1. Copyright © 2005 Pearson Education Inc. Consumer Markets and Consumer Buyer Behaviour Chapter 7 PowerPoint slides Express version Instructor name Course name School name Date Principles of Marketing, Sixth Canadian Edition

2. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.2 Learning Objectives After studying this chapter, you should be able to: –Define the consumer market and construct a simple model of consumer buyer behaviour –Name the four major factors that influence consumer buyer behaviour –List and understand the major types of buying-decision behaviour and the stages in the buyer decision process –Describe the adoption and diffusion process for new products

3. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.3 Model of Buyer Behaviour Consumer buying behaviour: –Buying behaviour of final consumers –Purchase goods and services for personal consumption Consumer market: –All individuals and households –Buy or acquire goods and services for consumption Figure 7.1

4. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.4 Factors Influencing Consumer Behaviour Culture: –Basic values, perceptions, wants and behaviours –Learned from family and important institutions Subculture: –Group of people with shared value systems –Based on common life experiences and situations Figure 7.2

5. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.5 Factors Influencing Consumer Behaviour Canadian subcultures of interest: –Native Canadians –Ethnic groups –French Canadian Social class Figure 7.2

6. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.6 Factors Influencing Consumer Behaviour Social factors: –Groups: reference, membership, and aspirational groups –Opinion leader –Family –Roles and Status Figure 7.2

7. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.7 Factors Influencing Consumer Behaviour Personal factors: –Family life cycle –Occupation –Economic situation –Lifestyle: activities, interests, and opinions (AIO’s) –Personality and self-concept: brand personality Figure 7.2

8. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.8 Factors Influencing Consumer Behaviour Psychological factors: –Motivation: needs and motives, Maslow’s Hierarchy of Needs –Perception: selective attention, distortion, and retention –Learning: drives, stimuli, cues, responses, and reinforcement –Beliefs and attitudes Figure 7.2

9. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.9 Four Types of Buying Decision Behaviour Based on: –Degree of involvement –Degree of perceived differences between brands –Influences promotional strategies Figure 7.5

10. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.10 The Buyer Decision Process Need recognition: –Triggered by internal or external stimuli –Must reach an intensity high enough to become a drive Information search: –Memory (internal) search –External search: personal, commercial, public, experiential sources of information –Word-of-mouth sources are most influential Figure 7.6

11. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.11 The Buyer Decision Process Evaluation of alternatives: –The process of evaluating information to make a decision –Attributes and importance weights are chosen –Alternatives compared against the criteria Purchase decision: –Attitudes of others and unexpected situational factors –May come between purchase intention and decision Figure 7.6

12. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.12 The Buyer Decision Process Postpurchase behaviour: –Relationship between consumer expectation and perceived performance –Cognitive dissonance –Customer satisfaction is key to customer loyalty Figure 7.6

13. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.13 Adoption of New Product Innovations Stages in the adoption process: –Awareness, interest, evaluation, trial, and adoption Influence of product characteristics on rate of adoption: –Relative advantage –Compatibility –Complexity –Divisibility –Communicability Figure 7.7

14. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 7.14 In Conclusion… The learning objectives for this chapter were: –Define the consumer market and construct a simple model of consumer buyer behaviour –Name the four major factors that influence consumer buyer behaviour –List and understand the major types of buying-decision behaviour and the stages in the buyer decision process –Describe the adoption and diffusion process for new products