Chapter 5

Consumer Markets and

Consumer Buyer
Behavior
Schedule – Before Midterm
4 Oct.8/9 Consumer Markets and Ch.5 Case 3
Consumer Buyer Behavior

5 Oct.15/16 Business Markets and Business Ch.6 Case 4

Buyer Behavior

6 Oct.22/23 Marketing Information System Ch.4 Case 5

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Learning Goals
1. Define the consumer market and construct a
model of consumer buyer behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the process
4. Describe the adoption and diffusion process
for new products

3
Case Study
Harley Davidson
Measuring Success
Building Success
 Currently 22% of all U.S.
 Understanding the bike sales
customers’ emotions
 Demand above supply
and motivation
 Sales doubled in the past
 Determining the factors
5 years with earnings
of loyalty
tripled
 Translating this
information to effective
advertising
5-4
Learning Goals
1. Define the consumer market and construct a
model of consumer buyer behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the process
4. Describe the adoption and diffusion process
for new products

5
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

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7
Learning Goals

1. Define the consumer market and

construct a model of consumer buyer
behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the
process
4. Describe the adoption and diffusion
process for new products
8
Model of Buyer Behavior
Characteristics Affecting
Consumer Behavior
 Culture
Key Factors  Forms a person’s wants and
behavior
 Subculture
 Cultural  Groups with shared value
systems
 Social
 Social Class
 Personal  Society’s divisions who
share values, interests and
 Psychological behaviors

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Characteristics Affecting
Consumer Behavior
 Groups
Key Factors 


Membership
Reference
 Aspirational
 Cultural  Opinion leaders
 Buzz marketing
 Social
 Family
 Personal  Many influencers
 Psychological  Roles and status

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This
advertiser
knows teens
are strongly
influenced by
groups when
purchasing
fashion items
Characteristics Affecting
Consumer Behavior
 Age and life cycle
Key Factors  Occupation
 Economic situation
 Cultural  Lifestyle
Activities, interests and
 Social opinions
 Personal Lifestyle segmentation

 Personality and self-concept

 Psychological

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Personal Factors
 Family Life Cycle stages throughout which
families pass as they mature over time
 Stages in family life cycle:
1.bachelor stage
2.newly married couples, no children
3.full nest 1; youngest child under 6
4.full nest 2; youngest child 6 or over
5. full nest 3; older married couples with dependent children
6.empty nest 1; older married couples no children with them
7. empty nest 1; older married couples no children at home;retired
8.solitary survivor, working
9.solitary survivor, retired

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Personal Factors

 Personality a person’s unique

characteristics that lead to relatively consistent
and lasting responses to his environment

 Self-concept the self image or general

picture that people have of themselves

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 Personal Factors
 Lifestyle a person’s pattern of living as
expressed in his activities, interests and
opinions
 Psychographics technique of measuring lifestyles
and developing lifestyle classifications
 Major dimensions measured are:
 Activities (work, hobbies, social events, entertainment,
shopping, sports,vacation)
 Interests (family, home, job, recreation, fashion, food,
media, achievements)
 Opinions (themselves, social issues, politics, business,
economics, products, future)
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Values and Lifestyles (VALS)

Actualizers High Innovation

High Resources

Fulfilleds Achievers Experiencers

Believers Strivers Makers

Strugglers
Low Resources Low Innovation17
Brand Personality Dimensions

 Sincerity  Excitement
 Ruggedness  Competence

 Sophistication

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Characteristics Affecting Consumer
Behavior
 Motivation
Key Factors
 Perception
 Learning
 Cultural
 Beliefs and attitudes
 Social
 Personal
 Psychological

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Psychological Factors
Motivation
 A motive is a need that is sufficiently
pressing to direct the person to seek
satisfaction
 Motivation research is based on Freud.
Looks for hidden and subconscious
motivation
 Maslow ordered needs based on how
pressing they are to the consumer

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Maslow’s Hierarchy of Needs
This ad
demonstrates a
product meeting
physiological
and social
needs
Discussion
What consumer
products might fulfill
multiple levels of the
Hierarchy of Needs?
Psychological Factors
Perception
 Perception is the process by which people
select, organize, and interpret information.
 Perception Includes:
 Selective attention
 Consumers screen out information
 Selective distortion
 People interpret to support beliefs
 Selective retention
 People retain points to support attitudes

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Discussion Question
Perception
1. How many ads were
you exposed to
today?
2. Which ones do you
remember? Why?
Psychological Factors
Learning
 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

