Download - Consumer market
The most The most important thing is important thing is to forecast where to forecast where customers are customers are moving, and be in moving, and be in front of them.front of them.
5 - 3
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
4. Describe the stages in the buying decision process
Case StudyHarley Davidson
Building Success
• Understanding the customers’ emotions and motivation
• Determining the factors of loyalty
• Translating this information to effective advertising
Measuring Success
• Currently 22% of all U.S. bike sales
• Demand above supply• Sales doubled in the past 5
years with earnings tripled
5 - 4
5 - 5
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
Chapter 4 Version 3e 6
Consumer Behavior
Processes a consumer uses to
make purchase decisions, as well
as to use and dispose of
purchased goods or services; also
includes factors that influence
purchase decisions and the
product use
11
5 - 9
Consumer Market
All of these final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
Read more : http
5 - 10
Consumer buyer behavior
Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption
Consumer buying behavior is the sum total of a consumer's attitudes, preferences, intentions and decisions regarding the consumer's behavior in the marketplace when purchasing a product or service.
The study of consumer behavior draws upon social science disciplines of anthropology, psychology, sociology, and economics.
Influence of Social science on buyer behavior studies
• Economics: Human is a rational buyer who wants to take maximum utility out of fixed/minimum price.
• Psychology: Acc. To psychology any human activity is directed towards meeting certain needs. ( maslow`s Need Hierarchy)
• Sociology & anthropology: Effect of reference group, society, role in society, etc.
5 - 14
Characteristics Affecting Consumer Behavior
– Culture• Forms a person’s wants and
behavior– Subculture
• Groups with shared value systems
– Social Class• Society’s divisions who share
values, interests and behaviors
• Cultural• Social• Personal• Psychological
Key FactorsKey Factors
5 - 15
Characteristics Affecting Consumer Behavior
– Groups• Membership• Reference
– Aspirational• Opinion Leaders
– Buzz marketing– Family
• Many influencers– Roles and Status
CulturalSocialPersonalPsychological
Key FactorsKey Factors
Goal 2: Know the four factors that influence consumer buying behavior
This advertiser knows teens are strongly
influenced by groups when purchasing
fashion items
Marketing in Action5 - 16
5 - 17
Characteristics Affecting Consumer Behavior
– Age and life cycle– Occupation– Economic situation– Lifestyle
•Activities, interests and opinions•Lifestyle segmentation
– Personality and self-concept
CulturalSocialPersonalPsychological
Key FactorsKey Factors
Goal 2: Know the four factors that influence consumer buying behavior
5 - 18
Characteristics Affecting Consumer Behavior
– Motivation– Perception– Learning– Beliefs and attitudes
CulturalSocialPersonalPsychological
Key FactorsKey Factors
Goal 2: Know the four factors that influence consumer buying behavior
5 - 19
Psychological FactorsMotivation
• A motive is a need that is sufficiently pressing to direct the person to seek satisfaction
• Maslow ordered needs based on how pressing they are to the consumer
Example:• Are you hungry? - Buy food• Are you bored? - go to cinema.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-20
Motivation
Freud’sTheory
Behavioris guided by subconsciousmotivations
Maslow’sHierarchyof Needs
Behavioris driven by
lowest, unmet need
Herzberg’sTwo-Factor
Theory
Behavior isguided by motivating
and hygienefactors
5 - 24
Psychological Factors Perception
• Perception is the process by which people select, organize, and interpret information.
• Perception Includes:– Selective attention
• Consumers screen out information (computer)
– Selective distortion• People interpret to support beliefs (radio in computer section)
– Selective retention• People retain points to support attitudes (more discount offers)
Discussion QuestionPerception
1. How many ads were you exposed to today?
2. Which ones do you remember? Why?
5 - 25
5 - 26
Psychological Factors Learning and Memory
• Learning describes changes in an individual’s behavior arising from experience
• Example: If you get some rewards from buying Dell computer, you will prefer to buy printer from DELL AGAIN.
• Short and Long term memory also direct people to choose which product to buy.
