Analyzing consumer markets and buyer behavior
ANALYZING CONSUMER
MARKETS AND BUYER
BEHAVIOR
By : Agung Utama
introduction
The aim of marketing is to meet and satisfy
target customer’s needs and wants.
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.
Understanding consumer behavior and
knowing customers is never simple.
Customers may say one thing but do another.
Influencing buyer behavior
The starting model for understanding buyer
behavior is “stimulus response-model”
The model describes that marketing and
environmental stimuli enter the buyer’s
consciousness. The buyer’s characteristics and
decision processes lead to certain purchase
decisions.
The marketer’s task is to understand what
happen in the buyer’s consciousness between
the arrival of outside stimuli and the purchase
decisions.
Model of buyer behavior.
Marketin
g stimuli
•Product
•Price
•Place
•promotio
n
Other
stimuli
•economic
•technlg
•Political
•cultural
Buyer’s
charactris
tics
•Cultural
•Social
•Personal
•psychologi
cal
Buyer’s
Decision
process
•Problem
recognition
•Informatio
n search
•Evaluation
of
alternative
s
•Purchase
decision
•Post
purchase
behavior
Buyer’s
Decisio
n
•Product
choice
•Brand
choice
•Dealer
choice
•Purcha
se
timing
•Purcha
se
amount
Cultural factors
Culture is the fundamental determinant of a
person’s wants and behavior.
A person acquires a set of values, perceptions,
preferences, and behaviors through his or her
family and other key institutions.
Each culture consists of smaller sub culture
that provide more specifications and
socialization for their members.
Sub cultures include nationalities, religions,
racial groups, and geographic regions.
When subcultures grow large enough,
companies often design specialized marketing
programs to serve them.
Social factors
Reference groups : consists of all the groups that
have a direct or indirect influence on the person’s
attitudes or behavior.
Groups having a direct influence on a person are
called memberships groups, such as: family,
neighbors, friend, etc.
Family
Two kind of families in the buyer’s life :
1. The family of orientation: consists of parents
and siblings. From parents a person acquires an
orientation toward religion, politics, economics,
sense of personal ambitions.
2. The family of procreation : consists of one’s
spouse and children.
Roles and status
A role consists of the activities a person is
expected to perform.
Each role carries a status.
People choose products that communicate their
role and status in society.
Personal factors
Age and stage in the life cycle : people buy
different goods and services over a lifetime.
Occupation and economic circumstances.
Occupation influences consumption patterns,
such as: a blue collar worker will buy work
clothes, work shoes, lunch-box, while a
company presidents will buy expensive suits,
air travel, and country club memberships.
Life style
People from the same culture, social class, and
occupation may lead quite different lifestyles.
A lifestyle is a person’s pattern of living in the world
as expressed in activities, interests and opinions.
Marketers search for relationships between their
products and lifestyle groups.
Personality and self-concept
each person has personality characteristics that
influence his or her buying behavior.
Personality is often described in term of such as self
confidence, dominance, autonomy, deference,
sociability, defensiveness, and adaptability.
Personality can be useful variable an analyzing
consumer brand choices. The idea is that brands
also have personalities, and that consumers are
likely to choose brands whose personalities match
their own.
Psychological factors
Motivations
Maslow’s Theory: human’s needs ate
arranged in a hierarchy, from the most
pressing to the least pressing. In order of
importance, they are physiological needs,
safety needs, social needs, esteem needs,
and self-actualization needs. People will try
to satisfy their important first needs, when a
person succeeds in satisfying an important
needs, he or she will then try to satisfy the
next-most-important needs.
5.
SelfActualization
Needs
4. Esteem Needs
3. Social needs (love)
2. Safety needs (security)
1. physiological needs
(food, water, shelter)
Perception
A motivated person is ready to act, how the
motivated person actually acts is influenced
by his or her perception of the situations.
Perceptions can vary widely among
individuals exposed to the same reality. One
person might perceive fast talking
salesperson as aggressive , another, as
intelligent and hekpful.
