analyzing consumer markets and consumer buying behavior

Upload: mehwishali72

Post on 09-Apr-2018

234 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    1/41

    Analyzing Consumer

    Markets andConsumer Buyer Behavior

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    2/41

    Major aim of marketing:

    to meet & satisfy customersneeds & wants.

    The most importantthing is to forecastwhere customers aremoving, and be infront of them.

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    3/41

    Consumer Buying Behavior

    The central question for marketers :

    How do consumers respond to variousmarketing efforts the company mightuse?

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    4/41

    Model of Buyer Behavior

    Marketing and

    Other Stimuli

    Marketing

    Product

    Price

    Place

    Promotion

    OtherEconomic

    Technological

    Political

    Cultural

    Buyers Black Box

    Buyer CharacteristicsCulturalSocialPersonalPsychological

    Buyer Decision ProcessProblem recognitionInformation searchEvaluationDecisionPostpurchase behavior

    Buyer Responses

    Product Choice

    Brand Choice

    Dealer Choice

    Purchase TimingPurchase Amount

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    5/41

    Factors Influencing Consumer

    Behavior

    Social

    Referencegroups

    Family

    Rolesand

    status

    PersonalAge andlife-cycle

    Occupation

    Economicsituation

    LifestylePersonality

    andself-concept

    Psycho-logical

    Motivation

    Perception

    Learning

    Beliefs andattitudes

    BUYER

    Culture

    Sub-culture

    Socialclass

    Cultural

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    6/41

    Factors Influencing

    Consumer Behavior: Cultural

    CultureForms a persons wants and

    behavior

    SubcultureGroups with shared valuesystems

    Social ClassSocietysdivisions whoshare values,

    interests and behaviors

    Culture

    Subculture

    Social class

    Cultural

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    7/41

    Factors Influencing Consumer

    Behavior: Social

    Reference Groups Membership

    Aspirational Opinion Leaders

    Buzzmarketing

    Family

    Manyinfluencers Buyers vs. users

    Roles and Status

    Social

    Referencegroups

    Family

    Roles & status

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    8/41

    Factors Influencing Consumer

    Behavior: Social (cont.)

    Ref. Groups : have a direct orindirect influence on thepersons attitudes or behavior

    Membership Groups groupsto which a person belongs

    primary groups secondary groups

    Aspirational Groups groupsto which a person would like tobelong

    Social

    Referencegroups

    Family

    Roles & status

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    9/41

    Factors Influencing Consumer

    Behavior: Social (cont.)

    Opinion Leader personwithinareferencegroup

    who exertinfluenceonothers

    offersadviceorinformationaboutaspecific productorproductcategory,

    can befoundinallsocialclasses

    Social

    Referencegroups

    Family

    Roles & status

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    10/41

    Factors Influencing Consumer

    Behavior: Social (cont.) The most important consumer-

    buying organization in t hesociety

    Roles and relative influence offamily members in buyingdecisions

    Buying roles vary in diff erentcountries and social classes

    Buying roles change with evolvinglife-styles

    joint decision making women arising as active buyers increasing roleof children

    Social

    Referencegroups

    Family

    Roles & status

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    11/41

    Factors Influencing Consumer

    Behavior: Social (cont.)

    The pe rsons position in eachgroup can be defined in

    terms ofboth roleand status:

    A Role consists of theactivitiesthat a person is expected toperform according to the pe ople

    around him Each role carries a status

    A Status is thegeneral esteemgiven a role by society

    Social

    Referencegroups

    Family

    Roles & status

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    12/41

    Factors Influencing Consumer

    Behavior: Personal

    Family Life Cycle stagesthroughoutwhich families passastheymatureovertime

    1. bachelorstage2. newlymarriedcouples,nochildren3. fullnest1; youngestchildunder 64. fullnest2; youngestchild 6 orover5. fullnest3; oldermarriedcoupleswith

    dependentchildren6. emptynest1; oldermarriedcouplesno

    childrenwith them7. emptynest1; oldermarriedcouplesno

    childrenathome; retired8. solitarysurvivor,working

    9. solitarysurvivor,retired

    Personal

    Age andlife-cycle

    Occupation

    Economicsituation

    LifestylePersonality

    andself-concept

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    13/41

    Stages in Family Life Cycle

    See textbook or complete table

    1. Bachelor stage:

    Young,single,notlivingathome

    Fewfinancial burdens. Fashionopinionleaders.Recreationoriented. Buy: basic home equipment,furniture,cars, equipmentforthematinggame;vacations.

    2. Newly marriedcouples:

    Young,nochildren

    Highestpurchaserateand highestaveragepurchaseofdurables:cars,appliances,furniture,vacations.

    3. Full nest I:

    Youngestchildundersix

    Home purchasingatpeak. Liquidassetslow.Interestedinnew products,advertised products.Buy:washers,dryers,TV, babyfood,andcough

    medicines, vitamins,dolls,wagons,sleds,skates.

