Consumer Markets and

Consumer Buyer
Behavior

Topic 3
 Topic Outline
Model of Consumer Behavior
Factors Affecting Consumer
Behavior
Types of Buying Decision
Behavior
The Buyer Decision Process
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Model of Consumer Behavior
Consumer Buying Behavior
Buying behavior of individuals and
households that buy products for
personal consumption.
Consumer Market
All individuals/households who buy
products for personal consumption.

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Model of Consumer Behavior

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Characteristics Affecting Consumer
Behavior
Factors Influencing Consumer Behavior

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 Characteristics Affecting Consumer
Behavior
Culture is the learned values,
perceptions, wants, and behavior
Key Factors from family and other important
institutions.
Subculture are groups of people

Cultural
within a culture with shared value
systems based on common life
experiences and situations.
Social Malay , Chinese, Indian, Mature
& Other consumers
Social Class societys relatively
Personal permanent and ordered divisions
whose members share similar
values, interests, n behavior.
Psychological Measured by a combination of
occupation, income, education,
wealth n other variables.
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 Characteristics Affecting Consumer
Behavior
Groups
Key Factors Membership - Groups with direct
influence and to which a person
belongs
Reference groups that forma
Cultural comparison or reference in forming
attitudes or behavior
Opinion leaders are people within a

Social
reference group who exert social
influence on others
Aspirational groups groups an

Personal
individual wishes to belong to
Family -Children can influence
Social roles and status are the
Psychological groups, family, clubs, and organizations
that a person belongs to that can define
role and social status
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 Characteristics Affecting Consumer
Behavior

Age and life cycle

Key Factors
Occupation
Economic situation
Cultural Lifestyle
Activities, interests, and
Social opinions
Personality and self-
Personal concept unique psychological
characteristics that lead to consistent

Psychological and lasting responses to the

consumers environment
Brand personality
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 Characteristics Affecting Consumer
Behavior
Motivation
Key Factors Needs provide motives for
consumer behavior
Maslows hierarchy of needs

Cultural
Social
Personal
Psychological
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 Characteristics Affecting Consumer
Behavior
Perception is the process by
which people select, organize,
Key Factors and interpret information to form
a meaningful picture of the world
from three perceptual processes.
Cultural Selective attention is the tendency
for people to screen out most of the
information to which they are exposed
Social Selective distortion is the
tendency for people to interpret

Personal information in a way that will support

what they already believe
Selective retention is the tendency
Psychological to remember good points made about
a brand they favor and forget good
points about competing brands

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 Characteristics Affecting Consumer
Behavior
Learning is the change in an
Key Factors individuals behavior arising from
experience and occurs through
interplay of : Drives, stimuli, cues,
responses and reinforcement
Cultural Beliefs is a descriptive thought
that a person holds about
Social something based on: Knowledge,
opinion, and faith

Personal Attitudes describe a persons

relatively consistent evaluations,
feelings, and tendencies toward
Psychological an object or idea

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 Types of Buying Decision Behavior
Complex Buying Behavior
High consumer involvement
Significant perceived differences among
brands
The product is expensive, risky,
purchased infrequently, highly self
expressive, eg: PC
Dissonance Reducing
Buying Behavior
High consumer involvement
Few perceived differences among brands
Eg, carpet, expensive & self expressive,
respond to good price or purchase
convenience
Habitual Buying Behavior
Low consumer involvement
Few perceived brands differences
Eg, salt, low cost & frequently
purchased product
Variety Seeking Buying
Behavior
Low consumer involvement
Significant perceived brand differences
Do a lot of brand switching, for variety
rather than because of dissatisfaction
Eg, cookies
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The Buyer Decision Process

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 The Buyer Decision Process
Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Needs can be triggered
by:
Internal stimuli
Normal needs become
strong enough to drive
behavior
External stimuli
Advertisements
Friends of friends
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 The Buyer Decision Process
Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Consumers exhibit heightened
attention or actively search for
information.
Sources of information:
Personal family and friends
Commercial advertising, internet
Public mass media, consumer
organizations
Experiential handling, examining,
using the product
Word-of-mouth
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 The Buyer Decision Process
Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Evaluation procedure
depends on the consumer
and the buying situation.
Most buyers evaluate
multiple attributes, each of
which is weighted differently.
At the end of the evaluation
stage, purchase intentions
are formed.
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 The Buyer Decision Process
Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
The act by the consumer to
buy the most preferred brand.
Two factors intercede
between purchase intentions
and the actual decision:
Attitudes of others
Unexpected situational
factors
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 The Buyer Decision Process
Process Stages
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Satisfaction or dissatisfaction that
the consumer feels about the
purchase
Satisfaction is important:
Delighted consumers engage in
positive word-of-mouth.
Unhappy customers tell on
average 11 other people.
It costs more to attract a new
customer than it does to retain an
existing customer.
Cognitive dissonance is common.
It is the discomfort caused by a
post-purchase conflict.
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The End

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