5-1

5-1

Consumer Markets
and
Consumer Buyer Behavior

Consumer
Consumer Buying
Buying Behavior
Behavior
Consumer Buying Behavior refers to
the buying behavior of final consumers
(individuals & households) who buy
goods and services for personal
consumption.
Study consumer behavior to answer:
How do consumers respond to
marketing efforts the company might
use?

5-2
5-2

SIMPLE MODEL FOR CONSUMER BEHAVIOUR

l
u
C

e
r
u

So
c ia
l

Motives

Attitudes
Consumer
Purchase
Decision Learning

Perception
Personality

Economic

Family

Business

Needs

5-3
5-3

Model
Model of
of Consumer
Consumer Behavior
Behavior
Product
Price

Marketing
Marketing and
and
Other
Other Stimuli
Stimuli

5-4
5-4

Economic
Technological

Place

Political

Promotion

Cultural

Buyers
Decision
Process

Product Choice
Brand Choice
Dealer Choice

Buyers
Buyers Black
Black Box
Box

Buyers
Buyers Response
Response

Characteristics
Affecting
Consumer
Behavior

Purchase
Timing
Purchase
Amount

Characteristics
Characteristics Affecting
Affecting
Consumer
Consumer Behavior
Behavior
Culture
Social
Personal
Psychological

Buyer
Buyer

5-5
5-5

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Culture
Culture
Most
Most basic
basic cause
cause of
of aa person's
person's wants
wants and
and
behavior.
behavior.
Values
Values
Perceptions
Perceptions
Subculture
Subculture

Social
Social Class
Class

Groups
People
Groupsof
ofpeople
peoplewith
withshared
shared
Peoplewithin
withinaasocial
socialclass
class
value
tend
valuesystems
systemsbased
basedon
oncommon
common
tendto
toexhibit
exhibitsimilar
similarbuying
buying
life
behavior.
lifeexperiences.
experiences.
behavior.
Occupation
North
NorthIndian
IndianConsumers
Consumers
Occupation
African
Income
AfricanAmerican
AmericanConsumers
Consumers
Income
Asian
AsianAmerican
AmericanConsumers
Consumers
Mature
MatureConsumers
Consumers

Education
Education
Wealth
Wealth

5-6
5-6

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Social
Social

5-7
5-7

Groups
Groups
Membership
Membership
Reference
Reference
Family
Family
Husband,
Husband, wife,
wife, kids
kids
Influencer,
Influencer, buyer,
buyer, user
user

Roles
Roles and
and Status
Status

Social
Social Factors
Factors

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Personal
Personal

5-8
5-8

Personal
Personal Influences
Influences
Age
Age and
and Family
Family Life
Life Cycle
Cycle
Stage
Stage

Occupation
Occupation

Economic
Economic Situation
Situation

Personality
Personality && Self-Concept
Self-Concept

Lifestyle
Lifestyle Identification
Identification
Activities
Activities

Opinions
Opinions
Interests
Interests

VALS
VALS 22

5-9
5-9

Actualizers
Abundant Resources
Resources
Actualizers Abundant

Principle Oriented Status Oriented

Action Oriented

Fulfilleds
Fulfilleds

Achievers
Achievers

Experiencers
Experiencers

Believers
Believers

Strivers
Strivers

Makers
Makers

Minimal
Minimal Resources
Resources

Strugglers
Strugglers

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological

5-10
5-10

Motivation
Motivation

Beliefs
Beliefs and
and
Attitudes
Attitudes

Psychological
Factors

Learning
Learning

PPerception
erception

Maslows
Maslows Hierarchy
Hierarchy of
of Needs
Needs
Self
Actualization

(Self-development)

Esteem Needs

(self-esteem, status)
Social Needs

(sense of belonging, love)

Safety Needs

(security, protection)

Physiological Needs
(hunger, thirst)

