Session 8a_4 Class-bb

8/13/2019 Session 8a_4 Class-bb

1/30

THEME 3 : UNDERSTANDING MKT

SESSION 8: CONSUMER BEHAVIOR


2/30

Contents

Influences on CB

The Buying Decision Process

Theories and Concepts of CB


3/30

introduction

The aim of marketing is to meet and satisfy target

customers needs and wants.

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.

Understanding consumer behavior and knowingcustomers is never simple. Customers may say one

thing but do another.


4/30

Influencing buyer behavior

The starting model for understanding buyer

behavior is stimulus response-model

The model describes that marketing and

environmental stimuli enter the buyers consciousness.The buyers characteristics and decision processeslead to certain purchase decisions.

The marketers task is to understand what happen in

the buyers consciousness between the arrival of

outside stimuli and the purchase decisions.


5/30

Model of buyer behavior.

Marketing

stimuli

ProductPrice

Place

promotion

Other

stimuli

economictechnlg

Political

cultural

Buyers

charactristics

Cultural

SocialPersonal,1

Psychological

,2

Buyers

Decision

process

Problem

recognition

Information

searchEvaluation of

alternatives

Purchase

decision

Post purchase

behavior

Buyers

Decision

Product

choice

Brand

choiceDealer

choice

Purchase

timing

Purchase

amount


6/30

Cultural factors

Culture is the fundamental determinant of a persons

wants and behavior. A person acquires a set of values, perceptions,

preferences, and behaviors through his or her family

and other key institutions.

Each culture consists of smaller sub culture that providemore specifications and socialization for their members.

Sub cultures include nationalities, religions, racial groups,

and geographic regions.

When subcultures grow large enough, companies oftendesign specialized marketing programs to serve them.


7/30

Social factors

Reference groups : consists of all the groups that have a

direct or indirect influence on the persons attitudes or

behavior.

Groups having a direct influence on a person are called

memberships groups, such as: family, neighbors, friend, etc.

Family

Two kind of families in the buyers life :

1. The family of orientation: consists of parents and siblings.

From parents a person acquires an orientation toward

religion, politics, economics, sense of personal ambitions.

2. The family of procreation : consists of ones spouse and

children.


8/30

Roles and status

A role consists of the activities a person is expected toperform.

Each role carries a status.

People choose products that communicate their role andstatus in society.

Personal factors

Age and stage in the life cycle : people buy different goodsand services over a lifetime.

Occupation and economic circumstances.

Occupation influences consumption patterns, such as: a blue

collar worker will buy work clothes, work shoes, lunch-box,while a company presidents will buy expensive suits, airtravel, and country club memberships.


9/30

Life style

People from the same culture, social class, and occupationmay lead quite different lifestyles.

A lifestyle is a persons pattern of living in the world asexpressed in activities, interests and opinions.

Marketers search for relationships between their productsand lifestyle groups.

Personality and self-concept

each person has personality characteristics that influence hisor her buying behavior.

Personality is often described in term of such as selfconfidence, dominance, autonomy, deference, sociability,defensiveness, and adaptability.

Personality can be useful variable an analyzing consumerbrand choices. The idea is that brands also havepersonalities, and that consumers are likely to choose brandswhose personalities match their own.


10/30

Psychological factors

Motivations

Maslows Theory: human

s needs ate arranged in a

hierarchy, from the most pressing to the least pressing. In

order of importance, they are physiological needs,

safety needs, social needs, esteem needs, and self-

actualization needs. People will try to satisfy theirimportant first needs, when a person succeeds in

satisfying an important needs, he or she will then try to

satisfy the next-most-important needs.


11/30

5.

Self-

ActualizationNeeds

4. Esteem Needs


12/30

Theories of Motivation

Freuds

Theory

Behavior

is guided by

subconsciousmotivations

Maslows

Hierarchy

of Needs

Behavior

is driven by

lowest,unmet need

Herzbergs

Two-Factor

Theory

Behavior is

guided by

motivatingand hygiene

factors


13/30

Perception

A motivated person is ready to act, how the motivated

person actually acts is influenced by his or herperception of the situations.

Perceptions can vary widely among individuals exposed

to the same reality. One person might perceive fast

talking salesperson as aggressive , another, asintelligent and hekpful.

People can emerge with different perceptions of the

same object because of three perceptual processes:

selective attention, selective distortion, selectiveretention.


14/30

Beliefs and attitudes

A belief is a descriptive thought that a person hold aboutsomething.

Peoples belief about product or brand influence theirbuying decisions.

Marketers are interested in the beliefs people carry in theirheads about their products and brands. Brands beliefs existin consumers memory .

Attitudes is a persons enduring favorable or unfavorableevaluations, emotional feelings, and actions tendenciestoward some object or idea.

A persons attitude settle into a consistent pattern, so a

company would be well advised to fit its product intoexisting attitude rather than to try to change attitudes mightpay off.


15/30

Market Peek

You need to buy yourself some formal clothes .How

to you go about it ?


16/30

The buying decisions process

Marketers have to go beyond the various influence

on buyers and understanding how consumers

actually make their buying decisions.

Specifically marketers must identify who makes thebuying decisions, the types of buying decisions, and

the step in the buying decisions.


17/30

Buying roles

Buying roles change so the marketers must be careful inmaking their targeting decisions.

We can distinguish five roles people play in buyingdecisions: Initiator : the person who first suggests the idea of buying the

product or service.

Influencer : the person whose view or advice influences thedecisions.

Decider : the person who decides on any component of abuying decisions : whether to buy, what to buy, how to buy,where to buy.

Buyer : the person who makes the actual purchase

User : the persons who consumes or uses the product orservice.


18/30

Buying behavior

Henry Assael distinguished four types of consumer

buying based on the degree of buyer involvement andthe degree of differences among brands.

