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MODEL OF CONSUMER BEHAVIOR AND THE CONSUMER DECISION PROCESS

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Chapter 3 MODEL OF CONSUMER BEHAVIOR AND THE CONSUMER DECISION PROCESS In this chapter, we focus on 4 parts. 1. The character of automobile consuming and ... – PowerPoint PPT presentation

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Title: MODEL OF CONSUMER BEHAVIOR AND THE CONSUMER DECISION PROCESS


1
MODEL OF CONSUMER BEHAVIOR AND THE CONSUMER
DECISION PROCESS
Chapter 3


2
In this chapter, we focus on 4 parts.
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • 1. The character of automobile consuming and
    classification of the customers
  • 2. Framework for consumer research about the
    market7Os
  • 3. Consumer's personal behavior
  • 4. Organization buying behavior

3
1 The character of automobile consuming and
classification of the customers
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • The character of automobile consuming
  • As material for production
  • As material for consumption
  • A kind of merchandise
  • Classification of the customers
  • Consumer market
  • Business market
  • Government market
  • Reseller market

4
2 Framework for consumer research about the
market7Os
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
5
3 Consumer's personal behavior
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • 3.1 Basic characteristics of personal consuming
    market
  • 3.2 Major factors influencing buying behavior
  • 3.3 Model of buyer behavior
  • 3.4 Types of buying decision decision behavior
  • 3.5 The buyer decision process

6
3.1 Basic characteristics of personal consuming
market
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • (1)Flexibility-full. There is a higher
    sensitivity or elasticity in consumers personal
    demands. The needs might be actualized,
    suppressed, transferred, abandoned under a
    certain circumstance.
  • (2)Diversity and difference. Consumers pursuit
    individualization.
  • (3)Inductivity. Consumers personal demands can
    be derived from some factors.

7
3.1 Basic characteristics of personal consuming
market
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • (4)Progression and expansibility. Consumers ask
    more and more perfectly in the driving operation,
    the maintenance, the product function and the
    performance of vehicles.
  • (5)Dispersion. Because consumers are
    decentralization in residential regions.
  • (6)Substitution. Consumers personal demands can
    be met by competitive products.

8
3.1 Basic characteristics of personal consuming
market
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • (7)Flexibility-full. There is a higher
    sensitivity or elasticity in consumers personal
    demands. The needs might be actualized,
    suppressed, transferred, abandoned under a
    certain circumstance.
  • (8)Diversity and difference. Consumers pursuit
    individualization.
  • (9)Inductivity. Consumers personal demands can
    be derived from some factors.

9
3.2 MAJOR FACTORS INFLUENCING BUYING BEHABIOR
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • 3.2.1 Cultural
  • 3.2.2 Social
  • 3.2.3 Personal
  • 3.2.4 Psychological

10
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • 3.2.1 Cultural Factors
  • What is culture?
  • The whole value system.
  • Include
  • Culture
  • Subculture groups of people with shared value
    system
  • based on common life
    experiences and situation.
  • ( different race)
  • Social class members shared similar
    values,interests,
  • and behaviors.(occupation,income
    ,education,
  • wealth,and other variables)

11
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • 3.2.1 Cultural Factors
  • Cultural factors exert the broadest influence
    on consumer behavior. The marketer needs to
    understand the role played by the buyers
    culture, subculture and social class.

12
3.2.2 Social factors
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • Social factors Two or more people who interact
    to accomplish individual or mutual goals. Those
    factors consist of societal class, related group,
    family, roles and status (individual position in
    a special group).

13
3.2.2 Social Factors
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • Reference Groups
  • Groups that have a direct or indirect
    influence on the persons attitudes or behavior.
  • Aspiration group(?????)
  • Dissociative group(????)
  • Opinion leader(?????)
  • Family
  • Roles And Statues

14
3.2.3 PERSONAL FACTORS
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • ?Profession and occupation
  • ?Economic situation
  • ?Age and life-cycle stage
  • ?Life style A persons pattern of living as
    expressed in his or her activities, interests,
    and opinions. ( 8 stages )
  • ?Self-concept and Personality Personality is
    usually described in terms of traits such as
    self-confidence, dominance, sociability,
    autonomy, adaptability, defensiveness and
    aggressiveness.

