1. Consumer Markets and Consumer Buyer Behavior Chapter 5

2. 2 Definitions Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption All of these final consumers combine to make up the consumer market

3. 3 Characteristics Affecting Consumer Behavior  Culture Forms a person’s wants and behavior  Subculture Groups with shared value systems  Social Class Society’s divisions who share values, interests and behaviors Cultural Social Personal Psychological Key Factors

4. 4 Characteristics Affecting Consumer Behavior  Groups Membership  Family Many influencers  Roles and status Cultural Social Personal Psychological Key Factors

5. 5 Characteristics Affecting Consumer Behavior  Age and life cycle  Occupation  Economic situation  Lifestyle Activities, interests and opinions Lifestyle segmentation  Personality and self-concept Cultural Social Personal Psychological Key Factors

6. 6 Characteristics Affecting Consumer Behavior  Motivation  Perception  Learning  Beliefs and attitudes Cultural Social Personal Psychological Key Factors

7. 7 Psychological Factors Perception Perception is the process by which people select, organize, and interpret information.

8. Types of Buying Decision Behavior Buying behavior differs greatly for a tube of toothpaste, an iPod, chocolate, sugar, and a new Honda City Car. More complex decisions usually involve more buying participants and more buyer deliberation. 8

9. Types of Buying Decision Behavior

10. Complex Buying Behavior Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands. Consumer may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive. 10

11. Types of Buying Decision Behavior Dissonance-Reducing Buying Behavior Consumer buying behavior in situations characterized by high consumer involvement in a purchase but few perceived differences among brands. Such behavior occurs when consumer are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. 11

12. Types of Buying Decision Behavior For example consumers buying furniture, may face a high involvement decision because they are expensive and self- expressive. Buyers respond primarily to a good price or purchase convenience. After purchase, consumers might experience post purchase dissonance when they notice certain disadvantages of the purchased furniture brand or have hear favorable things about brands not purchased. 12

13. Types of Buying Decision Behavior Habitual Buying Behavior Consumer buying behavior in situations characterized by low consumer involvement and few significantly perceived brand differences. For example, salt or sugar. Consumers have little involvement in this product category- they simply go to the store and reach for a brand. Consumers appear to have low involvement with most low- cost, frequently purchased products. 13

14. Types of Buying Decision Behavior Varity-Seeking Buying Behavior Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences. In such a cases, consumers often do a lot of brand switching: for example, when buying biscuits, a consumer may hold some beliefs, choose a biscuit brand without much evaluation, and then evaluate that brand during consumption. 14

15. Types of Buying Decision Behavior But the next time, the consumer might pick another brand to try something different. Brand switching occurs for the sake of variety rather than because of dissatisfaction. 15