Cif1001 - Lecture 4

Principles of Marketing
Eighteenth Edition, Global Edition
Lecture 4 (Part 1)
Consumer Markets and Buyer
Behavior
Copyright © 2021 Pearson Education Ltd.

Learning Objectives
5.1 Define the consumer market and construct a simple
model of consumer buyer behavior.
5.2 Name the four major factors that influence consumer
buyer behavior.
5.3 List and define the major types of buying decision
behavior and the stages in the buyer decision process.
5.4 Describe the adoption and diffusion process for new
products.

Learning Objective 1
Define the consumer market and construct a simple model of
consumer buyer behavior.

Behavior
Consumer buyer behavior is the buying behavior of final
•
consumers—individuals and households that buy goods and

services for personal consumption.
Consumer markets are made up of all the individuals and
•
households that buy or acquire goods and services for

personal consumption.

Model of Consumer Behavior
Figure 5.1 The Model of Buyer Behavior

Name the four major factors that influence consumer buyer
behavior.

Characteristics Affecting Consumer
Behavior (1 of 12)
Figure 5.2 Factors Influencing Consumer Behavior

Behavior (2 of 12)
Cultural Factors
Culture is the set of basic values, perceptions, wants, and
behaviors learned by a member of society from family and
other important institutions.

Behavior (3 of 12)
Cultural Factors
Subcultures are groups of
people within a culture with
shared value systems based on
common life experiences and
situations.
Targeting Muslim consumers:
ASDA Supermarket UK
celebrates Ramadan with food
aisle selling Middle Eastern food
and treats, as well as doing
charity.

Behavior (4 of 12)
Cultural Factors
Social classes are society’s relatively permanent and
ordered divisions whose members share similar values,
interests, and behaviors.
Measured as a combination of occupation, income,
education, wealth, and other variables

Behavior (5 of 12)
Personal Factors
Occupation affects the goods
and services bought by
consumers.
Age and Life Stage affect tastes
in food, clothes, furniture, ad
recreation.
Appealing to occupation
Economic situations include segments: CAT makes rugged,
trends in spending, personal durable phones for the
income, savings, interest rates. construction and heavy
industries.

Behaviour (6 of 12)
Personal Factors
Lifestyle is a person’s pattern of living as expressed in his or her
psychographics.
Personality refers to the unique psychological characteristics that
distinguish a person or group.
Brand personality: MINI
markets to personality
segments of people who
are ‘adventurous,
individualistic, open-
minded, creative, tech-
savvy, and young at
heart’— anything but
normal—just like the car.

Behavior (7 of 12)
Psychological Factors
• Motivation (a need that is sufficiently pressing to direct the
person to seek satisfaction of the need)
• Perception (is the process by which people select,
organize, and interpret information to form a meaningful
picture of the world)
• Learning (is changes in an individual’s behavior arising
from experience)
• Beliefs and attitudes (are difficult to change)
– A consumer may hold both positive beliefs toward an object (e.g., coffee tastes
good) as well as negative beliefs (e.g., coffee is easily spilled and stains papers).

Behavior (8 of 12)
A motive (or drive) is a need that is sufficiently pressing to
direct the person to seek satisfaction of the need.
Motivation research refers to qualitative research designed
to probe consumers’ hidden, subconscious motivations.

Behavior (9 of 12)
Figure 5.3 Maslow’s Hierarchy of Needs

Behavior (10 of 12)
Perception is the process by which people select, organize,
and interpret information to form a meaningful picture of the
world.
Perceptual Processes
• Selective attention is the tendency for people to screen out most of the
information to which they are exposed.
• Selective distortion is the tendency for people to interpret information in a

way that will support what they already believe.
• Selective retention is the tendency to remember good points made about a

brand they favor and forget good points made about competing brands.

