• Understand the customer

– Marketing environment
– Customer insights
– Consumer market
• Definition
Chapter 5: Consumer Markets and
Consumer Behaviour
GoPro
Topic Outline
• Model of Consumer Behavior
• Characteristics Affecting Consumer Behavior
• Types of Buying Decision Behavior
• The Buyer Decision Process
• The Buyer Decision Process for New Products
Model of Consumer Behavior
Consumer buyer behavior : the buying behavior
of final consumers, individuals and
households, who buy goods and services for
personal consumption

Consumer market : all of the personal

consumption of final consumers
Model of Consumer Behaviour
Each customer takes ONE

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Factors Influencing Consumer Behaviour
Culture
Culture is the learned values, perceptions,
wants, and behavior from family and other
important institutions

Training Skateboarding Basketball Running

Culture
Subculture are groups of people within a culture
with shared value systems based on common
life experiences and situations
• Hispanic American
• African American
• Asian American
• Cross-Cultural
Social classes
Social classes are society’s relatively permanent
and ordered divisions whose members share
similar values, interests, and behaviors

Measured by a combination of occupation,

income, education, wealth, and other variables
Group and Social Networks

Membership Aspirational Reference

Groups Groups Groups
• Groups with • Groups an • Groups that
direct individual form a
influence and wishes to comparison
to which a belong to or reference
person in forming
belongs attitudes or
behavior
Group and Social Networks
• Word-of-mouth influence and buzz marketing
– Opinion leaders are people within a reference
group who exert social influence on others
– Also called influentials or leading adopters
– Marketers identify them to use as brand
ambassadors
Group and Social Networks
What factors related to social networks that
affect purchase intention ?
Group and Social Networks
• Online Social Networks are online communities
where people socialize or exchange information and
opinions
• Include blogs, social networking sites (facebook),
virtual worlds (second life)
Hotel owner
• Instagram
– Interior of the room.
– aesthetic spots in the hotel
– Services in the hotel
– Views from the room
– Types of the room
– Local area
– Attractions nearby
– Room price/ menu
– Customers in our hotel
– Feedback
17 Ways You Can Use Instagram To Promote
Your Hotel
1. Showcase Not Your 3. Never
2. Feature Your
Rooms, But The Underestimate The
Amenities
Experience Power Of Hashtags (#)

4. Post Photos Of Your 6. Publish A Video

Guests And Along 5. Post Photos Of Your Message For Potential
With Their Staff Guests Every Once In
Testimonials A While

7. Use Instagram To
8. Post Mini-Reviews 9. Promote Local
Promote Local
Of Local Restaurants Events
Attractions
17 Ways You Can Use Instagram To Promote
Your Hotel
12. Boost Your
10. Create Your 11. Post Photos
Instagram Page
Own Signature From Local Travel
With Video
Instagram Content Experts
Testimonials

13. Take
14. Show What
Engagement To The 15. Share Hotel
Happens Behind-
Next Level With Milestones
The-Scene
Instagram Contests

16. Share Travel 17. Share Great

Tips Content Every Day
Exercise
• Discuss examples of companies that have attracted you by
reaching out through social media. How did you respond? Did the
contact result in a purchase?
• Recall examples of companies who have somehow failed at using
social media. Why did this occur? What did the company miss?
• If you are a user of social media, do you believe it can serve as an
effective marketing tool, or is it simply a nuisance to users? Justify
your answer.
• Do you believe that social media is a smart investment for
marketers, or are they just “shooting in the dark”? Why do you
believe this?
Social Factors
• Family is the most important
consumer-buying
organization in society

• Social roles and status are

the groups, family, clubs, and
organizations that a person
belongs to that can define
role and social status
Personal Factors
• Age and life-cycle stage
• RBC Royal Band stages
– Youth: younger than 18
– Getting started: 18–35
– Builders: 35–50
– Accumulators: 50–60
– Preservers: over 60
Personal Factors
Personal Factors
• Occupation affects the goods and services
bought by consumers
• Economic situation includes trends in:

Personal Interest
Savings
income rates
Personal Factors
Lifestyle is a person’s pattern of living as
expressed in his or her psychographics
• Measures a consumer’s AIOs (activities,
interests, opinions) to capture information
about a person’s pattern of acting and
interacting in the environment

• VALS
Personal Factors
• Personality: the unique psychological
characteristics that lead to consistent and
lasting responses to the consumer’s
environment

