1. Consumer Markets and
Consumer Buying Behavior
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2. Consumer Buying Behavior
 Consumer Buying Behavior refers to the
buying behavior of final consumers
-individuals & households who buy goods
and services for personal consumption.
 All these consumers make up the
consumer market.
 The central question for marketers is:
 “How do consumers respond to various
marketing efforts the company might use?”
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3. Model of Buyer Behavior
(Fig. 5.1)
Marketing and Buyer’s Black Box Buyer Responses
Other Stimuli
Marketing Buyer Characteristics Product Choice
Product Buyer Decision Process Brand Choice
Price Dealer Choice
Place
Promotion
Other Purchase Timing
Economic Purchase Amount
Technological
Political
Cultural
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4. Factors Influencing
Consumer Behavior (Fig. 5.2)
Cultural
Social
Personal
Age and Psycho-
Culture
Culture
Reference life-cycle logical
groups
Occupation Motivation
Economic Perception Buyer
Sub-
Sub-
culture Family situation Learning
culture
Lifestyle Beliefs and
Roles attitudes
Personality
Social
Social and and
class
class status self-concept
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5. Factors Affecting Consumer
Behavior: Culture
Culture is the Most Basic Cause of a Person's
Wants and Behavior.
Subculture
• Group 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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6. Factors Affecting Consumer
Behavior: Culture
Culture is the Set of Values, Perceptions, Wants &
Behavior Learned by a Member of Society from
Family.
Social Class
• Society’s relatively permanent
& ordered divisions whose
members share similar values,
interests, and behaviors.
• Measured by: Occupation,
Income, Education, Wealth and
Other Variables.
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7. Factors Affecting Consumer
Behavior: Social
Groups
Groups
•• Membership
Membership
•• Reference
Reference
Family (most important)
Family (most important)
•• Husband, wife, kids
Husband, wife, kids Social Factors
Social Factors
•• Influencer, buyer, user
Influencer, buyer, user
Family Buying Influence
Children can exert a
strong influence on
Roles and Status
family buying decisions.
Roles and Status
Johnson & Johnson reminds
customer’s of its commitment
to the American Family.
What other companies use
children to influence
family buying decisions?
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8. Factors Affecting Consumer
Behavior: Personal
Personal Influences
Personal Influences
Age and Life
Age and Life Economic
Economic Personality &
Personality &
Cycle Stage Occupation
Occupation Situation Self-Concept
Cycle Stage Situation Self-Concept
Lifestyle Identification
Lifestyle Identification
Activities
Activities Interests
Interests Opinions
Opinions
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9. SRI Values and Lifestyles
(VALS) (Fig. 5.3)
Actualizers
Actualizers High Innovation
High Resources
Fulfilleds
Fulfilleds Achievers
Achievers Experiencers
Experiencers
Believers
Believers Strivers
Strivers Makers
Makers
Strugglers
Strugglers
Low Resources Low Innovation
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10. Factors Affecting Consumer
Behavior: Psychological
Motivation
Psychological
Factors
Beliefs and Affecting Perception
Attitudes Buyers
Choices
Learning
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11. Maslow’s Hierarchy of Needs
(Fig. 5.4)
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
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12. Types of Buying Decision
Behavior (Fig. 5.5)
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between Behavior Behavior
brands
Few Dissonance- Habitual
differences Reducing Buying Buying
between Behavior Behavior
brands
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13. Buyer Decision Process
(Fig. 5.6)
Purchas
e
Evaluation Decision
Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition 13

14. Buyer Decision Process
Step 1. Need Recognition
Buyer
Recognizes Needs Arising
State Where the From:
Buyer’s Needs a
are Fulfilled and Problem Internal Stimuli –
the Buyer is or a
Satisfied. Need.
Hunger
External Stimuli-
Friends
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15. The Buyer Decision Process
Step 2. Information Search
Personal Sources
Personal Sources
•Family, friends, neighbors
•Most effective source of
information
Commercial Sources •Advertising, salespeople
Commercial Sources •Receives most information from
these sources
Public Sources
Public Sources
•Mass Media
•Consumer-rating groups
•Handling the product
Experiential Sources
Experiential Sources •Examining the product
•Using the product
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16. The Buyer Decision Process
Step 4. 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
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17. The Buyer Decision Process
Step 5. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes Unexpected
of Others Situational
Factors
Purchase Decision
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18. The Buyer Decision Process
Step 6. Postpurchase Behavior
Satisfied Customer!
Consumer’s
Expectations of Product’s Performance.
Cognitive Dissonance
Product’s Perceived
Performance.
Dissatisfied Customer
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19. Discussion Connections
 Form small groups to discuss a specific
major purchase that one of you has
made recently.
 What type of buying decision was it? (slide
#12)
 Discuss the Buyer Decision Process and
what major factors influenced your
decisions.

20. Stages in the Adoption
Process
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks
Information about new product.
Evaluation: Consumer considers
trying new product.
Trial: Consumer tries new
product on a small scale.
Adoption: Consumer decides
to make regular use of product.
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21. Adopter Categories (Fig. 5.7)
Percentage of Adopters
Early Majority Late Majority
Innovators
Early
34% 34% Laggards
Adopters
13.5% 16%
2.5% Time of Adoption
Early Late
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22. Influence of Product
Characteristics
on Rate of Adoption
Communicability Relative Advantage
Can results be easily
Is the innovation
observed or described
superior to existing
to others?
products?
Divisibility Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?
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23. Review of Concept
Connections
 Define the consumer market and construct a
simple model of consumer buyer behavior.
 Name the four major factors that influence
consumer buyer behavior.
 List and understand the stages in the buyer
decision process.
 Describe the adoption and diffusion process
for new products.
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