mktg 3 cons buying beh
TRANSCRIPT
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Consumer BuyingBehavior
How do consumers respond to marketing efforts thecompany might use?
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Consumer Buying
Behaviorrefers to the buying
behavior of finalconsumers (individuals &households) who buy
goods and services forpersonal consumption.
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Consumer Market
Consists of all the
individuals and householdswho buy or acquire goodsand services for personalconsumption.
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Business Market
Org. who buy for the prod. Orassembling of goods or services to be
sold to consumers/ other org.
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Marketing andOther Stimuli
Buyers Black Box
Buyers Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
CharacteristicsAffectingConsumerBehavior
BuyersDecisionProcess
Product Choice
Brand Choice
Dealer Choice
PurchaseTiming
PurchaseAmount
Stimulus Response Model of CB
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Buyer
Psychological
Personal
Social
Culture
Characteristics affectingconsumer behaviour
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Factors Influencing
Consumer BehaviorPersonal
PsychologicalSocial
Cultural
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Culture & Subcultures
CulturesThe accumulation of values, knowledge, beliefs,
customs, objects, and concepts that a societyuses to cope with its environment
SubculturesGroups of individuals who have similar value and
behavior patterns within the group but differfrom those in other groups.
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Social Class
People within a social classtend to exhibit similar buyingbehavior.
Occupation
Income
Education
Wealth
Most basic cause of a person's
wants and behavior.ValuesPerceptions
Subculture
Groups of people with sharedvalue systems based on commonlife experiences.
Factors affecting CB : Culture
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Social Class
Relatively homogenous, enduringdivisions in a society,hierarchically ordered with
members sharing similar values,interests, and behaviors.
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Social Classes
Upper Upper 1%
Lower Upper 2%
Upper Middle 12%
Middle 32%
Working 38%Upper Lower 9%
Lower Lower 7%
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Social Factors
1. Reference Groups
2.Primary groups
3.Secondary Groups
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Factors Affecting Consumer Behavior:Social
Groups
Membership
Reference
FamilyHusband, wife, kids
Influencer, buyer, user
Roles and Status
Social Factors
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Personal Factors
Age
Life-Cycle Stage
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Stages in Family Life-Cycle
1. Single2. Newly Married Couples
3. Full Nest I4. Full Nest II5. Full Nest III
6. Empty Nest I7. Empty Nest II8. Solitary Survivor9. Solitary Survivor, Retired
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Personal Factors
Age
Life-Cycle StageOccupation
Economic CircumstancesLife Style
ff h
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Factors Affecting Consumer Behavior:Personal
Personal Influences
Age and Family Life CycleStage
Occupation
Economic Situation
Lifestyle Identification
Activities Opinions
Interests
Personality & Self-Concept
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AIO FrameworkActivities Work, Hobbies, Social events,
vacation, Entertainment, clubs, community,shopping, sports
Interests Family, Home, Job, community,
recreation, fashion, food, media,achievements
Opinions themselves, social issues, politics,
business, eco, education, products, future,culture
VALS
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VALS
Principle Oriented Status Oriented Action Oriented
Achievers
Actualizers
Strugglers
Strivers
Fulfilleds
Believers
Experiencers
Makers
Abundant Resou rces
Minimal Resources
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Types of Buying Behavior
Routine Response
Limited DecisionExtension Decision
Impulse Buying
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Buying Roles
Initiator
Influencer
Decider
Buyer
User
T f B i D i i
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Types of Buying Decisions
Complex
BuyingBehavior
Dissonance-
Reducing Buying
Behavior
Variety-
SeekingBehavior
Habitual
Buying
Behavior
HighInvolvement
Significant
differencesbetweenbrands
Fewdifferences
between
brands
LowInvolvement
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Complex buying situationpurchase of a car, house,computer etc.,
Dissonance reducing buyingsituation purchase of carpets
Variety seeking buying purchaseof cookies, perfumes
Habitual buying situationpurchase of salt, sugar etc.,
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Factors A ffect ing Consumer Behavior :
Psychological
PsychologicalFactors
Motivation
Perception
Learning
Beliefs andAttitudes
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Psychological Factors
Wants
Based on a want or desire tohave something. Not anecessity.
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Psychological Factors
Motivation:
FreudIdEgo
Super EgoMaslow
Hierarchy of Needs
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Psychological Factors
MotivationPerception
The process by which an individualselects, organizes, and interprets inputsto create a meaningful picture of theworld.
Selective ExposureSelective DistortionSelective Retention
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Selective exposure theory is a theory ofcommunication, positing that individuals
prefer exposure to arguments supportingtheir position over those supporting otherpositions. It has been discussed bycommunication scholars for decades. Sinceexcessive amount of media choices areavailable, media consumers have moreprivileges to expose themselves to selectedmedium and media contents.
