Session 6 & 7

Consumer Market & Consumer Behavior

CONSUMER BEHAVIOR
The field of consumer behavior studies how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.

Ref: Wu Jianan, Marketing, 3rd ed, (Beijing: Higher Education Press, 2007): 105

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A model of consumer behavior

7 Os framework Occupants Objects Objectives Organizations Operations Occasions Outlets Key questions Who constitutes the market? What does the market buy? Why does the market buy? Who participates in the buying? How does the market buy? When does the market buy? Where does the market buy?

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The stimulus-response model

Wu Jianan, Marketing, 3rd ed, (Beijing: Higher Education Press, 2007): 106

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1. 2.

How do the buyers characteristics influence buying behavior? How does the buyer make purchasing decisions?

MAJOR FACTORS INFLUENCING BUYING BEHAVIOR

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Cultural

Social

Personal

Psychological

Culture

Reference groups

Age and life cycle stage

Motivation

Subculture

Family

Occupation

Perception

Social class

Roles and statuses

Economic circumstances

Learning

Lifestyle

Beliefs & attitudes

Personality & self-concept

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Personal factors
Age and stage in the life cycle

Individuals lifetime Family life cycle Psychological life-cycle stages

Occupation Marketers try to identify the occupational groups that have above-average interest in their products and services. Economic circumstances pay attention to trends in personal income, savings, and interest rates Lifestyle is the persons pattern of living in the world as expressed in the persons activities, interests, and opinions. Lifestyle portrays the whole person interacting with his or her environment. Personality and self-concept A persons distinguishing psychological characteristics that lead to relatively consistent and enduring responses to his or her environment.

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Psychological Factors

Beliefs & Attitudes

Learning

Perception

Motivation

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PSYCHOLOGICAL FACTORS MOTIVATION

1. 2. 3. Freuds Theory of Motivation Maslows theory of Motivation Herzbergs Theory of Motivation

Beliefs & Attitudes

Motivation

Perception

Learning

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MASLOWS THEORY OF MOTIVATION

1.Physiological food, water, shelter 2.Safety security, protection 3.Social sense of belonging, love 4.Esteem self-esteem, recognition, status 5.Self-actualization self-development and realization

Selfactualization needs

Esteem needs

Social needs

Safety needs

Physiological needs

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Herzbergs Theory of Motivation

Two-factor theory Dissatisfiers Satisfiers Motivation-hygiene theory Hygiene factors Motivators

Implications Sellers should do their best to avoid dissatisfiers; Manufacturers should identify the major satisfiers of purchase and then supply them.

Ref links - http://www.emkt.com.cn/article/69/6994.html (: HM )

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PSYCHOLOGICAL FACTORS PERCEPTION

PERCEPTION is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.

Beliefs & Attitudes

Perception

Motivation
Ref: Wu Jianan, Marketing, 3rd ed, (Beijing: Higher Education Press, 2007): 117

Learning

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Three Perceptual Processes

Selective retention
tendency to retain information that supports ones attitudes and beliefs

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PSYCHOLOGICAL FACTORS LEARNING

Definition ~ involves changes in an individuals behavior arising from experience, and is believed to be produced through the interplay of : 1. Drives 2. Stimuli 3. Cues 4. Responses 5. Reinforcement
Drive

Reinforcement Responses Cues

Stimuli

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 A BELIEF is a descriptive thought that a

person holds about something

PSYCHOLOGICAL FACTORS

BELIEFS AND ATTITUDES

An ATTITUDE is a persons enduring

favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea

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BUYING ROLES, BUYING BEHAVIOR, AND STAGES OF THE BUYING DECISION PROCESS

THE BUYING PROCESS

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Five Roles
Initiator

A person who first suggests the idea of buying

A person whose view or advice influences the Influencer decision A person who decides on any component of a buying decision The person who makes the actual purchase

Decider

Buyer

A person who consumes

User

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HIGH INVOLVEMENT

LOW INVOLVEMENT

SIGNIFICANT DIFFERENCES COMPLEX

BETWEEN BRANDS

VARIETY-SEEKING

FEW DIFFERENCES
BETWEEN BRANDS

DISSONANCE-REDUCING

HABITUAL

Four Types of Buying Behavior

Henry Assael distinguished four types of consumer buying behavior based on the degree of buyer involvement and the degree of differences among brands
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Buying Decision Process - Stage Model

Stage model of a typical buying process Consumers pass sequentially through 5 stages (esp. in high-involvement purchases) Consumers may skip or reverse some stages
Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior

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PROBLEM
STAGES OF BUYING DECISION PROCESS STAGE 1
1.
2.

RECOGNITION

Gap between ones actual and desired state Internal or external stimuli
A. B. Persons normal needs Aroused by external stimulus

Information search

3.

Marketers should
A.
B.

C.

Identify the circumstances that trigger a particular need Identify the most frequent stimuli that spark an interest in a product category Develop marketing strategies that trigger consumer interest

Evaluation of alternatives
Purchase decision Postpurchase behavior
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Stages of buying decision process stage 2

Levels of arousal
Heightened attention Active information search

Problem recognition
INFORMATION SEARCH

Information sources
Personal Commercial Public sources Experiential

Successive sets involved

1) 2) 3) 4) Total set (of brands) Awareness set Consideration set Choice set

Evaluation of alternatives
Purchase decision Postpurchase behavior
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Stages of buying decision process stage 3

(PDF) Ways to stimulate greater interest in a brand
o Modify the product o Alter beliefs about the brand o Alter he importance weights o Call attention to neglected attributes o Shift buyers ideals

Problem recognition
Information search

EVALUATION OF
ALTERNATIVES

Purchase decision Postpurchase behavior

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Stages of buying decision process stage 4

Ref: Wu Jianan, Marketing, 3rd ed, (Beijing: Higher Education Press, 2007): pp.113114

Problem recognition
Information search

Evaluation of alternatives
PURCHASE DECISION Postpurchase behavior
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Stages of buying decision process stage 5

Ref: Wu Jianan, Marketing, 3rd ed, (Beijing: Higher Education Press, 2007): pp.114115

Problem recognition
Information search

Evaluation of alternatives
Purchase decision Postpurchase behavior
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