Copyright © 2011 Pearson Education

Consumer Buying Behaviour Philip Kotler & Gary Armstrong

Definitions Consumer Buying Behavior Buying behavior of individuals and households that buy products for personal consumption. Consumer Market All individuals/households who buy products for personal consumption. 2

Model of Buyer Behavior 3© Pearson Education 2011

Model of Consumer Behavior Stimulus Response Model Marketing 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. 4© Pearson Education 2011

Factors Influencing Consumer Behavior 5© Pearson Education 2011

Characteristics Affecting Consumer Behavior 6© Pearson Education 2011 Culture Subculture Hispanic consumers African Americans Asian Americans Mature consumers Social Class CulturalSocialPersonalPsychological Key Factors

Characteristics Affecting Consumer Behavior 7© Pearson Education 2011 Groups Membership Reference Aspirational groups Opinion leaders Buzz marketing Family Kids can influence Roles and Status CulturalSocialPersonalPsychological Key Factors

Characteristics Affecting Consumer Behavior 8© Pearson Education 2011 Age and life-cycle Occupation Economic situation Lifestyle Activities, interests, and opinions Lifestyle segmentation Personality and self-concept Brand personality CulturalSocialPersonalPsychological Key Factors

9© Pearson Education 2011 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?

Characteristics Affecting Consumer Behavior 10© Pearson Education 2011 Motivation Needs provide motives Motivation research Maslow’s hierarchy of needs Perception Selective attention, selective distortion, selective retention Learning Drives, stimuli, cues, responses and reinforcement Beliefs and attitudes CulturalSocialPersonalPsychological Key Factors

Maslow’s Hierarchy 11© Pearson Education 2011

The Buyer Decision Process 12© Pearson Education 2011

The Buyer Decision Process 13© Pearson Education 2011 Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior Needs can be triggered by: Internal stimuli – Normal needs become strong enough to drive behavior External stimuli – Advertisements – Friends of friends Stages

The Buyer Decision Process 14© Pearson Education 2011 Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior Consumers exhibit heightened attention or actively search for information. Sources of information: Personal, Commercial, Public, Experiential Word-of-mouth Stages

The Buyer Decision Process 15© Pearson Education 2011 Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior Evaluation 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. Stages

The Buyer Decision Process 16© Pearson Education 2011 Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior Two factors intercede between purchase intentions and the actual decision: Attitudes of others Unexpected situational factors Stages

The Buyer Decision Process 17© Pearson Education 2011 Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior Satisfaction 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 Stages

Buyer Decision Process for New Products Stages in the Adoption Process: 1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption 18© Pearson Education 2011

Buyer Decision Process for New Products 19© Pearson Education 2011

Buyer Decision Process for New Products Product Characteristics 1. Relative Advantage 2. Compatibility 3. Complexity 4. Divisibility 5. Communicability 20© Pearson Education 2011

This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Copyright © 2011 Pearson Education