Chapter 6: Consumer Markets and Consumer Buyer Behavior

 

Objectives
  • •Be able to define the consumer market and construct a simple model of consumer buyer behavior.
  • •Know the four major factors that influence consumer buyer behavior.
  • •Understand the major types of buying decision behavior and the stages in the buyer decision process.
  • •Be able to describe the adoption and diffusion process for new products.
 

 

Please Open The Following Figures In Different Windows and Leave Them Open:

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Case Study
Harley-Davidsonfxrharley.jpg (9286 bytes)
  • •Harley “Hogs” account for 1/5 of U.S. cycle sales
  • •Sales have exceeded supply for years
  • •1986-2000: Four stock splits, increase of 7,100%
 

 
  • •Fiercely loyal clientele revolves around 7 core customer types
  • •Harley owners use their bikes to express their lifestyle and attitudes
  • •Advertising reflects the Harley mystique

 

Definitions
  • •Consumer Buying Behavior
  • §Buying behavior of individuals and households that buy products for personal consumption.
  • •Consumer Market
  • §All individuals/households who buy products for personal consumption.

 

 

Model of
Consumer Behavior
  • •Stimulus Response Model
  • §Marketing and other stimuli enter the buyer’s “black box” and produce certain choice/purchase responses.
  • §Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses.

 

 

Characteristics Affecting Consumer Behavior

Key Factors

  • •Cultural
  • • Social
  • • Personal
  • • Psychological
 
  • •Culture
  • •Subculture
  1. §Hispanic consumers
  2. §African Americans
  3. §Asian Americans
  4. §Mature consumers
  • •Social Class
 

 

 

Characteristics Affecting Consumer Behavior
  • •Hispanics
  • §35 million consumers purchase $425 billion worth of goods and services.
  • §Expected to grow 64% in 20 years.
  • §Spanish media makes group easy to reach.
  • §Brand loyal group.
 
 

 

Characteristics Affecting Consumer Behavior
  • •African Americans
  • §35 million consumers purchase $527 billion worth of goods and services.
  • §Growing more affluent / sophisticated.
  • §Price and brand name conscious; quality and selection are important.
  • §Certain media target this group.
 
 

 

Characteristics Affecting Consumer Behavior
  • •Asian Americans
  • §10 million consumers purchase $229 billion worth of goods and services.
  • §Fastest growing, most affluent subculture.
  • §Many nationalities comprise this group.
  • §Consumer packaged goods companies now target this group more heavily.
 
 

 

Characteristics Affecting Consumer Behavior
  • •Mature Consumers
  • §75 million consumers aged 50+ will grow to 115 million within 25 years.
  • §Mature consumers control 50% of all discretionary income.
  • §Attractive market for travel, restaurant, and cosmetics products, among others. 
 

 

Characteristics Affecting Consumer Behavior

Key Factors

  • •Cultural
  • • Social
  • • Personal
  • • Psychological

 
  • •Groups
  • §Membership
  • §Reference
  •  Aspirational groups
  • §Opinion leaders
  •  Buzz marketing
  • •Family
  • §Children can influence
  • •Roles and Status
 

 

Characteristics Affecting Consumer Behavior

Key Factors

  • •Cultural
  • • Social
  • • Personal
  • • Psychological

 
  • •Age and life cycle
  • •Occupation
  • •Economic situation
  • •Lifestyle
  • §Activities, interests, and opinions
  • §Lifestyle segmentation
  • •Personality and self-concept
  • §Brand personality
 

 

 

Characteristics Affecting Consumer Behavior

Brand Personality Dimensions
  • •Sincerity
  • •Ruggedness

 
  • •Excitement
  • •Competence
 

  • •Sophistication

 

Characteristics Affecting Consumer Behavior

Key Factors

  • •Cultural
  • • Social
  • • Personal
  • • Psychological

 
  • •Motivation
  1. §Needs provide motives for consumer behavior
  2. §Motivation research
  3. §Maslow’s hierarchy of needs
  • •Perception
  • §Selective attention, selective distortion, selective retention
  • •Learning
  • §Drives, stimuli, cues, responses and reinforcement
  • •Beliefs and attitudes
 

 

 

 

The Buyer Decision Process
  • •Five Stages:
  1. §Need recognition
  2. §Information search
  3. §Evaluation of alternatives
  4. §Purchase decision
  5. §Postpurchase behavior
 

 

The Buyer Decision Process

Process Stages

  • •Need recognition
  • •Information search
  • •Evaluation of alternatives
  • •Purchase decision
  • •Postpurchase behavior
 
  • •Needs can be triggered by:
  • §Internal stimuli
  • Normal needs become strong enough to drive behavior
  • §External stimuli
  • Advertisements
  • Friends of friends

 

The Buyer Decision Process

Process Stages

  • •Need recognition
  • •Information search
  • •Evaluation of alternatives
  • •Purchase decision
  • •Postpurchase behavior
 

 
  • •Consumers exhibit heightened attention or actively search for information.
  • •Sources of information:
  1. §Personal
  2. §Commercial
  3. §Public
  4. §Experiential
  • •Word-of-mouth

 

The Buyer Decision Process

Process Stages

  • •Need recognition
  • •Information search
  • •Evaluation of alternatives
  • •Purchase decision
  • •Postpurchase behavior
 

 
  • •Evaluation procedure depends on 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.

 

The Buyer Decision Process

Process Stages

  • •Need recognition
  • •Information search
  • •Evaluation of alternatives
  • •Purchase decision
  • •Postpurchase behavior

 
  • •Two factors intercede between purchase intentions and the actual decision:
  • §Attitudes of others
  • §Unexpected situational factors

 

The Buyer Decision Process

Process Stages

  • •Need recognition
  • •Information search
  • •Evaluation of alternatives
  • •Purchase decision
  • •Postpurchase behavior
 
  • •Satisfaction is important:
  • §Delighted consumers engage in positive word-of-mouth.
  • §Unhappy customers tell on average 11 other people.
  • §It costs more to attract a new customer than it does to retain an existing customer.
  • •Cognitive dissonance is common

 

 

 

Buyer Decision Process for New Products
  • •New Products
  • §Good, service or idea that is perceived by customers as new.
  • •Stages in the Adoption Process
  • §Marketers should help consumers move through these stages.
 
 

 

Buyer Decision Process for New Products
Stages in the Adoption Process
  • •Awareness
  • •Evaluation
 
  • •Interest
  • •Trial
 

  • •Adoption

 

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.
  • •Product Characteristics and Adoption
  • §Five product characteristics influence the adoption rate.

 

Buyer Decision Process for New Products

Adopter Categories
  • •Innovators
  • •Early Majority
 

 
  • •Early Adopters
  • •Late Majority
 

 

  • •Laggards

 

Buyer Decision Process for New Products

Product Characteristics
  • •Relative Advantage
  • •Compatibility
 

 
  • •Complexity
  • •Divisibility
 

 

  • •Communicability

 

Buyer Decision Process for New Products
  • •International Consumer Behavior
  • §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.
 
 

 

Chapter 6: Consumer Markets and Consumer Buyer Behavior

 

Study Guide
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Study Guide
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Chapter 6: Consumer Markets and Consumer Buyer Behavior

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