Chapter 5

Chapter 5
Consumer Markets and Buyer Behavior
Principles of Marketing
Philip Kotler, Gary Armstrong
Analyzing the Marketing Environment
Topic Outline
• Model of Consumer Behavior

• Characteristics Affecting Consumer Behavior
• Types of Buying Decision Behavior
• The Buyer Decision Process
• The Buyer Decision Process for New Products
Consumer Markets and Buyer Behavior 2

Some definitions
Consumer buyer behavior refers to the buying behavior of
final consumers – individuals and households who buy
goods and services for personal consumption
All of these final consumers combine to make up the

consumer market

Model of Consumer Behavior

Characteristics Affecting Consumer
Behavior
Factors Influencing Consumer Behavior

Behavior
Cultural factors
Culture
Human behavior is mostly learned. Growing up in a society a person
learns values, develops perceptions, forms wants and behavior
Cultural shift
Subculture
Groups with shared value systems based on common life experiences
and situations – nationalities, religion, racial groups, geographic
regions
Social Class
Relatively permanent and ordered divisions in a society whose
members share similar values, interests and behaviors.
Income is not the only factor to determine social class.
Behavior
Social factors
Groups & Social Networks

Membership group: groups with direct influence, to which
person belongs
Reference group: direct or indirect point of comparison or
reference in forming attitudes and behaviors
Aspirational group: an individual wishes to belong here
Online Social Networks: online communities where people
socialize or exchange information and opinion

Behavior
Social factors
Groups & Social Networks
Word-of-mouth Influence: words or recommendations from
trusted friends, family, associates or other consumers on buying
behavior
Opinion Leaders: people within reference groups because of
special skills, personality, knowledge or other characteristics
exert social influence on others. Also called influentials or
leading adopters
Buzz Marketing
Family
Roles and Status
Behavior
Personal factors
Age and life cycle
Occupation
Economic situation
Lifestyle
• Activities, interests and opinions
• Captures more than the person's social class or personality
Personality and self-concept

Behavior
Personal factors
Personality
• Personality refers to the unique psychological characteristics that
distinguishes an individual or a group. It leads to relatively
consistent and lasting responses to one’s own environment.
Self- Defensiveness
Dominance Sociability Autonomy
confidence
Adaptability Aggressiveness

Behavior
Personal factors
Brand Personality
• Brands also have personality. Consumers are likely to choose the
brands with personalities that match their own.
Brand personality dimensions
Sincerity Excitement Competence
Sophistication Ruggedness

Behavior
Personal factors
Self-concept (Self-image)
• People’s possessions contribute to and reflect their identities
• We are what we consume
• Example

Behavior
Psychological factors
Motivation
Perception
Learning
Beliefs and attitudes

Behavior
A motive (or drive) is a need that is sufficiently pressing to direct the

person to seek satisfaction
Theories of Sigmund Freud suggest that a persons buying behavior is

affected by subconscious motives that even the buyer may not fully
understand.
Theories of Abraham Maslow suggest that human needs are arranged

in a hierarchy from the most pressing at the bottom to the least
pressing at the top.

Behavior
Maslow’s Hierarchy of Needs

Behavior
Perception is the process by which people select, organize, and

interpret information
People can form different perceptions of the same stimulus because
of the following:
• Selective attention
Consumers screen out information
• Selective distortion
People interpret to support beliefs
• Selective retention
People retain points to support attitudes
Behavior
Learning describes changes in an individual’s behavior arising from

experience
Learning occurs through:
• Drives
Internal stimulus that calls for action
• Stimuli
Objects that move drive to motive
• Cues
Minor stimuli that affect response
• Reinforcement
Feedback on action
Behavior
Belief
• A descriptive thought that a person holds about something
• May be based on real knowledge, opinion, or faith
• May or may not carry emotional charge.
Attitude
• Describes a person’s relatively consistent evaluations, feelings
and tendencies toward an object or idea.
• They are difficult to change

Types of Buying Decision Behavior
Complex buying behavior
Highly consumer involvement, significant brand differences
Example – car
Dissonance-reducing buying behavior
Highly involvement of consumers, little brand differences
Example – carpeting
Habitual buying behavior
Low involvement, little brand differences
Example – salt
Variety-seeking buying behavior
Low involvement, significant perceived brand differences
Example – cookies

Types of Buying Decision Behavior

The Buyer Decision Process
Buyer Decision Making Process

Need recognition
• Needs can be triggered by:
– Internal stimuli
• Normal needs become strong enough to drive
behavior
– External stimuli
• Advertisements
• Influence of friends or others

Information Search
• Consumers exhibit heightened attention or actively search for
information.
• Sources of information:
• Personal (family, friends)
• Commercial (advertising, salespeople)
• Public (mass media, consumer organizations, social media)
• Experiential (examining and using the product)
• Word-of-mouth

Evaluation of Alternatives
• Evaluation procedure depends on the consumer and the buying
situation.
• Most buyers evaluate multiple attributes, each of which is
weighted differently.
• At the end of the evaluation stage, purchase intentions are
formed.`

Purchase Decision
• Two factors intercede between purchase intentions and the actual
decision:
• Attitudes of others
• Unexpected situational factors

Postpurchase Behavior
• Satisfaction is important:
• Delighted consumers engage in positive word-of-mouth.
• It costs more to attract a new customer than it does to retain an
existing customer.
• Cognitive dissonance is common

The Buyer Decision Process for New
Products
Adoption process is the mental process an individual

goes through from first learning about an innovation to
final regular use.
Stages in the process include:
Awareness Interest Evaluation Trial Adoption

The Buyer Decision Process for New
Products
Influence of Product Characteristics
on Rate of Adoption
Relative
Compatibility Complexity
advantage
Divisibility Communicability

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Chapter 5

Consumer Markets and Buyer Behavior

• Model of Consumer Behavior

Consumer Markets and Buyer Behavior 2

All of these final consumers combine to make up the

Consumer Markets and Buyer Behavior 3

Consumer Markets and Buyer Behavior 4

Consumer Markets and Buyer Behavior 5

Groups & Social Networks

Consumer Markets and Buyer Behavior 7

Consumer Markets and Buyer Behavior 9

Consumer Markets and Buyer Behavior 10

Brand personality dimensions

Sincerity Excitement Competence

Consumer Markets and Buyer Behavior 11

Consumer Markets and Buyer Behavior 12

Consumer Markets and Buyer Behavior 13

A motive (or drive) is a need that is sufficiently pressing to direct the

Theories of Sigmund Freud suggest that a persons buying behavior is

Theories of Abraham Maslow suggest that human needs are arranged

Consumer Markets and Buyer Behavior 14

Maslow’s Hierarchy of Needs

Consumer Markets and Buyer Behavior 15

Perception is the process by which people select, organize, and

Learning describes changes in an individual’s behavior arising from

Consumer Markets and Buyer Behavior 18

Consumer Markets and Buyer Behavior 19

Consumer Markets and Buyer Behavior 20

Consumer Markets and Buyer Behavior 21

Consumer Markets and Buyer Behavior 22

Consumer Markets and Buyer Behavior 23

Consumer Markets and Buyer Behavior 24

Consumer Markets and Buyer Behavior 25

• Cognitive dissonance is common

Consumer Markets and Buyer Behavior 26

Adoption process is the mental process an individual

Awareness Interest Evaluation Trial Adoption

Consumer Markets and Buyer Behavior 27

Consumer Markets and Buyer Behavior 28

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