Dominance Autonomy Defensiveness

Adaptability Aggressiveness
 Brand Personalities

Sincerity Excitement Competence Sophistication Ruggedness

• Down-to- • Daring • Reliable • Upper class • Outdoorsy

earth • Spirited • Intelligent • Charming • Tough
• Honest • Imaginative • Successful
• Wholesome • Up-to-date
• Cheerful
• Apple’s position
Apple core values
• https://www.youtube.com/watch?v=dR-ZT8m
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• https://www.youtube.com/watch?v=JayWnYq
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Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes

Motivation
A motive is a need that is sufficiently pressing to
direct the person to seek satisfaction

Motivation research refers to qualitative

research designed to probe consumers’
hidden, subconscious motivations
Motivation
Maslow’s Hierarchy Needs Pyramid
Perception is the process by which people
select, organize, and interpret information to
form a meaningful picture of the world from
three perceptual processes
– Selective attention
– Selective distortion
– Selective retention
Psychological Factors
Selective attention is the tendency for people to
screen out most of the information to which
they are exposed
Selective distortion is the tendency for people to
interpret information in a way that will support
what they already believe
Selective retention is the tendency to remember
good points made about a brand they favor and
forget good points about competing brands
• 1. People are more likely to notice stimuli that
relate to a current need.
• 2. People are more likely to notice stimuli that
they anticipate.
• 3. People are more likely to notice stimuli
whose deviations are large in relation to the
normal size of the stimuli.
Psychological Factors
• Learning is the change in an individual’s
behavior arising from experience and occurs
through interplay of:

Drives Stimuli Cues

Responses Reinforcement
Beliefs and Attitudes
Belief is a descriptive thought that a person has
about something based on:
• Knowledge
• Opinion
• Faith
Attitudes describe a person’s relatively
consistent evaluations, feelings, and tendencies
toward an object or idea
Sharing
• How did you decide on the college or
university you are currently attending?
Describe the factors that influenced your
decision and the decision-making process you
followed.
Factors Influencing Consumer Behaviour
Buying behaviours
Types of Buying Decision Behavior

Complex buying behavior

When product is expensive, risky, purchased
infrequently and highly self-expressive.
Example: PC, car, house
Types of Buying Decision Behavior

Dissonance-reducing buying behavior

Expensive, infrequent or risky purchase, but see little
difference among brands
Example: carpet; construction materials: steel, cement
Types of Buying Decision Behavior

Habitual buying behavior

Low consumer involvement and little significant
brand difference.
Example: salt, sugar, stationery, etc.
Types of Buying Decision Behavior

Variety-seeking buying behavior

Low consumer involvement but significant perceived
brand differences.
Example: instant noodles, shampoo, shower gel, biscuits,
snacks, FMCG products, etc.
Buyer Decision Making Process
Need Recognition
• Occurs when the buyer recognizes a problem
or need triggered by:
– Internal stimuli: personal normal needs
– External stimuli: factors impact on a
person’s actual needs
Information search
Source of Information
• Personal sources—family and friends
• Commercial sources—advertising, Internet
• Public sources—mass media, consumer
organizations
• Experiential sources—handling, examining,
using the product
Evaluation of Alternatives
• How the consumer processes information to
arrive at brand choices
Purchase Decision
• The act by the consumer to buy the most
preferred brand
• The purchase decision can be affected by:
– Attitudes of others
– Unexpected situational factors
Post-purchase Decision
• The satisfaction or dissatisfaction that the
consumer feels about the purchase
• Relationship between:
– Consumer’s expectations
– Product’s perceived performance
• The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction
• Cognitive dissonance is the discomfort caused
by a post-purchase conflict
Post-purchase Decision
• Customer satisfaction is a key to building
profitable relationships with consumers—to
keeping and growing consumers and reaping
their customer lifetime value
 The buyer decision process for new products

Adoption process is the mental process an

individual goes through from first learning
about an innovation to final regular use.
• Stages in the process include:

Awareness Interest Evaluation Trial Adoption

Differences in Innovativeness Adopter Categories

• Innovators
• Early Adopters
• Early Majority
• Late Majority
• Laggards
Influence of Product Characteristics

• Influence of Product Characteristics on Rate of

Adoption

Relative
Compatibility Complexity
advantage

Divisibility Communicability
END.