© 2002 pearson education canada inc. 5-1 principles of marketing chapter 5 consumer markets and...

© 2002 Pearson Education Canada Inc.

5-1

principles of MARKETING

Chapter 5Chapter 5

Consumer Markets and Consumer Buyer

Behaviour


5-2

Chapter Objectives

• Define consumer markets

• Construct simple models of consumer buyer behaviour

• Identify factors influencing behaviour

• Understand the buyer decision process

• Describe the adoption and diffusion process for new products


5-3

Model of Buyer Behaviour

ProductProductPricePricePlacePlacePromotionPromotion

Marketing andMarketing andother stimuliother stimuli

EconomicEconomicTechnologicalTechnologicalPoliticalPoliticalCulturalCultural

Buyer’s responsesBuyer’s responses

Buyer’s black boxBuyer’s black boxProduct choiceProduct choiceBrand choiceBrand choiceDealer choiceDealer choicePurchase timingPurchase timingPurchase amountPurchase amountBuyerBuyer

characteristicscharacteristics BuyerBuyerdecisiondecisionprocessprocess


5-4

Consumer Behaviour Influences

Cultural

Culture

Sub-culture

Socialclass

Social

Referencegroups

Family

Rolesand

status

Personal

Age andlife-cycle

OccupationEconomicsituationLifestyle

Personalityand

self-concept

Psycho-logical

MotivationPerceptionLearning

Beliefs andattitudes

Buyer


5-5

Consumer Behaviour Influences:Cultural Factors

• Culture– Set of basic values, perceptions, wants, and

behaviours– learned by a member of society– from family and other important institutions


5-6

Consumer Behaviour Influences:Canadian Culture Characteristics

• Based on sense of history

• Government takes stand

• Confident and optimistic

• Protection from American values

• Respect for human rights

• Respect for diversity• Multicultural and

multilingual• Values always shifting• Guardian of fairness


5-7

Consumer Behaviour Influences:Cultural Factors

• Subculture– Group of people– With shared value systems– Based on common life experiences – And situations


5-8

Consumer Behaviour Influences:Canadian Subcultures

• Native Canadians• Ethnic communities

based on national origin • Internet users


5-9

Consumer Behaviour Influences:Canadian Subcultures

• Native Canadians– Over 416 000 Status Indians– Over 712 000 including non-status natives and

Inuit– Distinct native culture– Important influence on rest of Canada


5-10

Consumer Behaviour Influences:Urban Visible Minorities


5-11

Consumer Behaviour Influences:Ethnic Consumers

• Goods and services estimated at $300 B

• Specialized media

• Wisdom in targeting visible minorities

• Tracking ethnic trends key to success

• Many ethnic groups feel neglected or misrepresented


5-12

Consumer Behaviour Influences:Internet Users

• “Netiquette”• 13.1 million Canadians• Canada #2 for computer

proliferation• Above-average spending• Highly educated• White-collar• 29% 35-44 years old• Male/female 60%/40%


5-13

Consumer Behaviour Influences:Internet Users

• Two-way communication

• Value information• Used for

communication primarily

• Security concerns• Privacy concerns


5-14

Consumer Behaviour Influences:Social Class

• Relatively permanent

• Ordered divisions in a society

• Whose members share similar:– Values– Interests– Behaviours

• NOTE: it is NOT based strictly on income!


5-15

Consumer Behaviour Influences:Social Factors

• Groups– Membership - primary and secondary– Reference and aspirational– Opinion leaders

• Family– Most important consumer influence– changing family roles and evolving lifestyles– children may influence strongly


5-16

Consumer Behaviour Influences:Social Factors

• Roles– Activities people expected

to perform by others

• Status– Each role carries a status

reflecting the general esteem society gives it


5-17

Consumer Behaviour Influences:Personal Factors

• Age• Life-cycle stage• Occupation• Economic situation• Lifestyle• Personality• Self-concept


5-18

Life-Cycle StagesTable 5-2

Sources: Adapted from Patrick E. Murphy and William A. Staples, “A Modernized Family Life Cycle,” Journal of Consumer Research, June 1979:16, © Journal of Consumer Research, Inc., 1979. Also see Leon G. Schiffman and Leslie Lazar Kanuk, Consumer Behaviour, Englewood Cliffs, NJ: Prentice Hall, 1994:361-70.

