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1、Consumer Markets and Consumer Buyer BehaviorChapter 6ObjectivesBe able to define the consumer market and construct a simple model of consumer buyer behavior.Know the four major factors that influence consumer buyer behavior.1ObjectivesUnderstand the major types of buying decision behavior and the st
2、ages in the buyer decision process.Be able to describe the adoption and diffusion process for new products.2Harley“Hogs”Harley“Hogs”Harley“Hogs”Harley“Hogs”account for 1/5 of account for 1/5 of account for 1/5 of account for 1/5 of U.S.cycle salesU.S.cycle salesU.S.cycle salesU.S.cycle salesSales ha
3、ve exceeded Sales have exceeded Sales have exceeded Sales have exceeded supply for yearssupply for yearssupply for yearssupply for years1986-2000:Four 1986-2000:Four 1986-2000:Four 1986-2000:Four stock splits,increase stock splits,increase stock splits,increase stock splits,increase of 7,100%of 7,10
4、0%of 7,100%of 7,100%Fiercely loyal clientele Fiercely loyal clientele Fiercely loyal clientele Fiercely loyal clientele revolves around 7 core revolves around 7 core revolves around 7 core revolves around 7 core customer typescustomer typescustomer typescustomer typesHarley owners use their Harley o
5、wners use their Harley owners use their Harley owners use their bikes to express their bikes to express their bikes to express their bikes to express their lifestyle and attitudeslifestyle and attitudeslifestyle and attitudeslifestyle and attitudesAdvertising reflects the Advertising reflects the Ad
6、vertising reflects the Advertising reflects the Harley mystiqueHarley mystiqueHarley mystiqueHarley mystiqueHarley-DavidsonCase Study3DefinitionsConsumer Buying BehaviorBuying behavior of individuals and households that buy products for personal consumption.Consumer MarketAll individuals/households
7、who buy products for personal consumption.4Stimulus Response ModelMarketing and other stimuli enter the buyers“black box”and produce certain choice/purchase responses.Marketers must figure out what is inside of the buyers“black box”and how stimuli are changed to responses.Model of Consumer Behavior5
8、Characteristics Affecting Consumer Behavior Cultural Social Personal PsychologicalCultureSubcultureHispanic consumersHispanic consumersAfrican AmericansAfrican AmericansAsian AmericansAsian AmericansMature consumersMature consumersSocial ClassKey Factors Key Factors 6Hispanics35 million consumers pu
9、rchase$425 billion worth of goods and services.Expected to grow 64%in 20 years.Spanish media makes group easy to reach.Brand loyal group.Characteristics Affecting Consumer Behavior7African Americans35 million consumers purchase$527 35 million consumers purchase$527 billion worth of goods and service
10、s.billion worth of goods and services.Growing more affluent/sophisticated.Growing more affluent/sophisticated.Price and brand name conscious;quality Price and brand name conscious;quality and selection are important.and selection are important.Certain media target this group.Certain media target thi
11、s group.Characteristics Affecting Consumer Behavior8Asian Americans10 million consumers purchase$229 10 million consumers purchase$229 billion worth of goods and services.billion worth of goods and services.Fastest growing,most affluent subculture.Fastest growing,most affluent subculture.Many nation
12、alities comprise this group.Many nationalities comprise this group.Consumer packaged goods companies now Consumer packaged goods companies now target this group more heavily.target this group more heavily.Characteristics Affecting Consumer Behavior9Mature Consumers75 million consumers aged 50+will g
13、row 75 million consumers aged 50+will grow to 115 million within 25 years.to 115 million within 25 years.Mature consumers control 50%of all Mature consumers control 50%of all discretionary income.discretionary income.Attractive market for travel,restaurant,Attractive market for travel,restaurant,and
14、 cosmetics products,among others.and cosmetics products,among others.Characteristics Affecting Consumer Behavior10Characteristics Affecting Consumer Behavior Cultural Social Personal PsychologicalGroupsGroups MembershipMembership ReferenceReferencevv Aspirational Aspirational groups groups Opinion l
15、eadersOpinion leadersvv Buzz marketing Buzz marketingFamilyFamily Children can influenceChildren can influenceRoles and StatusRoles and StatusKey Factors Key Factors 11Characteristics Affecting Consumer Behavior Cultural Social Personal Psychological Age and life cycleAge and life cycle OccupationOc
16、cupation Economic situationEconomic situation LifestyleLifestyle Activities,interests,and Activities,interests,and opinionsopinions Lifestyle segmentationLifestyle segmentation Personality and self-Personality and self-conceptconcept Brand personalityBrand personalityKey Factors Key Factors 12Brand
17、Personality DimensionsCharacteristics Affecting Consumer BehaviorSincerityRuggednessExcitementCompetenceSophistication13Characteristics Affecting Consumer Behavior Cultural Social Personal Psychological MotivationMotivation Needs provide motives for Needs provide motives for consumer behaviorconsume
18、r behavior Motivation researchMotivation research Maslows Maslows hierarchy of needshierarchy of needs PerceptionPerception Selective attention,selective Selective attention,selective distortion,selective retentiondistortion,selective retention LearningLearning Drives,stimuli,cues,responses Drives,s
19、timuli,cues,responses and reinforcementand reinforcement Beliefs and attitudesBeliefs and attitudesKey Factors Key Factors 14Maslows Hierarchy of NeedsCharacteristics Affecting Consumer BehaviorSelf-actualizationSelf-actualizationEsteem NeedsEsteem NeedsSocial NeedsSocial NeedsSafety NeedsSafety Nee
20、dsPhysiological NeedsPhysiological Needs15Types of Buying-Decision BehaviorDifference Difference between brandsbetween brandsSignificantSignificantDifferencesDifferencesComplex Complex Complex Complex buying behaviorbuying behaviorbuying behaviorbuying behaviorLowLowFewFewDifferencesDifferencesDisso
21、nance-Dissonance-Dissonance-Dissonance-reducing buying reducing buying reducing buying reducing buying behaviorbehaviorbehaviorbehaviorHabitual buying Habitual buying Habitual buying Habitual buying behaviorbehaviorbehaviorbehaviorVariety-seeking Variety-seeking Variety-seeking Variety-seeking buyin
22、g behaviorbuying behaviorbuying behaviorbuying behaviorHighHighInvolvement LevelInvolvement Level16Five Stages:Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behaviorThe Buyer Decision Process17The Buyer Decision Process Need recognitionNeed recognition Inf
23、ormation searchInformation search Evaluation of alternativesEvaluation of alternatives Purchase decisionPurchase decision Postpurchase Postpurchase behaviorbehaviorNeeds can be Needs can be triggered by:triggered by:Internal stimuliInternal stimulivvNormal needs become Normal needs become strong eno
24、ugh to drive strong enough to drive behaviorbehavior External stimuliExternal stimulivvAdvertisementsAdvertisementsvvFriends of friendsFriends of friendsProcess Stages Process Stages 18The Buyer Decision Process Need recognitionNeed recognition Information searchInformation search Evaluation of alte
25、rnativesEvaluation of alternatives Purchase decisionPurchase decision Postpurchase Postpurchase behaviorbehavior Consumers exhibit Consumers exhibit heightened attention or heightened attention or actively search for actively search for information.information.Sources of information:Sources of infor
26、mation:PersonalPersonal CommercialCommercial PublicPublic ExperientialExperiential Word-of-mouthWord-of-mouthProcess Stages Process Stages 19The Buyer Decision Process Need recognitionNeed recognition Information searchInformation search Evaluation of alternativesEvaluation of alternatives Purchase
27、decisionPurchase decision Postpurchase Postpurchase behaviorbehavior Evaluation procedure Evaluation procedure depends on the consumer depends on the consumer and the buying situation.and the buying situation.Most buyers evaluate Most buyers evaluate multiple attributes,each of multiple attributes,e
28、ach of which is weighted which is weighted differently.differently.At the end of the evaluation At the end of the evaluation stage,purchase intentions stage,purchase intentions are formed.are formed.Process Stages Process Stages 20The Buyer Decision Process Need recognitionNeed recognition Informati
29、on searchInformation search Evaluation of alternativesEvaluation of alternatives Purchase decisionPurchase decision Postpurchase Postpurchase behaviorbehaviorTwo factors intercede Two factors intercede between purchase between purchase intentions and the intentions and the actual decision:actual dec
30、ision:Attitudes of othersAttitudes of others Unexpected situational Unexpected situational factorsfactorsProcess Stages Process Stages 21The Buyer Decision Process Need recognitionNeed recognition Information searchInformation search Evaluation of alternativesEvaluation of alternatives Purchase deci
31、sionPurchase decision Postpurchase Postpurchase behaviorbehavior Satisfaction is important:Satisfaction is important:Delighted consumers Delighted consumers engage in positive word-of-engage in positive word-of-mouth.mouth.Unhappy customers tell on Unhappy customers tell on average 11 other people.a
32、verage 11 other people.It costs more to attract a It costs more to attract a new customer than it does new customer than it does to retain an existing to retain an existing customer.customer.Cognitive dissonance is Cognitive dissonance is commoncommonProcess Stages Process Stages 22Buyer Decision Pr
33、ocess for New ProductsNew ProductsGood,service or idea that is perceived by customers as new.Stages in the Adoption ProcessMarketers should help consumers move through these stages.23Stages in the Adoption ProcessBuyer Decision Process for New ProductsAwarenessEvaluationInterestTrialAdoption24Buyer
34、Decision Process for New ProductsIndividual Differences in InnovativenessConsumers can be classified into five Consumers can be classified into five adopter categories,each of which behaves adopter categories,each of which behaves differently toward new products.differently toward new products.Produ
35、ct Characteristics and AdoptionFive product characteristics influence the Five product characteristics influence the adoption rate.adoption rate.25Adopter CategoriesBuyer Decision Process for New ProductsInnovatorsEarly MajorityEarly AdoptersLate MajorityLaggards26Product CharacteristicsBuyer Decisi
36、on Process for New ProductsRelative AdvantageCompatibilityComplexityDivisibilityCommunicability27Buyer Decision Process for New ProductsInternational Consumer Behavior Values,attitudes and behaviors differ greatly Values,attitudes and behaviors differ greatly in other countries.in other countries.Ph
37、ysical differences exist which require Physical differences exist which require changes in the marketing mix.changes in the marketing mix.Customs vary from country to country.Customs vary from country to country.Marketers must decide the degree to which Marketers must decide the degree to which they will adapt their marketing efforts.they will adapt their marketing efforts.28