Behavior (11 of 12)
Learning is the change in an individual’s behavior arising
from experience and occurs through the interplay of:
• Drives
• Stimuli
• Cues
• Responses
• Reinforcement

Behavior (12 of 12)
A belief is a descriptive thought that a person has about
something based on:
• knowledge
• opinion
• faith
An attitude describes a person’s relatively consistent
evaluations, feelings, and tendencies toward an object or
idea.

List and define the major types of buying decision behavior
and the stages in the buyer decision process.

Types of Buying Decision Behavior
(1 of 2)
• Complex buying behavior
• Dissonance-reducing buying behavior
• Habitual buying behavior
• Variety-seeking buying behavior

Types of Buying Decision Behavior
(2 of 2)
Figure 5.4 Four Types of Buying Behavior
Source: Adapted from Henry Assael, Consumer Behavior and Marketing

Action (Boston: Kent Publishing Company, 1987), p. 87. Used with
permission of the author.
Figure 5.5 The Buyer Decision
Process

The Buyer Decision Process (1 of 6)
Need Recognition
Need recognition is the first stage of the buyer decision
process, in which the consumer recognizes a problem or
need triggered by:
• Internal stimuli
• External stimuli

Information Search
Information search is the stage of the buyer decision
process in which the consumer is motivated to search for
more information.
Sources of information:
– Personal sources
– Commercial sources
– Public sources
– Experiential sources

Evaluation of Alternatives
Alternative evaluation is the stage of the buyer decision
process in which the consumer uses information to evaluate
alternative brands in the choice set.

Purchase Decision
Purchase decision is the buyer’s decision about which
brand to purchase.
The purchase intention may not be the purchase decision
due to:
• Attitudes of others
• Unexpected situational factors

Postpurchase Behavior
Postpurchase behavior is the stage of the buyer decision
process in which consumers take further action after
purchase, based on their satisfaction or dissatisfaction.

Postpurchase Behavior
Cognitive dissonance is buyer discomfort caused by
postpurchase conflict.
Postpurchase cognitive
dissonance: Postpurchase
customer satisfaction is a key to
building profitable customer
relationships. Most marketers go
beyond merely meeting the
customer expectations—they
aim to delight customers.

The Customer Journey
Customer journey: the sum of the ongoing experiences
consumers have with a brand that affect their buying behavior,
engagement, and brand advocacy over time.
The customer journey: By

understanding the customer
journey, marketers can work to
create brand experiences that
will result in positive purchase
behavior, engagement, and
brand advocacy over time.

Describe the adoption and diffusion process for new
products.

The Buyer Decision Process for New
Products (1 of 3)
The adoption process is the
mental process an individual
goes through from first
learning about an innovation
to final regular use.
• Stages in the adoption The adoption process: To help
process include: get tentative consumers over
– Awareness the buying decision hump,
Beyond Meat invited
– Interest
consumers to “try some free—
– Evaluation zip, zero, zilch” at their local
– Trial grocery store.
– Adoption
Products (2 of 3)
Individual Differences in Innovativeness
• Innovators
• Early Adopters
• Early Mainstream
• Late Mainstream
• Lagging Adopters

Products (3 of 3)
Figure 5.6 Adopter Categories Based on Relative Time of
Adoption of Innovations

Analyzing and Using Marketing
Information
Influence of Product Characteristics on Rate of Adoption
• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability

Principles of Marketing
Eighteenth Edition, Global Edition
Lecture 4 (Part 2)
Business Markets and Business
Buyer Behavior

LINKEDIN: The Place to Be for B-to-B
With a fast-growing membership of more than 590 million
business professionals, LinkedIn stands out as the go-to B-
to-B social selling platform. It lets B-to-B marketers “market
to who matters.”

Learning Objectives
6.1 Define the business market and explain how business
markets differ from consumer markets.
6.2 Identify the major factors that influence business buyer
behavior.
6.3 List and define the steps in the business buying decision
process.

