1. Consumer markets Chapter 7

2. Consumer buying behaviour
Defined as the buying behaviour of the final consumers, individuals and households who buy goods and services for personal consumption.

3. Consumer market
Consumer market is defined as all the individuals and households who buy or acquire goods and services for personal consumption.
The world consumer market consists of approx 6.3 billion people
the billion people in North America, Western Europe and Japan make up 70% of the world’s spending power.

4. Influencers of consumer behaviour
Cultural factors
Social factors
Personal and psychological characteristics

5. Cultural factors Culture Subculture Social class
Basic cause of person’s wants and behaviour
Human behaviour is predominantly learned behaviour from family and other important institutions
Subculture
Group sharing similar value systems based upon life experiences and situations
Social class
Relatively permanent and ordered divisions in a society whose members share similar values interests and behaviours.
Class systems differ in size and constituents
Lower social classes are more culture-bound
Young people of all classes are less so

6. Social factors Membership groups Primary groups
family, friends, neighbours
Secondary groups
religious groups and professional associations
Reference groups
direct or indirect influence on the person’s behaviour or attitudes
Aspirational groups
reference group to which we want to belong

7. Consumer buying roles Initiator Influencer Decider Buyer User
Person who first suggests or thinks of the idea of buying a particular product.
Influencer
A person whose views or advice will influence the product or service.
Decider
Buying decision maker of the product
Buyer
Ultimate purchaser
User
Ultimate user

8. Personal factors Age and life cycle phase Psychological life cycles
Changing interests
Occupation
Economic circumstances
Savings and buying power
Lifestyle
Pattern of living expressed in activities
Psychographics is the technique of measuring lifestyles
Personality and self-concept

9. RISC Research Agency of Paris developed the 6 ‘Eurotypes’
The ‘traditionalist’ 18%
Influenced by culture and socio-economic history, specific to their country
The ‘homebody’ 14%
Strong attachment to roots and childhood environment
The ‘rationalist’ 23%
Ability to cope with complex environments, entrepreneurial
Personal fulfilment based on self-expression rather than financial reward
The ‘pleasurist’ 17%
Emphasises sensual and emotional experiences
The ‘striver’ 15%
Holds beliefs, attitudes and values that underlie change
The ‘trend setter’ 13%
Favours non-hierarchical structure and spontaneity

10. Psychological factors
Motivation
Perception
Learning
Beliefs and attitudes

11. Buying decision behaviour
Dissonance-reducing buying behaviour
Situations characterised by high involvement with an expensive, infrequent or risky purchase but few perceived differences among the brands.
Habitual buying behaviour
Characterised by low consumer involvement and few significant perceived brand differences
Variety seeking buying behaviour
Low consumer involvement but significant perceived brand differences

12. Figure 7.5 Four types of buying behaviour
Source: Adapted from Henry Assael, Consumer Behaviour and Marketing Action, 6th edition, p. 67 (Boston, MA: Kent Publishing Company, 1987) © Wadsworth Inc Reprinted by permission of Kent Publishing Company, a division of Wadsworth Inc.

13. Buyer decision process
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Post-purchase behaviour

14. Typical consumer evaluation process
Figure 7.7 Steps between evaluation of alternatives and a purchase decision

15. Stages in the adoption process for new products
Awareness
Interest
Evaluation
Trial
Adoption

16. Individual differences in innovativeness
Figure 7.8 Adopter categorisation on the basis of relative time of adoption of innovations
Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster, Inc., by Everett M. Rogers. Copyright © 1995 by Everett M. Rogers from Diffusion of Innovations, fourth edition. Copyright © 1962, 1971, 1983 by The Free Press

17. Influence of product characteristics on rate of adoption
Relative advantage
Innovation superior to existing products
Compatibility
Fit of values and experiences of potential consumers
Complexity
Ease or difficulty in using the technology or innovation
Divisibility
Innovation trialled on a limited basis
Communicability
Results of the innovation can be observed or described to others.