1. CONSUMER MARKETS & BUYING BEHAVIOR
Kotler, P. & Armstrong, G., 2006, Principles of Marketing, New Jersey: Pearson Education, Inc., Ch.5
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2. DEFINITIONS
Consumer buying behavior refers to the buying behavior of final consumers.
Final consumers are individuals and households who buy goods and services for personal consumption.
Consumer markets are all the individuals and households who buy or acquire goods and services for personal consumption.
Business markets are businesses, government bodies, and institutions who buy or acquire goods and services for incorporation (e.g. ingredient materials or components), consumption (e.g. office supplies, consulting services), use (installations or equipment), or resale.
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3. BUYER BEHAVIOR MODEL
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4. Factors Influencing Consumer Behavior
Culture
Sub-
culture
Social
class
Cultural
Social
Reference
groups
Family
Roles
and
status
Personal
Age and
life-cycle
Occupation
Economic
situation
Lifestyle
Personality
and
self-concept
Psycho-
logical
Motivation
Perception
Learning
Beliefs and
attitudes
Buyer
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5. CULTURAL FACTORS
Culture is the set of basic values, perceptions, wants and behaviors learned by a member of society from family & other important institutions.
Subculture is group of people with shared value systems based on common life experiences.
Social Class is society’s relatively permanent & ordered divisions whose members share similar values, interests, and behaviors as measured by: occupation, income, education, wealth and other variables.
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6. SOCIAL FACTORS Social Factors Groups Membership Reference
Family (most important)
Husband, wife, kids
Influencer, buyer, user
Social Factors
Roles and Status
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7. SOCIAL FACTORS
Group consists of two or more people who interest to accomplish individual or mutual goals.
Opinion leader is person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others.
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.
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8. PERSONAL FACTORS Age and Life-cycle Stage Occupation
Economic situation
Lifestyle is a person’s pattern of living as expressed in his or her activities, interests, and opinions.
Personality & self-concept
Personality is the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment.
The basic self-concept premise is that people’s possessions contribute to and reflect their identities – “we are what we have.”
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9. VALS – Life Style Classifications
High Resources
Fulfillers
Achievers
Experiencers
Strivers
Believers
Makers
Principle
Oriented
Status
Action
Low Resources
Low innovation
Struggles
High innovation
Actualizers
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10. VALUE & LIFE-STYLES (VALS)
SURVIVORS – elderly, passive people who are concerned about change. Loyal to their favorite brands.
INNOVATORS – successful, sophisticated, active people with high self-esteem. Purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and services.
EXPERIENCERS – young, enthusiastic, impulsive people who seek variety and excitement. Spend a comparatively high proportion of income on fashion, entertainment, and socializing.
MAKERS – practical, down-to-earth, self-sufficient people who like to work with their hands. Favor product with a practical or functional purpose.

11. VALUE & LIFE-STYLES (VALS)
ACHIEVERS – successful goal-oriented people who focus on career and family. Favor premium products that demonstrate success to their peers.
STRIVERS – trendy and fun-loving people who are resource-constrained. Favor stylish products that emulate the purchase of those with greater material wealth.
THINKERS – mature, satisfied, and reflective people who are motivated by ideals and value order, knowledge, and responsibility. Favor durability, functionality, and value in products.
BELIEVERS – conservative, conventional, and traditional people with concrete beliefs. Favor familiar products and are loyal to established brands.

12. INDONESIAN CONSUMER MARKET SEGMENTS:
ESTABLISHED CONFIDENT (“ORANG ALIM”)
THE OPTIMISTIC FAMILY PERSON (IBU “PKK”)
THE CHANGE-EXPECTING LAD (‘ANAK NONGKRONG”)
CHEERFUL HUMANIST (“LEMBUT HATI”)
INTROVERT WALLFLOWER (“PASRAH”)
THE SAVVY CONQUEROR/CITY SLICKERS (“MAIN UNTUK MENANG”)
THE NETWORKING PLEASURE SEEKER (“GAUL-GLAM”)
THE SPONTANEOUS FUN-LOVING (“BINTANG PANGGUNG”)
(SUMBER: LOWE INDONESIA)

13. FAMILY LIFE CYCLE TRADITIONAL FAMILY FLOW BACHELORHOOD - YOUNG SINGLE
HONEYMOONERS - YOUNG MARRIED WITHOUT CHILDREN
PARENTHOOD - YOUNG MARRIED WITH CHILDREN
POSTPARENTHOOD - MIDDLE-AGED WITHOUT DEPENDENT CHILDREN
DISSOLUTION - OLDER MARRIED (one surviving spouse) & UNMARRIED
(Schiffman, L.G. & Kanuk, L.L., 2007, Consumer Behavior, New Jersey: Pearson Education, Inc., pp.334 & 338)
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14. PSYCHOLOGICAL FACTORS
Motivation. A psychological process resulting in goal-directed behavior that satisfies human needs. *
Perception. The process by which people select, organize, and interpret information to form a meaningful picture of the world.
Learning. Changes in an individual’s behavior arising from experience.
Belief. A descriptive thought that a person holds about something.
Attitude. A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.
* Cullen, J.B. & Parboteeah, K.P., 2005, Multinational Management: A Strategic Approach, United States: South-Western (International Student Edition), p.537.
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15. Maslow’s Hierarchy of needs
Self-
actualization
needs
(self-development and realization)
Esteen needs
(self-esteen, recognition, status)
Social needs
(sense of belonging, love)
Safety needs
(security, protection)
Physiological Needs
(hunger, thirst)
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16. Buyer Decision Process
Purchase
Decision
Postpurchase
Behavior
Evaluation
of Alternatives
Information
Search
Need Recognition
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17. Buyer Decision Process Step 1. Need Recognition
Recognizes a
problem or a
Need
Actual State
Desired State
Needs Arising From:
Internal Stimuli –
Hunger
External Stimuli-
Friends
State Where the Buyer’s Needs are Fulfilled and the Buyer is Satisfied.
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18. The Buyer Decision Process Step 2. Information Search
Family, friends, neighbors
Most effective source of
information
Advertising, salespeople
Receives most
information from these
sources
Mass Media
Consumer-rating groups
Handling the product
Examining the product
Using the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
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19. The Buyer Decision Process Step 4. Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.
Consumers May Make Buying Decisions
Only After Consulting Others.
Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives
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20. The Buyer Decision Process Step 5. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes of Others
Unexpected Situational Factors
Purchase Decision
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21. The Buyer Decision Process Step 6. Postpurchase Behavior
Cognitive Dissonance
Satisfied Customer!
Consumer’s
Expectations of Product’s Performance.
Product’s Perceived
Performance.
Dissatisfied Customer
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22. Types of Buying Decision Behavior
Complex
Buying
Behavior
Variety-
Seeking
Behavior
High
Involvement
Significant
differences
between
brands
Few
Low
Dissonance-
Reducing Buying
Behavior
Habitual
Buying
Behavior
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