Consumer Markets and

Consumer Buyer Behavior

Module 2 (1)
 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.
6-1
 Characteristics Affecting
Consumer Behavior
Key Factors • Culture

• Cultural
• Subculture
• Social
• Personal • Social Class
• Psychological

6-2
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.

6-3
 Characteristics Affecting
Consumer Behavior
Key Factors • Groups
▪ Membership
• Cultural ▪ Reference
❖ Aspirational groups
• Social ▪ Opinion leaders
❖ Buzz marketing
• Personal • Family
• Psychological ▪ Children can
influence
• Roles and Status
6-4
 Characteristics Affecting
Consumer Behavior
Key Factors • Age and life cycle
• Occupation
• Cultural • Economic situation
• Lifestyle
• Social ▪ Activities, interests, and
opinions
• Personal ▪ Lifestyle segmentation
• Personality and
• Psychological self-concept
▪ Brand personality

6-5
 Characteristics Affecting
Consumer Behavior
Brand Personality Dimensions

• Sincerity • Excitement
• Ruggedness • Competence
• Sophistication

6-6
 Characteristics Affecting
Consumer Behavior
Key Factors • Motivation
▪ Needs provide motives for
consumer behavior

• Cultural ▪ Motivation research

▪ Maslow’s hierarchy of needs

• Social • Perception
▪ Selective attention, selective
distortion, selective
• Personal retention
• Learning
• Psychological ▪ Drives, stimuli, cues,
responses and
reinforcement
• Beliefs and attitudes
6-7
 Characteristics Affecting
Consumer Behavior
Maslow’s Hierarchy of Needs
Self-actualization
Esteem Needs
Social Needs
Safety Needs
Physiological Needs

6-8
 Buying Roles

• The initiator
• The influencer
• The decider
• The buyer
• The user

6-9
 Types of Buying-Decision
Behavior
Difference Involvement Level
between brands High Low

Significan Complex Variety-seeking

t buying buying behavior
Differenc behavior
es
Dissonance-re Habitual buying
Few
Differenc ducing buying behavior
es behavior

6 - 10
The Buyer Decision Process

• Five Stages:
▪ Need recognition
▪ Information search
▪ Evaluation of alternatives
▪ Purchase decision
▪ Postpurchase behavior
6 - 11
The Buyer Decision Process

Process • Needs can be

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

6 - 12
The Buyer Decision Process

Process • Consumers exhibit

Stages heightened attention or
actively search for
• Need recognition
• Information search information.
• Evaluation of alternatives • Sources of information:
▪ Personal
• Purchase decision
▪ Commercial
• Postpurchase behavior
▪ Public
▪ Experiential
• Word-of-mouth
6 - 13
The Buyer Decision Process

Process • Evaluation procedure

Stages depends on the consumer

and the buying situation.
• Need recognition
• Most buyers evaluate
• Information search
multiple attributes, each
• Evaluation of alternatives of which is weighted
• Purchase decision differently.
• Postpurchase behavior • At the end of the
evaluation stage,
purchase intentions are
formed.
6 - 14
The Buyer Decision Process

Process • Two factors

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

6 - 15
The Buyer Decision Process

Process • Satisfaction is
important:
Stages ▪ Delighted consumers
• Need recognition engage in positive
• Information search word-of-mouth.
▪ Unhappy customers tell
• Evaluation of alternatives on average 11 other
• Purchase decision people.
• Postpurchase behavior ▪ It costs more to attract a
new customer than it
does to retain an existing
customer.
• Cognitive dissonance is
common 6 - 16
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.
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 Buyer Decision Process for
New Products
Stages in the Adoption Process

• Awareness • Interest
• Evaluation • Trial
• Adoption

6 - 18
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
6 - 19
Buyer Decision Process for
New Products
Adopter Categories

• Innovators • Early Adopters

• Early Majority • Late Majority
• Laggards

6 - 20
Buyer Decision Process for
New Products
Product Characteristics

• Relative Advantage • Complexity

• Compatibility • Divisibility

• Communicability

6 - 21
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.
6 - 22