High Involvement Low Involvement

Significantdifferences

between brands

Few differences

between brands

Complex buying

behavior

Variety seeking

buying behavior

Dissonance

reducing buyingbehavior

Habitual buying

behavior


19/30

Complex buying behavior Consumers engage in complex buying behavior when they

are highly involved in a purchase and aware of significant

differences among brands. This is usually the case when a product is expensive, bought

infrequently, risky, and highly self expressive, like anautomobiles.

Dissonance reducing buyer behavior Consumers sometimes engage in highly involved in a

purchase but sees little differences in brands.

The high involvement based on the fact that the purchase isexpensive, infrequent, and risky.

In this case the buyer will shop around to learn what isavailable. If they find quality differences in the brands, theymight go for the higher price. If they find little differences,they might simply buy on price or convenience.


20/30

Habitual buying behavior

Many products are bought under conditions of low

involvement and the absence of significant branddifferences, for example: salt.

There is good evidence that consumers have low

involvement with most low-cost, frequently purchased

products. Variety seeking buying behavior

Some buying situations are characterized by low

involvement but significant brand differences.

Here consumers often do a lot of brand switching.

Brand switching occurs for the sake of variety rather

than dissatisfaction.


21/30

Stages of the buying decisions process

Five stage model of the consumer buying process.

Informationsearch

EvaluationOf

Alternatives

PurchaseDecisions

Postpurchase

Decisions

ProblemRecognition

P bl iti


22/30

Problem recognition

The buying process starts when the buyer recognize a problem orneed.

The need can be triggered by internal or external stimuli.

Marketers need to identify the circumstances that trigger aparticular need.

Information search

An aroused consumer will be inclined to search more information.

Two levels of arousal consumer: Heightened attention : a person simply becomes more receptive to

information about product

Active information search : a person who looking for reading material,phoning friends, and visiting stores to learn about product.

Consumer information sources: Personal sources : family, friends

Commercial sources : advertising, sales persons

Public sources : mass media

Experiential sources : using the product.

Th h h i i f i h l b


23/30

Through gathering information, the consumer learns about

competing brands and their features as depicted follows:

Total sets Awareness set Consideration set Choice set Decision

IBM

APPLE

DELLHWELETT-P

TOSHIBA

COMPAQ

NECAXIOO

ZYREX

IBM

APPLE

TOSHIBACOMPAQ

AXIOO

ZYREX

IBM

TOSHIBA

COMPAQ

AXIOO

TOSHIBACOMPAQ

AXIOO

?

E l i f l i


24/30

Evaluation of alternatives

Some basic concepts will help us understand consumer

evaluation process:

First: The consumer is trying to satisfy needs Second: The consumers is looking for certain benefits from the

product solution

Third: The consumers sees each product as a bundle of attributes with

varying abilities for delivering benefits sought to satisfy this needs.The attributes of interest to buyers vary by product:

Cameras: picture sharpness, camera speeds, camera size

Hotels: location, cleanliness, price, atmosphere

Tires: safety, tread life, price, ride quality.

Mouthwash: color, effectiveness, germ-killing capacity, price, taste/flavor

Consumers will pay the most attention to attributes that deliver the

sought benefits.


25/30

Purchase decisions In the evaluation stage, the consumers form preferences among the

brands in the choice set.

The consumers may also form an intention to buy the mostpreferred brand.

How ever two factors can intervene between the purchaseintention and the purchase decision.

The first factor is the attitudes of others. The extent to whichanother persons attitude reduces ones preferred alternatives

depends on two things: The intensity of the other persons negative attitude toward the

consumers preferred alternative

The consumers motivation to comply with the other persons wishes

The second factor is unanticipated situational factors that mayerupt to change the purchase intention.

In executing a purchase intention, the consumers may make up tofive purchase sub decisions: a brand decisions, vendor decisions,quantity decisions, timing decisions, payment method decisions .

S b l i f l i d h


26/30

Steps between evaluation of alternatives and a purchase

decision.

P t h b h i


27/30

Post purchase behavior After purchasing the product, the consumer will experience some level of

satisfaction or dissatisfaction.

Marketers must monitor post purchase satisfaction, post purchase actions and post

purchase product uses.

Post purchase satisfaction

The buyers satisfaction is a function of the closeness between the buyers

expectations and the products perceived performance.

If performance falls short of expectations, the customer is disappointed; if it

meets expectations, the customer is satisfied; if it exceeds expectations, the

customer is delighted.

Post purchase actions

satisfaction or dissatisfaction with the product will influence a consumer s

subsequent behavior.If the consumer is satisfied, he or she will exhibit a higher profitability of

purchasing the product again.

If the consumer is dissatisfied, they may abandon or return the product. They

may take public action by complaining to the company, going to a lawyer. They

may take private actions include : stop buying the products, warning friends,etc.


28/30

Post purchase use and disposal

Marketers should also monitor how buyers use and dispose

of the product.

If consumers store the product in a closet, the product is

probably not very satisfying.

If they sell or trade the product, new product sales will be

depressed.

If the consumers throw the product away, the marketer needs

to know how they dispose of it, especially if it can hurt theenvironment (such as: beverages containers and diapers).

H t di f d t ?


29/30

How customers use or dispose of products? Source from: Jacob jacoby, Carol.K. berning, and Thomas F.Dietvorst,What about

disposition?

Product

Get Rid ofit

temporarily

Get Rid of it

permanently

Keep it

Rent it

Lend it

Use it to serve

original purpose

convert it toserve a new

purpose

Store it

Give it

away

Trade it

Throw it

Sell it

To be

(resoled)

To be used

Direct to

consumer

Through

middleman

To

intermediary


30/30

Documents

Session 8a_4 Class-bb