marketing for engineers ch 5

7/24/2019 Marketing for Engineers Ch 5

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Marketing for Engineers

Dr. Karim


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Chapter 5:Consumer Markets

and Buyer Behavior


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Consumer market refers to all of

the personal consumption of nal

consumers.

Keyword - Consumer Market


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The aim of marketing is to aect how

customers think and act. To aect the

whats, whens, and hows of buyer

behavior, marketers must rst

understand the whys. In this chapter, we

look at nal consumer buying inuences

and processes.

Introduction


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C o n s u m e r B e h a v i o r ! e n i t i o nConsumer behavior is dened as activities people undertake

when "#$ o%taining& "'$ consuming and "($ disposing of products to

satisfy needs and desire.

Consumer behavior includes the study of why& where& how often

and under what conditions consumers consume dierent products

or %rands with the premise that it %ecomes easier to develop

marketing strategies to in)uence consumers once a marketer

knows the reasons why people %uy specic products or %rands.


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C o n s u m e r B e h a v i o r ! e n i t i o n

Obtaining refers to the activities leading up to

and including the purchase or receipt of a product.

Consuming refers to how& where& when and

under what circumstances consumers useproducts.

Disposing refers to how consumers get rid of

products and packaging.


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istorica! "pproach


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#hy $tudy Consumer %ehavior&There are several reasons %ehind the study of consumer %ehavior. Below

are some important reasons:

#$ Today& %usinesses around the world recogni*e that +the consumer is not

the king %ut he is the %uddy,. -n essence& consumer %ehavior analysis

helps rms to know how to +please the %uddy& not the king, and directly

impact %ottom line prots "%oth interconnected in the long run$.

'( )he marketing concept stress that a *rm shou!d create a

marketing mi+ that satis*es customers. )herefore, a *rm need to

ana!yse what, where, when and why customers buy.

( nderstanding consumer behavior is essentia! to the

deve!opment of marketing strategies, especia!!y in pricing,

product design, segmentation, targeting, positioning and

promotion.


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Marketresearch

Marketingmanager

Consumer behavior/the engine ofmarketing0

"dvertising

Distribution

The Marketing Car


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1actors "2ecting Consumer%ehavior

Consumer purchases are in)uenced strongly %y

cultural& social& personal& and psychological

factors& as shown in the net slide.

/or the most part& marketers cannot contro!

such factors& %ut they must take them intoaccount.


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Cu!ture is the learned values&

perceptions& wants& and %ehavior

from family and other important

institutions



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0u%culture are groups of peoplewithin a culture with shared valuesystems %ased on common life

eperiences and situations 1ispanic

2frican 2merican

2sian Mature consumers



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$ocia! c!asses are society3s relativelypermanent and ordered divisionswhose mem%ers share similar values&

interests& and %ehaviors

Measured %y a com%ination ofoccupation& income& education&

wealth& and other varia%les



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1 t "2 ti C


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3roups and $ocia! 4etworks

1 t "2 ti C


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4ordofmouth in)uence and %u**

marketing pinion leaders are people within a

reference group who eert socialin)uence on others

2lso called inuentials or leadingadopters

Marketers identify them to use as %rand

am%assadors



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nline social networks are online

communities where people sociali*eor echange information andopinions

-nclude %logs& social networking sites"/ace%ook$& virtual worlds "secondlife$



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1actors "2ecting Consumer %ehavior

/amily is the most important consumer%uying organi*ation in society

0ocial roles and status are the groups&family& clu%s& and organi*ations that a

person %elongs to that can dene roleand social status

$ocia! 1actors


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1 t "2 ti C


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2ge and lifecycle stage

6BC 6oyal Band stages7outh8younger than #9

etting started8#9(5

Builders8(55;

2ccumulators85;reservers8over =;

5ersona! 1actors

1actors "2ecting Cons mer


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Occupationaects the goods and

services %ought %y consumersEconomic situation includes trends

in:

