MARKETING

Understanding Consumer Buyer Behaviour

LECTURE 4 1
 1. Define consumer market

2. Describe major factors that influence online

and offline consumer buyer behaviour
Learning Objectives

3. Identify and discuss stages in the online and

offline buyer decision process

LECTURE 4 2
 1. Define consumer market

2. Describe major factors that influence online

and offline consumer buyer behaviour
Learning Objective 1

3. Identify and discuss stages in the online and

offline buyer decision process

LECTURE 4 3
What is Consumer Market?
Final consumers (comprising individuals and households) that buy goods and services for
consumption

LECTURE 4 4
 1. Define consumer market

2. Describe major factors that influence online

Learning Objective 2 and offline consumer buyer behaviour

3. Identify and discuss stages in the online and

offline buyer decision process

LECTURE 4 5
Model of Consumer Behaviour
Stimulus Response Model

Environment Buyer’s black box Buyer responses

• Marketing stimuli (7Ps – • Buyer’s • Buying ________

Product, price, _______, _____________ and________
_______, • Buyer’s decision process • Purchase behaviour –
• physical evidence, what the buyer buys,
process, people) when, where and how
• Other much
(Economic, technological, • Brand engagements and
social, cultural) relationships

LECTURE 4 6
Characteristics affecting Consumer Behaviour

Cultural – Culture, subculture, social class

Social – Groups and social networks,

family, roles and status

Personal – Age and life cycle stage,

occupation, economic situation, lifestyle,
personality and self-concept

Psychological – Motivation, perception,

learning, beliefs and attitudes

LECTURE 4 7
Cultural Factors
o Culture: the set of basic , , & behaviours
learned by a member of society from a family and other important
institutions

o Subculture: group of people with shared value systems

based on common life experiences and situations

o Social class: measured as a combination of occupation, income, education,

wealth

LECTURE 4 8
 Social Factors
o Membership group: has direct influence and to which a person
belongs

o Reference group: serves as group in which an

individual does not belong to, but aspires to identify with

o Family: roles within the influence

consumer behaviour

o Roles and status: consists of activities which people are expected

to perform according to the people around them

LECTURE 4 9
 Personal Factors
o Occupation: occupational groups or job roles

o Age and life stage: demographics and life-changing

events

o Economic situation: income, savings

o Lifestyle: person’s pattern of living, measured in terms of activities,

interests, opinions

o Personality and self-concept: unique characteristics that

distinguish a person or group

LECTURE 4 10
Psychological Factors
o Motivation: need that is sufficiently pressing to direct a person to seek satisfaction (e.g.
physiological, safety, social, esteem, self-actualization needs)

o Perception: process by which people , , and information to form a

meaningful picture of the world (e.g. selective attention, selective distortion, selective retention)

o Learning: changes in an individual’s behaviour arising from experience through the interplay of
drive, cues, responses and reinforcement

o Beliefs and attitudes: where belief refers to thought that a person holds about
something; attitude describes a person’s relatively evaluations, feelings, and
tendencies toward an object or idea

LECTURE 4 11
Psychological Factors > Motivation
Self-
Maslow’s Hierarchy of Needs actua
lizati
on
need
s
Esteem needs

Social needs

Safety needs

Physiological needs

LECTURE 4 12
Psychological Factors > Perception
People can form different perceptions of the same stimulus because of three perceptual
processes.

1. Selective attention - tendency of people to screen out most information to which they
are exposed
2. Selective distortion - tendency of people to information in a way that will
support what they already believe
3. Selective retention - tendency of people to remember points made about the
brand they and about good points made about competing brands

LECTURE 4 13
Psychological Factors > Perception

Selective attention
Selective distortion

Selective retention

LECTURE 4 14
Psychological Factors > Learning

strong stimulus that calls for action

Drive
minor stimuli that determine when, where, and how the
person responds

Cue if experience is
rewarding
response would
Reinforcement be
.

Response
cues influence responses

LECTURE 4 15
 Psychological Factors > Beliefs and Attitudes
Belief: thought that
a person holds about something

I believe that the Japanese make

good quality products.

Attitude: A person’s ___________

favourable evaluations, feelings, and
tendencies toward an object or idea

LECTURE 4 16
 1. Define consumer market

2. Describe major factors that influence online

and offline consumer buyer behaviour
Learning Objective 3

3. Identify and discuss stages in the online and

offline buyer decision process

LECTURE 4 17
 Buyer Decision Process

Expectations

Post-
Need Information Evaluation of Purchase
purchase
recognition search alternatives decision
behaviour

vs. o I need to look o Friends & o Shops o Buying from o Extent of

professional family o Brand physical shops _________ with
Reality o Google o Buying from
websites purchase
o Review online e-
blogs commerce
platforms

LECTURE 4 18
Buyer Decision Process – Your Own Experience

Post-
Need Information Evaluation of Purchase
purchase
recognition search alternatives decision
behaviour

LECTURE 4 19
Summary

1. D e f in e c o ns um e r m ar k e ts
2. D e sc r ib e c on su m e r m a r k e t a n d m a jo r f a c t or s t h a t i n f lu e n c e o n l in e
a n d o ff lin e c on s u m er b u y e r b e h a vi o u r
3. I d e n tif y a n d d is c us s s t ag es in th e on l in e a n d o ff lin e b u ye r
d e c i sio n p r o c e s s

LECTURE 4 20