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Psychological Factors Beliefs
and Attitudes
 Belief
a descriptive thought about a brand or service
 may be based on real knowledge, opinion, or
faith
 Attitude
 describes a person’s evaluations, feelings and
tendencies toward an object or idea
 They are difficult to change

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Learning Goals

1. Define the consumer market and

construct a model of consumer buyer
behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the
process
4. Describe the adoption and diffusion
process for new products
28
29
Types of Buying
Decision Behavior
 The Buying Roles

 5 roles people might play in a buying decision

 Initiatorwho first gives the idea of buying the
product or service
 Influencer whose view or advice influences the
decision
 Decider who decide on any component of buying
decision
 Buyer who makes the actual purchase
 User who uses the product or sevice purchased

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The Buyer Decision Process
The Buyer Decision
Process
 Needs can be triggered
Process Stages by:
 Internal stimuli
 Need recognition
 Normal needs
 Information search become strong
 Evaluation of enough to drive
alternatives behavior
 Purchase decision  External stimuli
 Postpurchase behavior  Advertisements

 Friends of friends
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The Buyer Decision
Process
 Consumers exhibit
Process Stages heightened attention or
actively search for
information
 Need recognition
 Sources of information:
 Information search
 Personal
 Evaluation of
alternatives  Commercial
 Purchase decision  Public
 Postpurchase behavior  Experiential
 Word-of-mouth

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Information Search

Personal Sources •Family, friends, neighbors

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

Public Sources •Mass Media

•Consumer-rating groups

•Handling the product

Experiential Sources •Examining the product
•Using the product
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The Buyer Decision
Process
 Evaluation procedure
Process Stages depends on the consumer
and the buying situation.
 Need recognition  Most buyers evaluate
 Information search multiple attributes, each of
 Evaluation of which is weighted
alternatives differently.
 Purchase decision  At the end of the evaluation
 Postpurchase behavior stage, purchase intentions
are formed.

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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 Alternatives 37
Decision Making Sets

Total
Set Aware-
Consid-
ness
eration Choice
Set
Set Set Decision

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The Buyer Decision
Process

Process Stages  Two factors intercede

between purchase
 Need recognition intentions and the actual
decision:
 Information search
 Attitudes of others
 Evaluation of
alternatives  Unexpected
situational factors
 Purchase decision
 Postpurchase behavior

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Buyer Decision Process for
New Products

 New Products
 Good, service or idea that is perceived by
customers as new.
 Stages in the Adoption Process
 Marketers should help consumers move
through these stages.

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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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Buyer Decision Process for
New Products

 Individual Differences in Innovativeness:

 Consumers can be classified into five

adopter categories, each of which behaves
differently toward new products

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Adopter Categories
Percentage of Adopters

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5%
Early Time of Adoption Late

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Buyer Decision Process for
New Products
 Product Characteristics influencing the adoption rate:

 Relative Advantage Is the innovation superior to

existing products?
 Compatibility Does the innovation fit the values and
experience of the target market?
 Complexity Is the innovation difficult to understand
or use?
 Divisibility Can the innovation be used on a trial
basis?
 Communicability Can results be easily observed or
described to others?

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Buyer Decision Process for
New Products

 International Consumer Behavior

 Values, attitudes and behaviors differ greatly in other

countries.
 Physical differences exist which require changes in
the marketing mix.
 Customs vary from country to country.
 Marketers must decide the degree to which they will
adapt their marketing efforts.

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Discussion Question

How is a site
like
Consumer
Reports
used in the
decision-
making
process?
Discussion Question

 Why might the

adoption process be
slow for a home
robot?

Source: Business Week

Source: Business Week
The Buyer Decision
Process

 Satisfaction is important:
Process Stages  Delighted consumers
engage in positive word-
 Need recognition of-mouth.
 Information search  Unhappy customers tell
 Evaluation of on average 11 other
alternatives people.
 Purchase decision  Cognitive dissonance is
common
 Postpurchase behavior

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Learning Goals
1. Define the consumer market and
construct a model of consumer buyer
behavior
2. Name the four factors that influence buyer
behavior
3. List and understand the types of buying
decision behavior and stages in the
process
4. Describe the adoption and diffusion
process for new products
49
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Ramazan Bayraminiz Kutlu & Mutlu
olsun!!!
 For Next Week
 Read Chapter 6
 Be prepared for case 4 – Kodak discussion

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