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Title: Consumer%20Markets%20and%20Consumer%20Buying%20Behavior


1
Chapter 5
  • Consumer Markets and Consumer Buying Behavior

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?

3
Model of Buyer Behavior (Fig. 5.1)
Marketing and Other Stimuli Marketing Product Pr
ice Place Promotion Other Economic Technological P
olitical Cultural
Buyers Black Box Buyer Characteristics Buyer
Decision Process
Buyer Responses Product Choice Brand
Choice Dealer Choice Purchase Timing Purchase
Amount
4
Understanding Consumer Behavior
  • Characteristics of consumers
  • what needs (solutions) they seek?
  • personal and interpersonal characteristics
    affecting consumer behavior
  • The Buying Process
  • Who makes the decision?
  • Decision-Making Process
  • Buying Context (Impulse vs Planned)

5
Factors Influencing Consumer Behavior (Fig. 5.2)
Social Reference groups Family Roles and sta
tus
Personal Age and life-cycle Occupation Economi
c situation Lifestyle Personality and self-conce
pt
Psycho- logical Motivation Perception Learning
Beliefs and attitudes
Buyer
6
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

7
Factors Affecting Consumer Behavior Culture
  • Culture is the Set of Values, Perceptions, Wants
    Behavior Learned by a Member of Society from
    Family.
  • Social Class
  • Societys relatively permanent ordered
    divisions whose members share similar values,
    interests, and behaviors.
  • Measured by Occupation, Income, Education,
    Wealth and Other Variables.

8
Factors Affecting Consumer Behavior Social
  • Groups
  • Membership
  • Reference
  • Groups and reference groups serve as a point of
    reference in forming a persons attitudes and
    behaviors.
  • Roles and status activities that a person is
    expected to perform according to the persons
    around him or her, and the esteem (status) given
    to the roles by society.
  • Family (most important)
  • Husband, wife, kids
  • Influencer, buyer, user

Social Factors
Roles and Status
9
Factors Affecting Consumer Behavior Personal
10
Factors Affecting Consumer Behavior Psychological
Baloglu, S (1998). An Empirical Investigation of
Attitude Theory for Tourist Destinations. Journal
of Hospitality Tourism Research, 22(3), 211-224.
Motivation
Psychological Factors Affecting Buyers Choices
Beliefs and Attitudes
Perception
Learning
11
Maslows Hierarchy of Needs (Fig. 5.4)
12
- Perception is selective.- Perception is
reality
13
Types of Buying Decision Behavior (Fig. 5.5)
Complex Buying Behavior
Variety- Seeking Behavior
Habitual Buying Behavior
Dissonance- Reducing Buying Behavior
14
Buyer Decision Process (Fig. 5.6)
Purchase Decision
Postpurchase Behavior
Evaluation of Alternatives
Information Search
Need Recognition
15
Buyer Decision ProcessStep 1. Need Recognition

Buyer Recognizes a Problem or a
Need.
Needs Arising From Internal Stimuli
Hunger External Stimuli- Friends
State Where the Buyers Needs are Fulfilled and
the Buyer is Satisfied.
16
The Buyer Decision ProcessStep 2. Information
Search
Personal Sources
Commercial Sources

Public Sources
  • Family, friends, neighbors
  • Most effective source of
  • information
  • Advertising, salespeople
  • Receives most information from
  • these sources

Experiential Sources
  • Mass Media
  • Consumer-rating groups
  • Handling the product
  • Examining the product
  • Using the product

17
The Buyer Decision ProcessStep 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
18
Alternative Evaluation
  • Value
  • Convenient Location
  • Fast Service
  • Menu Variety
  • Food Quality
  • Employee Attitude
  • Atmosphere

19
The Buyer Decision ProcessStep 5. Purchase
Decision
  • Purchase Intention
  • Desire to buy the most preferred brand
  • Purchase Decision

20
The Buyer Decision ProcessStep 6. Postpurchase
Behavior
Satisfied Customer!
  • Consumers
  • Expectations of Products Performance.
  • Products Perceived
  • Performance.

