasing Professional purchasing Many buying influences Many buying influences Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing

The Buying Center Initiators Users Influencers Deciders Approvers Buyers Gatekeepers

Of Concern to Business Marketers Who are the major decision participants? Who are the major decision participants? What decisions do they influence? What decisions do they influence? What is their level of influence? What is their level of influence? What evaluation criteria do they use? What evaluation criteria do they use?

Sales Strategies Small Sellers Large Sellers Key Buying Influencers Multilevel In-depth Selling

Stages in the Buying Process: Buyphases Problem recognition Problem recognition General need description General need description Product specification Product specification Supplier search Supplier search Proposal solicitation Proposal solicitation Supplier selection Supplier selection Order-routine specification Order-routine specification Performance review Performance review