Marketing Management 28 February 2011

Consumer Markets and Buyer Behaviour

Consumer Behaviour The consumer’s buying decision is the focal point of all marketer’s efforts. The Why isn’t always visible as it’s locked inside a consumer’s mind Marketers need to tap into the “black box” of consumers – the buyer’s characteristics and decision process through various marketing stimuli Stimuli utilised by marketers includes marketing tools and environmental forces and factors The stimuli working in the consumer’s “black box” produces buyer responses

Characteristics Affecting Consumer Behaviour Cultural Factors –Marketers need to understand buyer’s culture, subculture and social class – refer pg 161 Social Factors –A buyer’s behaviour is also influenced by small groups, family, social roles and status – refer pg 164 Personal Factors –A buyer’s decision is influenced by characteristics such as buyer’s age, life-cycle stage, occupation, economic situation, lifestyle, personality - refer pg 170 Psychological Factors –A buyer’s choice is influenced by four major psychological factors, namely: motivation, perception, learning and beliefs

Types of Buying Decision Behaviour Buying behaviour differs from product to product – the bigger the product the more complex the decision Complex Buying Behaviour: when a consumer is highly involved in a purchase decision with significant differences amongst brands Dissonance-reducing Buying Behaviour: consumer purchasing behaviour in situations characterised by high involvement with few perceived differences amongst brands Habitual buying Behaviour: low consumer involvement situations with few significantly perceived brand differences Variety-seeking Buying Behaviour: low consumer involvement situations with high perceived brand differences

Types of Buyer Behaviour

The Buyer Decision Process A consumer’s actual purchase decision is part of a much greater buying process The buying process is initiated long before the actual purchase and continues long afterwards We need to focus on the entire process and not just the purchase decision Buyer Decision Process –Need Recognition –Information Search –Evaluation of Alternatives –Purchase Decision –Post purchase Behaviour

Buyer Behaviour Model

Buyer Decision Process – New Products Adoption of Product: the decision by an individual to become a regular user of a product Adoption Process: the mental process through which an individual passes from 1 st learning of an innovation to final adoption Stages in the Adoption Process: –Awareness –Interest –Evaluation –Trial –Adoption New product marketers have to consistently compute ways of moving consumers through these stages

Differences in Innovativeness

People differ significantly in their readiness to try new products 1.Innovators - are venturesome involving risk in their trial 2.Early Adopters – opinion leaders who often lead change carefully guided by respect 3.Early Majority – adopt new products before the average person 4.Late Majority – sceptical people who adopt a product after the majority has done so 5.Laggards – traditional people who’re suspicious of change

See you next time. Cheers Guys!