5-Principles of marketing.ppt (618Kb)

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   5 Chapter

   5 PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong

Consumer Markets

and

Chapter

  

Consumer Buyer Behavior

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  Consumer Buying Behavior Consumer Buying Behavior

• Consumer Buying Behavior refers to

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

• Study consumer behavior to answer: “ How do consumers respond to

  “ How do consumers respond to marketing efforts the company might

marketing efforts the company might

use?” use?”

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  Model of Consumer Behavior Model of Consumer Behavior

  Marketing and

  Product

  Marketing and

  Economic

  Other Stimuli Other Stimuli

  Price Technological Place Political Promotion Cultural Characteristics Buyer’s

  Affecting

Buyer’s Black Box

  Decision

Buyer’s Black Box

  Consumer Process

Behavior Purchase Product Choice Buyer’s Response Timing

  Brand Choice Purchase Dealer Choice Amount

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  Characteristics Affecting Consumer Behavior Characteristics Affecting Consumer Behavior

  Buyer

Buyer

  Psychological Personal Social Culture

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  Factors Affecting Consumer Behavior: Culture Factors Affecting Consumer Behavior: Culture

• Most basic cause of a person's wants and behavior.
• Values

• Perceptions

  Social Class

Subculture

Social Class

• Groups of people with shared value systems based on common life experiences.
• People within a social class tend to exhibit similar buying behavior.
• Groups of people with shared
• People within a social class

   tend to exhibit similar buying behavior.

  value systems based on common life experiences.

  Subculture

• Hispanic Consumers
• Occupation
• Hispanic Consumers • African American Consumers • Asian American Consumers • Mature Consumers
• Occupation
• Income • Education • Wealth
• African American Consumers
• Income
• Asian American Consumers
• Education
• Mature Consumers
• Wealth
• Most basic cause of a person's wants and behavior.
• Values • Perceptions

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  Factors Affecting Consumer Behavior: Factors Affecting Consumer Behavior:

  Social Social

  Groups Groups Membership

• Membership

  Reference

• Reference

  Family Family Husband, wife, kids

• Husband, wife, kids

Social Factors

• Social Factors

  Influencer, buyer, user

• Influencer, buyer, user

  Roles and Status Roles and Status

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  Personality & Self-Concept

  

Personal Influences

Age and Family Life Cycle Stage

  Age and Family Life Cycle Stage

  Occupation

  Occupation

  Economic Situation

  Economic Situation

  

Lifestyle Identification

Activities

  Factors Affecting Consumer Behavior: Personal Factors Affecting Consumer Behavior: Personal

Personal Influences

  Personality & Self-Concept

Lifestyle Identification

  Interests

  Interests

  Opinions

  Opinions

  Activities

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  VALS 2

  VALS 2 Principle Oriented Status Oriented Action Oriented

  Achievers ^Achievers

^Actualizers

^Actualizers Strugglers ^{Strugglers Strivers Strivers Fulfilleds (Innovator) Fulfilleds (Innovator) Believers Believers Experiencers Experiencers Makers Makers Abundant Resources Abundant Resources} _{Minimal Resources Minimal Resources}

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  VALS – According to SRI Int’l

  VALS – According to SRI Int’l Innovator . These consumers are on the leading edge of change,

  have the highest incomes, and such high self-esteem and abundant resources that they can induldge in any or all self-orientations. They are located above the rectangle. Image is important to them as an expression of taste, Their consumer choices are directed toward the "finer things in life."

  Thinkers . These consumers are the high-resource group of those

  who are motivated by ideals. They are mature, responsible, well- educated professionals. Their leisure activities center on their homes, but they are well informed about what goes on in the world and are open to new ideas and social change. They have high incomes but are practical consumers and rational decision makers.

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  Vals..ctd..

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  Believers. These consumers are the low-resource group of those

  who are motivated by ideals. They are conservative and predictable consumers who favor American products and established brands.

  Their lives are centered on family, church, community, and the nation. They have modest incomes.

  Achievers. These consumers are the high-resource group of those

  who are motivated by achievement. They are successful work- oriented people who get their satisfaction from their jobs and families. They are politically conservative and respect authority and the status quo. They favor established products and services that show off their success to their peers .

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  Vals..ctd..

  Vals..ctd..

  Strivers . These consumers are the low-resource group of those

  who are motivated by achievements. They have values very similar to achievers but have fewer economic, social, and psychological resources. Style is extremely important to them as they strive to emulate people they admire.

  Experiencers . These consumers are the high-resource group of

  those who are motivated by self-expression. They are the youngest of all the segments, with a median age of 25. They have a lot of energy, which they pour to physical exercise and social activities. They are avid consumers, spending heavily on clothing, fast-foods, music, and other youthful favorites, with particular emphasis on new products and services.

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  Vals..ctd..

  Vals..ctd..

