Chapter – 5 : Consumer Markets and Buyer Behavior:

• Harley-Davidson’s spend a great deal of time about

customers and their buying behavior. They want to know
who their customers are, what they think and how they
feel, and why they buy a Harley.
• Average Harley customer is a 47-year-old male with a
median income of $82,000. More than 12 percent of
Harley purchases are made by women.
• “It’s much more than a machine.” “It is part of their own
self-expression and lifestyle.” Owing a Harley makes you
“toughest, guy”.
• Four wheels move body, two wheels move spirit.
• Customer buyer behavior: Buying behavior of
consumers that buy goods and services for personal
consumption.
• Consumers around world vary tremendously in age,
income, education level, and tastes. They also buy an
incredible variety of goods and services.
Principles of Marketing 1
By Prof: Zafarullah Siddiqui
Model of Consumer Behavior:
• The environment:
• Marketing stimuli: Product, Price, Place, Promotion.
• Other: Economic, Technological, Social, Cultural.
• Buyer’s black Box: Buyer’s characteristics, buyer’s
decision process.
• Buyer responses: Buying attitudes and preferences.
• Purchase behavior: what the buyer buys, when,
where, and how much. Brand and company relationship
behavior.
• Characteristics Affecting Consumer Behavior:
• Many, factors affect our buying behavior from broad
cultural and social influences to motivational beliefs,
and attitudes lying deep within us i.e. why did you buy
that specific cell phone or Branded Shirt?
Principles of Marketing 2
By Prof: Zafarullah Siddiqui
Culture:
• Buyer: buying decisions are affected by all incredibly
complex combination of external and internal influences.

• Culture is most basic cause of a person’s wants and

behavior. Human behavior is largely learned. Growing up in a
society, a child learns basic values, perceptions, wants, and
behaviors from family and other institutions.

• Factors Influencing Consumer Behavior:

• Cultural: Culture, Subculture.
• Social: Reference groups, family, roles and status.
• Personal: Age and life cycle stage, occupation, Economic
situation, lifestyle, personality and self-concept.
• Psychological: Motivation, perception, learning, beliefs and
attitudes.
• Subculture: Subcultures include nationalities, religions,
racial groups, and geographic regions.
Principles of Marketing 3
By Prof: Zafarullah Siddiqui
Social Economic Classes (SEC):
• Social Classes are society’s relatively permanent and
ordered divisions whose members share similar values,
interests, and behaviors. Social class is not determined
by a single income, but is measured as a combination
of occupation, income, education, wealth, and other
variables.

• Product penetration rates vary among households of

different SEC. i.e. in urban Pakistan. Close to 40
percent SEC A1 households report using products like
tissue/ toilet paper and air fresheners, this figure drops
to 5 percent for SEC E2 households.

• Opinion Leader: Person within a reference group who,

because of special skills, knowledge, personality, or
other characteristics, exerts social influence on others.

Principles of Marketing 4
By Prof: Zafarullah Siddiqui
Online Social Networks:

• Online social communities blogs, social networking Web

sites, or even virtual worlds where people socialize or
exchange information and opinions.

• Family: Family members strongly influence buyer

behavior. Husband-wife involvement varies widely by
product category and by stage in buying process.
Buying roles change with evolving consumer lifestyles.

• Children also have a strong influence on family’s buying

decisions. Especially in a social scenario where more
and more families are becoming nuclear.

Principles of Marketing 5
By Prof: Zafarullah Siddiqui
Age and Life-Cycle State:
• People change goods and services they buy over their lifetimes.
Tastes in food, clothes, furniture, and recreation are often age
related.
• Traditional family life-cycle stages include young singles and
married couples with children.
• Youth segment younger than 18. Getting Started customers aged
18 to 35. Builders aged 35 to 50. Accumulators aged 50 to 60,
Preservers over 60.
• Lifestyle: A person’s pattern of living as expressed by his activities,
interests, and opinions.
• Lifestyle: People coming from same subculture, social class, and
occupation may have quite different lifestyles. It involves measuring
consumers’ major Age-Income-Occupation (AIO) dimensions.
• Consumers don’t just buy products, they buy values and lifestyle
those products represent.
• In Pakistan, ChenOne, retail chain, has addressed evolving
lifestyles of affluent urbanites.
• Personality: Unique psychological characteristics that lead to
relatively consistent responses to one’s own environment.

Principles of Marketing 6
By Prof: Zafarullah Siddiqui
Brand Personality:
1. Specific mix of human traits attributed to a particular brand.
2. Sincerity (down-to-earth, honest, wholesome, and cheerful).
3. Excitement (Daring, spirited, imaginative, and up-to-date).
4. Competence (reliable, intelligent, and successful).
5. Sophistication (upper class and charming).
6. Ruggedness (outdoorsy and tough).
7. Jeep with “ruggedness’” Apple with “excitement,” CNN with
“competence,” and Dove with “sincerity,”

• Psychological Factors:
• Motive (drive): A need that is sufficiently pressing to direct person
to seek satisfaction of need.
• Perception: Process by which people select, organize, and
interpret information to form a meaningful picture of world.

Principles of Marketing 7
By Prof: Zafarullah Siddiqui
Maslow’s Hierarchy of Needs:

• Self-actualization needs: Self-development (TOP).

• Esteem needs: Self-esteem, recognition, status.
• Social needs: Sense of belonging, love.
• Safety needs: Security, protection.
• Physiological needs: Hunger, thirst (BOTTOM).
• Learning: Changes in an individual’s behavior arising
from experience.
• Belief: A thought that a person holds about something.
• Attitude: A person’s consistently favorable or
unfavorable evaluations, feelings, and tendencies
toward an object or idea.

Principles of Marketing 8
By Prof: Zafarullah Siddiqui
Type of Buying Decision Behavior:

High Involvement Low Involvement

Significant Complex Variety-

differences
between brands buying seeking
behavior buying behavior

Few Dissonance reducing Habitual

Differences buying behavior buying behavior
between brands

Principles of Marketing 9
By Prof: Zafarullah Siddiqui
Complex Buying Behavior:

• Consumer buying behavior in situations characterized

by high consumer involvement in a purchase and
significant perceived differences among brands.
• Dissonance-reducing buying behavior: Consumer
buying behavior in situations characterized by high
involvement but few perceived differences among
brands.
• Habitual buying behavior: Consumer buying behavior
in situations characterized by low-consumer
involvement and few significantly perceived brand
differences.
• Variety-seeking buying behavior: Consumer buying
behavior in situations characterized by low consumer
involvement but significant perceived brand differences.

Principles of Marketing 10
By Prof: Zafarullah Siddiqui
The Buyer Decision Process.

Need Information Evaluation of Purchase Post purchase

recognition search alternatives decision behavior

New Product: A good service, or idea that is perceived by

some potential customers as new.

Principles of Marketing 11
By Prof: Zafarullah Siddiqui
Buyer Decision Process for New Products:

• Adoption process: Mental process through which an

individual passes from first hearing about an innovation
to final adoption.

Stages in the Adoption Process:

• Awareness: Consumer becomes aware of new
product, but lacks information about it.
• Interest: Consumer seeks information about new
product.
• Evaluation: Consumer considers whether trying new
product makes sense.
• Trial: Consumer tries new product on as mall scale to
improve his or her estimate of its value.
• Adoption: Consumer decides to make full and regular
use of the new product.

Principles of Marketing 12
By Prof: Zafarullah Siddiqui