Consumer Markets

and
Consumer Buyer Behavior
Consumer  Buying  Behavior  
 Model  of  Consumer  Behavior  
Product Marketing and Economic
Other Stimuli
Price Technological
Place Political
Promotion Cultural

Buyer’s Characteristics
Decision Buyer’s Black Box Affecting
Process Consumer
Behavior

Product Choice Purchase

Buyer’s Response Timing
Brand Choice
Purchase
Dealer Choice Amount
Characteris7cs  Affec7ng    
Consumer  Behavior  
Culture
Social
Personal
Psychological
Buyer
 Factors  Affec7ng  Consumer  Behavior:  
Culture  

•  Most  basic  cause  of  a  person's  wants  and  

behavior.  
•  Values  
•  Percep7ons  
 Subculture  Social Class
•  Groups of people with shared •  People within a social class
value systems based on common tend to exhibit similar buying
life experiences. behavior.
•  Hispanic Consumers •  Occupation
•  African American Consumers •  Income
•  Asian American Consumers •  Education
•  Mature Consumers •  Wealth
 Factors  Affec7ng  Consumer  Behavior:  
Social    
Groups
• Membership
• Reference

Family
• Husband, wife, kids Social Factors
• Influencer, buyer, user

Roles and Status

 Factors  Affec7ng  Consumer  Behavior:  
Personal  

Personal Influences

Age and Family Life Cycle

Occupation
Stage

Economic Situation Personality & Self-Concept

Lifestyle Identification

Activities Opinions

Interests
 VALS  2  
Actualizers Abundant Resources

Principle Oriented Status Oriented Action Oriented

Fulfilleds Achievers Experiencers

Believers Strivers Makers

Strugglers
Minimal Resources
Factors Affecting Consumer Behavior:
Psychological

Motivation

Beliefs and Psychological

Factors Perception
Attitudes

Learning
Maslow’s  Hierarchy  of  Needs  

Self
Actualization
(Self-development)

Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
Types  of  Buying  Decisions  

High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between
brands
Behavior Behavior
Few Dissonance- Habitual
differences Reducing Buying
between
Buying
brands Behavior Behavior
The  Buyer  Decision  Process  

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior
The Buyer Decision Process
Step 1. Need Recognition

Need Recognition
Difference between an actual state and a desired state

Internal Stimuli External Stimuli

•  Hunger •  TV advertising

•  Thirst •  Magazine ad
•  A person’s normal •  Radio slogan
needs
• Stimuli in the
environment
The  Buyer  Decision  Process  
Step  2.    Informa7on  Search  

Personal Sources • Family, friends, neighbors

• Most influential source of
  information

Commercial Sources • Advertising, salespeople

• Receives most information
from these sources

Public Sources • Mass Media

• Consumer-rating groups

• Handling the product

Experiential Sources • Examining the product
• Using the product
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features

Degree of Importance
Which attributes matter most to me?

Brand Beliefs
What do I believe about each available brand?

Total Product Satisfaction

Based on what I’m looking for, how satisfied
would I be with each product?

Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
The  Buyer  Decision  Process  
Step  4.    Purchase  Decision  

Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of others situational
factors

Purchase Decision
The Buyer Decision Process
Step 5. Postpurchase Behavior

 Consumer’s Expectations of
 Product’s Performance

 Product’s Perceived
  Performance

Satisfied Dissatisfied
Customer! Customer

Cognitive Dissonance
Stages  in  the  Adop7on  Process  

Awareness

Interest

Evaluation

Trial

Adoption
Adop7on  of  Innova7ons  
Percentage of Adopters

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late
 Influences  on  the  Rate  of  Adop7on  
of  New  Products  

Communicability Relative Advantage

Can results be easily Is the innovation
observed or described superior to existing
to others? products?

Product
Divisibility Characteristics Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?