5ersona! 1actors


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%ehavior

6ifesty!eis a person3s pattern of livingas epressed in his or herpsychographics

Measures a consumer3s 2-s"activities& interests& opinions$ to

capture information a%out a person3spattern of acting and interacting inthe environment

5ersona! 1actors


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1actors "2ecting Consumer


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>ersonality and 0elfConcept >ersonality refers to the uni?ue

psychological characteristics that leadto consistent and lasting responses tothe consumer3s environment

5ersona! 1actors



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5sycho!ogica! 1actors



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2motive is a need that is su@cientlypressing to direct the person to seeksatisfaction

Motivation research refers to?ualitative research designed topro%e consumers3 hidden&su%conscious motivations

5sycho!ogica! 1actors - Motivation


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5erception is the process %y which people

select& organi*e& and interpret information

to form a meaningful picture of the worldfrom three perceptual processes

0elective attention

0elective distortion

0elective retention

5sycho!ogica! 1actors - 5erception



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$e!ective attention is the tendencyfor people to screen out most of the

information to which they are eposed$e!ective distortion is the tendencyfor people to interpret information in away that will support what they

already %elieve$e!ective retention is the tendency to

remem%er good points made a%out a%rand they favor and forget good

points a%out competing %rands

5sycho!ogica! 1actors - 5erception



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6earningis the change in anindividual3s %ehavior arising fromeperience and occurs throughinterplay of:

5sycho!ogica! 1actors - 6earning



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%e!ief is a descriptive thought that aperson has a%out something %asedon:

Anowledge

pinion

/aith

5sycho!ogica! 1actors - %e!iefs



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"ttitudesdescri%e a person3s

relatively consistent evaluations&feelings& and tendencies toward ano%ect or idea

5sycho!ogica! 1actors - "ttitudes

T f B i ! i i


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Types of Buying !ecisionBehavior

The Consumer !ecision >rocess


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The Consumer !ecision >rocess

The Consumer !ecision >rocess "C!>$ model& represents a road map

of consumers minds that marketers and managers can use to help

guide product mi& communication& and marketing strategies.

The goal in creating the consumer decision process model was to

analy*e how individuals search through facts and in)uences to make

decisions that are logical and consistent for them.

A Simplified Version of The Consumer Decision Process


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p

Purchase

Need Recognition

Search for Information

Consumption

Post-consumption Evaluation

Divestment

Pre-purchase Evaluation of Alternatives

0 t a g e n e D e e d 6 e c o g n i t i o n


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0 t a g e n e : D e e d 6 e c o g n i t i o nThe starting point of any purchase decision is customer

need "or pro%lem$ . 4eed recognition occurs when

an individua! perceives a gap between what he

recogni7es to be desired versus the e+istent

state of a2airs. Consumers %uy things when they

%elieve a product3s a%ility to solve a pro%lem is worth

more than the cost of %uying it& there%y making

recognition of an unmet need the rst step in the sale

of a product.

If the perceived gap is lo! "elo a certain level! the need

ill "e inactive#


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Deed 6ecogn i t i on

Current $tate Desired $tate

0 t a g e n e : D e e d 6 e c o g n i t i o n " c o n $


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0 t a g e n e : D e e d 6 e c o g n i t i o n " c o n $

The net slide shows that environmental

in)uences and individual dierences or

characteristics "EDCDT6FF2BFG

/2CT60$ make up only part of a consumer3s

need& memory also has a large in)uencing

factor& especially if it is for a product that the

consumer has purchased %efore.

Need $ Pro"lem Recognition


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Need $ Pro"lem Recognition

Individual Differences

- Consumer Resources

- %otivation

- &noledge- Attitudes

- Personalit'! Values!

and (ifest'le

Environmental Influences

- Culture

- Social Class- Personal Influence

- )amil'

- Situation%

E

%*

R

+

Need

Recognition

w :


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w :-nformation

nce need recognition occurs& consumers %egin searching

for information and solutions to satisfy their unmet needs.