Dissatisfied Customer
21
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?
  • Discuss the Buyer Decision Process and what major
    factors influenced your decisions.

22
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.
23
Adopter Categories (Fig. 5.7)
Early Majority
Late Majority
Early Adopters
Innovators
Percentage of Adopters
Laggards
34
34
16
13.5
Time of Adoption
2.5
Late
Early
24
Influence of Product Characteristics on Rate of
Adoption
Relative Advantage Is the innovation superior
to existing products?
Communicability Can results be easily observed
or described to others?
Divisibility Can the innovation be used on a
trial basis?
Compatibility Does the innovation fit the
values and experience of the target market?
Complexity Is the innovation difficult
to understand or use?
25
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.

26
Chapter 6
  • Business Markets and Business Buyer Behavior

27
What is a Business Market?
  • A business market comprises all the organizations
    that buy goods and services for use in the
    production of other products and services that
    are sold, rented, or supplied to others.
  • The business market is huge and involves many
    more dollars and goods than do consumer markets.

28
Characteristics of Business Markets
Contain fewer, but larger buyers
Customers are more geographically concentrated
Buyer demand is derived from final consumer
demand
Marketing Structure and Demand
29
Characteristics of Business Markets
  • Nature of the Buying Unit
  • Business purchases involve more buyers.
  • Business buying involves a more professional
    purchasing effort.

30
Characteristics of Business Markets
Types of Decisions and the Decision Process
Build Long-Term Partnerships
31
Model of Business Buyer Behavior (Fig. 6.1)
Buyer Responses Product or service
choice Supplier Choice Order Quantities Deliver
y terms and times Service terms Payment
  • The Environment
  • Marketing
  • Stimuli
  • Product
  • Price
  • Place
  • Promotion
  • Other Stimuli
  • Economic
  • Technological
  • Political
  • Cultural
  • Competitive

The Buying Organization The buying
center Buying decision process (Interpersonal
and individual influences) (Organizational
Influences)
32
Discussion Connections
  • Although business markets are similar in many
    ways to consumer markets, there are also
    significant differences.
  • What similarities and differences might Bilkent
    Hotel encounter in selling to the business market
    versus the consumer market.

33
Major Types of Buying Situations
34
Participants in the Business Buying Process
Unexpected Situational Factors
Users
Ethical
Influencers
Decision-Making Unit of a Buying Organization is
Called Its Buying Center.
Buyers
Attitudes of Others
Deciders
Gatekeepers
35
Major Influences on Business Buyer Behavior (Fig.
6.2)
Environmental Economic developments Supply
Conditions Technological change Political and
regulatory developments Competitive
Developments Culture and customs
Organizational Objectives Policies Procedures
Organizational Structure Systems
Interpersonal Authority Status Empathy Persuas
iveness
Individual Age Education Job Position Personality
Risk Attitudes
Buyers
36
The Business Buying Process
Stage 1. Problem Recognition
Stage 2. General Need Description
Stage 3. Product Specification
Stage 4. Supplier Search
Stage 5. Proposal Solicitation
Stage 6. Supplier Selection
Stage 7. Order-Routine Specification
Stage 8. Performance Review
37
Business Buying on the Internet
  • Business buyers may purchase electronically by
  • Electronic data interchange links (EDI)
  • The Internet
  • Connecting to customers to
  • Share marketing information,
  • Sell products services,
  • Provide customer support, and
  • Maintain on-going relationships.

38
Benefits and Problems Created by Buying on the
Internet
  • Benefits
  • Shave transaction costs
  • Reduce time between order and delivery
  • Create more efficient purchasing systems
  • Forge more intimate relationships
  • Level the playing field
  • Problems
  • Cut purchasing jobs
  • Erode supplier-buyer loyalty
  • Create potential security disasters

39
Institutional and Government Markets
40
Review of Concept Connections
  • Define the business market and explain how
    business markets differ from consumer markets.
  • Identify the major factors that influence
    business buyer behavior.
  • List and define the steps in the business buying
    decision process.
  • Compare the institutional and government markets
    and explain how institutional and government
    buyers make their buying decisions.
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