    4. Full nest II:

    Youngestchildsix orover

    Financial position better. Lessinfluenced byadvertising. Buylarger-size packages,multiple-unitdeals. Buy:manyfoods,cleaningmaterials,

    bicycles,musiclessons, pianos.

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    14/41

    Factors Influencing Consumer

    Behavior: Personal (cont.)

    Consumption patterns oftenshaped by:

    occupation &

    economiccircumstances:

    spendableincome, savingsandassets,

    debts,

    attitudestowardsspending &saving.

    Personal

    Age andlife-cycle

    Occupation

    Economicsituation

    LifestylePersonality

    andself-concept

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    15/41

    Factors Influencing Consumer

    Behavior: Personal (cont.)

    Lifestyle a persons patternoflivingas expressedin hisactivities,

    interestsandopinions Psychographics techniqueofmeasuring

    lifestylesanddevelopinglifestyleclassifications

    Major dimensions measured are:

    Activities (work, hobbies,social

    events, entertainment,shopping,sports,vacation)

    Interests (family, home,job,recreation,fashion,food,media,achievements)

    Opinions (themselves,socialissues,politics, business, economics, products,future)

    Personal

    Age andlife-cycle

    Occupation

    Economicsituation

    LifestylePersonality

    andself-concept

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    16/41

    The VALS segmentation system:

    An8-parttypology

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    17/41

    Factors Influencing Consumer

    Behavior: Personal (cont.)

    Personality a personsuniquecharacteristicsthatleadtorelativelyconsistentandlastingresponsestotheenvironment

    Brandpersonality specificmix ofhumantraitsthatmay beattributabletoaparticular brand

    Self-concept theselfimageorgeneralpicturethatpeople haveofthemselves

    Personsactualself-concept howshe viewsherself

    Idealself-concept howshewouldliketo viewherself

    Othersself-concept howshethinksothersseeher

    Personal

    Age andlife-cycle

    Occupation

    Economicsituation

    LifestylePersonality

    andself-concept

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    18/41

    Factors Influencing Consumer

    Behavior: Psychological Freuds Theory :Psychological

    forcesshaping peoples behaviorlargelyunconscious

    A personcannotunderstandfully his/herownmotivations

    Motivationresearch looksfor hiddenandsubconsciousmotivation

    in-depth interviews/laddering

    projectivetechniques(i.e. wordassociation,

    sentencecompletion, pictureinterpretation,role playing)

    Maslows Theory :Masloworderedneeds basedon how pressingtheyaretotheconsumer

    Psychological

    Motivation

    Perception

    LearningBeliefs &attitudes

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    19/41

    Research found:

    Consumersresistprunes because prunesarewrinkled

    lookingandremind peopleofoldage. Mensmokecigarsasanadultversionofthumbsucking.

    Women prefer vegetableshorteningtoanimalfatsbecausethelatterarouseasenseofguiltoverkilling

    animals.

    Factors Influencing Consumer

    Behavior: Psychological (cont.)

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    20/41

    PsychologicalFactors:

    Maslows Hierarchyof Needs

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    21/41

    Factors Influencing Consumer

    Behavior: Psychological (cont.)

    Perception process by which peopleselect, organize and int erpret

    information to form a meaningfulpictureof theworld

    1.Selective attention tendency of peopleto eliminate most of t he information towhich they are exposed

    2.Selective distortion to int erpretinformation in a way that will support whatthey already believe

    3.Selective retention to retain only part oftheinformation to which they are exposed

    Psychological

    Motivation

    Perception

    LearningBeliefs &attitudes

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    22/41

    Factors Influencing Consumer

    Behavior: Psychological (cont.)

    Learning changes in a personsbehavior, arising from experience

    Learning occurs through the interplayof: drives, stimuli, cues, responses andreinforcement

    A drive: strong internal stimulus that callsfor action

    Cues: minor stimuli that determine when,whereand how the person responds

    If the expe rience is rewarding theresponsewill be positively reinforced

    Psychological

    Motivation

    Perception

    LearningBeliefs &attitudes

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    23/41

    Factors Influencing Consumer

    Behavior: Psychological (cont.)

    Through doing and learning people acquire beliefs and

    attitudes have influence onbuying behavior

    A Belief descriptivethoughtthataperson holdsaboutsomething

    An Attitude a personsconsistentlyfavorableorunfavorable evaluations,feelingsandtendenciestowardanobjectoridea

    Psychological

    Motivation

    Perception

    LearningBeliefs &attitudes

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    24/41

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    25/41

    The Buying Decision

    Process

    Marketers havetoidentify:

    Who makesthe buyingdecision

    Thetypesofbuyingdecisions

    Thestepsinthe buying process

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    26/41

    Buying Roles

    Who makes the buying decision?