15
3.2.4 PSCHOLOGICAL FACTORS
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • (1)Motivation(Drive)
  • A need that is sufficiently pressing to
    direct the person to seek satisfaction of the
    need.
  • Freuds Theory of Motivation
  • People are largely unconscious about the real
    psychological forces shaping their behavior.
  • People does not fully understand his or her
    motivation.
  • Herzbergs Theory of Motivation (Two-factor
    theory)
  • Factors cause dissatisfaction
  • Factors cause satisfaction

16
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.2.4 PSCHOLOGICAL FACTORS
(1)Motivation(Drive)
????(Customer Need)
  • ?????(Stated needs)???????????
  • ?????(Real needs)?????????????,???????????
  • ??????(Unstated needs)????????????????
  • ???????(Delight needs)????????,???????????????
  • ?????(Secret needs)???????????????????????????(??
    ????

17
Maslows Theory of Motivation
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.2.4 PSCHOLOGICAL FACTORS
(1)Motivation(Drive)
The law diminishing marginal utility
18

Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.2.4 PSCHOLOGICAL FACTORS
  • (2)Perception
  • The process by which people
    select,organize,and interpret information to form
    a meaningful picture of the world.
  • Selective exposure (?????)
  • Selective Distortion (?????)
  • Selective Retention (?????)
  • (3)Learning
  • Changes in an individuals behavior arising
    from experience.

19
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.2.4 PSCHOLOGICAL FACTORS
(4)Belief A descriptive thought that a person
holds about something. ??????????
(5)Attitude A persons consistently favorable
evaluations,feelings and tendencies towards an
object or idea. ????(???????)
  • Attention Belief and attitude might be come into
    being incorrectly relay an erroneous information.

20
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.3 MODEL OF BUYER BEHAVIOR
  • Psychological stimuli-response school proposed
    the black-box theory affected by some stimulus,
    a consumer would have certain responses passing a
    complicated decision process that is regarded as
    a black box. It is expressed as the following
    figure

21
3.3 MODEL OF BUYER BEHAVIOR
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • Stimulate Buyers black
    box Buyerresponse
  • Marketing Other Buyers
    Buyers Buyer
    response
  • Stimuli Stimuli
    Characteristics Decision process
  • ---------------------------------
    -------------------------------------------------
    -----------------------
  • Product Culture Cultural
    Problem recognition Product choice
  • Price Economic Social
    Information search Brand choice
  • Place Technological Personal
    Evaluation Dealer choice
  • Promotion Political Psychological
    Decision Purchase
    timing

  • Postpurchase behavior
    Purchase amount
  • StimulateResponse Model

22
3.4 Types of Buying Decision Behavior
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
High involvement
Low involvement
Complex Buying Behavior (???????)
Variety-Seeking Buying Behavior (??????????)
Significant differences between brands
Dissonance-Reducing Buying Behavior (?????????)
Habitual Buying Behavior (????????)
Few differences between brands
  • Complex Buying Behavior
  • Dissonance-Reducing Buying Behavior
  • Habitual Buying Behavior
  • Variety-Seeking Buying Behavior

23
3.5 Purchase decision-making process of a consumer
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • The process can be expressed by the following
    need recognition, information search, evaluation
    of alternatives, purchase decision, post-purchase
    behavior.
  • ?Need recognition Internal stimulus External
    stimulus
  • ?Information search personal sources (families,
    friends, acquaintances), commercial sources
    (advertising, salespeople, dealers, websites),
    public sources (mass media, consumer-rating
    organizations), experiential sources (handling,
    examining, using the product)

24
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.5 Purchase decision-making process of a consumer
  • The process can be subscribed by the following
    (continue on the front page)
  • ?Evaluations of alternatives
  • ?Purchase decision the two factors, attitude of
    others and unexpected situation factors, come
    between the purchase intension and the purchase
    decision.
  • ?Post-purchase behavior perception post purchase.

25
4 Organization buying behavior
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • 4.1 The concept of Business Market
  • 4.2 Characteristics of Business Markets
  • 4.3 Major Types of Buying Situations
  • 4.4 Participants in the Business Buying Process
  • 4.5 Major influences on Business Buyers
  • 4.6 The Business Buying Process

26
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.1 The Concept of Business Market
  • Business market is consisted of group buyers
  • Business market All organizations that buy goods
    and services for use in the production of other
    products and services that are sold, rented, or
    supplied to others.

27
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.2 Characteristics of Business Markets
  • (1)Business markets contain a fewer but larger
    buyers.
  • (2)Business customers are more geographically
    concentrated.
  • (3)Business buyer demand is derived from final
    consumer demands.
  • (4)Demand in many business markets is more
    inelastic especially not affected by price
    changes in short run.
  • (5) Demand in business markets fluctuates more
    and more quickly.