People can emerge with different perceptions
of the same object because of three
perceptual processes: selective attention,
selective distortion, selective retention.
Beliefs and attitudes
A belief is a descriptive thought that a person
hold about something.
People’s belief about product or brand influence
their buying decisions.
Marketers are interested in the beliefs people
carry in their heads about their products and
brands. Brands beliefs exist in consumer’s
memory .
Attitudes is a person’s enduring favorable or
unfavorable evaluations, emotional feelings, and
actions tendencies toward some object or idea.
A person’s attitude settle into a consistent
pattern, so a company would be well advised to
fit its product into existing attitude rather than
to try to change attitudes might pay off.
The buying decisions
process
Marketers have to go beyond the various
influence on buyers and understanding
how consumers actually make their
buying decisions.
Specifically marketers must identify who
makes the buying decisions, the types of
buying decisions, and the step in the
buying decisions.
Buying roles
Buying roles change so the marketers must
be careful in making their targeting decisions.
We can distinguish five roles people play in
buying decisions:
Initiator
: the person who first suggests the idea of
buying the product or service.
Influencer : the person whose view or advice
influences the decisions.
Decider : the person who decides on any
component of a buying decisions : whether to
buy, what to buy, how to buy, where to buy.
Buyer : the person who makes the actual
purchase
User : the persons who consumes or uses the
product or service.
Buying behavior
Henry Assael distinguished four types of
consumer buying based on the degree of
buyer involvement and the degree of
differences among brands.
High Involvement
Complex
Involvement buying
behavior
Significant
differences
between brands
Few differences
between brands
Dissonance
reducing
buying
behavior
Variety
seeking
buying
behavior
Habitual
buying
behavior
Low
Complex buying behavior
Consumers engage in complex buying behavior
when they are highly involved in a purchase and
aware of significant differences among brands.
This is usually the case when a product is
expensive, bought infrequently, risky, and highly
self –expressive, like an automobiles.
Dissonance reducing buyer behavior
Consumers sometimes engage in highly involved
in a purchase but sees little differences in
brands.
The high involvement based on the fact that the
purchase is expensive, infrequent, and risky.
In this case the buyer will shop around to learn
what is available. If they find quality differences
in the brands, they might go for the higher price.
If they find little differences, they might simply
buy on price or convenience.
Habitual buying behavior
Many products are bought under conditions of
low involvement and the absence of significant
brand differences, for example: salt.
There is good evidence that consumers have low
involvement with most low-cost, frequently
purchased products.
Variety seeking buying behavior
Some buying situations are characterized by low
involvement but significant brand differences.
Here consumers often do a lot of brand
switching.
Brand switching occurs for the sake of variety
rather than dissatisfaction.
Stages of the buying decisions
process
Five stage model of the consumer buying
process.
Problem
Recogniti
on
Informati
on
search
Evaluatio
n
Of
Alternativ
es
Purchase
Decision
s
Post
purchase
Decision
s
Problem recognition
The buying process starts when the buyer recognize a
problem or need.
The need can be triggered by internal or external stimuli.
Marketers need to identify the circumstances that trigger
a particular need.
Information search
An aroused consumer will be inclined to search more
information.
Two levels of arousal consumer:
Heightened attention : a person simply becomes more receptive
to information about product
Active information search : a person who looking for reading
material, phoning friends, and visiting stores to learn about
product.
Consumer information sources:
Personal sources : family, friends
Commercial sources : advertising, sales persons
Public sources : mass media
Experiential sources : using the product.
Through gathering information, the consumer
learns about competing brands and their
features as depicted follows:
Total sets
IBM
APPLE
DELL
HWELETT
-P
TOSHIBA
COMPAQ
NEC
AXIOO
ZYREX
Awareness set
IBM
APPLE
TOSHIBA
COMPAQ
AXIOO
ZYREX
Consideration set
Decision
IBM
TOSHIBA
COMPAQ
AXIOO
Choice set
TOSHIBA
COMPAQ
AXIOO
?