8 Interna! 9 retrieving know!edge from memory or

perhaps genetic tendencies.

8 E+terna!- co!!ecting information from peers,

fami!y, websites and the marketp!ace.



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Need

Recognition

Search

E,ternal Search

Internal

Search

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E

%*

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Individual

Differences

Environmental

Influences

/amily&peers&

marketplace


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0earch for -nformation "con$

Interna! $earch E+terna! $earch

0tage Two: 0earch for -nformation "con$


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0tage Two: 0earch for -nformation "con$

E+terna! $earch: $ources of Information

- $timu!i

;. 4on Marketer Dominated

0uch as friends& family& opinion leaders& etc...

'. Marketer Dominated

6efers to anything that products3 suppliers do for purposes

of information and persuasion& such as using advertising&

salespeople& we%sites& and pointofsale materials.

E,ternal Search Sources of Information


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E,ternal Search Sources of Information

- n f o r m a t i o n > r o c e s s i n g


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Beside the eternal and personal uncontrolla%le factors

in)uencing the %uying %ehavior& eposure of customers

to the company3s marketing "controlla%le factor$ can

aect the decisionmaking %y providing inputs for the

consumer3s %lack %o where information is processed

%efore the nal consumer3s decision is made. The steps

involved in processing information include:

#. Gposure < /irst& information and persuasive

communication must reach consumers.

'. 2ttention < The more relevant the message and its

content& the more likely attention will %e attracted.

- n f o r m a t i o n > r o c e s s i n g " c o n $


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(. Comprehension < -f attention is attracted& the message is

further analy*ed against categories of meaning stored in

memory. The marketer hopes that accurate comprehension

will occur.

H. 2cceptance < nce comprehension occurs& the message

can %e either dismissed as unaccepta%le or accepted. The

goal of the message is to change eisting %eliefs and

attitudes & %ut the message must %e accepted %efore this

can happen.

5. 6etention < /inally& the goal of any persuader is for this new

information to %e accepted and 0T6G! -D MGM67 in such

a way that it is 2CCG00-BFG /6 /ETE6 E0G.

Information Processing


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Information Processing

%

E

%*

R

+

Attention

Comprehension

Acceptance

Retention

E,posure

Stimuli- %ar.eter

Dominated

- Nonmar.eterDominated

E+amp!es of Marketer Dominated $timu!i: "d )hat


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pCreates %rand Image

0tage Three: >re>urchase Gvaluation of 2lternatives


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0tage Three: >re >urchase Gvaluation of 2lternatives

In this stage, consumers seek answers to

, and=which is best&> when they compare, contrast

and se!ect from various products.

!ierent consumers employ dierent eva!uative

criteria < the standards and specications used to

compare dierent products and %rands "e.g.& price&

relia%ility& and ?ualityI$ as potentially the most

important.


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Pre-purchase Evaluation of Alternatives "ased on

0alientJ important attri%utes such as price and

relia%ility are important to the consumer.

!eterminant attri%utes such as a car3s style and

nish usually determine which %rand or store

consumers choose.

Consumers compare what they know a%out dierent

products and %rands with what they consider mostimportant and %egin to narrow the eld of

alternatives %efore they nally resolve to %uy one of

them.


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Need Recognition


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Pre-purchaseEvaluation of

Alternatives

SearchInternal

Search

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E

%*

R

+

Individual

Differences

Environ-mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

E,posure

Stimuli

0 t a g e / o u r : > u r c h a s e


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The net stage of the consumer decision process is purchase. 2

consumer might move through the rst three stages of the decision

process according to plan and intend to purchase a particularproduct or %rand. But consumers sometimes %uy something ?uite

dierent from what they intended or opt not to %uy at all %ecause

of what happens during the purchase stage. 2 consumer may

prefer one retailer %ut choose another %ecause of a sale or a

promotional event at a competitor3s store& hours of operation&

location or credit facilities. -nside the store& the consumer may talk

with a salesperson who changes his decision& see an endofaisledisplay that switches his or her %rand preference& use a coupon or

price discount& fail to nd the intended product or %rand& or lack

the money or right credit card to make the purchase.