5 - 27
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
Changes in life style and buying habits
• Ready to eat food are popular now• Vacuum cleaner and cooking ranges have
entered into households• Shift in woman`s attitude towards cooking• Yesterday`s luxuries are becoming necessities
5 - 31
Today we discussed
1. Consumer behavior2. Types of consumers3. Define the consumer market 4. Construct a model of consumer buyer behavior 5. Name the four factors that influence buyer behavior6. List and understand the types of buying decision
behavior 7. Decribe the stages in the buying decision process
5 - 32
Consumer Market
All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
Read more : http
5 - 33
Start with introduction/Definition
All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies
5 - 34
Divide into paragraphs
All of the final consumers combine to make up the consumer market.
A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
5 - 35
Use suitable heading
Consumer Market:
All of the final consumers combine to make up the consumer market. A consumer market has following characteristics:
A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
5 - 36
Color or underline the heading
Consumer Market:
All of the final consumers combine to make up the consumer market. A consumer market has following characteristics:
A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
5 - 37
Give Proper spacesConsumer Market:
All of the final consumers combine to make up the consumer market.
A consumer market has following characteristics:
A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
5 - 38
Use bullets for key pointsConsumer Market:
All of the final consumers combine to make up the consumer market.
A consumer market has following characteristics:
i. It is a marketplace
ii. It consists of household consumers who buy goods
for individual consumption or for family consumption and Not for resale .
It is different than a business market, in which businesses sell goods and services to other companies.
5 - 39
Write full sentences and add some examples
Consumer Market:
All of the final consumers combine to make up the consumer market.
A consumer market has following characteristics:
i. It is a marketplace
ii. It consists of household consumers who buy goods
for individual consumption ( Ex: Clothes, shoes)or for family consumption ( Ex: Grocery, Fuel, Car) and Not for resale (Refrigerator, Bed) .
It is different than a business market, in which businesses sell goods and services to other companies.
5 - 40
Finish with conclusionConsumer Market:
All of the final consumers combine to make up the consumer market.
A consumer market has following characteristics:
i. It is a marketplace
ii. It consists of household consumers who buy goods
for individual consumption ( Ex: Clothes, shoes)or for family consumption ( Ex: Grocery, Fuel, Car) and Not for resale (Refrigerator, Bed) .
Basically Consumer Market is different than a business market, in which businesses sell goods and services to other companies.
5 - 41
A Sample Answer…….Consumer Market:
All of the final consumers combine to make up the consumer market.
A consumer market has following characteristics:
i. It is a marketplace.
ii. It consists of household consumers who buy goods
for individual consumption ( Ex: Clothes, shoes)or for family consumption ( Ex: Grocery, Fuel, Car) and Not for resale (Refrigerator, Bed) .
Basically Consumer Market is different than a business market, in which businesses sell goods and services to other companies.
Business organizations
Business organizations do not only sell. They also buy vast quantities of raw materials manufactured , components, plant and equipment, supplies , and business services .
Figure 8.1: Major Influences on Industrial Buying Behavior
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-43
Participants in the Business Buying Process
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-45
Business Buyer Behavior
Participants in the Business Buying Process
Users are those that will use the product or serviceInfluencers help define specifications and provide information
for evaluating alternativesBuyers have formal authority to select the supplier and arrange
terms of purchaseDeciders have formal or informal power to select and approve
final suppliersGatekeepers control the flow of information
6-17
Major Influences on Buying Decisions
• 1- Environmental Factors 2-Organizational Factors -Purchasing-Department Upgrading
-Centralized Purchasing
-Decentralized Purchasing of Small Ticket Items
-Internet Purchasing
Figure 6.5 Successive Sets Involved in Consumer Decision Making
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-48
Table 6.4 A Consumer’s Evaluation of Brand Beliefs About Laptops
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-49
Figure 6.6 Stages between Evaluation of Alternatives and Purchase
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-50
Perceived Risk
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-51
FunctionalFunctional
PhysicalPhysical
FinancialFinancial
SocialSocial
PsychologicalPsychological
TimeTime
Figure 6.7 How Customers Use and Dispose of Products
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-52