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Selective Distortion is a term that refersto the tendency of people to interpret
information in a way that will support whatthey already believe. This concept, alongwith selective attention and selectiveretention, makes it hard for marketers to
get their message across and create goodproduct perception
http://en.wikipedia.org/wiki/Selective_attentionhttp://en.wikipedia.org/wiki/Selective_retentionhttp://en.wikipedia.org/wiki/Selective_retentionhttp://en.wikipedia.org/wiki/Marketershttp://en.wikipedia.org/wiki/Marketershttp://en.wikipedia.org/wiki/Selective_retentionhttp://en.wikipedia.org/wiki/Selective_retentionhttp://en.wikipedia.org/wiki/Selective_attention -
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Selective retention is the processwhen people remember messages that
are closer to their interests, valuesand beliefs more accurately, thanthose that are in contrast with their
values and beliefs, selecting what tokeep in the memory, narrowing theinformational flow.
http://en.wikipedia.org/wiki/Memoryhttp://en.wikipedia.org/wiki/Memory -
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Psychological Factors
Motivation
PerceptionLearning
Changes in an individuals behaviorarising form experience
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Psychological Factors
Motivation
PerceptionLearning
Beliefs
Descriptive thoughts that a person holdsabout something
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Psychological Factors
MotivationPerception
LearningBeliefsAttitudes
Enduring favorable or unfavorablecognitive evaluations emotional feelingsand action tendencies
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Functional Factors
Needs
Need over wants. Delivers to areal need to have something.
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Family Influence on BuyingBehavior
Husband-DominantWife-Dominant
Equal
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Examples of Buying Motives:Psychological or Functional?
A senior wants to impress hisjuniors.
His primary motive is ?
Psychological
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Examples of Buying Motives:Psychological or Functional?
A girl wants to remember hergrandmother on her birthday.
Her primary motive is?
Psychological
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Examples of Buying Motives:Psychological or Functional?
A homemaker needs a new washingmachine and has had good
experiences with LG.Her primary motive is ?
Functional
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Examples of Buying Motives:Psychological or Functional?
A teacher wants to buy a practicalcar to be used for family
transportation.Her/His primary motive is ?
Functional
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Examples of Buying Motives:Psychological or Functional?
A career woman always buys brandedclothes.
Her primary motive is?
Psychological
http://www.lizclaiborne.com/product/index.jsp?productId=2179527&cp=1986587.1988213&parentPage=family -
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Examples of Buying Motives:Psychological or Functional?
An overweight 40 year old man wantsto loose weight so that he can reduce
his blood pressure.His primary motive is?
Functional
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Examples of Buying Motives:Psychological or Functional?
A homeowner needs to mow theirlawn.
Their primary motive is?
Functional
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Consumer Buying Behavior Competency
Functional
Motive
Psychological
Motive
The price is 40cents off theregular price.
It never needsironing.
Diamonds areforever.
Serving you since1971.
Ninety-daywarranty.
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Consumer Buying Behavior Competency
FunctionalMotive
PsychologicalMotive
Running shoe withbuilt-in arch.
Its all the rage
colored action wearand style.
Wheatiesthebreakfast ofchampions!
Steel-belted radialtires warranted for40,000 miles
A watcha gift shewill treasure
always.
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Consumer Buying Decision Process
Problem
Recognition
Information
Search
Evaluation of
Alternatives
PurchaseDecision
Post-PurchaseEvaluation
The Buyer Decision Process
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The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
The Buyer Decis ion Process
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The Buyer Decis ion Process
Step 1. Need Recogn it ion
External Stimuli
TV advertising
Magazine ad
Radio slogan
Stimuli in the
environment
Internal Stimuli
Hunger
Thirst
A persons normalneeds
Need RecognitionDifference between an actualstate and a desiredstate
The Buyer Decision Process
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The Buyer Decision ProcessStep 2. Information Search
Family, friends, neighborsMost influential source of
information
Advertising, salespeopleReceives most information
from these sources
Mass MediaConsumer-rating groups
Handling the productExamining the productUsing the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
The Buyer Decis ion Process
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The Buyer Decis ion Process
Step 3. Evaluat ion o f A lternat ives
Product A tt r ibutesEvaluation of Quality, Price, & Features
Degree of Impo rtanceWhich attributes matter most to me?
Brand Bel iefsWhat do I believe about each available brand?
Total Produ ct Satisfact ion
Based on what Im looking for, how satisfiedwould I be with each product?
Evaluat ion ProceduresChoosing a product (and brand) based on one
or more attributes.
The Buyer Decision Process
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The Buyer Decision ProcessStep 4. Purchase Decision
Purchase IntentionDesire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpectedsituational
factors
The Buyer Decis ion Process
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The Buyer Decis ion Process
Step 5. Pos tpu rchase Behavio r
Consumers Expectations ofProducts Performance
Dissatisfied
CustomerSatisfied
Customer!
Products Perceived
Performance
CognitiveDissonance
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Adoption Process
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Decision6. Confirmation
Stages in the Adoption Process
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Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
nfluences on the Rate of Adoption
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nfluences on the Rate of Adoptionf New Products
DivisibilityCan the innovation
be used on atrial basis?
CompatibilityDoes the innovation
fit the values andexperience of the
target market?ComplexityIs the innovation
difficult tounderstand or use?
Relative AdvantageIs the innovation
superior to existingproducts?
CommunicabilityCan results be easily
observed or describedto others?
ProductCharacteristics
Adoption of Innovations
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Adoption of Innovations
Percent
ageofAdopters
Time of Adoption
Early Late
Innovato
rs
EarlyAdopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority