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Chapter 6 Analyzing Consumer Markets and Buyer Behavior
PowerPoint by Yu Hongyan Business School of Jilin University
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Objectives How and why consumer buy Buyer Decision Making
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Consumer Behavior The field of Consumer Behavior:
“studies how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.”
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1. How and Why Consumer buy
Figure 6-1: Model of Customer Buyer Behavior
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1 How and Why Consumers Buy (cont’d)
Influence Factors Cultural Social Personal Psychological Broadest and deepest influence Culture Coca Cola Coca Cola China Pepsi Subculture Social classes
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How and Why Consumers Buy (cont’d)
Success Materialism Freedom Progress Efficiency Activity Core American Values
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1 How and Why Consumers Buy (cont’d)
. Social classes are relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar value, interests, and behavior Reflect income, occupation, education
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Some (abbreviated) characteristics
1 How and Why Consumers Buy (cont’d) Relative size Group Some (abbreviated) characteristics Upper-class Upper-middle class Lower-middle class* Upper-lower (“working”) class* Lower-lower 1.5% 12.5% 32% 38% 16% People from old wealthy families and socially prominent new rich... Small business people, teachers, office workers, technicians--the typical white collar workers... The blue collar workers--factory workers, skilled laborers, and service people…most earn good incomes... Unskilled laborers and people in very low status occupations * America’s “mass market”
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How And Why Consumers Buy
Influence Factors Cultural Social Personal Psychological Reference groups Family Social roles and statuses
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1 How and Why Consumers Buy (cont’d)
Social Factors Reference Group A person reference group consists of all the groups that have a direct or indirect influence on the person’s attitude or behavior Membership groups are groups having a direct influence on a person, such as family, friend, neighbors
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1 How and Why Consumers Buy (cont’d)
Family The family is the most important consumer-buying organization in society The family of orientation consists of one’s parents and siblings同胞 Family of procreation, one’s spouse and children Marketers are interested in the role and relative influence of the wife, child, and so on
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1 How and Why Consumers Buy (cont’d)
Roles and Statues A role consists of the activities that a person is expected to perform, students, professor, and administer Each role carries a status Marketers are aware of the status symbol potential of products and brands Such as the beer to drink ?
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1 How and Why Consumers Buy (cont’d)
Influence Factors Cultural Social Personal Psychological Age Stage in life cycle Occupation Economic circumstances Lifestyle Personality Self-concept
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1 How and Why Consumers Buy (cont’d)
Personal Factor A lifestyle is the person’s pattern of living in the world as expressed in Activities, Interest and Opinions.(AIO) Marketers search for relationships between their products and lifestyle group
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1 How and Why Consumers Buy (cont’d)
Personal Factors: AIO ACTIVETIES INTERESTS OPINIONS DEMOGRAPHICS Work Hobbies Social events Vacation Entertainment Clubs Shopping Sports Family Home Job Community Recreation Fashion Food Achievements Themselves Social issues Politics Business Economics Education Future Product Age Income Occupation Family size City size Stage in cycle Geography
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1 How and Why Consumers Buy (cont’d)
Personal Factors SRI International Values and lifestyle
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1 How and Why Consumers Buy (cont’d)
VALS, established in 1978, is one of the first major consumer segmentation systems based on lifestyle characteristics. Consumer products and services companies throughout the United States have used VALS to improve product development, product positioning, advertising effectiveness, and corporate image.
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in 1989, the program introduced VALSTM 2, a new segmentation system that incorporated recent lifestyle trends and improved the applicability of the segmentation system to advertising and marketing applications. VALS 2 continues to be calibrated校准 against today's consumer attitudes via the VALS survey.
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VALS2 Segment Activities 2nd Media Use*
12-6 * Figures under each segment are the index for each segment (100 = Base rate usage). Segment 实现者 完成者 成就者r 体验者 信奉者 奋争者 制造者 挣扎者 Barbecue outdoors Do gardening Do gourmet cooking Drink coffee daily Drink herbal tea Drink domestic beer Drink imported beer Do activities with kids Play team sports Do cultural activities Exercise Do home repairs The second dimension is the physical, mental, and material resources to pursue one’s dominant self-orientation. Source: SRI International.