5-11
5-11

Types
Types of
of Buying
Buying Decisions
Decisions

5-12
5-12

High
Involvement

Low
Involvement

Significant
differences
between
brands

Complex
Buying
Behavior

VarietySeeking
Behavior

Few
differences
between
brands

DissonanceReducing Buying
Behavior

Habitual
Buying
Behavior

The
The Buyer
Buyer Decision
Decision Process
Process

Need
Need Recognition
Recognition
Information
Information Search
Search
Evaluation
Evaluation of
of Alternatives
Alternatives
Purchase
Purchase Decision
Decision
Postpurchase
Postpurchase Behavior
Behavior

5-13
5-13

5-14
5-14

DECISION MAKING PROCESSES

EXTERNAL INFLUENCES
Culture
Subculture
Demographics
Social Status
Reference Groups
Family
Marketing Activities

INTERNAL INFLUENCES
Perception
Learning
Memory
Motives
Personality
Emotions
Attitudes

Experiences and Acquisitions

SITUATIONS
Problem
Recognition
Information
Search

SELF-CONCEPT
and
LIFESTYLE

Desires
Needs

Alternative Evaluation
and Selection
Outlet Selection
and Purchases
Post-purchase
Processes

Experiences and Acquisitions

SITUATIONS

The
The Buyer
Buyer Decision
Decision Process
Process

5-15
5-15

Step
Step 1.
1. Need
Need Recognition
Recognition

Need
Need Recognition
Recognition

Difference
Difference between
between an
an actual
actual state
state and
and aa desired
desired state
state

Internal
Internal Stimuli
Stimuli

External
External Stimuli
Stimuli

Hunger
Hunger

TV
TV advertising
advertising

Thirst
Thirst

Magazine
Magazine ad
ad

AApersons
personsnormal
normal
needs
needs

Radio
Radio slogan
slogan
Stimuli
Stimuli in
in the
the
environment
environment

The
The Buyer
Buyer Decision
Decision Process
Process

5-16
5-16

Step
Step 2.
2. Information
Information Search
Search
Personal
Personal Sources
Sources

Family, friends, neighbors

Most influential source of
information

Commercial
Commercial Sources
Sources

Advertising, salespeople
Receives most information
from these sources

Public
Public Sources
Sources
Experiential
Experiential Sources
Sources

Mass Media
Consumer-rating groups
Handling the product
Examining the product
Using the product

The
The Buyer
Buyer Decision
Decision Process
Process

5-17
5-17

Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes

Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

Degree
Degreeof
of Importance
Importance

Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?

Brand
BrandBeliefs
Beliefs

What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?

Total
Total Product
Product Satisfaction
Satisfaction

Based
Basedon
onwhat
whatIm
Imlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?

Evaluation
Evaluation Procedures
Procedures

Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.

The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 4.
4. Purchase
Purchase Decision
Decision

Purchase
Purchase Intention
Intention
Desire
Desire to
to buy
buy the
the most
most preferred
preferred brand
brand

Attitudes
of others

Unexpected
situational
factors

Purchase
Purchase Decision
Decision

5-18
5-18

The
The Buyer
Buyer Decision
Decision Process
Process

Step
Step 5.
5. Postpurchase
Postpurchase Behavior
Behavior
Consumers
Consumers Expectations
Expectations of
of
Products
Products Performance
Performance
Products Perceived
Performance

Satisfied
Satisfied
Customer!
Customer!

Dissatisfied
Dissatisfied
Customer
Customer

Cognitive Dissonance

5-19
5-19

Stages
Stages in
in the
the Adoption
Adoption Process
Process
Awareness
Awareness
Interest
Interest
Evaluation
Evaluation
Trial
Trial
Adoption
Adoption

5-20
5-20

Early Majority
Innovators

Percentage of Adopters

Adoption
Adoption of
of Innovations
Innovations

Early
Adopters

34%

Late Majority

Early

Laggards

34%
16%

13.5%
2.5%

5-21
5-21

Time of Adoption

Late

Influences
Influences on
on the
the Rate
Rate of
of Adoption
Adoption
of
of New
New Products
Products
Relative Advantage

Communicability

Is the innovation
superior to existing
products?

Can results be easily

observed or described
to others?

Divisibility

5-22
5-22

Product
Characteristics

Can the innovation

be used on a
trial basis?

Complexity

Is the innovation
difficult to
understand or
use?

Compatibility

Does the innovation

fit the values and
experience of the
target market?