Need Recognition


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Alternatives

SearchInternal

Search

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E

%*

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Individual

Differences

Environ-mental

Influences

g

Attention

Comprehension

Acceptance

Retention

E,posure

Stimuli

Purchase


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4hat Car !id The Customer

BuyL

d


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2nswer: /ord /ocus

0tage /ive: Consumption


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g p

Consumption the point at which consumers use the product.

Consumption can either occur immediately or %e delayed.

/or eample& if a consumer sees a sales promotion for fro*en

food& he or she may stock up3 %uying more than can %e

used in the normal time frame of consumption and re?uiring

the consumer to warehouse3 the product in his or her

free*er. 1ow the consumer uses the product can also aect

their evaluation of the product at the >ostconsumption

stage "Eser uide for %est consumption eperience$. 1ow

the product is cared for can also aect how long the product

will last until the net purchase"Maintenance uide

-ncrease product life$.

Need Recognition


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Alternatives

SearchInternal

Search

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E

%*

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+

Individual

Differences

Environ-mental

InfluencesAttention

Comprehension

Acceptance

Retention

E,posure

Stimuli

Purchase

Consumption


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0tage 0i: >ost Consumption Gvaluation


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g p

Consumers eperience a sense of either satisfaction or

dissatisfaction.

$atisfaction occurs when consumers0 e+pectations are

matched by perceived performance.

#hen e+periences and performance fa!! short of

e+pectations, dissatisfaction occurs. +!id - consider all the

alternativesL,& +Could - have done %etterL, These types of

?uestions are 5ost-purchase regret or cognitive dissonance 9

and the higher price, the higher the !eve! of cognitive

dissonance.

#hatever is the *na! outcome, it is signi*cant because the

consumer store this eva!uation in his memory and refer to

it in future decisions.

Need Recognition


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Alternatives

SearchInternal

Search

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E

%*

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+

Individual

Differences

Environ-mental

InfluencesAttention

Comprehension

Acceptance

Retention

E,posure

Stimuli

Purchase

Consumption

Post-consumption

Evaluation

E,ternal

SearchSatisfactionDissatisfaction

>ost Consumption


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>ost ConsumptionGvaluation

Dissatisfaction $atisfaction

0tage 0even: !ivestment "disposal of the product$


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g p p

Consumers have several options& including complete

disposal& recycling& or remarketing "selling$.

-n our running eample& when the consumer nishes

using the car he purchased& he has to dispose of it

somehow. 1e can choose to sell it to another consumer&

trade it in for another vehicle& or take it to the unkyard.

Need Recognition


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Alternatives

SearchInternal

Search

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E

%*

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Individual

Differences

Environ-mental

InfluencesAttention

Comprehension

Acceptance

Retention

E,posure

Stimuli

Purchase

Consumption

Post-consumption

Evaluation

E,ternal

SearchSatisfactionDissatisfaction

Divestment

2TTGDT-D NNN


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2TTGDT-D NNN2 distinction is fre?uently made %etween high and low

involvement purchasing "e.g.& having a hair cut Os

having a medical operation$& imp!ying that in

practice the actua! buying activity can be !ess

or more consistent with this mode!& depending

on the %uyer3s perceived purchasing risks. 1igh or

low degree of involvement is also a ?uestion of the

personal& social& and economic signicance of the

purchase "e.g.& one day Os twenty days residence at

a hotelP a newspaper Os a house$.


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)he %uyer Decision 5rocess for 4ew 5roducts

"doption process is the mentalprocess an individual goes throughfrom rst learning a%out an

innovation to nal regular use. 0tages in the process include:

The Buyer !ecision >rocess for


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The Buyer !ecision >rocess forDew >roducts

In?uence of 5roduct Characteristicson @ate of "doption

marketing for engineers ch 5

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