Principles of Marketing,

Arab World Edition

Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed
Tolba
Presentation prepared by Annelie Moukaddem Baalbaki

CHAPTER FIVE
Consumer Behavior

Ch 5 -0 Copyright © 2011 Pearson Education

 Chapter Learning Outcomes
Topic Outline

6.1 Business Markets

5.1 Model of Consumer Behavior
5.2 Characteristics Affecting Consumer Behavior
5.3 Types of Buying Decision Behavior
5.4 The Buyer Decision Process
5.5 The Buyer Decision Process for New Products

Ch 5 -1 Copyright © 2011 Pearson Education

 Business Markets
Business Buyer Behavior and Business Buying Process
Business buyer behavior refers to the buying behavior of
the organizations that buy goods and services for use in
production of other products and services that are sold,
rented, or supplied to others.

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.

Ch 6 -2 Copyright © 2011 Pearson Education

 Consumer Behavior
Consumer Buyer Behavior and Consumer Market

Consumer buyer behavior refers to the buying behavior of

final consumers—individuals and households who buy goods
and services for personal consumption.

Consumer market refers to all of the personal consumption

of final consumers.

Ch 5 -3 Copyright © 2011 Pearson Education

 Model of Consumer Behavior

• Why its called a black box?

We can measure the wants, where's ,whens of buyer behaviors.
Put it is difficult to see inside the costumers head and figure out
the ways.

Ch 5 -4 Copyright © 2011 Pearson Education

Characteristics Affecting Consumer Behavior

Ch 5 -5 Copyright © 2011 Pearson Education

 Characteristics Affecting Consumer Behavior
1- Cultural Factors

Culture is the set of basic values, perceptions, wants, and

behavior learned from family and other important institutions.

Subculture are groups of people within a culture with shared

value systems based on common life experiences and
situations.

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Characteristics Affecting Consumer Behavior
1- Cultural Factors

Social classes
Groups and Social Networks
Word-of-mouth influence and buzz marketing

Ch 5 -7 Copyright © 2011 Pearson Education

 Characteristics Affecting Consumer Behavior
2- Social Factors

Word-of-mouth influence and buzz marketing

• Word-of-mouth is the impact of the personal words

and recommendation of trust friends, family, associates,
and other consumer and buyer behavior.

Ch 5 -8 Copyright © 2011 Pearson Education

 Characteristics Affecting Consumer Behavior
2- Social Factors

• Opinion leaders are people within a reference group

who exert social influence on others
• Also called influentials or leading adopters
• Marketers identify them to use as brand ambassadors

Ch 5 -9 Copyright © 2011 Pearson Education

 Characteristics Affecting Consumer Behavior
2- Social Factors

Online Social Networks are online communities where people

socialize or exchange information and opinions:
• Blogs
• Social networking sites (Facebook – Instgram- Snapchat)
• Virtual worlds (second life)

Ch 5 -10 Copyright © 2011 Pearson Education

Characteristics Affecting Consumer Behavior
2- Social Factors

Family
Social roles

Age and life-cycle stage

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 Characteristics Affecting Consumer Behavior
3- Personal Factors
Occupation
Economic situation
Lifestyle
Personality and self-concept

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 Characteristics Affecting Consumer Behavior
4- Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes

Ch 5 -13 Copyright © 2011 Pearson Education

 Types of Buying Decision Behavior

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior

Ch 5 -14 Copyright © 2011 Pearson Education

 Types of Buying Decision Behavior

Ch 5 -15 Copyright © 2011 Pearson Education

Complex buying behavior occurs when the consumer is highly
involved with the purchase and when there are significant
differences between brands.

Dissonance-reducing buying behaviour occurs when

the consumer is highly involved but sees little difference
between brands.

Habitual Buying Behavior refers to situations where a

consumer has low involvement in a purchase, and is perceiving
very few significant differences between brands in a given
product category.

Variety-seeking buying behaviour occurs when

the consumer is low involved with the purchase, yet there are
significant brand differences.
 The Buyer Decision Process

Ch 5 -17 Copyright © 2011 Pearson Education

 The Buyer Decision Process
Need Recognition

Occurs when the buyer recognizes a problem or need triggered

by:
• Internal stimuli
• External stimuli

Ch 5 -18 Copyright © 2011 Pearson Education

 The Buyer Decision Process
Information Search

Sources of Information
Personal sources—family and friends
Commercial sources—advertising, Internet
Public sources—mass media, consumer organizations
Experiential sources—handling, examining, using the product

Ch 5 -19 Copyright © 2011 Pearson Education

 The Buyer Decision Process
Evaluation of Alternatives

How the consumer processes information to arrive at brand

choices.

Depends on the individual consumer and the specific buying

situation.

Ch 5 -20 Copyright © 2011 Pearson Education

 The Buyer Decision Process
Purchase Decision

The act by the consumer to buy the most preferred brand

The purchase decision can be affected by:
• Attitudes of others
• Unexpected situational factors.

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 The Buyer Decision Process
Post-Purchase Decision: (see Real Marketing 5.2) pg144

The satisfaction or dissatisfaction that the consumer feels

about the purchase.
Relationship between:
• Consumer’s expectations
• Product’s perceived performance
The larger the gap between expectation and performance, the
greater the consumer’s dissatisfaction.

Ch 5 -22 Copyright © 2011 Pearson Education