Consumer market

Consumer Buying Behavior

The most The most important thing is important thing is to forecast where to forecast where customers are customers are moving, and be in moving, and be in front of them.front of them.

5 - 3

Learning Goals

1. Define the consumer market and construct a model of consumer buyer behavior

2. Name the four factors that influence buyer behavior

3. List and understand the types of buying decision behavior and

4. Describe the stages in the buying decision process

Case StudyHarley Davidson

Building Success

• Understanding the customers’ emotions and motivation

• Determining the factors of loyalty

• Translating this information to effective advertising

Measuring Success

• Currently 22% of all U.S. bike sales

• Demand above supply• Sales doubled in the past 5

years with earnings tripled

5 - 4

5 - 5

Learning Goals



3. List and understand the types of buying decision behavior and stages in the process

4. Describe the adoption and diffusion process for new products

Chapter 4 Version 3e 6

Consumer Behavior

Processes a consumer uses to

make purchase decisions, as well

as to use and dispose of

purchased goods or services; also

includes factors that influence

purchase decisions and the

product use

11

Types of buyer

• Individual buyer (Consumer market)• Business buyer (Business Market)

5 - 9

Consumer Market

All of these final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.

Read more : http

http://www.ehowml/

5 - 10

Consumer buyer behavior

Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption

Consumer buying behavior is the sum total of a consumer's attitudes, preferences, intentions and decisions regarding the consumer's behavior in the marketplace when purchasing a product or service.

The study of consumer behavior draws upon social science disciplines of anthropology, psychology, sociology, and economics.

Influence of Social science on buyer behavior studies

• Economics: Human is a rational buyer who wants to take maximum utility out of fixed/minimum price.

• Psychology: Acc. To psychology any human activity is directed towards meeting certain needs. ( maslow`s Need Hierarchy)

• Sociology & anthropology: Effect of reference group, society, role in society, etc.

Figure 6.1 Model of Consumer Behavior

Figure 6.1 Model of Consumer Behavior :

Buyer’s Blackbox

5 - 14

Characteristics Affecting Consumer Behavior

– Culture• Forms a person’s wants and

behavior– Subculture

• Groups with shared value systems

– Social Class• Society’s divisions who share

values, interests and behaviors

• Cultural• Social• Personal• Psychological

Key FactorsKey Factors

5 - 15


– Groups• Membership• Reference

– Aspirational• Opinion Leaders

– Buzz marketing– Family

• Many influencers– Roles and Status

CulturalSocialPersonalPsychological


Goal 2: Know the four factors that influence consumer buying behavior

This advertiser knows teens are strongly

influenced by groups when purchasing

fashion items

Marketing in Action5 - 16

5 - 17


– Age and life cycle– Occupation– Economic situation– Lifestyle

•Activities, interests and opinions•Lifestyle segmentation

– Personality and self-concept




5 - 18


– Motivation– Perception– Learning– Beliefs and attitudes




5 - 19

Psychological FactorsMotivation

• A motive is a need that is sufficiently pressing to direct the person to seek satisfaction

• Maslow ordered needs based on how pressing they are to the consumer

Example:• Are you hungry? - Buy food• Are you bored? - go to cinema.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-20

Motivation

Freud’sTheory

Behavioris guided by subconsciousmotivations

Maslow’sHierarchyof Needs

Behavioris driven by

lowest, unmet need

Herzberg’sTwo-Factor

Theory

Behavior isguided by motivating

and hygienefactors

Maslow’s Hierarchy of Needs

This ad demonstrates a product meeting physiological and

social needs

Marketing in Action5 - 22

Discussion

What consumer products might fulfill multiple levels of the Hierarchy of Needs?

5 - 23

5 - 24

Psychological Factors Perception

• Perception is the process by which people select, organize, and interpret information.