Young Middle-Aged

Single

Single withchildren

Married withoutchildren

Married withchildren

Divorced withchildren

Single

Single withchildren

Married withoutchildren

Married withchildren

Divorced withchildren

OlderSingle

Same-sex couples

Same-sex couples withchildren Married withoutchildren

Married with children

Married withoutdependent children

Divorced without children

Divorced with children

Divorced withoutdependent children

Single

Same-sex couples

Same-sex couples withchildren Married withoutchildren

Married with children

Married withoutdependent children

Divorced without children

Divorced with children

Divorced withoutdependent children

Older married

Older unmarried

Older with childrenagain

Older married

Older unmarried

Older with childrenagain


5-19


• Occupation– May determine goods or services purchased– Identify occupations with product need– Specialized professional products

• Economic situation– Affects product choice– Indicator for income sensitive products


5-20


• Lifestyle– A person’s pattern of living as expressed by

psychographics• Measuring AIO dimensions

– Activities

– Interests

– Opinions

– Profiles a person’s whole pattern of acting and interacting with the world

– Lifestyle classifications


5-21

VALS2 Lifestyle Classifications

Action OrientedStatus OrientedPrinciple Oriented

Actualizers

Achievers

Strivers

Strugglers

Fulfilleds

Believers

Experiencers

Makers

Abundant Resources

MinimalResources


5-22

Social Value “Tribes” of CanadaTable 5-3

The EldersThe Elders

Rational Traditionalists

Extroverted Traditionalists

Cosmopolitan Modernists

The Gen-XersThe Gen-Xers

Aimless Dependents

Thrill-Seeking Materialists

Autonomous Postmaterialists

Social Hedonists

New Aquarians

The BoomersThe Boomers

Disengaged Darwinists

Autonomous Rebels

Anxious Communitarians


5-23


• Personality– Unique psychological characteristics

leading to relatively consistent and lasting responses to one’s own environment

– Traits– Product and brand choices

• Self-concept– Self-image– Possessions reflect identity


5-24

Consumer Behaviour Influences:Psychological Factors

• Motivation• Perception• Learning• Beliefs• Attitudes


5-25


• Motivation– Biological needs– Psychological needs

• Motive– Need sufficiently pressing– To drive a person to seek satisfaction


5-26


• Freud’s Theory of Motivation– Largely unconscious– Repression of urges– A person does not fully understand their own

motivation


5-27

Maslow’s Hierarchy of Needs

Physiological needs

Safety needs

Social needs

Self-actualization needs

Esteem needs


5-28


• Perception– Process by which people:– Select, organize and interpret information– To form a meaningful picture of the world

• Selective attention

• Selective distortion

• Selective retention


5-29


• Learning– Changes in individual behaviour

– Arising from experience

– Most human behaviour is learned• Drives• Stimuli• Cues• Responses• Reinforcement


5-30


• Beliefs– A descriptive thought that a person holds about

something

• Attitudes– A person’s consistently favourable or

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


5-31

Consumer Buying Roles

• Initiator• Influencer• Decider• Buyer• User


5-32

Types of Buying Behaviour

Complexbuying

behaviour

Complexbuying

behaviour

Variety-seeking

behaviour

Variety-seeking

behaviour

Dissonancereducingbehaviour

Dissonancereducingbehaviour

Habitualbuying

behaviour

Habitualbuying

behaviour

Low involvementHigh involvement

Significantdifferencesbetween brands

Few differencesbetween brands


5-33

The Buyer Decision Process

Needrecognition

Purchasedecision

Purchasedecision

Evaluation ofalternatives

Evaluation ofalternatives

Postpurchasebehaviour

Postpurchasebehaviour

Informationsearch


5-34

Buyer Decision Process:Information Search

• Personal sources

• Commercial sources

• Public sources

• Experiential sources


5-35

Buyer Decision Process

Purchase DecisionPurchase Decision Postpurchase BehaviourPostpurchase Behaviour• Consumer’s

expectations• Perceived performance

Intention

Decision

Attitudesof others

Unexpectedsituational

factors


5-36

Buyer Decision Process:For New Products

• Adoption Process Stages– Awareness

– Interest

– Evaluation

– Trial

– Adoption


5-37

Adopter Categorization:Relative Time of Adoption

Time of adoption of innovations

2.5%Innovators

34%Early

majority

34%Latemajority

Earlyadopters

13.5%

16%Laggards


5-38

Influence of Product Characteristics on Rate of Adoption

• Relative advantage

• Compatibility

• Complexity

• Divisibility

• Communicability


5-39

Consumer BehaviourAcross International Borders

• Values, attitudes and behaviours vary

• Difference often subtle• Conditions of use?• Adapt approach?• Standardize methods?


5-40

Chapter Review

• What is a consumer market?• Explain a simple model for consumer buyer

behaviour• What four major factors influence consumer

buyer behaviour?• What is the buyer decision process?• Describe the adoption and diffusion process

for new products

© 2002 pearson education canada inc. 5-1 principles of marketing chapter 5 consumer markets and...

Documents

pearson education canada

consumer buyer behaviour

rest of canada slide

canadians canada

consumer markets

misrepresented slide

attitudes buyer slide

guardian of fairness