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Roadmap: Previewing the Concepts
1. Understand the consumer market and the
major factors that influence consumer buyer behavior.
2. Identify and discuss the stages in the buyer
decision process. 3.
Describe the adoption and diffusion process for new products.
4. Define the business market and identify the
major factors that influence business buyer behavior.
5. List and define the steps in the business
buying decision process.
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Building Success
Offers 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.
Harley-Davidson – Devoted Harley-Davidson – Devoted
Consumers Consumers
Case Study Case Study
Measuring Success
Currently 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: 19
th
straight year of record sales and income.
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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?”
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Model of Buying Behavior
Marketing factors and other stimuli are
inputs into the “buyer’s black box.”
Here, stimuli are evaluated in light of
the buyer decision process and the buyer’s characteristics.
Buyer responses influence choice of
the product, brand, vendor, as well as the timing and amount of purchase.
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Culture
Culture is the most basic cause of a
persons 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.
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Consumer Buying Behavior
Factors influencing consumer behavior:
– Cultural factors: • Culture, subculture, social class
– Social factors: • Reference groups, family, roles and status
– Personal factors: • Agelife-cycle, occupation, economic situation,
lifestyle, personality and self-concept – Psychological factors:
• Motivation, perception, learning, beliefs, and attitudes
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Culture
Subculture
– Groups of people with shared value systems based on common life
experiences.
Major Groups
– Hispanic Consumers – African-American Consumers
– Asian-American Consumers – Mature Consumers
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Social Class
Society’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.
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Social Factors
Groups:
– Membership, Reference Opinion Leaders, Aspirational
Family:
– Most important consumer buying organization
Roles and Status:
– Role = Expected activities – Status = Esteem given to role by society
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Personal Factors
Age and Life-Cycle Stage
– People change the goods they buy over their lifetimes.
Occupation
– Occupation influences the purchase of clothing and other goods.
Economic Situation
– Some goods and services are especially income-sensitive.
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Personal Factors
Lifestyle:
– Pattern of living as expressed in psychographics
• Activities • Interests
• Opinions
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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.
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Motives and Needs
Maslow’s hierarchy of needs implies
that lower level needs must be
satisfied prior to higher level needs.
– Physiological needs – Safety needs
– Social needs – Esteem needs
– Self-Actualization
A 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.
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Perception
Process by which people select,
organize, and interpret information to form a meaningful picture of the world.
– Selective attention – Selective distortion
– Selective retention
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Learning
A relatively permanent change in behavior due to experience.
Interplay of drives, stimuli, cues, responses,
and reinforcement.
Strongly influenced by the consequences of
an individual’s behavior
– Behaviors with satisfying results tend to be repeated.
– Behaviors with unsatisfying results tend not to be repeated.
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Beliefs Attitudes
A
belief is a descriptive thought that a
person holds about something.
An
attitude is a person’s consistently
favorable or unfavorable evaluations, feelings, and tendencies toward an
object or idea.
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Buying Decision Process
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
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Sources of Information
Personal
Commercial
Public
Experiential
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Buying Decision Process
Factors that influence purchase
decision:
– Attitudes of others – Unexpected situational factors
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Buying Decision Process
Consumer satisfaction is a function of
consumer expectations and perceived product performance.
– Performance Expectations ----- Disappointment – Performance = Expectations ----- Satisfaction
– Performance Expectations ----- Delight
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Buying Decision Process
Cognitive dissonance:
a buyer’s doubts shortly after a purchase about
whether it was the right decision.
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1. Awareness