Behavior
Business buyer behavior refers to the buying behavior of
the organizations that buy goods and services for use in the
production of other products and services that are sold,
rented, or supplied to others.
The business buying process is the process where
business buyers determine which products and services are
needed to purchase, and then find, evaluate, and choose
among alternative brands.

Define the business market and explain how business
markets differ from consumer markets.

Business Markets (1 of 3)
Market Structure and Demand
• Fewer but larger buyers
• Derived demand
• Inelastic demand
• Fluctuating demand

Nature of the Buying Unit
Business buyers usually face more complex buying
decisions than do consumer buyers. Compared with
consumer purchases, a business purchase usually involves:
• More decision participants
• More professional purchasing effort
• More buyer and seller interaction

Types of Decisions and the Decision Process
Business buyers usually face more complex buying
decisions than consumer buyers.
Supplier development is the systematic development of
networks of supplier-partners to ensure an appropriate and
dependable supply of products and materials for use in
making products or reselling them to others.

Identify the major factors that influence business buyer
behavior.

Business Buyer Behavior (1 of 6)
Figure 6.1 A Model of Business Buyer Behavior

Major Types of Buying Situations
Straight rebuy is a buying situation in which the buyer
routinely reorders something without any modifications.
Modified rebuy is a buying situation in which the buyer
wants to modify product specifications, prices, terms, or
suppliers.
New task is a buying situation in which the buyer purchases
a product or service for the first time.

Major Types of Buying Situations
Systems selling is buying a complete solution to a problem from a
single seller.
Solutions selling: UPS not only delivers packages for online retailer
Overstock.com, it also manages much of Overstock’s complex order and
returns process in an efficient, customer-pleasing way.

Participants in the Business Buying Process
• Users are those that will use the product or service.

• Influencers help define specifications and provide
information for evaluating alternatives.
• Buyers have formal authority to select the supplier and
arrange terms of purchase.
• Deciders have formal or informal power to select and
approve final suppliers.
• Gatekeepers control the flow of information.

Participants in the Business Buying Process
• The buying center concept presents a major marketing

challenge given the varied groups involved in the
decision.
• Who participates in the decision?
– Relative influence on decision by various participants
– Evaluation criteria used by various participants
– Are there Informal participants involved in decision

Figure 6.2 Major Influences on Business Buyer Behavior

List and define the steps in the business buying decision
process.

The Business Buying Process (1 of 4)
Figure 6.3 Stages of the Business Buyer Decision Process

Problem recognition occurs when
•
someone in the company recognizes a

problem or need.
• Internal stimuli - Need for new
product or production equipment
• External stimuli - Idea from a trade
show or advertising
Problem recognition: Salesforce’s
“Blaze your trail” ads show how it
solves problems for some of its high-
profile customers, such as Intuit,
suggesting that it can do the same for
new customers.
General need description describes the characteristics and
quantity of the needed item.
Product specification describes the technical criteria.
Supplier search involves compiling a list of qualified
suppliers to find the best vendors.
Proposal solicitation is the process of requesting proposals
from qualified suppliers.
Supplier selection is when the buying center creates a list
of desired supplier attributes and negotiates with preferred
suppliers for favorable terms and conditions.

Order-routine specifications includes the final order with
the chosen supplier and lists all of the specifications and
terms of the purchase.
Performance review involves a critique of supplier
performance to the order-routine specifications.

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Principles of Marketing

Eighteenth Edition, Global Edition

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

consumers—individuals and households that buy goods and

households that buy or acquire goods and services for

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

Copyright © 2021 Pearson Education Ltd.

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• Selective distortion is the tendency for people to interpret information in a

• Selective retention is the tendency to remember good points made about a

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Figure 5.4 Four Types of Buying Behavior

Source: Adapted from Henry Assael, Consumer Behavior and Marketing

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The customer journey: By

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• Users are those that will use the product or service.

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• The buying center concept presents a major marketing

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someone in the company recognizes a

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