28
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.2 Characteristics of Business Markets
  • (6) Business purchases involve more participants
  • (7) Business buying involves a more professional
    purchasing effort.
  • (8) Business buyers usually face more complex
    buying decisions.
  • (9) The business buying process is more
    formalized.
  • (10) In business buying, buyers and sellers work
    more closely together and build close long-run
    relationships..

29
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.3 Major Types of Buying Situations
  • ? New task
  • A business buying situation in which the
    buyer purchases a product or service for the
    first time.
  • ? System buying
  • Buying a packaged solution to a problem from
    a single seller.
  • ? Modified re-buy
  • A business buying situation in which the
    buyer wants to modify product specifications,price
    s,terms,or suppliers.
  • ? Straight re-buy
  • A business buying situation in which the
    buyer routinely reorders something without any
    modifications.

30
Chapter 3 Model of Consumer Behavior
and the Consumer Decision Process
  • Initiators Members of the organization who
    request that something be
  • purchased
  • Users Members of the organization who
    will use the product or service
  • Influencers People in the organizations buying
    center who affect the buying
  • decision.
  • Deciders People in the organizations buying
    center who have formal or
  • informal power to select or
    approve the final suppliers.
  • Buyers People who have formal authority to
    select the supplier and
  • arrange the purchase terms
  • Approvers People who authorize the proposed
    action of deciders or buyers
  • Gatekeepers People in the organizations buying
    center who control the flow
  • of information to others.
  • Buying center All the individuals and units that
    participate in the
  • business buying-decision
    process.

4.4 Participants in the Business Buying Process
31
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.5 Major influences on Business Buyers
  • ? Environmental macro economy development level
    and its tendencies, interest rates, technological
    innovations, political and legal situations,
    competitiveness.
  • ? Organizational objectives, organization
    structures and mechanisms, purchase programs.
  • ? Interpersonal authorities and powers, roles
    and status, relationship of participants.
  • ? Individual age, educated level, income level,
    position, hobbies and characters, risk attitude,
    backstairs influences.

32
4.6 The Business Buying Process
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • (1) Problem recognition
  • The first stage of the business buying process
    in which someone in the company recognizes a
    problem or need that can be met by acquiring
    goods or services.
  • (2) General need description
  • To determine the needed items general
    characters and quantity needed.

33
4.6 The Business Buying Process
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • (3) Product specification
  • Develop the items technical specification.
  • (4) Supplier search
  • (5) Proposal solicitation
  • The stage of the business buying process in
    which the buyer invites qualified suppliers to
    submit proposals.

34
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.6 The Business Buying Process
  • (6) Supplier selections
  • The stage of the business buying process in
    which the buyer reviews proposals and selects a
    supplier or several suppliers.
  • (7) Order-routine specification
  • The stage of the business buying process in
    which the buyer writes the final order with the
    chosen suppliers, listing the chosen
    specifications, needed quantity, expected time of
    delivery, payment and return policies, and
    warranties.

35
4.6 The Business Buying Process
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
  • (8) Performance review
  • The stage of the business buying process in
    which the buyer rates its satisfaction with
    suppliers, makes a decision whether to continue,
    modify, or drop them.

36
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.6 The Business Buying Process
(8) Performance review Some Points for Attention
  • ?Business buyers usually pay close attention to
    suppliers qualification, trading prices, the
    product quality, the date of delivery, technical
    trainings, after-services and warranties,
    historical cooperation records. Most of former
    agreements, altogether with the way and currency
    of payment, the detail goods and fittings
    listing, the dispute resolution mechanism, must
    be clearly written in the business contract.

37
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
(8) Performance review Some Points for Attention
  • ?Modes of business buyers purchasing invitation
    for public bidding, negotiation for bid.
  • ?public bidding, also called as competitive
    bidding, is the application in the case of many
    suppliers. On the contrary negotiation bid is
    suitable to the case of a fewer suppliers.
  • ? commercial/business bribery the behavior of
    bribing and accepting bribes is the same crime as
    one of prostitutes and whoremongers.

38
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
(8) Performance review Some Points for Attention
  • ? Group buyer behaviors of whole vehicles
    similar to procedures of teaching instruments
    purchased by colleges and universities.
  • ? Group buyer behaviors of automotive parts and
    elements the business is concerning the
    department of procurement, quality, RD, finance,
    and so on.
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