Consumer Markets and Consumer Buyer

Behavior
 Learning Goals

1. Learn the consumer market and construct model of

consumer buyer behavior

2. Know the four factors that influence buyer behavior

3. Understand the types of buying decision behavior and

stages in the process

4. Comprehend the adoption and diffusion process for

new products
 Definitions

• Consumer buyer behavior refers to the buying

behavior of final consumers – individuals and
households who buy goods and services for
personal consumption

• All of these final consumers combine to make

up the consumer market

Goal 1: Learn the consumer market & construct model of buyer behavior
 The Model of Buyer Behavior
(Stimulus-Response Model of Consumer Behavior)

5-4
Goal 1: Learn the consumer market & construct model of buyer behavior
Factors Influencing Consumer
Behavior

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

 Characteristics Affecting Consumer Behavior

 Considered by many scholars as the

most important set of factors

Key Factors  Culture (Details in environment chap.)

• The accumulated values,
knowledge, beliefs, customs,
objects, and concepts of a
Cultural society
• Forms a person’s wants and
Social behavior (fitness, food..)
Personal
Psychological  Social class (arguably a social
factor)

• Society’s divisions who share

values, interests and behaviors
• Social class is measured by a
combination of occupation,
income, education, wealth, and
other variables

Goal 2: Know the four factors that influence consumer buying behavior
Social
Class
 Characteristics Affecting Consumer Behavior

 Reference Groups

Key Factors groups that form a comparison or

reference in forming attitudes
or behavior
• Direct
• Indirect
Cultural
• Opinion Leaders
Social
Personal  Roles and Status
Psychological The groups, family, clubs, and
organizations to which a person
belongs that can define role
and social status

Goal 2: Know the four factors that influence consumer buying behavior
 Characteristics Affecting Consumer Behavior

 Age and life cycle

Key Factors
 Occupation

Cultural
Social  Economic situation

Personal
Psychological  Lifestyle
AIO dimensions :
activities ,interests ,opinions

 Personality
specific mix of human traits that may
be attributed to a particular brand
• Sincerity
• Competence
• Sophistication 5-9
Goal 2: Know the four factors that influence consumer buying behavior
 pf

Psychological Influences on the Buying

Decision Process (different perspective)

Some scholars consider personality and life

style as Psychological Influences

Personality and Self-Concept

• A set of internal traits and distinct behavioral tendencies that
result in consistent patterns of behavior in certain situations
 Characteristics Affecting Consumer Behavior

 Motivation
Key Factors
 Perception
Cultural
Social
 Learning
Personal
Psychological
 Beliefs and attitudes

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Goal 2: Know the four factors that influence consumer buying behavior
 Motivation

• A motive is a need that is sufficiently pressing to direct

the person to seek satisfaction

• Motivation research is based on Freud who Looks for

hidden and subconscious motivation

• Incentive vs. motive

 Same!
 external vs Internal !
 incentives should motivate! Not always

• Maslow ordered needs based on how pressing they are

to the consumer

Goal 2: Know the four factors that influence consumer buying behavior
 pf

Maslow’s Hierarchy of Needs

Maslow believed that

people seek to fulfill five
categories of needs.
‫س ِد ِه ‪ِ ،‬ع ْن َدهُ قُوتُ يَ ْو ِم ِه ‪ ،‬فَ َكَأنَّ َما‬
‫س ْربِ ِه ‪ُ ،‬م َعافًى فِي َج َ‬ ‫منْ َأ ْ‬
‫صبَ َح ِم ْن ُك ْم آ ِمنًا فِي ِ‬
‫ِحي َزتْ لَهُ ال ُّد ْنيَا‬
‫‪ ‬‬
‫رواه البخاري‬

‫‪3 - 14‬‬
 Types of needs (different perspective)

1. Stated needs (the customer wants an inexpensive car)

2. Real needs (the customer wants a car whose operating

cost, not its initial price, is low)

3. Unstated needs (the customer expects good service

from the dealer)

4. Delight needs (the customer would like the dealer to

include a gift of a US road atlas)

5. Secret needs (the customer wants to be seen by

friends as a savvy consumer)
 Learning

Learning describes changes in an individual’s

behavior arising from experience

Goal 2: Know the four factors that influence consumer buying behavior
 Psychological Factors: Perception

The process by which people

select, organize, and interpret Selective Attention
information Consumers screen out
information

Selective Distortion
People interpret/select information to Selective Retention
support beliefs People remember
points to support attitudes
 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

Goal 2: Know the four factors that influence consumer buying behavior
 Buying Decision Process

Goal 3: Understand types of buying decisions and stages in the process

 The Buyer Decision Process

Process Stages Needs can be triggered by:

 Internal stimuli
Need recognition
• Normal needs become
Information search
Evaluation of alternatives strong enough to drive
Purchase decision behavior (motivator)
Postpurchase behavior
 External stimuli
• Advertisements
• Friends

5 - 20
Goal 3: Understand types of buying decisions and stages in the process
 The Buyer Decision Process

Process Stages • Consumers exhibit

heightened attention or
Need recognition actively search for
Information search information.
Evaluation of alternatives
Purchase decision • Sources of information:
Postpurchase behavior  Personal
 Commercial
 Public
• Word-of-mouth

5 - 21
Goal 3: Understand types of buying decisions and stages in the process
 The Buyer Decision Process

Process Stages • Evaluation procedure depends on

Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
the consumer and the buying
situation.
• Most buyers evaluate multiple
attributes, each of which is
weighted differently.
• At the end of the evaluation stage,
purchase intentions are formed.

5 - 22
Goal 3: Understand types of buying decisions and stages in the process
 The Buyer Decision Process

Process Stages • Two factors intercede

between purchase
Need recognition intentions and the actual
Information search decision:
Evaluation of alternatives
Purchase decision  Attitudes of others
Postpurchase behavior  Unexpected situational
factors

5 - 23
Goal 3: Understand types of buying decisions and stages in the process
 The Buyer Decision Process

Process Stages • Satisfaction is important:

 Delighted consumers engage

in positive word-of-mouth.
Need recognition
Information search
Evaluation of alternatives  Unhappy customers tell on
Purchase decision average 11 other people.
Postpurchase behavior
 It costs more to attract a
new customer than it does to
retain an existing customer.

• Cognitive dissonance (after-sale

discomfort) is common
5 - 24
Goal 3: Understand types of buying decisions and stages in the process
 Types of Buying
Decision Behavior

Complex
 Highly involved, significant brand differences
 Example – computer

Dissonance-reducing
 Highly involved, little brand differences
 Example – carpeting

Habitual
 Low involvement, little brand differences
 Example – salt

Variety-seeking
 Low involvement, significant perceived brand differences
 Example – cookies

Goal 3: Understand types of buying decisions and stages in the process

 Buyer Decision Process for New Products

New Products

 Good, service or idea that is perceived by customers

as new.

Goal 4: Comprehend the diffusion & adoption process for new products
 The Buyer Decision Process for New Products
Stages in the adoption process

Adoption
Trial

Evaluation

Interest

Awareness

Goal 4: Comprehend the diffusion & adoption process for new products
 Buyer Readiness
based on Everett Rogers

Early Majority
Laggards
Innovators

Early
Adopters Late Majority
 Individual Differences in Innovativeness

Goal 4: Comprehend the diffusion & adoption process for new products