1. Consumer Markets and Consumer Buyer Behavior
Chapter 5

2. Learning Goals
Learn the consumer market and construct model of consumer buyer behavior
Know the four factors that influence buyer behavior
Understand the types of buying decision behavior and stages in the process
Comprehend the adoption and diffusion process for new products

3. Definitions
Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption
All of these final consumers combine to make up the consumer market
Goal 1: Learn the consumer market & construct model of buyer behavior

4. Stimulus-Response Model of Consumer Behavior
Stimuli
4P’s
Other characteristics
economic
technological
political
cultural
Buyer’s Black Box
Buyer characteristics
Buyer decision process
Buyer Response
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
Goal 1: Learn the consumer market & construct model of buyer behavior

5. Characteristics Affecting Consumer Behavior
Culture
Forms a person’s wants and behavior
Subculture
Groups with shared value systems
Social Class
Society’s divisions who share values, interests and behaviors
Key Factors
Cultural
Social
Personal
Psychological
Goal 2: Know the four factors that influence consumer buying behavior

6. Characteristics Affecting Consumer Behavior
Groups
Membership
Reference
Opinion Leaders
Family
Many influencers
Roles and Status
Key Factors
Cultural
Social
Personal
Psychological
Goal 2: Know the four factors that influence consumer buying behavior

7. Characteristics Affecting Consumer Behavior
Age and life cycle
Occupation
Economic situation
Lifestyle
Activities, interests and opinions
Lifestyle segmentation
Personality and self-concept
Key Factors
Cultural
Social
Personal
Psychological
Goal 2: Know the four factors that influence consumer buying behavior

8. Characteristics Affecting Consumer Behavior
Brand Personality Dimensions
Excitement; spirited, imaginative
Competence; reliable
Sincerity: Honest And cheerful
Ruggedness; outdoorsy
Sophistication; upper class
Goal 2: Know the four factors that influence consumer buying behavior

9. Characteristics Affecting Consumer Behavior
Key Factors
Motivation
Perception
Learning
Beliefs and attitudes
Cultural
Social
Personal
Psychological
Goal 2: Know the four factors that influence consumer buying behavior

10. Factors Affecting Consumer Behavior: Psychological
Motivation
Psychological
Factors
Perception
Beliefs and
Attitudes
Learning

11. Psychological Factors Motivation
A motive is a need that is sufficiently pressing to direct the person to seek satisfaction
Motivation research is based on Freud; Looks for hidden and subconscious motivation
Maslow ordered needs based on how pressing they are to the consumer
Goal 2: Know the four factors that influence consumer buying behavior

12. Maslow’s Hierarchy of Needs
This CTR relates to the material on p and corresponds to Figure 5-4.
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem, status)
Maslow’s Hierarchy of Needs
Maslow suggests that lower level needs must be satisfied before individuals become motivated to satisfy higher level needs. Thus consumers will respond to lower level products and promotions until those needs are met. Only then can other marketing offers be of interest. Needs include:
Physiological. Physical needs such as hunger, thirst, and bodily functions are the lowest level need and require satisfaction before other needs become important to the individual. Sometimes this helps students understand the difference between needs and wants. A thirsty person may still want an expensive car but if thirsty enough will take a drink of water.
Safety. Safety needs for security and protection are the next level needs in the hierarchy. So long as physiological needs are met, safety needs will take precedence over other needs. Fear appeals for consumer products are often linked to safety needs.
Social. Human beings are social, gregarious animals. We group together in part to fulfill physiological and safety needs but also because we enjoy and need the company of others. Going to malls to "hang out" fulfills social needs.
Esteem. To be recognized as an individual fulfills esteem needs. Self-esteem is the value a person places on himself or herself. As lower level needs become more stable, esteem needs become more important to the individual.
Self-actualization. Beyond esteem needs very successful people may still be driven to improve themselves and "accomplish something." These people are driven to self-actualize their potential.
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)

13. Psychological Factors Perception
Perception is the process by which people select, organize, and interpret information
Perception Includes:
Selective attention
Consumers screen out information
Selective distortion
People interpret to support beliefs
Selective retention
People retain points to support attitudes good points made about brand favor
Goal 2: Know the four factors that influence consumer buying behavior

14. Psychological Factors Learning
Learning describes changes in an individual’s behavior arising from experience
Learning occurs through:
Drives
Internal stimulus that calls for action
Stimuli
Objects that move drive to motive (product) e.g. Camera
Cues
Minor stimuli that affect response different factors cause customer to buy
Reinforcement
Feedback on action shopping experience
Goal 2: Know the four factors that influence consumer buying behavior