    Initiator whofirstgivestheideaof

    buyingthe productorservice Influencer whose vieworadviceinfluences

    thedecision

    Decider whodecideonanycomponentofbuyingdecision

    Buyer whomakestheactual purchase

    User whousesthe productorsevice

    purchased

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    27/41

    HighInvolvement

    Significant

    differencesbetween

    brands

    Few

    differencesbetweenbrands

    LowInvolvement

    Types of Buying Behavior

    Complex

    Buying

    Behavior

    Variety-

    Seeking

    Behavior

    Dissonance-

    Reducing BuyingBehavior

    Habitual

    BuyingBehavior

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    28/41

    Stages of the Buying Decision

    Process

    Postpurchase

    Behavior

    Purchase

    Decision

    Information

    Search

    Problem

    Recognition

    Evaluation

    of Alternatives

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    29/41

    The Buyer Decision Process

    Stage 1. Problem Recognition

    State where the

    buyers needs are

    fulfilled and the

    buyer is satisfied.

    Needs Arising from:

    Internal Stimuli

    (hunger)

    or

    External Stimuli

    (friends)

    Buyerrecognizes

    a problem

    or

    a need

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    30/41

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    31/41

    The Buyer Decision ProcessSuccessive Sets Involved in Customer Decision Making

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    32/41

    ConsumerMay Use CarefulCalculations & Logical Thinking

    ConsumerMay Use CarefulCalculations & Logical Thinking

    Consumers May Buy on Impulse andRely on Intuition

    Consumers May Buy on Impulse andRely on Intuition

    Consumers May Make Buying Decisionson Their Own.

    Consumers May Make Buying Decisionson Their Own.

    Consumers May Make Buying DecisionsOnly After Consulting Others.

    Consumers May Make Buying DecisionsOnly After Consulting Others.

    Marketers must study buyers to find out how theyevaluate brand alternatives

    The Buyer Decision Process

    Stage 3. Evaluation ofAlternatives

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    33/41

    Consumer Evaluation Process Theconsumeristryingtosatisfyaneed

    Theconsumerislookingforcertain benefitsfromthe

    productsolution Theconsumersees each productasa bundle of

    attributes Theattributesofinterestto buyers vary by product

    Consumersdifferastowhich productattributestheyseeasmostrelevantandtheimportancetheyattach to eachattribute

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    34/41

    ConsumerEvaluationProcess (cont.)

    Theconsumerdevelops asetofbrandbeliefs aboutwhere each brandstandson each attribute(seetable, nextpage)

    Thesetofbeliefsabouta brandmakeup brandimage

    Theconsumerarrivesatattitudes (judgments

    /preferences)towarddifferentbrandsthrough anattribute evaluation procedure.

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    35/41

    Example: AConsumersBrandBeliefs

    aboutComputers

    Attribute

    Computer MemoryCapacity

    GraphicsCapability

    SizeandWeight Price

    A 10 8 6 4

    B 8 9 8 3

    C 6 8 10 5

    D 4 3 7 8

    ComputerA: 0.4(10)+0.3(8)+0.2(6)+0.1(4) = 8.0

    Choicewill bemade basedonthehighestperceived value

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    36/41

    ConsumerEvaluationProcess (cont.)

    Strategiesdesignedtoinfluence buyerdecisions:

    Redesignthe product realpositioning

    Alter beliefsaboutthe brand psychologicalpositioning

    Alter beliefsaboutcompetitorsbrands competitive

    positioning Altertheimportanceweights

    Callattentiontoneglectedattributes

    Shiftthe buyersideas

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    37/41

    The Buyer Decision Process

    Stage 4. Purchase Decision

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    38/41

    The Buyer Decision Process

    Stage 5. Postpurchase Behavior

    Satisfied Customer!

    Consumers

    Expectations of Products Performance ---

    Products Perceived

    Performance.

    Dissatisfied Customer

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    39/41

    Problem Recognition

    General Need Description

    Product Specification-Product value analysis-

    Supplier Search

    Proposal Solicitation

    Supplier Selection*

    Order Routine Specification

    Performance Review

    Stages ofStages ofBusinessBusiness

    BuyingBuying

    ProcessProcess

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    40/41

    *Example-- SupplierAnalysis

    R a t i n g S c a l e

    Attributes Importance

    Weights

    Poor

    (1)

    Fair

    (2)

    Good

    (3)

    Excellent

    (4)

    Price .30 x

    Supplierreputation .20 x

    Product reliability .30 x

    Service reliability .10 x

    Supplierflexibility .10 x

    Total score: .30(4) + .20(3) + .30(4) + .10(2) + .10(3) = 3.5

  • 8/7/2019 Analyzing Consumer Markets and Consumer Buying Behavior

    41/41

    Buygrid Framework -- Major Stages(Buyphases) of Business Buying Process in

    Relation to Major Buying Situations (Buyclasses)

    Buyclasses

    New Modified Straight

    Task Rebuy Rebuy

    1. Problem recognition Yes Maybe No

    2. General needdescription

    Yes Maybe No

    3. Product specification Yes Yes Yes

    Buyphases 4. Supplier search Yes Maybe No

    5. Proposal solicitation Yes Maybe No

    6. Supplier selection Yes Maybe No

    7. Order-routinespecification

    Yes Maybe No

    8. Performance review Yes Yes Yes