Marketing Week 5

bias decision
Consumer Buyer Behaviour and Consumer Markets

 Buying behaviour of final consumers

 Consumer behaviour refers to the ways individuals or organizations search for, evaluate
purchase, use, and dispose of goods and service adoption of ideas ,even decisions made
Consumer market

 All the individuals and households that buy or acquire, dispose goods and service for personal
consumption.

Factors Influencing Consumer Behaviour

Cultural Factors

 Culture (taught you)

- Set of basic values, perceptions, wants and behaviours learned by an individual from
family and other important institutions

 Subculture (like we are Malaysians)

- Group of people with shared value systems based on common life experiences and
situations
- Total market strategy integrates ethnic themes and cross – cultural perspectives within a
brand mainstream marketing

 Social class
- Relatively permanent and ordered divisions in a society whose members share similar
values, interest, and behaviours

Social Factors

 Groups
 Word-of-mouth influence (friend)
 Opinion leaders (influencers)
 Online social networks (influencers)
 Family
- Strongly influences buying behaviour
- Gender stereotypes for certain types of purchases are relaxing in the US
 Roles and status
- Role = expected activities
- Status = esteem given to role by society
 Groups and social networks
- Post in social media and influencers share about it.
Personal Factors

 Occupation
 Age and family life – cycle
 Economic situation
 Lifestyle
- A person pattern of living ass expressed in his or her activities, interests, opinion
 Personality and self- concept
- Refers to the unique psychological characteristics that distinguish a person or group
- Generally defined in terms of traits
- Can be useful in analyzing consumer behaviour for certain product or brand choice
- Brands may also have personalities

Psychological Factors

 Motivation (fav answer question)

- A motive is a need that is sufficiency pressing to direct the person to seek satisfaction
Maslow Hierarchy of needs (Explain)
- Physiological = for survival
- Safety = all kind of safety
- Love/Belonging = you want to have friends You need to communicate
- Esteem = self- esteem that you want achieve something
- Self- actualization = you have achieved that you want

 Perception
- Process by which people select, organization and interpret information to form a
meaningful picture of the word
Selective distortion describes the tendency of people to interpret information in a way that will
support what they already believe

Selective retention means that consumers are likely to remember goods points made about a brand
they favour and forget good points made about competing brands. Some consumers worry that they
will be affected by marketing messages without even knowing it – through subliminal advertising.

 Learning
- Changes in an individual behaviour arising from experience
- Occurs due to an interplay of drivers, stimuli, cues, responses and reinforcement
- Strongly impacted by the consequences of an individual’s behaviour
- * Behaviours with satisfying results tend to be repeated.

 Belief (what you feel)

- A descriptive thought that a person holds about something
  Attitude
- A person consistently favourable or unfavourable evaluations, feelings, and tendencies
toward an object or idea

Buyer Decision Process (fav short answer)

1. Need recognition
- can be triggered from anywhere like advertisements

2. Information search (online, blog)

- Get from personal, commercial, public, experiential sources
3. Evaluation of alternatives (other choices) specific
- Which want you wanna buy
- Looking at options
- Dependent upon the specific buying situation
4. Purchase decision
- Attitudes of other (other people say don’t like so you didn’t buy)
- Unexpected situational factors

5. Post purchase behaviour

- Consumer satisfaction
- If you are happy buy again
Cognitive dissonance
- Second thought or regret one purchase

Example Question
1. Describe the decision- making process or steps you went through when purchasing
- Decision to take marketing as an elective

1. Need to recognition
- You need two electives in each semester

2. Information search
- Check timetable and check whether the elective available
- Ask your seniors who teach this subject

3. Evaluation of alternatives
- Choose which elective that suits your timing

4. Purchase decision
-
Stages in the Adaption Process (Fav short ans)
1. Awareness – consumer becomes aware of the new product, but lacks information about it
2. Interest – consumer seek information about new product
3. Evaluation – consumer considers whether trying the new product makes sense
4. Trial – consumer tries new product on a small scale to improve his or her estimate of its value
5. Adoption – consumer decides to make full and regular use of the new product

The five adopter groups have different values

1. Innovators = try new ideas at some risk
2. Early adopters are opinion leaders in their communities and adopt new ideas early but
carefully
3. Early mainstream adopters adopt new ideas before the average person
4. Late mainstream adopters adopt an innovation only tried after a majority of people used it
5. Lagging adopters adopt the innovation only when it has become something of tradition

Characteristics Influencing an Innovation Rate of Adoption (fav short answer)

Relative advantage - what is better than before that you use
Compatibility – does it match you style
Complexity – how difficult to use or understand
Divisibility – can the innovation be used on a limited basis
Communicability – can results be easily observed

Business Buyer Behaviour

 Business buyer behaviour

- Purchasing goods and services are used in the production of other products and services
 Business to business (B – to B) marketers: must understand business markets and business
buyer behaviour
 Business buying process: determining which products and services to purchase
- Finding, evaluating, and choosing among alternative suppliers and brands
Business Markets

 Business markets are huge and involve more money and items than consumer markets
 Differs from consumer markets in terms of
- Market’s structure and demand
- Nature of the buying unit
- Types of decisions and the decision process
Market Structure and Demand (mcq)
Business market structure and demand

 Fewer but larger buyers

 Derived demand: business demand that comes from the demand for consumer goods
 Inelastic and fluctuating demand

Nature of the Buying Unit

Nature of the business market buying unit

 More decision participants

 More professionals purchasing effort

Types of Decisions
 More complex buying decisions
 Large sums of money
 Complex technical and economic considerations
 Interactions among people at many levels of the buyer’s organization

Decisions Process
Buying processes

 Longer and more formalized procedures

 Buyer and seller more dependent on each other
Supplier development
- Systematic development of networks of supplier – partner to ensure a dependable supply
of products and materials

Types of Buying Situations (fav short answer)

1. Straight rebuy
- Buyer routinely reorders something without any modifications
2. Modified rebuy
- Buyer wants to modify product specifications, prices, terms or suppliers
3. New task
- Buyer purchases a product or service for the first time
4. Systems buying (or solutions buying)
- Buying a packaged solution to a problem from a single seller

E – Procurement and online purchasing

 - Purchasing through electronic connections between buyers and sellers usually online
- E – procurement occurs through
 Reverse auctions
- They put the purchasing requests online and invite suppliers to bid for the business
 Online trading exchanges
- Companies work collectively to facilitate the trading process
 Company buying sites
- They create own buying site
 Extranet links with key supplier