• Define the consumer market and construct a model of consumer buyer behavior • Name the four factors that influence buying behavior • List and understand the types of buying decision behavior and stages of the process
Consumer Markets and Consumer Behavior
• Consumer buying behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption • Consumer market refers to all of the personal consumption of final consumers buyer
customer client
consumer
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Model of Consumer Behavior Consumer Buying Roles
Consumer Buying Decision Process
Buyer’s black box
Marketing stimuli
Other stimuli
Buyer’s characteristics
Buyer’s decision process
Product Price Place Promotion
Economic Technological Political Cultural
Cultural Social Personal Psychological
Problem recognition Information search Evaluation Decision Postpurchase behavior
Understand: • Buying roles • Buying behavior • Buying process
• Consumer buying behavior depends on: – Involvement level – Perception of differences among brands – Level of spontaneity
High Involvement
Low Involvement
Significant differences between brands
Complex Buying Behavior
VarietySeeking Behavior
Few differences between brands
DissonanceReducing Buying Behavior
Habitual Buying Behavior
Pure IB
Catalyzed IB
• Sth new, escapism
„remidning” IB
• I buy for the future because I am a good planner
• Sudden recall (eg refill stock)
Compensation IB
Suggested IB
• Reward or mood improvement
• Quick assessment and decision, no prior knowledge
Break-through IB
Planned IB
• My problems will be solved thanks to change in life (new house after an argument)
• I know that I want to buy sth but don’t know what exactly ☺ Blind IB • Simply purchase!
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Consumer Buying Process Need recognition
Need Recognition
Information Search
• Needs can be triggered by: – Internal stimuli
Information search
• Normal needs become strong enough to drive behavior
– External stimuli
Evaluation of alternatives Purchase decision Postpurchase behavior
• • • •
• Consumers exhibit heightened attention or actively search for information • Sources of information: – Personal – Commercial – Public – Experiential – Word-of-mouth
Advertisements Friends of friends Change of financial status Learning about a new product
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Evaluation of alternatives
Steps Between Evaluation of Alternatives and a Purchase Decision
Decision Making Sets
• 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
Total set: Apple Dell HP Samsung LG Toschiba Compaq
Cognitive Dissonance Feeling of discomfort when simultaneously holding two or more conflicting cognitions: ideas, beliefs, values or emotional reactions. „disequilibrium” which leads to: frustration, dread, guilt, anger, embarrassment, anxiety, etc
• Importance of satisfaction: – Satisfied customers… – Dissatisfied customers…
• Cognitive dissonance is common
• • • •
Change of behavior Distortion Minimize the importance Ignore inconsonant info, seek for the consonant one
Get rid of it temporarily
Rent it Loan it
Trade it Product
Get rid of it permanently
Keep it
Use for original purpose Convert to new purpose Store it
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Give it away
Sell it Throw it away
To be (re)sold To be used Direct to consumer Through middleman To intermediary
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Model of Consumer Behavior
Characteristics Affecting Customer Behavior
Buyer’s black box
Marketing stimuli
Other stimuli
Buyer’s characteristics
Buyer’s decision process
Product Price Place Promotion
Economic Technological Political Cultural
Cultural Social Personal Psychological
Problem recognition Information search Evaluation Decision Postpurchase behavior
• Age and life cycle stage • Occupation • Economic situation • Lifestyle • Personality and selfselfconcept
Culture and Subculture
PsycholoPsychological • • • •
Motivation Perception Learning Beliefs and attitudes
Learned values, perceptions, wants, and behavior from family and other important institutions Dimensions of culture: G. Hofstede • Power distance • Uncertainty avoidance • individualism • Masculinity/femininity • Long term orientation
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Subculture Subculture: groups of people within a culture with shared value systems based on common life experiences and situations: • Hispanic • African American • Asian • Mature consumers
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Asian Americans
Demographics - Age
Generation
• Biological age • Social age
• 10 million consumers purchase $229 billion worth of goods and services • Fastest growing, most affluent subculture • Many nationalities comprise this group • Consumer packaged goods companies now target this group more heavily
• people within a delineated population who experience the same significant event within a given period of time • Get to know and understand
– In regards to social roles
• Cognitive age – Our perception of self-concept
• Subjective age – Our perception in comparison to other groups
• Personal age – Self-perception: how we fell, look + behavior and interests
• Age in the eyes of others – How they see us… 25
Lifestyle
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Perception
• Person’s pattern of living as expressed in their psychographics • Declaration: who we are and who we are not in society • Measures a consumer’s activities, interests, opinions in order to capture information about a person’s pattern of acting and interaction with environment • Products are basic elements of lifestyle – complementary relation, product constellations
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Selectiveness of Perception
It is the process by which people select, organize and interpret information
• Selective attention – Consumers screen out information • Stimuli matching our current needs • Stimuli which we expect • Stimuli exceeding normal levels
• Selective distortion – People interpret to support beliefs – Stimuli gets distorted to get personal meaning and match our views
person
• Selective retention
lifestyle
– People retain points to support attitudes and beliefs product
