1. Consumer Markets and Consumer Buyer Behavior
Chapter 5
Consumer Markets and Consumer Buyer Behavior

2. Schedule – Before Midterm4
Oct.8/9
Consumer Markets and Consumer Buyer Behavior
Ch.5
Case 3 5
Oct.15/16
Business Markets and Business Buyer Behavior
Ch.6
Case 4 6
Oct.22/23
Marketing Information System
Ch.4
Case 5

3. Learning Goals
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products

4. Case Study Harley Davidson
Measuring Success
Currently 22% of all U.S. bike sales
Demand above supply
Sales doubled in the past 5 years with earnings tripled
Building Success
Understanding the customers’ emotions and motivation
Determining the factors of loyalty
Translating this information to effective advertising
5 - 4

5. Learning Goals
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products

6. 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

8. Learning Goals
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products

9. Model of Buyer Behavior

10. 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
Key Factors
Cultural
Social
Personal
Psychological

11. Characteristics Affecting Consumer Behavior
Groups
Membership
Reference
Aspirational
Opinion leaders
Buzz marketing
Family
Many influencers
Roles and status
Key Factors
Cultural
Social
Personal
Psychological

12. This advertiser knows teens are strongly influenced by groups when purchasing fashion items

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

14. Personal Factors
Family Life Cycle stages throughout which families pass as they mature over time
Stages in family life cycle:
1.bachelor stage
2.newly married couples, no children
3.full nest 1; youngest child under 6
4.full nest 2; youngest child 6 or over
5. full nest 3; older married couples with dependent children
6.empty nest 1; older married couples no children with them
7. empty nest 1; older married couples no children at home;retired
8.solitary survivor, working
9.solitary survivor, retired

15. Personal Factors
Personality ğ a person’s unique characteristics that lead to relatively consistent and lasting responses to his environment
Self-concept ğ the self image or general picture that people have of themselves

16. Personal Factors
Lifestyle a person’s pattern of living as expressed in his activities, interests and opinions
Psychographics ğ technique of measuring lifestyles and developing lifestyle classifications
Major dimensions measured are:
Activities (work, hobbies, social events, entertainment, shopping, sports,vacation)
Interests (family, home, job, recreation, fashion, food, media, achievements)
Opinions (themselves, social issues, politics, business, economics, products, future)

17. Values and Lifestyles (VALS)
Actualizers
High Resources
High Innovation
Fulfilleds
Achievers
Experiencers
Makers
Believers
Strivers
Strugglers
Low Resources
Low Innovation

18. Brand Personality Dimensions
Sincerity
Ruggedness
Excitement
Competence
Sophistication

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

20. Psychological Factors Motivation
A motive is a need that is sufficiently pressing to direct the person to seek satisfaction
Motivation research is based on Freud. Looks for hidden and subconscious motivation
Maslow ordered needs based on how pressing they are to the consumer

21. Maslow’s Hierarchy of Needs

22. This ad demonstrates a product meeting physiological and social needs

23. Discussion
What consumer products might fulfill multiple levels of the Hierarchy of Needs?
There are many products that fit several levels. Hotels, for instance, will satisfy basic physiological needs, but the best room at the Ritz Carlton may meet many higher levels.

24. Psychological Factors Perception
Perception is the process by which people select, organize, and interpret information.
Perception Includes:
Selective attention
Consumers screen out information
Selective distortion
People interpret to support beliefs
Selective retention
People retain points to support attitudes

25. Discussion Question Perception
How many ads were you exposed to today?
Which ones do you remember? Why?
Did students include Internet ads, logos on clothing, ads in the subway, billboards, logos on drinks, in the classroom, TV or radio ads?
This should prompt discussion of selective attention, distortion and retention. Was it that they are loyal to these brands? Did they break through the clutter? Were they bombarded by a particular brand message?

