1. Consumer Markets and Consumer Buyer Behaviour
Chapter 6
Consumer Markets and Consumer Buyer Behaviour

2. Learning Goals
Define the consumer market and construct a simple model of consumer buyer behaviour
Name the four major factors that influence buyer behaviour
List and understand the types of buying decision behaviour and stages in the buying decision process
Describe the adoption and diffusion process for new products

3. Case Study Harley Davidson
Measuring Success
1/5 of all North American motorbike sales, 1/2 of all heavyweight segment
Demand above supply
19 years of record sales/income
Building Success
Understanding the customers’ emotions and motivation
Determining the factors of loyalty
Translating this information to effective advertising

4. Case Study Harley Davidson
No longer just for stereotypical bike “gangs”
Harley’s core clientele: older, affluent, and better educated; “rubbies”
Used focus groups and surveys to identify core values and attitudes of customers
Identified seven customer types
Buying a bike, lifestyle, and an attitude
Independence, freedom, and power

5. Learning Goals
Define the consumer market and construct a simple model of consumer buyer behaviour
Name the four major factors that influence buyer behaviour
List and understand the types of buying decision behaviour and stages in the buying decision process
Describe the adoption and diffusion process for new products

6. Definitions
Consumer buyer behaviour refers to the buying behaviour 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

7. Learning Goals
Define the consumer market and construct a simple model of consumer buyer behaviour
Name the four major factors that influence buyer behaviour
List and understand the types of buying decision behaviour and stages in the buying decision process
Describe the adoption and diffusion process for new products

8. Factors Affecting Consumer Behaviour
Cultural
Social
Personal
Psychological
Culture
Influence a person’s wants and behaviour
Subculture
Smaller groups with shared value systems
Social Class
Society’s divisions who share values, interests and behaviours

9. Factors Affecting Consumer Behaviour
Cultural
Social
Personal
Psychological
Groups
Membership
Reference
Aspirational
Opinion leaders
Buzz marketing
Family
Many influencers
Roles and status

10. Factors Affecting Consumer Behaviour
Cultural
Social
Personal
Psychological
Age and life-cycle stage
Occupation
Economic situation
Lifestyle
AIO - Activities, interests and opinions
VALS
Lifestyle segmentation
Personality and self-concept

11. Brand Personality Dimensions
The specific mix of human traits that may be attributed to a particular brand
Match brand personality to the consumer’s personality
Brand personality traits
Sincerity
Excitement
Competence
Sophistication
Ruggedness

12. Factors Affecting Consumer Behaviour
Cultural
Social
Personal
Psychological
Motivation
A need that drives the person to seek satisfaction of the need
Perception
The process by which people select, organize, and interpret information
Learning
Changes in an individual’s behaviour arising from experience
Beliefs
A descriptive thought about something
Attitudes
A person’s consistently favourable or unfavourable evaluations, feelings, and tendencies towards something

13. 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

14. Discussion Question ?
What consumer products might fulfill multiple levels of the Hierarchy of Needs?
There are many products that fit several levels. Hotels, for instance, will satisfy basic physiological needs, but the best room at the Ritz Carlton may meet many higher levels.

15. 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

16. Discussion Question Perception
How many ads were you exposed to today?
Which ones do you remember? Why? ?
Did students include Internet ads, logos on clothing, ads in the subway, billboards, logos on drinks, in the classroom, TV or radio ads?
This should prompt discussion of selective attention, distortion and retention. Was it that they are loyal to these brands? Did they break through the clutter? Were they bombarded by a particular brand message?

17. Psychological Factors Learning
Learning describes changes in an individual’s behaviour arising from experience
Learning occurs through
Drives
A strong internal stimulus that calls for action
Stimuli
Objects that move drive to motive
Cues
Minor stimuli that affect response
Reinforcement
Feedback on action

18. 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

19. Learning Goals
Define the consumer market and construct a simple model of consumer buyer behaviour
Name the four major factors that influence buyer behaviour
List and understand the types of buying decision behaviour and stages in the buying decision process
Describe the adoption and diffusion process for new products

20. Types of Buying Decision Behaviour
Degree of involvement:
How much the consumer cares about the purchase decision
Higher levels for products that are expensive, risky, purchased infrequently, and highly self-expressive
Degree of perceived differences between brands
The type of decision will influence the promotional strategy most likely to be effective

21. The Buyer Decision Process
Need Recognition
Triggered by internal (person’s normal needs) or external stimuli (advertisements, friends)
Must reach an intensity high enough to become a drive
Needs are basic, wants are learned behaviour to satisfy them

22. The Buyer Decision Process
Information Search
Influenced by level of involvement (interest) in the decision
Memory (internal) search
External search: personal, commercial, public, experiential sources of information
Word-of-mouth sources are most influential (credibility)

23. The Buyer Decision Process
Evaluation of Alternatives
Evaluation procedure depends on the consumer and the buying situation
Attributes and importance weights are chosen as criteria
Alternatives compared against the criteria
Marketers can influence this stage; personal selling

24. The Buyer Decision Process
Purchase Decision
Two factors intercede between purchase intentions and the actual decision:
Attitudes of others
Unexpected situational factors

25. The Buyer Decision Process
Postpurchase Behaviour
What the consumer thinks and does after purchasing and using the product or service
Satisfaction: relationship between consumer expectation and perceived performance
Delighted consumers engage in positive word-of-mouth.
Unhappy customers tell on average 11 other people.
Cognitive dissonance

26. Learning Goals
Define the consumer market and construct a simple model of consumer buyer behaviour
Name the four major factors that influence buyer behaviour
List and understand the types of buying decision behaviour and stages in the buying decision process
Describe the adoption and diffusion process for new products

27. Buyer Decision Process for New Products
Good, service or idea that is perceived by customers as new.
The Adoption Process
Mental process through which an individual passes from first hearing about an innovation to final adoption.
Five Stages in the Adoption Process
Awareness, interest, evaluation, trial, and adoption.

28. 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.

29. Buyer Decision Process for New Products
Influence of Product Characteristics on Rate of Adoption
Relative Advantage
Compatibility
Complexity
Divisibility
Communicability

30. Buyer Decision Process for New Products
Consumer Behaviour Across International Borders
Values, attitudes and behaviours differ greatly in other countries.
Physical differences exist which 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.

31. Learning Goals
Define the consumer market and construct a simple model of consumer buyer behaviour
Name the four major factors that influence buyer behaviour
List and understand the types of buying decision behaviour and stages in the buying decision process
Describe the adoption and diffusion process for new products