15. Psychological Factors Beliefs and Attitudes
a descriptive thought about a brand or service
may be based on real knowledge, opinion, or faith
Attitude
describes a person’s evaluations, feelings and tendencies toward an object or idea
They are difficult to change
Goal 2: Know the four factors that influence consumer buying behavior

16. Types of Buying Decisions
This CTR corresponds to Figure 5-5 on p. 151 and relates to the material on pp
Types of Buying Decisions
Complex
Buying
Behavior
Variety-
Seeking
Behavior
High
Involvement
Low
Involvement
Types of Buying Decision Behavior
Complex Buying Behavior. Consumers undertake this type of behavior when they are highly involved in a purchase and perceive differences among brands. Involvement increases with the product is expensive, infrequently purchased, risky, and highly self-expressive.
Dissonance-Reducing Buying Behavior. Consumers engage in this behavior when they are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. Without objective differentiation to confirm the purchase, buyers often seek support to reduce postpurchase dissonance -- the feeling they may have made the wrong decision.
Habitual Buying Behavior. This behavior occurs under conditions of low consumer involvement and little significant brand differences. Consumers do not search extensively for information about brands. Brand familiarity aids in promoting products under essentially passive learning conditions.
Variety-Seeking Buying Behavior. Consumers may seek variety when involvement is low and there are significant perceived differences among brands. Differences may be product features -- new taste, improvements, extra ingredients -- or promotional benefits such as coupons, rebates, and price reductions.
Significant
differences
between
brands
Dissonance-
Reducing Buying
Behavior
Habitual
Buying
Behavior
Few
differences
between
brands

17. Types of Buying Decision Behavior
Complex
Highly involved, significant brand differences
Example – computer
Dissonance-reducing
Highly involved, little brand differences
Example – carpeting
Habitual
Low involvement, little brand differences
Example – salt
Variety-seeking
Low involvement, significant perceived brand differences
Example – cookies
Goal 3: Understand types of buying decisions and stages in the process

18. The Buyer Decision Process
Need Recognition
Information Search
The Buyer Decision Process
The Buyer Decision Making Process
This CTR corresponds to Figure 5-6 on p. 153 and relates to the material on pp
Teaching Tip: Consider asking students to describe some of their purchases decisions made at the beginning of the term and link them to steps in the process.
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
Stages in the Buyer Decision Process
Need Recognition. Problems are recognized when people sense a difference between an actual state and some desired state. Problem recognition can be triggered by either internal or external stimuli.
Information Search. Consumers vary in the amount of information search they conduct. Information search may be a survey of information stored in memory or may be based upon information available externally. Search effort varies from heightened awareness corresponding to increased receptivity for relevant information to active information search modes where the person expends some energy to obtain information that is desired. External information vary in their informational and legitimizing characteristics. Riskier decisions usually elicit more search behavior than non-risky decisions.
Evaluation of Alternatives. Following information search, the person compares decisional alternatives available. Criterion for evaluation compares product attributes of the alternatives against degrees of importance each attribute has in meeting needs, beliefs about the product or brand's ability and utility, and an evaluation procedure that ranks the alternatives by preference that forms an intention to buy.
Purchase Decision. - The individual buys a product. Purchasing other than the intended product may be due to attitudes of others exerted after the evaluation of alternatives is completed or unexpected situational factors such as point of purchases promotions that affect the alternatives' ranking.
Post-purchase Behavior. This involves comparing the expected performance of the product against the perceived performance received. Cognitive dissonance describes the tendency to accentuate benefits and downplay shortcomings.

19. The Buyer Decision Process
Process Stages
Needs can be triggered by:
Internal stimuli
Normal needs become strong enough to drive behavior
External stimuli
Advertisements
Friends of friends
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Goal 3: Understand types of buying decisions and stages in the process

20. The Buyer Decision Process
Process Stages
Consumers exhibit heightened attention or actively search for information.
Sources of information:
Personal
Commercial
Public
Experiential
Word-of-mouth
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Goal 3: Understand types of buying decisions and stages in the process

21. The Buyer Decision Process
Process Stages
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.
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Goal 3: Understand types of buying decisions and stages in the process

