2. Schedule – Before Midterm
4
Oct.8/9
5
Oct.15/16
6
Oct.22/23
Consumer Markets and
Consumer Buyer Behavior
Ch.5
Case 3
Business Markets and Business
Buyer Behavior
Ch.6
Case 4
Marketing Information System
Ch.4
Case 5
2
3. Learning Goals
1.
2.
3.
4.
Define the consumer market and construct a
model of consumer buyer behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the process
Describe the adoption and diffusion process
for new products
3
4. Case Study
Harley Davidson
Measuring Success
Building Success
Understanding the
customers’ emotions
and motivation
Determining the factors
of loyalty
Translating this
information to effective
advertising
Currently 22% of all U.S.
bike sales
Demand above supply
Sales doubled in the past
5 years with earnings
tripled
5-4
5. Learning Goals
1.
2.
3.
4.
Define the consumer market and construct a
model of consumer buyer behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the process
Describe the adoption and diffusion process
for new products
5
6. Definitions
Consumer buyer behavior refers to the
buying behavior of final consumers –
individuals and households who buy
goods and services for personal
consumption
All of these final consumers combine
to make up the consumer market
6
8. Learning Goals
1.
2.
3.
4.
Define the consumer market and
construct a model of consumer buyer
behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the
process
Describe the adoption and diffusion
process for new products
8
10. Characteristics Affecting
Consumer Behavior
Key Factors
Cultural
Social
Personal
Psychological
Culture
Subculture
Forms a person’s wants and
behavior
Groups with shared value
systems
Social Class
Society’s divisions who
share values, interests and
behaviors
10
11. Characteristics Affecting
Consumer Behavior
Key Factors
Cultural
Social
Personal
Psychological
Groups
Family
Membership
Reference
Aspirational
Opinion leaders
Buzz marketing
Many influencers
Roles and status
11
13. Characteristics Affecting
Consumer Behavior
Key Factors
Cultural
Social
Personal
Psychological
Age and life cycle
Occupation
Economic situation
Lifestyle
Activities,
interests and
opinions
Lifestyle segmentation
Personality and self-concept
13
14. Personal Factors
Family Life Cycle stages throughout which
families pass as they mature over time
Stages in family life cycle:
1.bachelor stage
2.newly married couples, no children
3.full nest 1; youngest child under 6
4.full nest 2; youngest child 6 or over
5. full nest 3; older married couples with dependent children
6.empty nest 1; older married couples no children with them
7. empty nest 1; older married couples no children at home;retired
8.solitary survivor, working
9.solitary survivor, retired
14
15. Personal Factors
Personality ğ a person’s unique
characteristics that lead to relatively consistent
and lasting responses to his environment
Self-concept ğ the self image or general
picture that people have of themselves
15
16. Personal Factors
Lifestyle a person’s pattern of living as
expressed in his activities, interests and
opinions
ğ technique of measuring lifestyles
and developing lifestyle classifications
Major dimensions measured are:
Activities (work, hobbies, social events, entertainment,
Psychographics
shopping, sports,vacation)
Interests (family, home, job, recreation, fashion, food,
media, achievements)
Opinions (themselves, social issues, politics, business,
economics, products, future)
16
19. Psychological Factors
Motivation
A motive is a need that is sufficiently
pressing to direct the person to seek
satisfaction
Motivation research is based on Freud.
Looks for hidden and subconscious
motivation
Maslow ordered needs based on how
pressing they are to the consumer
19
23. Psychological Factors
Perception
Perception is the process by which people
select, organize, and interpret information.
Perception Includes:
Selective
Consumers screen out information
Selective
distortion
People interpret to support beliefs
Selective
attention
retention
People retain points to support attitudes
23
25. Psychological Factors
Learning
Learning describes changes in an individual’s
behavior arising from experience
Learning occurs through
Drives
Internal stimulus that calls for action
Stimuli
Objects that move drive to motive
Cues
Minor stimuli that affect response
Reinforcement
Feedback on action
25
26. Psychological Factors Beliefs
and Attitudes
Belief
a
descriptive thought about a brand or service
may be based on real knowledge, opinion, or
faith
Attitude
describes
a person’s evaluations, feelings and
tendencies toward an object or idea
They are difficult to change
26
27. Learning Goals
1.
2.
3.
4.