26. Psychological Factors Learning
Learning describes changes in an individual’s behavior arising from experience
Learning occurs through
Drives
Internal stimulus that calls for action
Stimuli
Objects that move drive to motive
Cues
Minor stimuli that affect response
Reinforcement
Feedback on action

27. Psychological Factors Beliefs and Attitudes
a descriptive thought about a brand or service
may be based on real knowledge, opinion, or faith
Attitude
describes a person’s evaluations, feelings and tendencies toward an object or idea
They are difficult to change

28. Learning Goals
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products

30. Types of Buying Decision Behavior

31. The Buying Roles 5 roles people might play in a buying decision
Initiator ğ who first gives the idea of buying the product or service
Influencer ğwhose view or advice influences the decision
Decider ğwho decide on any component of buying decision
Buyer ğwho makes the actual purchase
User ğwho uses the product or sevice purchased

32. The Buyer Decision Process

33. The Buyer Decision Process
Needs can be triggered by:
Internal stimuli
Normal needs become strong enough to drive behavior
External stimuli
Advertisements
Friends of friends
Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

34. The Buyer Decision Process
Consumers exhibit heightened attention or actively search for information
Sources of information:
Personal
Commercial
Public
Experiential
Word-of-mouth
Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

35. Information Search Personal Sources Commercial Sources Public Sources
Family, friends, neighbors
Most effective source of
information
Advertising, salespeople
Receives most information
from these sources
Experiential Sources
Mass Media
Consumer-rating groups
Handling the product
Examining the product
Using the product

36. The Buyer Decision Process
Evaluation procedure depends on the consumer and the buying situation.
Most buyers evaluate multiple attributes, each of which is weighted differently.
At the end of the evaluation stage, purchase intentions are formed.
Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

37. 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

38. Decision Making Sets Total Set Aware- ness Consid- Set eration Set
Choice
Set
Decision

39. The Buyer Decision Process
Process Stages
Two factors intercede between purchase intentions and the actual decision:
Attitudes of others
Unexpected situational factors
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

40. Buyer Decision Process for New Products
Good, service or idea that is perceived by customers as new.
Stages in the Adoption Process
Marketers should help consumers move through these stages.

41. Stages in the Adoption Process
Awareness: Consumer is aware of
product, but lacks information.
Stages in the Adoption Process
Interest: Consumer seeks
Information about new product.
Evaluation: Consumer considers
trying new product.
Trial: Consumer tries new
product on a small scale.
Adoption: Consumer decides to make regular use of product.

42. Buyer Decision Process for New Products
Individual Differences in Innovativeness:
Consumers can be classified into five adopter categories, each of which behaves differently toward new products

43. Adopter Categories Early Majority Late Majority Innovators Early
Adopters
Percentage of Adopters
Laggards
34%
34%
13.5%
16%
2.5%
Early
Time of Adoption
Late

44. Buyer Decision Process for New Products
Product Characteristics influencing the adoption rate:
Relative Advantage ğ Is the innovation superior to existing products?
Compatibility ğ Does the innovation fit the values and experience of the target market?
Complexity ğ Is the innovation difficult to understand or use?
Divisibility ğ Can the innovation be used on a trial basis?
Communicability ğ Can results be easily observed or described to others?

45. Buyer Decision Process for New Products
International Consumer Behavior
Values, attitudes and behaviors differ greatly in other countries.
Physical differences exist which require changes in the marketing mix.
Customs vary from country to country.
Marketers must decide the degree to which they will adapt their marketing efforts.

46. Discussion Question
How is a site like Consumer Reports used in the decision- making process?
Go to the site and ask students which type of decision this is best for. They should agree that the site is helpful for highly involved products. It is used in the information search to determine what attributes are important. It then helps them evaluate the alternatives as they can see how the brands compare.

47. Discussion Question
Why might the adoption process be slow for a home robot?
Computers are doing more for us at home. We already have TiVo-type products which scan databases and decide what to record. Other products include the Roomba and other home vacuum systems. New robots can conduct an orchestra (Sony) and assist the blind.
Source: Business Week
Source: Business Week

48. The Buyer Decision Process
Process Stages
Satisfaction is important:
Delighted consumers engage in positive word-of-mouth.
Unhappy customers tell on average 11 other people.
Cognitive dissonance is common
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior

49. Learning Goals
Define the consumer market and construct a model of consumer buyer behavior
Name the four factors that influence buyer behavior
List and understand the types of buying decision behavior and stages in the process
Describe the adoption and diffusion process for new products

51. Ramazan Bayraminiz Kutlu & Mutlu olsun!!!
For Next Week
Read Chapter 6
Be prepared for case 4 – Kodak discussion