22. The Buyer Decision Process Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.

23. The Buyer Decision Process
Process Stages
Two factors intercede between purchase intentions and the actual decision:
Attitudes of others
Unexpected situational factors
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Goal 3: Understand types of buying decisions and stages in the process

24. The Buyer Decision Process
Process Stages
Satisfaction is important:
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 dissonance is common
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Goal 3: Understand types of buying decisions and stages in the process

25. Buyer Decision Process for New Products
Good, service or idea that is perceived by customers as new.
Stages in the Adoption Process
Marketers should help consumers move through these stages.
Goal 4: Comprehend the diffusion & adoption process for new products

26. Buyer Decision Process for New Products
Individual Differences in Innovativeness
Consumers can be classified into five adopter categories, each of which behaves differently toward new products.
Product Characteristics and Adoption
Five product characteristics influence the adoption rate.
Goal 4: Comprehend the diffusion & adoption process for new products

27. Stages in the Adoption Process
Awareness
Stages in the Adoption Process
Stages in the Adoption Process
This CTR relates to the material on p. 157.
Interest
Evaluation
Trial
Stages in the Adoption Process
The new product adoption process parallels the buyer decision process but focuses more on the interaction of consumer needs with product adoption. The new product adoption process may work best to explain how regularly used products requiring re-purchase are considered for inclusion in the consumer's consumptive behavior patterns but may also apply to some durables as well.
Awareness. In this stage the consumer is aware of the new product but lacks further information about it.
Interest. The consumer is motivated to seek information about the new product.
Evaluation. The consumer determines whether or not to try the new product.
Trial. The consumer tries the new product on a small scale to test its efficacy in meeting his or her needs. Trial can be imagined use of the product in some cases.
Adoption. The consumer decides to make use of the product on a regular basis.
Adoption

28. Adoption of Innovations
This CTR corresponds to Figure 5-7 on p. 157 and relates to the material on pp
Adoption of Innovations
Early Majority
Late Majority
Individual Differences in Innovativeness
Innovators. Innovators include the first 2.5% of buyers who adopt a new product idea. Innovators help get the product exposure but are not often perceived by the majority of potential buyers as typical consumers. Innovators like risk taking and enjoy buying new products. Innovators may purchase at skimming prices.
Discussion Note: You might discuss the ethical implications of skimming. Is it fair? Also, are there cost considerations associated with new product development that make skimming to recover high start up costs more ethical than it may seem?
Early Adopters. Early Adopters comprise about 13.5% of the buyers who adopt new products. This group serves as opinion leaders to the rest of the market and their product usage outcomes serve as motivation to later buyers to get the product.
Early Majority. Early Majority are some 34% of buyers adopting the product. They are deliberate consumers who adopt new ideas before the average person but seldom lead the market.
Late Majority. Late Majority comprise another 34% of buyers adopting the product. This group is skeptical of new products and only buys after the majority of the market has tried it.
Laggards. Laggards are the final 16% of adopters and are tradition-bound. They are suspicious of change and only adopt innovation that have already become something of a tradition.
Percentage of Adopters
Early
Adopters
Innovators
Laggards
34%
34%
13.5%
16%
2.5%
Time of Adoption
Early
Late

29. Influences on the Rate of Adoption of New Products
This CTR relates to the material on pp
Teaching Tip: The adoption of innovations may be initially confusing to students but they will usually become involved in discussion when new products of importance to them are used as examples.
Influences on the Rate of Adoption of New Products
Communicability
Can results be easily observed or described
to others?
Relative Advantage
Is the innovation superior to existing products?
Product Characteristics Influences
Relative Advantage. This refers to the degree to which the innovation appears superior to existing products. The greater the perceived relative advantage, the sooner the innovation will be adopted.
Compatibility. This refers to the degree to which the innovation fits the values and experiences of the potential consumers. Increased compatibility will accelerate adoption of the innovation.
Complexity. This refers to the degree to which the innovation is difficult to understand or use. Greater complexity will slow the rate of adoption of the innovation.
Divisibility. This refers to the degree to which the innovation can be tried on a limited basis. Greater divisibility will help increase the rate of adoption of the innovation.
Communicability. This refers to the degree to which the results of using the innovation can be observed or described to others. Greater communicability will increase the rate of adoption of innovation.
Product
Characteristics
Compatibility
Does the innovation
fit the values and
experience of the
target market?
Divisibility
Can the innovation
be used on a
trial basis?
Complexity
Is the innovation
difficult to
understand or use?