Define the consumer market and
construct a model of consumer buyer
behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the
process
Describe the adoption and diffusion
process for new products
27
30. The Buying Roles
5 roles people might play in a buying decision
ğ who first gives the idea of buying the
product or service
Influencer ğwhose view or advice influences the
decision
Decider ğwho decide on any component of buying
decision
Buyer ğwho makes the actual purchase
User ğwho uses the product or sevice purchased
Initiator
30
32. The Buyer Decision
Process
Process Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Needs can be triggered
by:
Internal stimuli
Normal needs
become strong
enough to drive
behavior
External stimuli
Advertisements
Friends of friends
32
33. The Buyer Decision
Process
Process Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Consumers exhibit
heightened attention or
actively search for
information
Sources of information:
Personal
Commercial
Public
Experiential
Word-of-mouth
33
34. Information Search
Personal Sources
Personal Sources
Commercial Sources
Commercial Sources
Public Sources
Public Sources
Experiential Sources
Experiential Sources
•Family, friends, neighbors
•Most effective source of
information
•Advertising, salespeople
•Receives most information
from these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
34
35. The Buyer Decision
Process
Process Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Evaluation procedure
depends on the consumer
and the buying situation.
Most buyers evaluate
multiple attributes, each of
which is weighted
differently.
At the end of the evaluation
stage, purchase intentions
are formed.
35
36. Evaluation of Alternatives
Consumer May Use Careful
Consumer May Use Careful
Calculations & Logical Thinking
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Consumers May Buy on Impulse and
Rely on Intuition
Rely on Intuition
Consumers May Make Buying Decisions
Consumers May Make Buying Decisions
on Their Own.
on Their Own.
Consumers May Make Buying Decisions
Consumers May Make Buying Decisions
Only After Consulting Others..
Only After Consulting Others
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
36
38. The Buyer Decision
Process
Process Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Two factors intercede
between purchase
intentions and the actual
decision:
Attitudes of others
Unexpected
situational factors
38
39. Buyer Decision Process for
New Products
New Products
Good,
service or idea that is perceived by
customers as new.
Stages in the Adoption Process
Marketers
should help consumers move
through these stages.
39
40. Stages in the Adoption Process
Awareness::Consumer is aware of
Awareness Consumer is aware of
product, but lacks information.
product, but lacks information.
Interest:: Consumer seeks
Interest Consumer seeks
Information about new product.
Information about new product.
Evaluation::Consumer considers
Evaluation Consumer considers
trying new product.
trying new product.
Trial: Consumer tries new
product on a small scale.
Adoption: Consumer decides
to make regular use of product.
40
41. Buyer Decision Process for
New Products
Individual Differences in Innovativeness:
Consumers
can be classified into five
adopter categories, each of which behaves
differently toward new products
41
42. Early Majority
Innovators
Percentage of Adopters
Adopter Categories
Early
Adopters
34%
Late Majority
16%
13.5%
2.5%
Early
Laggards
34%
Time of Adoption
Late
42
43. Buyer Decision Process for
New Products
Product Characteristics influencing the adoption rate:
Advantage ğ Is the innovation superior to
existing products?
Compatibility ğ Does the innovation fit the values and
experience of the target market?
Complexity ğ Is the innovation difficult to understand
or use?
Divisibility ğ Can the innovation be used on a trial
basis?
Communicability ğ Can results be easily observed or
described to others?
Relative
43
44. Buyer Decision Process for
New Products
International Consumer Behavior
Values,
attitudes and behaviors differ greatly in other
countries.
Physical differences exist which require changes in
the marketing mix.
Customs vary from country to country.
Marketers must decide the degree to which they will
adapt their marketing efforts.
44
47. The Buyer Decision
Process
Process Stages
Need recognition
Information search
Evaluation of
alternatives
Purchase decision
Postpurchase behavior
Satisfaction is important:
Delighted consumers
engage in positive wordof-mouth.
Unhappy customers tell
on average 11 other
people.
Cognitive dissonance is
common
47
48. Learning Goals
1.
2.
3.
4.
Define the consumer market and
construct a model of consumer buyer
behavior
Name the four factors that influence buyer
behavior
List and understand the types of buying
decision behavior and stages in the
process
Describe the adoption and diffusion
process for new products
48
50. Ramazan Bayraminiz Kutlu & Mutlu
olsun!!!
For Next Week
Read
Chapter 6
Be prepared for case 4 – Kodak discussion
50
Hinweis der Redaktion
There are many products that fit several levels. Hotels, for instance, will satisfy basic physiological needs, but the best room at the Ritz Carlton may meet many higher levels.
Did students include Internet ads, logos on clothing, ads in the subway, billboards, logos on drinks, in the classroom, TV or radio ads?
This should prompt discussion of selective attention, distortion and retention. Was it that they are loyal to these brands? Did they break through the clutter? Were they bombarded by a particular brand message?
Go to the site and ask students which type of decision this is best for. They should agree that the site is helpful for highly involved products. It is used in the information search to determine what attributes are important. It then helps them evaluate the alternatives as they can see how the brands compare.
Computers are doing more for us at home. We already have TiVo-type products which scan databases and decide what to record. Other products include the Roomba and other home vacuum systems. New robots can conduct an orchestra (Sony) and assist the blind.