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VALS2 Segment Activities 2nd Media Use*
China Lifestyle 12-6 (II) * Figures under each segment are the index for each segment (100 = Base rate usage). Actualizer Fulfilled Believer Achiever Striver Experiencer Maker Struggler Segment Do risky sports Socialize weekly Automotive magazines Business magazines Commentary magazines Reader’s Digest Fish and game magazines Human-interest magazines Literary magazines Watch “Face the Nation” Watch “L.A. Law” Watch “McGyver” Source: SRI International.
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1 How and Why Consumers Buy (cont’d)
Influence Factors Cultural Social Personal Psychological Motivation Perception Learning Beliefs Attitudes
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1 How and Why Consumers Buy (cont’d)
Psychological Factors Motivation? A need becomes a motive when it is aroused to a sufficient level of intensity A motive is a need that is sufficiently pressing to drive the person to act A need that is sufficiently pressing to direct the person to seek satisfaction of the need.
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1 How and Why Consumers Buy (cont’d)
Psychological Factors Motivation Freud’s Theory Maslow’s Theory Herzberg’s Theory
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1 How and Why Consumers Buy (cont’d)
Freud’s theory The psychological forces shaping people’s behavior are largely unconscious Laddering can be used to trace a person’s motivation, page 91 In-depth interview
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Laddering 您为什么喜欢购买A感冒药 中药成份
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为什么中药成分对您来说这么重要呢
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为什么副作用小、标本兼治对您选择该产品的影响力这么大呢?
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Importance
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Projective techniques
In-depth interview Word association Sentence completion Picture interpretation
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In-depth interview
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Word association A word association test involves reading words to a respondent who then answers with the first word that comes to his or her mind The researcher look for hidden meanings or associations between response and the words being tested on the original list
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如: “奔驰”,被调查者可能联想到 “宝洁” “海尔” 顺牌 金士百
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Sentence Completion Test
将未完成的句子呈现给被调查者,由它们来完成的句子 Someone who drinks beer is ________ Beer is good to drink when _________ Buying beer is ____________ _______ My friends think beer is ____________
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Picture interpretation
让受试者画出他们对某一特定的物体的印象。
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Cartoon or Balloon Test
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Each product is capable of arousing a unique set of motives in consumers
Beer ?action, status, or fun Motivational positioning
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Maslow’s Hierarchy of Needs
Self- actualization (self-development and realization) 5 Esteem needs (self-esteem, recognition) 4 Social needs (sense of belonging, love) 3 Safety needs (security, protection) 2 Psychological needs (food, water, shelter) 1
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The PSSP Hierarchy of Needs
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Basic Marketing
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1 How and Why Consumers Buy (cont’d)
Marketing sight Maslow’s theory helps marketers understand how various products fit into the plans, goals and lives of consumers Bread, house, cloth,medicine Insurance, 安全气囊,预防性药物 causal food, entertainments Furniture, car, wine, collation Education,sport, holiday
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1 How and Why Consumers Buy (cont’d)
Herzberg’s Theory A two-factor theory that distinguishes dissatisfiers(factors that cause dissatisfaction) and satisfier(factors that cause satisfaction) The absence of dissatisfiers is not enough, satisfiers must be actively present to motivate a purchase
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1 How and Why Consumers Buy (cont’d)
Two implications Sellers should do their best to avoid dissatisfiers Manufacturer should identify the major satisfiers or motivators of purchase in the market and them supply them. How to do it
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1 How and Why Consumers Buy (cont’d)
Psychological Factors Perception Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. Marketing Implications of Perception Important attributes Higher price Brand names Quality and reliability Threshold极限 level of perception Product changes .