  Makers. These consumers are the low-resource group of those

  who are motivated by self-expression. They are practical people who value self-sufficiency. They are focused on the familiar- family, work, and physical recreation-and have little interest in the broader world. As consumers, they appreciate practical and functional products.

  Survivors. These consumers have the lowest incomes. They

  have too few resources to be included in any consumer self- orientation and are thus located below the rectangle. They are the oldest of all the segments, with a median age of 61. Within their limited means, they tend to be brand-loyal consumers.

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  Factors Affecting Consumer Behavior: Psychological Factors Affecting Consumer Behavior: Psychological

  

Psychological

Factors

  

Motivation

P erception P erception Learning Learning Beliefs and Attitudes Beliefs and Attitudes

Motivation

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Maslow’s Hierarchy of Needs

  Maslow’s Hierarchy of Needs

  Esteem Needs _{( self-esteem, status)} Social Needs _{(sense of belonging, love)} Safety Needs _{(security, protection)} Physiological Needs _{(hunger, thirst)} ^{Self Actualization (Self-development )}

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  Types of Buying Decisions Types of Buying Decisions

  High Low Involvement Involvement

  Complex Variety-

  Significant differences

  Buying Seeking

  between

  Behavior Behavior

  brands Few

  Dissonance- Habitual

  differences

  Reducing Buying Buying

  between

  Behavior Behavior

  brands

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  The Buyer Decision Process The Buyer Decision Process

  Need Recognition Need Recognition Information Search Information Search Evaluation of Alternatives Evaluation of Alternatives Purchase Decision Purchase Decision Postpurchase Behavior Postpurchase Behavior

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  The Buyer Decision Process Step 1. Need Recognition

  The Buyer Decision Process Step 1. Need Recognition

• Hunger
• Thirst • A person’s normal
• TV advertising
• Magazine ad
• Radio slogan
• Stimuli in the
• Hunger
• Thirst • A person’s normal
• TV advertising
• Magazine ad
• Radio slogan
• Stimuli in the

  environment

  environment Internal Stimuli

  needs

  needs Need Recognition Difference between an actual state and a desired state

  Need Recognition

  Difference between an actual state and a desired state

Internal Stimuli

External Stimuli

External Stimuli

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  The Buyer Decision Process The Buyer Decision Process

  Step 2. Information Search Step 2. Information Search

• Family, friends, neighbors

Personal Sources Personal Sources

• Most influential source of information
• Advertising, salespeople

Commercial Sources Commercial Sources

• Receives most information

  from these sources

• Mass Media

Public Sources Public Sources

• Consumer-rating groups
• Handling the product
• Examining the product

  Experiential Sources Experiential Sources

• Using the product

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Brand Beliefs

  Evaluation Procedures

  Evaluation Procedures Choosing a product (and brand) based on one or more attributes.

  Based on what I’m looking for, how satisfied would I be with each product?

  Total Product Satisfaction

  Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product?

  What do I believe about each available brand?

  

Brand Beliefs

What do I believe about each available brand?

  The Buyer Decision Process Step 3. Evaluation of Alternatives

  Which attributes matter most to me?

  Degree of Importance

  Degree of Importance Which attributes matter most to me?

  Evaluation of Quality, Price, & Features

  Product Attributes

  Product Attributes Evaluation of Quality, Price, & Features

  The Buyer Decision Process Step 3. Evaluation of Alternatives

  Choosing a product (and brand) based on one or more attributes.

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  The Buyer Decision Process The Buyer Decision Process

  Step 4. Purchase Decision Step 4. Purchase Decision

  Purchase Intention Purchase Intention Desire to buy the most preferred brand Desire to buy the most preferred brand Unexpected Attitudes situational of others factors Purchase Decision Purchase Decision

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  The Buyer Decision Process Step 5. Postpurchase Behavior

  The Buyer Decision Process Step 5. Postpurchase Behavior

Consumer’s Expectations of Product’s Performance

Consumer’s Expectations of Product’s Performance

  Product’s Perceived Performance

Dissatisfied Customer

Satisfied Customer!

Dissatisfied Customer

Satisfied Customer!

  Cognitive Dissonance

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  Stages in the Adoption Process Stages in the Adoption Process

  

Awareness

Awareness

  

Interest

Interest

  

Evaluation

Evaluation

  

Trial

Trial

  

Adoption

Adoption

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  Adoption of Innovations

Adoption of Innovations d o p t e r s A f g s e o Early Majority Late Majority r o e n Early t a c v a t r o Adopters 34% 34% Laggards P e n

  _{I n 13.5% 16% Early} 2.5% _{Time of Adoption Late}

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  Influences on the Rate of Adoption of New Products Influences on the Rate of Adoption of New Products

  Divisibility

  Can the innovation be used on a trial basis?

  Compatibility

  Does the innovation fit the values and experience of the target market?

  Complexity

  Is the innovation difficult to understand or use?

  Relative Advantage

  Is the innovation superior to existing products?

  Communicability

  Can results be easily observed or described to others?

  Product Characteristics