Consumer Markets and Consumer Buyer

Behavior
 Consumer Behavior

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

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 Consumer Buying Decision

Marketers Must Identify and Understand:

Who Makes the Buying Decision

Types of Buying Decisions

Stages in the Buying Process

Model of Buyer Behavior

Buyer’s
characteristics

Buyer’s
psychology

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 Motives

An internal energizing force that directs a person’s behavior

toward satisfying needs or achieving goals.

Motive for buying organic foods

 Perception
 Process by which an individual selects, organizes, and
interprets information to form a cohesive picture about an
entity

 Perceptions affect consumer behavior

 However, remember that individuals can perceive the
same entity in different ways
 Perception
 Selective Attention: Receive some messages and
screen out the rest

 An average person is exposed to 1500 ads or brand messages a

day
 Most of these are screened out; So, how do marketers capture
mind space?
 People are more likely to notice stimuli that relate to current needs
 People are more likely to notice stimuli they anticipate
 People are more likely to notice stimuli that deviate relatively larger
than others
 Selective Distortion: Tendency to interpret/distort
information to be consistent with prior brand and product
beliefs
 Tastetests: “Blind” taste tests/ “Open” tests
 Can work to the advantage of marketers of strong
brands
 A car may seem to drive smoother
 A beer may taste better
 Selective Retention: Though people fail to register
much information, they retain information that supports
their attitudes and beliefs

 Remember good points about products we like and forget good

points about competing products

 Works to the advantage of strong brands

 Explains why marketers repeat messages – for reinforcement

 How do consumers respond to marketing attempts?

 Influences
 Marketing Mix: price, place, product, promotion
 Consumer
 Characteristics and decision process
 Responses
 Product, brand, dealer choice, purchase timing
 Consumer Buying Decision Process

Understand  Initiator
 Influencer
 Buying roles  Decider
 Buying behavior  Buyer
 Buying decision  User
process
 Consumer Buying Decision Process

Understand

 Buying roles  Complex buying behavior

 Dissonance-reducing buying
 Buying behavior behavior
 Habitual buying behavior
 Buying decision  Variety-seeking buying
process behavior
Types of Buying Behavior

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 Buying Decisions
 Complex Buying
Product is expensive, risky, purchased infrequently, great difference in
brands
E.g.: Computers, Cars
 Dissonance Reducing
Expensive, infrequent, little difference between brands
E.g.: Carpeting
 Habitual Buying
Low cost, little difference in brands
E.g.: Salt, butter, toothpaste
 Variety Seeking
Low cost, high perceived difference
E.g.: Cookies, candy etc.
 Consumer Buying Decision Process

Understand  Five stages in the

consumer buying
 Buying roles process
 Buying behavior  The amount of time
 Buying decision spent in each stage
process varies according to
several factors
The Buyer Decision Process

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The Buyer Decision Process
Stages  Needs can be triggered by:
Internal stimuli
 Need recognition  Normal needs become
strong enough to drive
 Information search behavior
 Evaluation of External stimuli
alternatives  Advertisements
 Purchase decision  Friends of friends

 Postpurchase
behavior

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Need Recognition
 Need/Problem Recognition
 Can be triggered by internal or external
stimuli
 Needs become wants, which lead to
behavior
 Marketing stimuli can stimulate a desire
for information
The Buyer Decision Process
Stages
 Need recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Consumers exhibit heightened
attention or actively search for
information.
 Sources of information:
 Personal
 Commercial

 Post purchase behavior  Public

 Experiential
 Word-of-mouth

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The Buyer Decision Process
Stages  Evaluation procedure
depends on the consumer
and the buying situation.
 Need recognition  Most buyers evaluate
 Information search multiple attributes, each of
 Evaluation of which is weighted
differently.
alternatives
 At the end of the evaluation
 Purchase decision stage, purchase intentions
 Postpurchase are formed.
behavior

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 Consumer Buying Decision Process

Successive Sets Involved in Consumer Decision Making

 Evaluation of Alternatives

 Customers evaluate products as bundles of attributes

 Brand attributes

 Product features

 Visual attributes

 Price
 The Buyer Decision Process

Stages  Two factors intercede

 Need recognition
 Information search
 Evaluation of
alternatives
 Purchase decision
 Postpurchase
behavior
between purchase
intentions and the
actual decision:
 Attitudes of others
 Unexpected
situational factors

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 Purchase Decision
 Purchase intention and the act of buying are distinct concepts
 Potential intervening factors between intention and buying (car
example):
 Unforeseen circumstances
 Angered by the salesperson or sales manager
 Unable to obtain financing
 Customer changes his mind

 Key issues in the purchase decision stage:

 Product availability
 Possession utility
The Buyer Decision Process
Stages  Satisfaction is key:
 Delighted consumers engage
 Need recognition in positive word-of-mouth.
 Information search  Unhappy customers tell on
 Evaluation of average 11 other people.
alternatives
 It costs more to attract a new
 Purchase decision
customer than it does to
 Postpurchase
retain an existing customer.
behavior
 Cognitive dissonance
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 Post- purchase Evaluation

 Four possible outcomes in the post purchase stage:

(1) Delight

(2) Satisfaction

(3) Dissatisfaction

(4) Cognitive Dissonance

Post purchase action:

a) Exit option
b) Voice option
 How Customers Use or Dispose of Products

To be
Rent it Give it (re)sold
Get rid of it away
temporarily Loan it
To be
used
Trade it
Get rid of it
Product permanently Direct to
Use for consumer
original Sell it
purpose
Keep it Convert Through
to new Throw it middleman
purpose away
Store it To
intermediary
Discussion Question

 Why might the

adoption process be
slow for a home
robot?

Source: Business Week

Source: Business Week