kotler06 exs

Consumer Markets Consumer Markets and Consumer Buyer and Consumer Buyer

BehaviorBehavior

Chapter 6Chapter 6

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Objectives

• Be able to define the Be able to define the consumer market and consumer market and construct a simple model of construct a simple model of consumer buyer behavior.consumer buyer behavior.

• Know the four major factors Know the four major factors that influence consumer buyer that influence consumer buyer behavior.behavior.

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Objectives

• Understand the major types Understand the major types of buying decision behavior of buying decision behavior and the stages in the buyer and the stages in the buyer decision process.decision process.

• Be able to describe the Be able to describe the adoption and diffusion adoption and diffusion process for new products.process for new products.

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• Harley “Hogs” Harley “Hogs” account for 1/5 account for 1/5 of U.S. cycle of U.S. cycle salessales

• Sales have Sales have exceeded supply exceeded supply for yearsfor years

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

• Fiercely loyal Fiercely loyal clientele revolves clientele revolves around 7 core around 7 core customer typescustomer types

• Harley owners use Harley owners use their bikes to express their bikes to express their lifestyle and their lifestyle and attitudesattitudes

• Advertising reflects Advertising reflects the Harley mystiquethe Harley mystique

Harley-DavidsonHarley-Davidson

Case Study

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Definitions

• Consumer Buying BehaviorConsumer Buying Behavior Buying behavior of individuals Buying behavior of individuals

and households that buy products and households that buy products for personal consumption.for personal consumption.

• Consumer MarketConsumer Market All individuals/households who All individuals/households who

buy products for personal buy products for personal consumption.consumption.

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• Stimulus Response ModelStimulus Response Model Marketing and other stimuli enter Marketing and other stimuli enter

the buyer’s “black box” and the buyer’s “black box” and produce certain choice/purchase produce certain choice/purchase responses.responses.

Marketers must figure out what is Marketers must figure out what is inside of the buyer’s “black box” inside of the buyer’s “black box” and how stimuli are changed to and how stimuli are changed to responses.responses.

Model of Consumer Behavior

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Characteristics Affecting Consumer

Behavior

• CulturalCultural

• SocialSocial

• PersonalPersonal

• PsychologicalPsychological

• CultureCulture• SubcultureSubculture

Hispanic Hispanic consumersconsumers

African AmericansAfrican Americans Asian AmericansAsian Americans Mature consumersMature consumers

• Social ClassSocial Class

Key Factors Key Factors

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• HispanicsHispanics 35 million consumers purchase 35 million consumers purchase

$425 billion worth of goods and $425 billion worth of goods and services.services.

Expected to grow 64% in 20 years.Expected to grow 64% in 20 years. Spanish media makes group easy Spanish media makes group easy

to reach.to reach. Brand loyal group.Brand loyal group.


Behavior

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• African AmericansAfrican Americans 35 million consumers purchase $527 35 million consumers purchase $527

billion worth of goods and services.billion worth of goods and services. Growing more affluent / sophisticated.Growing more affluent / sophisticated. Price and brand name conscious; Price and brand name conscious;

quality and selection are important.quality and selection are important. Certain media target this group.Certain media target this group.


Behavior

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• Asian AmericansAsian Americans 10 million consumers purchase $229 10 million consumers purchase $229

billion worth of goods and services.billion worth of goods and services. Fastest growing, most affluent Fastest growing, most affluent

subculture.subculture. Many nationalities comprise this group.Many nationalities comprise this group. Consumer packaged goods companies Consumer packaged goods companies

now target this group more heavily.now target this group more heavily.


Behavior

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• Mature ConsumersMature Consumers 75 million consumers aged 50+ will 75 million consumers aged 50+ will

grow to 115 million within 25 years.grow to 115 million within 25 years. Mature consumers control 50% of all Mature consumers control 50% of all

discretionary income.discretionary income. Attractive market for travel, Attractive market for travel,

restaurant, and cosmetics products, restaurant, and cosmetics products, among others. among others.


Behavior

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Behavior


• SocialSocial



• GroupsGroups MembershipMembership ReferenceReference

Aspirational groupsAspirational groups Opinion leadersOpinion leaders

Buzz marketingBuzz marketing

• FamilyFamily Children can influenceChildren can influence

• Roles and StatusRoles and Status


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Behavior


• SocialSocial



• Age and life cycleAge and life cycle• OccupationOccupation• Economic situationEconomic situation• LifestyleLifestyle

Activities, interests, and Activities, interests, and opinionsopinions

Lifestyle segmentationLifestyle segmentation

• Personality and self-Personality and self-conceptconcept Brand personalityBrand personality


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Brand Personality DimensionsBrand Personality Dimensions


