Marketing Management

28 February 2011

Consumer Markets and Buyer Behaviour

Consumer Behaviour

• The consumer’s buying decision is the focal point of all marketer’s efforts.

• The Why isn’t always visible as it’s locked inside a consumer’s mind

• Marketers need to tap into the “black box” of consumers – the buyer’s characteristics and decision process through various marketing stimuli

• Stimuli utilised by marketers includes marketing tools and environmental forces and factors

• The stimuli working in the consumer’s “black box” produces buyer responses

Characteristics Affecting Consumer Behaviour

• Cultural Factors– Marketers need to understand buyer’s culture, subculture and

social class – refer pg 161

• Social Factors– A buyer’s behaviour is also influenced by small groups, family,

social roles and status – refer pg 164

• Personal Factors– A buyer’s decision is influenced by characteristics such as

buyer’s age, life-cycle stage, occupation, economic situation, lifestyle, personality - refer pg 170

• Psychological Factors – A buyer’s choice is influenced by four major psychological

factors, namely: motivation, perception, learning and beliefs

Types of Buying Decision Behaviour

• Buying behaviour differs from product to product – the bigger the product the more complex the decision

• Complex Buying Behaviour: when a consumer is highly involved in a purchase decision with significant differences amongst brands

• Dissonance-reducing Buying Behaviour: consumer purchasing behaviour in situations characterised by high involvement with few perceived differences amongst brands

• Habitual buying Behaviour: low consumer involvement situations with few significantly perceived brand differences

• Variety-seeking Buying Behaviour: low consumer involvement situations with high perceived brand differences

Types of Buyer Behaviour

The Buyer Decision Process

• A consumer’s actual purchase decision is part of a much greater buying process

• The buying process is initiated long before the actual purchase and continues long afterwards

• We need to focus on the entire process and not just the purchase decision

• Buyer Decision Process– Need Recognition– Information Search– Evaluation of Alternatives– Purchase Decision– Post purchase Behaviour

Buyer Behaviour Model

Buyer Behaviour Model

Buyer Decision Process – New Products

• Adoption of Product: the decision by an individual to become a regular user of a product

• Adoption Process: the mental process through which an individual passes from 1st learning of an innovation to final adoption

• Stages in the Adoption Process:– Awareness– Interest– Evaluation– Trial– Adoption

• New product marketers have to consistently compute ways of moving consumers through these stages

Differences in Innovativeness

Differences in Innovativeness

• People differ significantly in their readiness to try new products

1. Innovators - are venturesome involving risk in their trial

2. Early Adopters – opinion leaders who often lead change carefully guided by respect

3. Early Majority – adopt new products before the average person

4. Late Majority – sceptical people who adopt a product after the majority has done so

5. Laggards – traditional people who’re suspicious of change

See you next time.

Cheers Guys!