1. Chapter 6 Analyzing Consumer Markets and Buyer Behavior
PowerPoint by Yu Hongyan Business School of Jilin University

2. Objectives
How and why consumer buy
Buyer Decision Making

3. 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.”

4. 1. How and Why Consumer buy
Figure 6-1: Model of Customer Buyer Behavior

5. 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

6. How and Why Consumers Buy (cont’d)
Success
Materialism
Freedom
Progress
Efficiency
Activity
Core
American
Values

7. 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

8. 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”

9. How And Why Consumers Buy
Influence Factors
Cultural
Social
Personal
Psychological
Reference groups
Family
Social roles and statuses

10. 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

11. 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

12. 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 ?

13. 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

14. 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

15. 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

16. 1 How and Why Consumers Buy (cont’d)
Personal Factors
SRI International Values and lifestyle

17. 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.

18. 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.

20. 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.

21. 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.

22. 1 How and Why Consumers Buy (cont’d)
Influence Factors
Cultural
Social
Personal
Psychological
Motivation
Perception
Learning
Beliefs
Attitudes

23. 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.

24. 1 How and Why Consumers Buy (cont’d)
Psychological Factors
Motivation
Freud’s Theory
Maslow’s Theory
Herzberg’s Theory

25. 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

26. Laddering
您为什么喜欢购买A感冒药
中药成份

27. 为什么中药成分对您来说这么重要呢

28. 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？

29. Importance

30. Projective techniques
In-depth interview
Word association
Sentence completion
Picture interpretation

31. In-depth interview

32. 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

33. 如：
“奔驰”，被调查者可能联想到
“宝洁”
“海尔” 顺牌
金士百

34. 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 ____________

35. Picture interpretation
让受试者画出他们对某一特定的物体的印象。

36. Cartoon or Balloon Test

37. Each product is capable of arousing a unique set of motives in consumers
Beer ?action, status, or fun
Motivational positioning

38. 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

39. The PSSP Hierarchy of Needs
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Basic Marketing

40. 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

41. 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

42. 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

43. 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 .

44. 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

45. 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

46. 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

47. 2. Consumer Buying Decision Process
Understand
Buying roles
Buying behavior
Buying decision process
Initiator
Influencer
Decider
Buyer
User

48. 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

49. 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

50. 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

51. 2. Consumer Buying Decision Process (cont’d)
Figure 6-2: Five-Stage Model of the Consumer Buying Process

52. Consumer Buying Process
Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior

53. 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

54. 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

55. 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

57. 2.Information Search (cont’d)
Figure 6-3: Successive Sets Involved in Consumer Decision Making

58. 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

59. 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

60. 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

61. 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

62. 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

63. 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

64. 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

65. 5. Postpurchase Behavior
Postpurchase Satisfaction
Postpurchase Actions
Postpurchase Use and Disposal

66. 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

67. 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

68. 5. Postpurchase Behavior (cont’d)
Postpurchase Use and Disposal
Marketers should monitor how buyers use and dispose of the product

69. 5. Postpurchase Behavior (cont’d)
Figure 6-4: How Consumers Use or Dispose of Products

70. 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

71. Thank you very much!