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1 How and Why Consumers Buy (cont’d)
Psychological Factors Learning Learning involves changes in an individual’s behavior arising from experience Most human behavior is learned. Learning theorists believe that learning is produced through the interplay of drives, stimuli, cues, responses, and reinforcement
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1 How and Why Consumers Buy (cont’d)
Psychological Factors Beliefs and Attitudes Belief A belief is a descriptive thought that a person holds about something Belief may based on knowledge, opinion, or faith. They may or may not carry an emotional charge. E.g. Haire, Chinese medicine
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1 How and Why Consumers Buy (cont’d)
Psychological Factors Attitude is a person’s enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea People have attitudes toward almost everything:religion, politics, clothes, music Attitudes put them into a frame of mind of liking and disliking an object, moving toward or away from it
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2. Consumer Buying Decision Process
Understand Buying roles Buying behavior Buying decision process Initiator Influencer Decider Buyer User
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2. Consumer Buying Decision Process (cont’d)
Understand Buying roles Buying behavior Buying decision process Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior
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2. Consumer Buying Decision Process (cont’d)
Complex Buying Behavior Variety- Seeking Behavior High Involvement Low Involvement Significant differences between brands Few Dissonance- Reducing Buying Behavior Habitual Buying Behavior Four type of consumers buying behavior
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2. Consumer Buying Decision Process (cont’d)
Understand Buying roles Buying behavior Buying decision process Five stages in the consumer buying process The amount of time spent in each stage varies according to several factors
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2. Consumer Buying Decision Process (cont’d)
Figure 6-2: Five-Stage Model of the Consumer Buying Process
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Consumer Buying Process
Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior
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1. Problem Recognition The buying process starts when the buyer recognize a problem or need Marketers Identify the circumstance that trigger a particular need Identify the most frequent stimuli that spark an interest in a product
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2. Information Search An aroused consumer will search for more information Two level arousal Heightened attention More receptive to information about a product Active information search Looking for reading materials, phoning friends
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2.Information Search (cont’d)
Four group information sources Personal sources: Family, friend, neighbors Commercial sources: Ad, dealers, packaging, displays,salesperson Public sources Mass media, consumer-rating organizations Experiential sources Handling, examining, using the product
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2.Information Search (cont’d)
Figure 6-3: Successive Sets Involved in Consumer Decision Making
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3. Evaluation of Alternatives
Some concept can help us to understand The consumer try to satisfy a need Look for certain benefit form the product See each product as a bundle of attributes
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3. Evaluation of Alternatives (cont’d)
The attribute of interest of buyer Different product have different attributes Cameras: Picture sharpness, speeds, size, price Hotel Location, cleanliness, atmosphere, price Tire Safety, tread life, ride quality, price
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3. Evaluation of Alternatives (cont’d)
Multi attribute model (e.g. Fishbein): Where: Ab = Attitude toward brand bi = strength of belief that brand has attribute i (1 to 7) ei = evaluation of attribute i (-3 to +3) n = the number or salient attributes
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Exceptive Computer Attribute Expect Memory capacity
Graphics capability Size and weight price Weight 0.4 0.3 0.2 0.1 1.0 A 10 8 6 4 8.0 B 9 3 7.8 C 5 7.3 D 7 4.7 Exceptive
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3. Evaluation of Alternatives (cont’d)
Strategy to Redesign the computer Alter beliefs about the brand Alter beliefs about competitors brand Alter the importance weights Call attention to neglected attributes Shift the buyer’s ideals
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4. Purchase Decision In the evaluation stage, the consumer forms preferences Also form an intention to buy the most preferred brand There are two factors between purchase intention and decision
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4. Purchase Decision (cont’d)
Evaluation of alternatives Unanticipated situational factors Attitude of others Purchase intention Purchase decision The attitude of others Intensity of the other person’s negative attitude toward the consumer’s preferred alternative The consumer’s motivation to comply with the other person’s wisher Unanticipated situational factors Lose job, store turn off
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5. Postpurchase Behavior
Postpurchase Satisfaction Postpurchase Actions Postpurchase Use and Disposal
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5. Postpurchase Behavior (cont’d)
Postpurchase Satisfaction Buyer’s expectations Product’s perceived performance Consumer form the expectation on the basis of message received from sellers, friends and other information recourse Product claim must be truthfully represent
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5. Postpurchase Behavior (cont’d)
Postpurchase Actions Influence subsequent behavior The satisfied customer will tend to say good things about the brand to others Marketer say : our best Ad is a satisfied customer Dissatisfied customer may abandon or return the product
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5. Postpurchase Behavior (cont’d)
Postpurchase Use and Disposal Marketers should monitor how buyers use and dispose of the product
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5. Postpurchase Behavior (cont’d)
Figure 6-4: How Consumers Use or Dispose of Products
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Review Major Factors Influencing Buyer Behavior
Culture, Social, personal psychological The Buying Decision Process Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior The type of consumer buying
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Thank you very much!
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