Behavior

• SinceritySincerity

• RuggednessRuggedness

• ExcitementExcitement

• CompetenceCompetence

• SophisticationSophistication

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Behavior


• SocialSocial



• MotivationMotivation Needs provide motives for Needs provide motives for

consumer behaviorconsumer behavior Motivation researchMotivation research Maslow’s hierarchy of needsMaslow’s hierarchy of needs

• PerceptionPerception Selective attention, selective Selective attention, selective

distortion, selective distortion, selective retentionretention

• LearningLearning Drives, stimuli, cues, Drives, stimuli, cues,

responses and reinforcementresponses and reinforcement

• Beliefs and attitudesBeliefs and attitudes


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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs


Behavior

Self-actualizationSelf-actualization

Esteem NeedsEsteem Needs

Social NeedsSocial Needs

Safety NeedsSafety Needs

Physiological NeedsPhysiological Needs

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Types of Buying-Decision Behavior

Difference Difference between between brandsbrands

SignificantSignificantDifferencesDifferences

Complex Complex buying buying

behaviorbehavior

LowLow

FewFewDifferencesDifferences

Dissonance-Dissonance-reducing reducing buying buying

behaviorbehavior

Habitual Habitual buying buying

behaviorbehavior

Variety-Variety-seeking seeking buying buying

behaviorbehavior

HighHighInvolvement LevelInvolvement Level

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• Five Stages:Five Stages: Need recognitionNeed recognition Information searchInformation search Evaluation of alternativesEvaluation of alternatives Purchase decisionPurchase decision Postpurchase behaviorPostpurchase behavior

The Buyer Decision Process

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• Need recognitionNeed recognition

• Information searchInformation search

• Evaluation of Evaluation of alternativesalternatives

• Purchase decisionPurchase decision

• Postpurchase behaviorPostpurchase behavior

• Needs can be Needs can be triggered by:triggered by: Internal stimuliInternal stimuli

Normal needs Normal needs become strong become strong enough to drive enough to drive behaviorbehavior

External stimuliExternal stimuli AdvertisementsAdvertisements Friends of friendsFriends of friends

Process Process Stages Stages

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• Consumers exhibit Consumers exhibit heightened attention heightened attention or actively search for or actively search for information.information.

• Sources of information:Sources of information: PersonalPersonal CommercialCommercial PublicPublic ExperientialExperiential

• Word-of-mouthWord-of-mouth


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• Evaluation procedure Evaluation procedure depends on the consumer depends on the consumer and the buying situation.and the buying situation.

• Most buyers evaluate Most buyers evaluate multiple attributes, each multiple attributes, each of which is weighted of which is weighted differently.differently.

• At the end of the At the end of the evaluation stage, evaluation stage, purchase intentions are purchase intentions are formed.formed.


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

situational factorssituational factors


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• Satisfaction is Satisfaction is important:important: Delighted consumers Delighted consumers

engage in positive word-engage in positive word-of-mouth.of-mouth.

Unhappy customers tell Unhappy customers tell on average 11 other on average 11 other people.people.

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

• Cognitive dissonance is Cognitive dissonance is commoncommon


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Buyer Decision Process for New

Products• New ProductsNew Products

Good, service or idea that is Good, service or idea that is perceived by customers as new.perceived by customers as new.

• Stages in the Adoption ProcessStages in the Adoption Process Marketers should help consumers Marketers should help consumers

move through these stages.move through these stages.

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Stages in the Adoption Stages in the Adoption ProcessProcess


Products

• AwarenessAwareness

• EvaluationEvaluation

• InterestInterest

• TrialTrial

• AdoptionAdoption

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Products• Individual Differences in InnovativenessIndividual Differences in Innovativeness

Consumers can be classified into five Consumers can be classified into five adopter categories, each of which behaves adopter categories, each of which behaves differently toward new products.differently toward new products.

• Product Characteristics and AdoptionProduct Characteristics and Adoption Five product characteristics influence the Five product characteristics influence the

adoption rate.adoption rate.

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Adopter CategoriesAdopter Categories


Products

• InnovatorsInnovators

• Early MajorityEarly Majority

• Early AdoptersEarly Adopters

• Late MajorityLate Majority

• LaggardsLaggards

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Product CharacteristicsProduct Characteristics


Products

• Relative AdvantageRelative Advantage

• CompatibilityCompatibility

• ComplexityComplexity

• DivisibilityDivisibility

• CommunicabilityCommunicability

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Products• International Consumer BehaviorInternational Consumer Behavior

Values, attitudes and behaviors differ Values, attitudes and behaviors differ greatly in other countries.greatly in other countries.

Physical differences exist which require Physical differences exist which require changes in the marketing mix.changes in the marketing mix.

Customs vary from country to country.Customs vary from country to country. Marketers must decide the degree to Marketers must decide the degree to

which they will adapt their marketing which they will adapt their marketing efforts.efforts.

kotler06 exs

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