Consumer Markets and Buyer

Behavior-PART-1
Consumer buyers’ 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
consumptions

Video:
https://www.youtube.com/watch?v=v1q1nnPCcKw

Highlights: What you buy, why you buy?

The Model of Buyer Behavior

THE ENVIRONMENT
Marketing stimuli:
 Product, price, place, promotion
Other:
 Economic, technological
 Social
 Cultural

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 BUYERS’ BLACK BOX
 Buyers’ characteristics
 Buyers’ decision process

BUYERS’ RESPONSES
 Buyers’ attitude and preferences
 Purchase behavior what the buyers’ buy when, where, and
how much
 Brand engagement and relationship

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 Characteristics Affecting
Consumer Behavior
CULTURAL FACTOR

Factors influencing Consumer behavior ↓

→ (1) CULTURAL
 Culture
 Subculture
 Social class

→ (2) SOCIAL
 Groups and social networks
 Family
 Roles and status

→ (3) PERSONAL
 Age and life cycle stage
 Occupation
 Economic situation
 Lifestyle
 Personality and self-concept

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 
→ (4) PSYCHOLOGICAL
 Motivation
 Perception
 Learning

 Beliefs and attitude ↓

Buyers
Highlights: marketers cannot really control these factors, but
must take them into account, why?

(1) 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

Highlights: important for marketers to try and spot cultural

shifts, why?

Subcultures are groups of people within a culture with shared

value systems based on common life experience and situation

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Social classes are society’s relatively permanent and ordered
divisions whose members share similar values, interests and
behavior. They are measured as a combination of occupation,
income, education, wealth, and other variables.

Highlights: some social systems do not allow movement—

examples?

Major Bangladeshi Social Class

 Upper Class
 Middle Class
 Working Class
 Lower Class

Highlights: why are marketers interested in social class of

consumers?

Video: Summary of today:

https://www.youtube.com/watch?v=yTQKLDM1sac

MINI TEST LAST WEEK

https://forms.gle/SiZBQ7Bye4xh83yb8

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 Consumer Markets and Buyer
Behavior-PART-2
→ (2) SOCIAL Factor
 Groups and social networks
 Family
 Roles and status
 Groups and social networks

Highlights: What groups are you a member of? What are your
aspirational groups?
Membership groups Aspirational groups Reference Groups
Groups with direct Groups an individual Groups that form a
influence and to wishes to belong to comparison or
which a person reference in forming
belongs attitude or behavior

Membership groups: a social body or organization to which

people belong as members, especially when they feel that the
group has formally or informally accepted them into its ranks.
Such groups, which include clubs, societies, cliques, teams, and
political parties, often explicitly distinguish between individuals
who belong to the group and those who do not.

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Aspirational groups: a reference group that an individual aspires
to join. An aspirational group may be an actual group
characterized by interaction and interpersonal structures (e.g., a
professional association, a sports team) or an aggregation of
individuals who are thought to possess one or more shared
similarities (e.g., the rich, intellectuals)
Reference Groups: a group or social aggregate that individuals
use as a standard or frame of reference when selecting and
appraising their own abilities, attitudes, or beliefs. Reference
groups include formal and informal groups that the individual
identifies with and admires, statistical aggregations of
noninteracting individuals, imaginary groups, and even groups
that deny the individual membership.

Highlights: Groups influence tends to be strongest when the

product is visible to others the buyer respects

Others
 Online special networks
 Buzz marketing
 Social media sites
 Virtual worlds
 Word of mouth
 Opinion leaders

Highlights: How can marketers use these networks?

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Family is the most important consumer-buying organization in
society

Roles and status can be defined by a person’s position in a

group

Highlights: Do you use any brands because they are what your
parents use?

→ (3) PERSONAL
 Age and life cycle stage
 Occupation
 Economic situation
 Lifestyle
 Personality and self-concept

Age and life-cycle segmentation is a demographic strategy of

segmentation where a product-market is divided into segments
depending on the age so that the company can more accurately
target its offerings to the needs and wants of life’s each stage of
interest to it. Thus, a company can develop various products and
various marketing approaches for school-going children,
teenagers, varsity students, newly married couples, old married
couples, mature adults, senior citizens, and the like.

Occupation affects the goods and services bought by consumers

Economic situations include trends in

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Spending Personal Savings Interest rates
income

Lifestyle is a persons’ pattern of living as expressed in his or her

psychographics (Psychographics are the attitudes, interests,
personality, values, opinions, and lifestyle of your target
market.)

Highlights: Psychographics measure a consumer’s

 Activities
 Interests
 Opinions

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Personality refers to the unique psychological characteristic
that distinguish a person or groups

Highlights: Name a brand that has a personality

Brand and personality traits

A company's brand personality elicits an emotional response in

a specific consumer segment, with the intention of inciting
positive actions that benefit the firm. There are five main types
of brand personalities with common traits. They are excitement,
sincerity, ruggedness, competence, and sophistication.
Customers are more likely to purchase a brand if its personality
is similar to their own.

 Sincerity
 Excitement
 Competence
 Sophistication
 Ruggedness

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 → (4) PSYCHOLOGICAL
 Motivation
 Perception
 Learning
 Beliefs and attitude
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

Highlights: Most consumers do not know or cannot describe

why they act like they do

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Perception is the process by which people select, organize, and
interest information to form a meaningful picture of the world
Perceptual process

Selective attention is the tendency for people to screen out the

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

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Selective retention is the tendency to remember good points
made about a brand they favor and forget good points about
competing brands

Highlights: On average we are exposed to 3000 to 5000 ad

messages daily

A belief is a descriptive thought that a person has about

something based on
 Knowledge
 Opinion
 Faith

Highlights: What if a belief about a brand is wrong?

An attitude describes a parsons’ relatively consistent evaluation,

feelings, and tendencies towards an object or idea

Finally
https://www.youtube.com/watch?v=PSLpdM6EYTQ

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