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SUHAILY MOHD RAMLY 1

TOPIC 7

CONSUMER MARKETS AND CONSUMER BUYER

BEHAVIOR


CONSUMER MARKETS AND CONSUMER BUYER BEHAVIOR

Topic Outline

Characteristics Affecting Consumer Behavior

Types of Buying Decision Behavior The Buyer Decision Process


Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption

Consumer market refers to all of the personal consumption of final consumers

CONSUMER BEHAVIOR


FACTORS INFLUENCING CONSUMER BEHAVIOR


Culture is the learned values, perceptions, wants, and behavior from family and other important institutions

FACTORS INFLUENCING CONSUMER BEHAVIOR : CULTURAL



Subculture are groups of people within a culture with shared value systems based on common life experiencesand situations

Indian Chinese Malays



Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors

• Measured by: Occupation, Income, Education, Wealth and Other Variables.



The Impact of Social Class on Marketing• Indicates which medium to use for

advertising• Helps determine the best distribution

for products


FACTORS INFLUENCING CONSUMER BEHAVIOR : SOCIAL

Reference Groups

Opinion Leaders

Family Members

Social Influences on Buying Decisions



Reference GroupA group in society that influences an

individual’s purchasing behavior.



Reference Groups

Direct

Indirect

Primary

Secondary

Aspirational

Non-aspirational



Influences of Reference Groups

1. They serve as information sources and influence perceptions

2. They affect an individual’s aspiration levels

3. Their norms either constrain or stimulate consumer behavior



• Opinion leaders are people within a reference group who exert social influence on others

• Marketers identify them to use as brand ambassadors


Online Social Networks are online communities where people socialize or exchange information and opinions

Include blogs, social networking sites (facebook), virtual worlds (second life)




ROLE & STATUS

ROLEExpected activities

STATUSEsteem given

to role by society



Children Influence Purchase Decisions

Purchase Roles in the Family

Initiators

Influencers

Decision Makers

Purchasers

Consumers


FACTORS INFLUENCING CONSUMER BEHAVIOR : PERSONAL

PERSONAL INFLUENCES

Age & Lifecycle

Occupation

Lifestyle

Economical Status

Personality & Self concept

Gender



Age and life-cycle stage:• People change the goods they buy over their

lifetimes.• Youth: younger than 18• Getting started: 18–35• Builders: 35–50• Accumulators: 50–60• Preservers: over 60



GENDER

MALE FEMALE



Occupation:• Occupation influences the purchase of

clothing and other goods.

Economic situation:• Some goods and services are especially

income-sensitive.

Personal income Savings Interest

rates



People within the same subculture, social class, and occupation may have different lifestyles.

Lifestyle:• Pattern of living as expressed in

psychographics.• Activities• Interests• Opinions



Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment

Self-concept is how consumers perceive themselves. Self-concept theory suggests that people’s

possessions contribute to and reflect their identities. An individual’s products purchased , stores

patronized, and credit cards held reflect their identity. For example, the car he or she drives reflects a person’s self-image.


FACTORS INFLUENCING CONSUMER BEHAVIOR : PSYCHOLOGICAL

Motivation

Perception

Learning

Beliefs and attitudes



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



Maslow’sHierarchy of Needs



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



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



Exposure to over 2,500 advertisement messages per day

Notices only 11 to 20 ads

A Consumer’s Selective Exposure



Learning is the change in an individual’s behavior arising from experience and occurs through interplay of:

Drives Stimuli Cues

Responses Reinforcement



Types of Learning Description

Experiential

Conceptual

An experience changes behavior

Not learned through direct experience


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


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TYPES OF BUYING DECISION BEHAVIOR

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior


TYPES OF BUYING DECISION BEHAVIOR


THE BUYER DECISION PROCESS


THE BUYER DECISION PROCESS: Need Recognition

Occurs when the buyer recognizes a problem or need triggered by:

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Internal Stimuli

External Stimuli

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THE BUYER DECISION PROCESS: Information Search

Internal Information Search

Recall information in memory

External Information search

Seek information in outside environment Non-marketing controlled Marketing controlled


THE BUYER DECISION PROCESS: Information Search

External Information Search

Marketing controlled•Commercial sources—advertising, Internet

•Salesperson

Non marketing controlled•Personal sources—family and friends

•Public sources—mass media, consumer organizations


How the consumer processes information to arrive at brand choices

THE BUYER DECISION PROCESS: Evaluation of Alternatives

All Brands

Known Brands

Acceptable

Purchased Brand

Rejected Brands

Unacceptable Overlooked

Unknown Brands


THE BUYER DECISION PROCESS: 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


THE BUYER DECISION PROCESS: Post-Purchase Decision

Consumer satisfaction is a function of consumer expectations and perceived product performance.• Performance < Expectations ----- Disappointment• Performance = Expectations ----- Satisfaction• Performance > Expectations ----- Delight

Cognitive dissonance: • A buyer’s doubts shortly after a purchase about

whether it was the right decision.


THE BUYER DECISION PROCESS: Post-Purchase Decision

COGNITIVE DISSONANCE

?Did I make a good decision?

Did I buy the right product?

Did I get a good value?

Can minimize through:Effective Communication

Follow-upGuaranteesWarranties


CONSUMER ROLES

BUYER

DECISIONMAKER

USER

INFLUENCER

INITIATOR

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