Objectives Be able to define the consumer market and construct a simple model of consumer buyer behavior. Know the four major factors that influence consumer.
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Presentation on theme: "Objectives Be able to define the consumer market and construct a simple model of consumer buyer behavior. Know the four major factors that influence consumer."— Presentation transcript:
0 Consumer Markets and Consumer Buyer Behavior Chapter 6
1 ObjectivesBe able to define the consumer market and construct a simple model of consumer buyer behavior.Know the four major factors that influence consumer buyer behavior.
2 ObjectivesUnderstand the major types of buying decision behavior and the stages in the buyer decision process.Be able to describe the adoption and diffusion process for new products.
3 Harley-Davidson Harley “Hogs” account for 1/5 of U.S. cycle sales Sales have exceeded supply for years: Four stock splits, increase of 7,100%Fiercely loyal clientele revolves around 7 core customer typesHarley owners use their bikes to express their lifestyle and attitudesAdvertising reflects the Harley mystique
4 Definitions Consumer Buying Behavior Consumer Market Buying behavior of individuals and households that buy products for personal consumption.Consumer MarketAll individuals/households who buy products for personal consumption.
5 Model of Buyer Behavior Figure 6-1:Model of Buyer Behavior
6 Model of Consumer Behavior Stimulus Response ModelMarketing and other stimuli enter the buyer’s “black box” and produce certain choice / purchase responses.Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses.?
9 Characteristics Affecting Consumer Behavior Hispanics35 million consumers purchase $425 billion worth of goods and services.Expected to grow 64% in 20 years.Spanish media makes group easy to reach.Brand loyal group.
10 Sears uses the Fiesta mobile to visit Hispanic neighborhoods regularly
11 Characteristics Affecting Consumer Behavior African Americans35 million consumers purchase $527 billion worth of goods and services.Growing more affluent / sophisticated.Price and brand name conscious; quality and selection are important.Certain media target this group.
12 Hallmark offers an Afrocentric line of greeting cards called Mahogany Hallmark offers an Afrocentric line of greeting cards called Mahogany. What other brands have been targeted specifically to African Americans?
13 Characteristics Affecting Consumer Behavior Asian Americans10 million consumers purchase $229 billion worth of goods and services.Fastest growing, most affluent subculture.Many nationalities comprise this group.Consumer packaged goods firms now target this group more heavily.
14 Characteristics Affecting Consumer Behavior Mature Consumers75 million consumers age 50+will grow to 115 million within 25 years.Mature consumers control 50% of all discretionary income.Attractive market for travel, restaurant, and cosmetics products, among others.
15 Characteristics Affecting Consumer Behavior Key FactorsGroupsMembershipReferenceAspirational groupsOpinion leadersBuzz marketingFamilyKids can influenceRoles and StatusCulturalSocialPersonalPsychological
16 Characteristics Affecting Consumer Behavior Key FactorsAge and life-cycleOccupationEconomic situationLifestyleActivities, interests, and opinionsLifestyle segmentationPersonality and self-conceptBrand personalityCulturalSocialPersonalPsychological
17 Lifestyles:Jeep targets people who want to “leave the civilized world behind”What other types of images could be used to appeal to this lifestyle?
18 VALS Lifestyle Classification Figure 6-3:VALS Lifestyle ClassificationLearn more about VALS and take the VALS survey online by clicking the web link icon below.
23 The milk moustache campaign changed attitudes toward milk.
24 Types of Buying Behavior Figure 6-5:Types of Buying Behavior
25 The Buyer Decision Process Figure 6-6:The Buyer Decision Process
26 The Buyer Decision Process StagesNeeds can be triggered by:Internal stimuliNormal needs become strong enough to drive behaviorExternal stimuliAdvertisementsFriends of friendsNeed recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
28 The Buyer Decision Process StagesConsumers exhibit heightened attention or actively search for information.Sources of information:PersonalCommercialPublicExperientialWord-of-mouthNeed recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
29 The Buyer Decision Process StagesEvaluation 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.Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
30 The Buyer Decision Process StagesTwo factors intercede between purchase intentions and the actual decision:Attitudes of othersUnexpected situational factorsNeed recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
31 The Buyer Decision Process StagesSatisfaction is key:Delighted consumers engage in positive word-of-mouth.Unhappy customers tell on average 11 other people.It costs more to attract a new customer than it does to retain an existing customer.Cognitive dissonanceNeed recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
32 Buyer Decision Process for New Products Good, service or idea that is perceived by customers as new.
33 Buyer Decision Process for New Products Stages in the Adoption ProcessMarketers should help consumers move from awareness to adoption.
34 Buyer Decision Process for New Products Stages in the Adoption ProcessAwarenessInterestEvaluationTrialAdoption
35 Buyer Decision Process for New Products Individual Differences in InnovativenessConsumers can be classified into five adopter categories, each of which behaves differently toward new products.
36 Adopter Categories Based on Relative Time of Adoption Figure 6-7:Adopter Categories Based on Relative Time of Adoption
37 Buyer Decision Process for New Products Product Characteristics and AdoptionFive product characteristics influence the adoption rate.
38 Buyer Decision Process for New Products Product CharacteristicsRelative AdvantageCompatibilityComplexityDivisibilityCommunicability
39 Discussion QuestionDescribe how each of the five product-related innovation characteristics will influence the rate of the adoption for this product.
40 Buyer Decision Process for New Products International Consumer BehaviorValues, attitudes and behaviors differ greatly in other countries.Physical differences exist that 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.