marketing principles unit 4 customer and business behavior

UNIT 4
Consumer and business
business-toto
business market buyer behaviour:
understanding what drives
customers and how marketers use
the knowledge effectively

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Obj
ti
Objectives
The relationship between marketing and
buyer behaviour
Model of consumer buyer decision-making
Consumer buying decision roles
Buying decision choice sets
Ways
y consumers evaluate alternatives
Post purchase behaviour
Business
us ess Buying
uy g Behaviour
e a ou
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C
i B
h i
Consumer B
Buying
Behaviour
Consumer Buying Behaviour refers to the
buying behaviour of final consumers individuals & households - who buy goods
and services for personal consumption.
These final consumers make up the
consumer market.
The central question for marketers is:
– “How do consumers respond to various
marketing
k ti efforts
ff t the
th company might
i ht use?”
?”
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M d l off B

Model
Buyer B
Behaviour
h i

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Factors Influencing
g Consumer Behaviour
Psychological
•Motivation
Moti ation
•Perception
•Learning (memory)
•Beliefs & attitudes
•Personality
P
lit &
self-concept

Personal
•Age & lifecycle stage
•Occupation
Occupation
•Education
•Economic situation

Marketing programs
•Marketing objectives
Marketing strategy
•Marketing
•Marketing mix

Consumer

Buyers’ responses
•Product service &
category
g y selection
BUYER DECISION
•Brand selection
PROCESS
•Reseller selection
Experiences •Purchase timing &
Lifestyle
repurchase
p
intervals
•Purchase amount

Environmental influences
•Economic
E
i
•Technological
•Political

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Social
•Household type
•Reference
Reference groups
•Roles & status

Cultural
•Culture
•Subculture
•Social Class

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Factors
acto s Influencing
ue c g
Consumer Behaviour

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Factors

acto s Affecting
ect g Co
Consumer
su e
Behaviour: Culture
Culture is the Most Basic Cause of a Person's
Wants and Behavior.
Subculture
• Groups of people with shared
value systems based on common
life experiences.
• Hispanic Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers
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Factors
acto s Affecting
ect g Co
Consumer
su e
Behaviour: Culture
Social Class
• Society’s relatively permanent &
ordered divisions whose members

share similar values
values, interests,
interests
and behaviours.
• Measured by a Combination of:
Occupation Income
Occupation,
Income, Education
Education,
Wealth and Other Variables.

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Factors
acto s Affecting
ect g Co
Consumer
su e
Behaviour: Social
Groups
Membership,
p, Reference,,
or Aspirational
Family
Most Important Consumer Buying
Organization

Roles and Status
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Factors
acto s Affecting
ect g Co
Consumer
su e
Behaviour: Personal
Personal Influences
Age and Life
Cycle Stage

Occupation
p

Economic
Situation

Personality &
Self Concept
Self-Concept

Lifestyle Identification

Activities

Interests

O i i
Opinions
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Factors Affecting Consumer
Behavior: Psychological
Motivation

Beliefs and
Attitudes

Psychological
Factors
Affecting
Buyers
Choices

Perception

Learning

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M l ’ Hi
Maslow’s
Hierarchy
h off N
Needs
d

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B
Buyer
D
Decision
i i P
Process

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Buyer
uye Decision
ec s o Process
ocess
Step 1. Need Recognition

Internal Stimuli –

Hunger

Buyer
Recognises
a
Problem
or a
Need
Arising
From:

External Stimuli-

Friends

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The

e Buyer
uye Decision
ec s o Process
ocess
Step 2. Information Search
Personal Sources
Commercial Sources
Public Sources
Experiential Sources

•Family, friends, neighbors
•Most effective source of
i f
information
ti
•Advertising, salespeople
•Receives the most information
from these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
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The Buyer Decision Process

Step 3. Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Rely on Intuition
Consumers May Make Buying Decisions
on Their Own
Consumers May Make Buying Decisions
Only After Consulting Others

Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives 16
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Types of Buying Decisions
High
Hi
h
Involvement

Low
L
Involvement

Significant
g
differences
between

brands

Complex
Buying
Behaviour

VarietyV
i t
Seeking
Behaviour

Few
differences
between
brands

DissonanceReducing Buying
Behaviour

Habitual
ab tua
Buying
Behaviour

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B i D
Buying
Decisions
i i
Total Set - All potential products & services
that might satisfy wants and needs.
Awareness Set - Alternatives that the
consumer is aware of
Evoked (Choice) Set - Alternatives
considered byy consumers
Inept Set
Inert Set
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The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention

Desire to buy the most preferred brand

Attitudes
of Others

Unexpected
Situational
Factors

Purchase Decision
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The Buyer Decision Process
Step 5. Postpurchase Behaviour

Consumer’s
Expectations of Product’s
Product s Performance
Product’s Perceived
Performance

Cog
gnitive Diissonance
e

Satisfied Customer!

Dissatisfied Customer
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Using the decision making process model,
trace a recent purchase each of you have
made. Be sure to examine each of the five
stages of the buyer decision process and
detail your experiences in each stage
stage.
What could the seller have done to make
your buying experience better?
Did you experience any cognitive
dissonance? Explain.
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Stages in the
t e Adoption
dopt o
Process
Awareness: Consumer becomes aware of the new
product, but lacks information about it.

Interest: Consumer seeks information about new
product.

Evaluation: Consumer considers whether trying the
new product makes sense.

Trial: Consumer tries new product on a small scale to

improve his or her estimate of its value.

Adoption: Consumer decides to make full and regular
use of the new product
product.
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Ad t C
Adopter
Categories
t
i

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Influence of Product Characteristics
on Rate of Adoption
Communicability

Relative Advantage

Can results be easily

observed or described
to others?

Is the innovation
superior to existing
products?

Compatibility

Divisibility

Can the innovation
be used on a
limited basis?

Complexity

Does the innovation
fit the values and
experience of the
target market?

Is the innovation
difficult to
understand or use?

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R i i th
Reviewing
the C
Concepts
t
Understand the consumer market and the major
j
factors that influence consumer buyer behaviour.
Identifyy and discuss the stages
g in the buyer
y
decision process.
Describe the adoption and diffusion process for
new products.

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