Chapter 5

Consumer Markets and

Consumer Buying Behavior

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 Consumer Buying
Behavior
 Consumer Buying Behavior refers to the
buying behavior of final consumers
-individuals & households who buy goods
and services for personal consumption.
 All these consumers make up the
consumer market.
 The central question for marketers is:
 “How do consumers respond to various
marketing efforts the company might use?”

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 Model of Buyer Behavior
(Fig. 5.1)
Marketing and Buyer’s Black Box Buyer Responses
Other Stimuli

Marketing Buyer Characteristics Product Choice

Product Buyer Decision Process Brand Choice
Price Dealer Choice
Place
Promotion
Other Purchase Timing
Economic Purchase Amount
Technological
Political
Cultural

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 Factors Influencing
Consumer Behavior (Fig.
5.2)
Cultural
Social
Personal
Age and Psycho-
Culture Reference life-cycle logical
Culture groups
Occupation Motivation
Economic Perception Buyer
Sub-
Sub-
culture Family situation Learning
culture
Lifestyle Beliefs and
Roles attitudes
Social Personality
Social and and
class
class status self-concept

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 Factors Affecting
Consumer Behavior:
Culture
Culture is the Most Basic Cause of a
Person's Wants and Behavior.
Subculture
• Group of people with
shared value systems
based on common life
experiences.
• Hispanic Consumers
• African American
Consumers
• Asian American Consumers
• Mature Consumers
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 Factors Affecting
Consumer Behavior:
Culture
Culture is the Set of Values, Perceptions,
Wants & Behavior Learned by a Member of
Society from Family.
Social Class
• Society’s relatively
permanent & ordered
divisions whose members
share similar values,
interests, and behaviors.
• Measured by: Occupation,
Income, Education, Wealth
and Other Variables.

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 Factors Affecting
Consumer Behavior:
Social
Groups
Groups
••Membership
Membership
••Reference
Reference

Family
Family (most
(most
important)
important) Social
Social Factors
Factors
••Husband,
Husband, wife,
wife, kids
kids
••Influencer,
Influencer, buyer,
buyer, Family Buying Influence
user
user Children can exert a
strong influence on
family buying decisions.
Johnson & Johnson reminds
customer’s of its commitment

Roles
Roles and
and Status
Status
to the American Family.

What other companies use

children to influence
family buying decisions?

Click or pre ss spa cebar to return

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 Factors Affecting
Consumer Behavior:
Personal
Personal
Personal Influences
Influences

Age
Ageand
and Life
Life Economic
Economic Personality &
Personality &
Cycle Occupation
Occupation
CycleStage
Stage Situation
Situation Self-Concept
Self-Concept

Lifestyle
LifestyleIdentification
Identification

Activities
Activities Interests
Interests Opinions
Opinions

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 SRI Values and Lifestyles
(VALS) (Fig. 5.3)
Actualizers
Actualizers
High Innovation
High Resources

Fulfilleds
Fulfilleds Achievers
Achievers Experiencers
Experiencers

Believers
Believers Strivers
Strivers Makers
Makers

Strugglers
Strugglers
Low Resources Low Innovation
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 Factors Affecting
Consumer Behavior:
Psychological
Motivation

Psychological
Factors
Beliefs and Affecting Perception
Attitudes Buyers
Choices

Learning
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Maslow’s Hierarchy of
Needs
(Fig. 5.4)
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem)

Social Needs
(sense of belonging,
love)
Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
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 Types of Buying Decision
Behavior (Fig. 5.5)
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between Behavior Behavior
brands
Few Dissonance- Habitual
differences Reducing Buying Buying
between Behavior Behavior
brands

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 Buyer Decision Process
(Fig. 5.6)
Purchas
e
Evaluation Decisio
Postpurchase
of n Behavior
Alternatives
Informatio
n
Search
Need
Recognitio 13
 Buyer Decision Process
Step 1. Need Recognition

Buyer
Recognizes Needs Arising
State Where From:
the Buyer’s a
Needs are Problem Internal
Fulfilled and or a Stimuli –
the Buyer is Need.
Hunger
Satisfied.
External
Stimuli-
Friends
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 Process
Step 2. Information
Search

•Family, friends, neighbors

Personal
Personal Sources
Sources •Most effective source of
information
•Advertising, salespeople
Commercial
Commercial Sources
Sources •Receives most information from
these sources

•Mass Media
Public
Public Sources
Sources •Consumer-rating groups

•Handling the product

Experiential
Experiential Sources
Sources •Examining the product
•Using the product

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 Process
Step 4. Evaluation of
Alternatives
Consumer May Use Careful
Calculations & Logical Thinking

Consumers May Buy on Impulse and

Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.

Consumers May Make Buying Decisions

Only After Consulting Others.

Marketers Must Study Buyers to Find

Out How They Evaluate Brand
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The Buyer Decision
Process
Step 5. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand

Attitude Unexpecte
s of d
Others Situational
Factors

Purchase Decision
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Process
Step 6. Postpurchase
Behavior

Satisfied Customer!

Consumer’s

Cognitive Dissonance
Expectations of Product’s Performance.
Product’s Perceived
Performance.

Dissatisfied Customer
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 Discussion
Connections
 Form small groups to discuss a
specific major purchase that one of
you has made recently.
 What type of buying decision was it?
(slide #12)
 Discuss the Buyer Decision Process
and what major factors influenced
your decisions.
 Stages in the Adoption
Process
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks
Information about new product.

Evaluation: Consumer considers

trying new product.
Trial: Consumer tries new
product on a small scale.

Adoption: Consumer decides

to make regular use of product.

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 Adopter Categories (Fig.
5.7)
Percentage of Adopters

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late

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 Influence of Product
Characteristics
on Rate of Adoption
Communicability Relative Advantage
Can results be easily
Is the innovation
observed or described
superior to existing
to others?
products?

Divisibility 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?
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 Review of Concept
Connections
 Define the consumer market and construct a
simple model of consumer buyer behavior.
 Name the four major factors that influence
consumer buyer behavior.
 List and understand the stages in the buyer
decision process.
 Describe the adoption and diffusion process
for new products.

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