1. Consumer Markets and Consumer Buying Behavior

2. What is Market A Market is
a social arrangement that allows buyers and sellers to discover information and carry out a voluntary exchange

3. Consumer market
All the individuals and households who buy or acquire goods and services for personal consumption

4. Requirements of a Market
Must need or desire a particular product
Must have the ability to purchase the product
Must be willing to use their buying power
Must have the authority to buy specific products

5. Types of Markets Consumer markets Industrial Markets
International Markets

6. What to Ask in the Market
What do the customers buy?
Why do the customers buy?
Who are the buyers?
How do they buy?
How much do they buy?
Where do they buy from?

7. Consumer Behavior
Consumer behavior - the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions

8. Consumer Buying Behavior
Refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption

9. “How do consumers respond to marketing efforts the company might use?”
Studying consumer behavior answers to:
“How do consumers respond to marketing efforts the company might use?”

10. Model of Consumer Buying Behavior
Marketing and
Other Stimuli
Model of Consumer Buying Behavior
Model of Consumer Behavior
This CTR corresponds to Figure 5-1 on p. 135 and to the material on pp
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Buyer’s Black Box
Consumer Behavior
Consumer behavior refers to the buying behavior of final consumers -- individuals and households who buy goods and services for personal consumption.
Model of Consumer Behavior
Marketers control the stimuli or inputs consisting of the four Ps: Product, Place, Price, and Promotion. Environmental and situational influences, though perhaps beyond the control of the marketer, also influence many consumer choices. But what happens between the marketing stimuli input and the buyer’s response or output? That “black box” processing is the central question for marketers.
Teaching Tip: You may wish to discuss the “buyer’s black box” in more detail at this stage. Students sometimes become involved in the controversy regarding the presence or absence of consciousness in consumers. Consider using a two-side in-class discussion:
Side A: Experimental psychologists argue that what we call consciousness is merely a set of complex learned responses -- an ordinary physiological function.
Side B: Sociologists and social psychologists argue that consciousness is greater than the sum of its physiological parts. For marketers, the issue is sometimes linked to free will: Do marketers create needs by conditioning consumers? Do marketers offer need-fulfillers to needs consumer’s create in their “black box?”
Buyer’s Decision Process
Characteristics Affecting Consumer Behavior
Buyer’s Response
Purchase Timing
Purchase Amount
Product Choice
Brand Choice
Dealer Choice

11. Post-purchase Behavior Purchase Evaluation of Alternatives
Assess value in consumption
Purchase
Buying value
Evaluation of Alternatives
Assessing value
Information Search
Seeking a value
Need Recognition
Perceiving a value
Factors
Cultural,
Social Personal
Psychological

12. Cultural Factors Culture
Most basic cause of a person's wants and behavior.
Values
Perceptions

13. Subculture
Groups of people with shared value systems based on common life experiences.
Hispanic Consumers
African American Consumers
Asian American Consumers
Mature Consumers

14. Social Class
People within a social class tend to exhibit similar buying behavior.
Combination of Occupation, Income, Education, Wealth

15. Social Factors
Reference Groups
Family
Roles and Status

16. Personal Factors Age and Family Life Cycle Stage Occupation
Economic Situation
Lifestyle
Personality & Self-Concept

17. Psychological Factors
Motivation
Perception
Learning
Beliefs and Attitudes

18. Maslow Needs Hierarchies

19. Consumer Decision Process

20. Need Recognition
Marketing helps consumers recognize an imbalance between present status and preferred state

21. Information Search: Seeking Value
Internal Search-
Recall information from memory
External Search
information from outside environment

22. Alternative Evaluation
Analyze product attributes
Use cutoff criteria
Rank attributes by importance

23. Purchase Decision Buying the most preferred brand Intention
Unexpected situational factors

24. Post-purchase Behavior
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
Did I make a good decision?
Did I buy the right product?
Did I get a good value?

25. Involvement and Problem-Solving Variations
More
Involvement
Less
Routine
Response
Behavior
Limited
Decision
Making
Extensive

26. Routine Response Behavior
Little involvement in selection process
Frequently purchased low cost goods
May stick with one brand
Buy first/evaluate later
Quick decision

27. Limited Decision Making
Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative brands
Short to moderate time to decide

28. Extensive Decision Making
High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance

29. Comparison of problem-solving variations

31. Quality: %40, Price:%30, Services: %20, Weight: %10
Brand
Quality
Price
After Sales Services
Weight A 10 5 7 6 D 8
Quality: %40, Price:%30, Services: %20, Weight: %10
For Brand A: (0.4 x10) + (0.3 x 5) + (0.2 x 7) + (0.1 x 6) = 7.5
For Brand D: (0.4 x 7) + (0.3 x 8) + (0.2 x 5) + (0.1 x 7) = 6.9

32. Buyer Decision Process for New Products
Stages
Awareness
Interest
Evaluation
Trial Adoption

33. Business Markets
Individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations.

34. Characteristics of Business Markets
Market Structure and Demand
Nature of Buying
Types of Decisions and the Decision Process

35. Market Structure and Demand
Business markets contain fewer but larger buyers
More geographically concentrated
Demand in business markets is derived from final consumer demand
Demand is more inelastic
Demand fluctuates more and more quickly

36. Nature of the Buying Unit
Business purchases involve more buyers
Buying involve more professional purchasing effort

37. Types of Decision and the Decision Process
Business buyers usually face more complex buying decision
Business buying process is more formalized
Buyers and sellers work more closely together and build close relationships