Consumer Markets And Buying

Behavior

The consumer market

 Market
• A market is a place where two parties can
gather to facilitate the exchange of goods and
services.
• The parties involved are usually buyers and
sellers.
• The market may be physical like a retail outlet,
where people meet face-to-face, or virtual like
an online market, where there is no direct
physical contact between buyers and sellers.
 Market

• Consumer Market
• Business Market
 Consumer Market
• A consumer market is a marketplace
consisting of household consumers who buy
goods for individual or family consumption.
• It is different than a business market, in which
businesses sell goods and services to other
companies.
 Business Market
• Marketplaces where organizations purchase raw
materials, natural resources and components of
other products for their resale or for use in
manufacturing another product.
• Business markets are generally made up of
businesses which buy products and raw materials
for their own operation.
Define the consumer market and
construct a simple model of
consumer buyer behavior
 Factors Affecting
Consumer behaviour

• Cultural
• Social
• Personal
• Psychological
 Cultural

• Culture
– Influence a person’s wants and behavior
• Subculture
– Smaller groups with shared value systems
 Social
• Social Class
– Society’s divisions who share values, interests and
behaviors
• Groups
– Membership
– Reference
– Aspiration
– Opinion leaders
– Buzz marketing
• Family
– Many influencers
 Personal
• Roles and status
• Age and life-cycle stage
• Occupation
• Economic situation
• Lifestyle
– AIO - Activities, interests and opinions
– Lifestyle segmentation
• Personality and self-concept
 Psychological
• Motivation
– A need that drives the person to seek satisfaction of the
need
• Perception
– The process by which people select, organize, and
interpret information
• Learning
– Changes in an individual’s behavior arising from
experience
• Beliefs
– A descriptive thought about something
• Attitudes
– A person’s consistently favorable or unfavorable
evaluations, feelings, and tendencies towards something
 Psychological Factors
Motivation
• A motive is a need that is sufficiently pressing to
direct the person to seek satisfaction
• Motivation research is based on Freud. Looks for
hidden and subconscious motivation
• Maslow ordered needs based on how pressing they
are to the consumer

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 Discussion Question

What consumer products

might fulfill multiple levels
of the Hierarchy of Needs?

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 Psychological Factors Perception
• Perception is the process by which people select,
organize, and interpret information.
• Perception Includes:
– Selective attention
• Consumers screen out information
– Selective distortion
• People interpret to support beliefs
– Selective retention
• People retain points to support attitudes

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 Discussion Question
Perception
1. How many ads were

?
you exposed to
today?
2. Which ones do you
remember? Why?

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 Psychological Factors Beliefs and
Attitudes
• Belief
– a descriptive thought about a brand or service
– may be based on real knowledge, opinion, or faith
• Attitude
– describes a person’s evaluations, feelings and
tendencies toward an object or idea
– They are difficult to change

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 Types of Buying Decision behavior
• Degree of involvement:
– How much the consumer cares about the purchase
decision
– Higher levels for products that are expensive, risky,
purchased infrequently, and highly self-expressive
• Degree of perceived differences between brands
• The type of decision will influence the promotional
strategy most likely to be effective

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 The Buyer Decision Process
• Need Recognition
– Triggered by internal (person’s normal needs) or
external stimuli (advertisements, friends)
– Must reach an intensity high enough to become a
drive
– Needs are basic, wants are learned behavior to
satisfy them

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 The Buyer Decision Process
• Information Search
– Influenced by level of involvement (interest) in the
decision
– Memory (internal) search
– External search: personal, commercial, public,
experiential sources of information
– Word-of-mouth sources are most influential
(credibility)

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 The Buyer Decision Process
• Evaluation of Alternatives
– Evaluation procedure depends on the consumer
and the buying situation
– Attributes and importance weights are chosen as
criteria
– Alternatives compared against the criteria
– Marketers can influence this stage; personal
selling

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 The Buyer Decision Process
• Purchase Decision
– Two factors intercede between purchase
intentions and the actual decision:
• Attitudes of others
• Unexpected situational factors

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 The Buyer Decision Process
• Post purchase behavior
– What the consumer thinks and does after
purchasing and using the product or service
– Satisfaction: relationship between consumer
expectation and perceived performance
• Delighted consumers engage in positive word-of-
mouth.
• Unhappy customers tell on average 11 other people.
– Cognitive dissonance

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 Buyer Decision Process
for New Products
• New Products
– Good, service or idea that is perceived by customers as
new.
• The Adoption Process
– Mental process through which an individual passes from
first hearing about an innovation to final adoption.
• Five Stages in the Adoption Process
– Awareness, interest, evaluation, trial, and adoption.

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 Buyer Decision Process
for New Products
• Individual Differences in Innovativeness
– Consumers can be classified into five adopter
categories, each of which behaves differently
toward new products.

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 Buyer Decision Process
for New Products
• Influence of Product Characteristics on Rate of
Adoption
– Relative Advantage
– Compatibility
– Complexity
– Divisibility
– Communicability

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 Buyer Decision Process
for New Products
• Consumer behavior Across International Borders
– Values, attitudes and behaviors differ greatly in other
countries.
– Physical differences exist which require changes in the
marketing mix.
– Customs vary from country to country.
– Marketers must decide the degree to which they will adapt
their marketing efforts.

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