Consumer and Business Market Dr. Ananda Sabil Hussein

Consumer and Business MarketDr. Ananda Sabil Hussein

What Influences Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors

What is Culture?

Culture is the fundamental determinant of a person’s wants and behaviors acquired

through socialization processes with family and other key institutions.

Subcultures

Nationalities

Religions

Racial groups

Geographic regions

Social Classes

Upper uppersLower uppersUpper middlesMiddle class

Working classUpper lowersLower lowers

Characteristics of Social Classes

Within a class, people tend to behave alike

Social class conveys perceptions of inferior or superior position

Class may be indicated by a cluster of variables (occupation, income, wealth)

Class designation is mobile over time

Social Factors

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Referencegroups

Social roles

Statuses

Family

Reference Groups

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups

Personal Factors

Age

Values

Life cyclestage

Occupation

Personality

Self-concept

Wealth

Lifestyle

The Family Life Cycle

Brand Personality

Sincerity

Excitement

Competence

Sophistication

Ruggedness

Model of Consumer Behavior

Key Psychological Processes

Motivation

MemoryLearning

Perception

Motivation

Freud’sTheory

Behavioris guided by subconsciousmotivations

Maslow’sHierarchyof Needs

Behavioris driven by the lowest, unmet need

Herzberg’sTwo-Factor

Theory

Behavior isguided by motivating and hygiene

factors

Maslow’s Hierarchy of Needs

Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion

Figure 6.4 Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

PostpurchaseBehavior

Sources of Information

Personal

ExperientialPublic

Commercial

Figure 6.6 Stages between Evaluation of Alternatives and

Purchase

Perceived RiskFunctional

Physical

Financial

Social

Psychological

Time

Other Theories of Consumer Decision Making

Involvement

Elaboration Likelihood Model

Low-involvement marketing strategies

Variety-seeking buying behavior

Decision Heuristics

Availability

Representativeness

Anchoring and adjustment

Characteristics of Business Markets

Fewer, larger buyers

Close supplier-customer relationships

Professional purchasing

Many buying influences

Multiple sales calls

Derived demand

Inelastic demand

Fluctuating demand

Geographically concentrated buyers

Direct purchasing

The Buying CenterInitiators

Users

Influencers

Deciders

Approvers

Buyers

Gatekeepers

Of Concern to Business Marketers

Who are the major decision participants?

What decisions do they influence?

What is their level of influence?

What evaluation criteria do they use?

Sales Strategies

Small Sellers

Large Sellers

Key Buying Influencers

MultilevelIn-depthSelling

Stages in the Buying Process: Buyphases

Problem recognition

General need description

Product specification

Supplier search

Proposal solicitation

Supplier selection

Order-routine specification

Performance review