• Perception Includes:– Selective attention

• Consumers screen out information (computer)

– Selective distortion• People interpret to support beliefs (radio in computer section)

– Selective retention• People retain points to support attitudes (more discount offers)

Discussion QuestionPerception

1. How many ads were you exposed to today?

2. Which ones do you remember? Why?

5 - 25

5 - 26

Psychological Factors Learning and Memory

• Learning describes changes in an individual’s behavior arising from experience

• Example: If you get some rewards from buying Dell computer, you will prefer to buy printer from DELL AGAIN.

• Short and Long term memory also direct people to choose which product to buy.

5 - 27

Learning Goals



3. List and understand the types of buying decision behavior and stages in the process

4. Describe the adoption and diffusion process for new products

Types of Buying Decision Behavior

Figure 5.6

5 - 28

The Buyer Decision Process

Changes in life style and buying habits

• Ready to eat food are popular now• Vacuum cleaner and cooking ranges have

entered into households• Shift in woman`s attitude towards cooking• Yesterday`s luxuries are becoming necessities

5 - 31

Today we discussed

1. Consumer behavior2. Types of consumers3. Define the consumer market 4. Construct a model of consumer buyer behavior 5. Name the four factors that influence buyer behavior6. List and understand the types of buying decision

behavior 7. Decribe the stages in the buying decision process

5 - 32

Consumer Market

All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.

Read more : http

http://www.ehowml/

5 - 33

Start with introduction/Definition

All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies

5 - 34

Divide into paragraphs

All of the final consumers combine to make up the consumer market.

A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.

5 - 35

Use suitable heading

Consumer Market:

All of the final consumers combine to make up the consumer market. A consumer market has following characteristics:


5 - 36

Color or underline the heading

Consumer Market:

All of the final consumers combine to make up the consumer market. A consumer market has following characteristics:


5 - 37

Give Proper spacesConsumer Market:


A consumer market has following characteristics:


5 - 38

Use bullets for key pointsConsumer Market:



i. It is a marketplace

ii. It consists of household consumers who buy goods

for individual consumption or for family consumption and Not for resale .

It is different than a business market, in which businesses sell goods and services to other companies.

5 - 39

Write full sentences and add some examples

Consumer Market:





for individual consumption ( Ex: Clothes, shoes)or for family consumption ( Ex: Grocery, Fuel, Car) and Not for resale (Refrigerator, Bed) .

It is different than a business market, in which businesses sell goods and services to other companies.

5 - 40

Finish with conclusionConsumer Market:






Basically Consumer Market is different than a business market, in which businesses sell goods and services to other companies.

5 - 41

A Sample Answer…….Consumer Market:



i. It is a marketplace.



Basically Consumer Market is different than a business market, in which businesses sell goods and services to other companies.

Business organizations

Business organizations do not only sell. They also buy vast quantities of raw materials manufactured , components, plant and equipment, supplies , and business services .

Figure 8.1: Major Influences on Industrial Buying Behavior


The business market versus the consumer The business market versus the consumer marketmarket

Participants in the Business Buying Process


Business Buyer Behavior

Participants in the Business Buying Process

Users are those that will use the product or serviceInfluencers help define specifications and provide information

for evaluating alternativesBuyers have formal authority to select the supplier and arrange

terms of purchaseDeciders have formal or informal power to select and approve

final suppliersGatekeepers control the flow of information

6-17

Major Influences on Buying Decisions

• 1- Environmental Factors 2-Organizational Factors -Purchasing-Department Upgrading

-Centralized Purchasing

-Decentralized Purchasing of Small Ticket Items

-Internet Purchasing

Figure 6.5 Successive Sets Involved in Consumer Decision Making


Table 6.4 A Consumer’s Evaluation of Brand Beliefs About Laptops


Figure 6.6 Stages between Evaluation of Alternatives and Purchase


Perceived Risk


FunctionalFunctional

PhysicalPhysical

FinancialFinancial

SocialSocial

PsychologicalPsychological

TimeTime

Figure 6.7 How Customers Use and Dispose of Products


Questions

How to solve this Questions

Tips for standard writing