Presentation on theme: "Consumer and Business Buyer Behavior"— Presentation transcript:
1 Consumer and Business Buyer Behavior Chapter FiveConsumer and Business Buyer Behavior
2 Identify and discuss the stages in the buyer decision process. 3/25/2017Understand the consumer market and the major factors that influence consumer buyer behavior.Identify and discuss the stages in the buyer decision process.Describe the adoption and diffusion process for new products.Define the business market and identify the major factors that influence business buyer behavior.List and define the steps in the business buying decision process.Copyright 2007, Prentice Hall, Inc.Copyright 2005 Brainy Betty, Inc.
4 Harley-Davidson – Devoted Consumers Case StudyHarley-Davidson – Devoted ConsumersBuilding SuccessOffers good bikes, upgraded showrooms and sales tactics.Research has helped to understand customers’ emotions and motivation.Consumer emotions, motivations, and lifestyle have been translated into effective advertising.Measuring SuccessCurrently has 23% of all U.S. bike sales and 50% of heavyweight segment.Demand above supply with waiting lists up to 2 years.Sales doubled in the past six years while earnings have tripled.2005: 19th straight year of record sales and income.Copyright 2007, Prentice Hall, Inc.
5 Consumer Buying Behavior Refers to the buying behavior of people who buy goods and services for personal use.These people make up the consumer market.The central question for marketers is:“How do consumers respond to various marketing efforts the company might use?”Copyright 2007, Prentice Hall, Inc.
6 Model of Buying Behavior Buyer responses influence choice of the product, brand, vendor, as well as the timing and amount of purchase.Copyright 2007, Prentice Hall, Inc.
7 Stimulus Response Model Copyright 2007, Prentice Hall, Inc.
9 CultureCulture is the most basic cause of a person's wants and behavior.Culture is learned from family, church, school, peers, colleagues.Culture reflects basic values, perceptions, wants, and behaviors.Cultural shifts create opportunities for new products or may otherwise influence consumer behavior.Copyright 2007, Prentice Hall, Inc.
10 CultureSubcultureGroups of people with shared value systems based on common life experiences.Major Groups in USHispanic ConsumersAfrican-American ConsumersAsian-American ConsumersMature ConsumersTHAI SUBCULTUREMajor groups:CHINESE CULTUREINDIAN CULTUREYOUNG GENERATIONOLDER GENERATIONTOURIST/WESTERN CULTURECopyright 2007, Prentice Hall, Inc.
11 Social ClassSociety’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.Measured by a combination of: occupation, income, education, wealth, and other variables.Copyright 2007, Prentice Hall, Inc.
12 Social Factors Groups: Family: Roles and Status: Membership, Reference (Opinion Leaders), AspirationalFamily:Most important consumer buying organizationRoles and Status:Role = Expected activitiesStatus = Esteem given to role by societyCopyright 2007, Prentice Hall, Inc.
13 Personal Factors Age and Life-Cycle Stage Occupation People change the goods they buy over their lifetimes.OccupationOccupation influences the purchase of clothing and other goods.Economic SituationSome goods and services are especially income-sensitive.Copyright 2007, Prentice Hall, Inc.
14 Personality factors Lifestyle: Pattern of living as expressed in psychographicsActivitiesInterestsOpinionsCopyright 2007, Prentice Hall, Inc.
15 Personality & Self-Concept Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment.Generally defined in terms of traits.Self-concept suggests that people’s possessions contribute to and reflect their identities.Copyright 2007, Prentice Hall, Inc.
16 Psychological factors A person’s buying choices are further influenced by four major psychological factors.They are motivation, perception, learning, beliefs and attitudes.Copyright 2007, Prentice Hall, Inc.
17 Motives and NeedsA motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction.Maslow’s hierarchy of needs explains why people are driven by needs at particular times.Maslow’s hierarchy of needs implies that lower level needs must be satisfied prior to higher level needs.Physiological needsSafety needsSocial needsEsteem needsSelf-ActualizationCopyright 2007, Prentice Hall, Inc.
18 Maslow’s hierarchy of needs Copyright 2007, Prentice Hall, Inc.
19 Need for a CarCopyright 2007, Prentice Hall, Inc.
20 Buying Decision Process Copyright 2007, Prentice Hall, Inc.
21 Step-1:Need recognition The buying process starts with need recognition.The buyer recognizes a problem or need.Marketers may use sales personnel, advertising, and packaging to trigger recognition of needs or problems.Copyright 2007, Prentice Hall, Inc.
22 Step-II: Sources of Information Copyright 2007, Prentice Hall, Inc.
23 Step-III: Alternative Evaluation Consumer is now confronted with a number of optionsChoice involves element of riskConsumer will evaluate product options based on different “evaluative criteria” or attributesCopyright 2007, Prentice Hall, Inc.
24 Alternative Evaluation Copyright 2007, Prentice Hall, Inc.
25 Step-IV: Purchase Decision Factors that influence purchase decision:Attitudes of othersUnexpected situational factorsCopyright 2007, Prentice Hall, Inc.
26 Step V: Post PurchaseConsumer could experience satisfaction, dissatisfaction or dissonance.Marketers job is to reduce customers fear of negative outcomes and provide post purchase (after sales) servicesCopyright 2007, Prentice Hall, Inc.
27 Post PurchaseConsumer satisfaction is a function of consumer expectations and perceived product performance.Performance < Expectations DisappointmentPerformance = Expectations SatisfactionPerformance > Expectations DelightCopyright 2007, Prentice Hall, Inc.
28 Buying Decision Process Cognitive dissonance: a buyer’s doubts shortly after a purchase about whether it was the right decision.Copyright 2007, Prentice Hall, Inc.