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Consumer Markets and Consumer Buyer Behavior. Chapter 6. Objectives. Be 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. Objectives.

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objectives
Objectives
  • Be 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.
objectives1
Objectives
  • Understand the major types of buying decision behavior and the stages in the buyer decision process.
  • Be able to describe the adoption and diffusion process for new products.
slide4
Harley “Hogs” account for 1/5 of U.S. cycle sales

Sales have exceeded supply for years

1986-2000: Four stock splits, increase of 7,100%

Fiercely loyal clientele revolves around 7 core customer types

Harley owners use their bikes to express their lifestyle and attitudes

Advertising reflects the Harley mystique

c

Harley-Davidson

definitions
Definitions
  • Consumer Buying Behavior
    • Buying behavior of individuals and households that buy products for personal consumption.
  • Consumer Market
    • All individuals/households who buy products for personal consumption.
slide6

Figure 6-1:

Model of Buyer Behavior

model of consumer behavior
Model of Consumer Behavior
  • Stimulus Response Model
    • Marketing and other stimuli enter the buyer’s “black box” and produce certain choice / purchase responses.
    • Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses.

?

slide8

Figure 6-2:

Factors Influencing Consumer Behavior

characteristics affecting consumer behavior
Culture

Subculture

Hispanic consumers

African Americans

Asian Americans

Mature consumers

Social Class

Characteristics Affecting Consumer Behavior

Key Factors

  • Cultural
  • Social
  • Personal
  • Psychological
characteristics affecting consumer behavior1
Characteristics Affecting Consumer Behavior
  • Hispanics
    • 35 million consumers purchase $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 behavior2
Characteristics Affecting Consumer Behavior
  • African Americans
    • 35 million consumers purchase $527 billion worth of goods and services.
    • Growing more affluent / sophisticated.
    • Price and brand name conscious; quality and selection are important.
    • Certain media target this group.
slide13

Hallmark offers an Afrocentric line of greeting cards called Mahogany. What other brands have been targeted specifically to African Americans?

characteristics affecting consumer behavior3
Characteristics Affecting Consumer Behavior
  • Asian Americans
    • 10 million consumers purchase $229 billion worth of goods and services.
    • Fastest growing, most affluent subculture.
    • Many nationalities comprise this group.
    • Consumer packaged goods firms now target this group more heavily.
characteristics affecting consumer behavior4
Characteristics Affecting Consumer Behavior
  • Mature Consumers
    • 75 million consumers age 50+will grow to 115 million within 25 years.
    • Mature consumers control 50% of all discretionary income.
    • Attractive market for travel, restaurant, and cosmetics products, among others.
characteristics affecting consumer behavior5
Groups

Membership

Reference

Aspirational groups

Opinion leaders

Buzz marketing

Family

Kids can influence

Roles and Status

Characteristics Affecting Consumer Behavior

Key Factors

  • Cultural
  • Social
  • Personal
  • Psychological
characteristics affecting consumer behavior6
Age and life-cycle

Occupation

Economic situation

Lifestyle

Activities, interests, and opinions

Lifestyle segmentation

Personality and self-concept

Brand personality

Characteristics Affecting Consumer Behavior

Key Factors

  • Cultural
  • Social
  • Personal
  • Psychological
slide18

Lifestyles:

Jeep targets people who want to “leave the civilized world behind”

What other types of images could be used to appeal to this lifestyle?

slide19

Figure 6-3:

VALS Lifestyle Classification

Learn more about VALS and take the VALS survey online by clicking the web link icon below.

characteristics affecting consumer behavior7
Characteristics Affecting Consumer Behavior

Brand Personality Dimensions

Sincerity

Ruggedness

  • Excitement
  • Competence

Sophistication

slide21

Think about Tide detergent.

What brand personality seems to describe Tide best?

Can you think of examples of brands that fit each personality type?

characteristics affecting consumer behavior8
Motivation

Needs provide motives

Motivation research

Maslow’s hierarchy of needs

Perception

Selective attention, selective distortion, selective retention

Learning

Drives, stimuli, cues, responses and reinforcement

Beliefs and attitudes

Characteristics Affecting Consumer Behavior

Key Factors

  • Cultural
  • Social
  • Personal
  • Psychological
slide23

Figure 6-4:

Maslow’s Hierarchy

slide25

Figure 6-5:

Types of Buying Behavior

slide26

Figure 6-6:

The Buyer Decision Process

the buyer decision process
Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

Needs can be triggered by:

Internal stimuli

Normal needs become strong enough to drive behavior

External stimuli

Advertisements

Friends of friends

The Buyer Decision Process

Stages

the buyer decision process1
Need recognition

Information search

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

The Buyer Decision Process

Stages

the buyer decision process2
Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

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.

The Buyer Decision Process

Stages

the buyer decision process3
Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

Two factors intercede between purchase intentions and the actual decision:

Attitudes of others

Unexpected situational factors

The Buyer Decision Process

Stages

the buyer decision process4
Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

Satisfaction is key:

Delighted consumers engage in positive word-of-mouth.

Unhappy customers tell on average 11 other people.

It costs more to attract a new customer than it does to retain an existing customer.

Cognitive dissonance

The Buyer Decision Process

Stages

buyer decision process for new products
Buyer Decision Process for New Products
  • New Products
    • Good, service or idea that is perceived by customers as new.
buyer decision process for new products1
Buyer Decision Process for New Products
  • Stages in the Adoption Process
    • Marketers should help consumers move from awareness to adoption.
buyer decision process for new products2
Buyer Decision Process for New Products

Stages in the Adoption Process

Awareness

Interest

  • Evaluation
  • Trial

Adoption

buyer decision process for new products3
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.
slide37

Figure 6-7:

Adopter Categories Based on Relative Time of Adoption

buyer decision process for new products4
Buyer Decision Process for New Products
  • Product Characteristics and Adoption
    • Five product characteristics influence the adoption rate.
buyer decision process for new products5
Buyer Decision Process for New Products

Product Characteristics

Relative Advantage

Compatibility

Complexity

Divisibility

Communicability

slide40

Discussion Question

Describe how each of the five product-related innovation characteristics will influence the rate of the adoption for this product.

buyer decision process for new products6
Buyer Decision Process for New Products
  • International ConsumerBehavior
    • Values, attitudes and behaviors differ greatly in other countries.
    • Physical differences exist that 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.