Evaluation of alternatives
Some basic concepts will help us understand
consumer evaluation process:
First:
The consumer is trying to satisfy needs
Second: The consumers is looking for certain benefits
from the product solution
Third: The consumers sees each product as a bundle
of attributes with varying abilities for delivering
benefits sought to satisfy this needs.
The attributes of interest to buyers vary by product:
Cameras: picture sharpness, camera speeds, camera size
Hotels: location, cleanliness, price, atmosphere
Tires: safety, tread life, price, ride quality.
Mouthwash: color, effectiveness, germ-killing capacity,
price, taste/flavor
Consumers
will pay the most attention to attributes
that deliver the sought benefits.
Purchase decisions
In the evaluation stage, the consumers form
preferences among the brands in the choice set.
The consumers may also form an intention to buy the
most preferred brand.
How ever two factors can intervene between the
purchase intention and the purchase decision.
The first factor is the attitudes of others. The extent to
which another person’s attitude reduces one’s
preferred alternatives depends on two things:
The 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 wishes
The second factor is unanticipated situational factors
that may erupt to change the purchase intention.
In executing a purchase intention, the consumers may
make up to five purchase sub decisions: a brand
decisions, vendor decisions, quantity decisions, timing
decisions, payment method decisions .
Steps between evaluation of alternatives and
a purchase decision.
Attitudes of
others
Evaluation
of
alternatives
Purchase
decisions
Purchase
intentions
Un
anticipated
Situational
factors
Post purchase behavior
After purchasing the product, the consumer will experience
some level of satisfaction or dissatisfaction.
Marketers must monitor post purchase satisfaction, post
purchase actions and post purchase product uses.
Post purchase satisfaction
The buyer’s satisfaction is a function of the closeness between
the buyer’s expectations and the product’s perceived
performance.
If performance falls short of expectations, the customer is
disappointed; if it meets expectations, the customer is
satisfied; if it exceeds expectations, the customer is delighted.
Post purchase actions
satisfaction or dissatisfaction with the product will influence a
consumer ‘s subsequent behavior.
If the consumer is satisfied, he or she will exhibit a higher
profitability of purchasing the product again.
If the consumer is dissatisfied, they may abandon or return
the product. They may take public action by complaining to
the company, going to a lawyer. They may take private actions
Post purchase use and disposal
Marketers should also monitor how buyers use
and dispose of the product.
If consumers store the product in a closet, the
product is probably not very satisfying.
If they sell or trade the product, new product
sales will be depressed.
If the consumers throw the product away, the
marketer needs to know how they dispose of it,
especially if it can hurt the environment (such
as: beverages containers and diapers).
How customers use or dispose of products?
Source from: Jacob jacoby, Carol.K. berning, and Thomas
F.Dietvorst,”What about disposition?”
Rent it
Get Rid
of it
temporar
ily
Produ
ct
Get Rid of
it
permanentl
y
Keep it
Give it
away
To be
(resoled)
Lend it
Trade it
Use it to
serve
original
purpose
convert it to
serve a new
purpose
Store it
To be used
Sell it
Direct to
consumer
Throw
it
Through
middleman
To
intermediar
y
MARKETS AND BUYER
BEHAVIOR
By : Agung Utama
introduction
The aim of marketing is to meet and satisfy
target customer’s needs and wants.
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.
Understanding consumer behavior and
knowing customers is never simple.
Customers may say one thing but do another.
Influencing buyer behavior
The starting model for understanding buyer
behavior is “stimulus response-model”
The model describes that marketing and
environmental stimuli enter the buyer’s
consciousness. The buyer’s characteristics and
decision processes lead to certain purchase
decisions.
The marketer’s task is to understand what
happen in the buyer’s consciousness between
the arrival of outside stimuli and the purchase
decisions.
Model of buyer behavior.
Marketin
g stimuli
•Product
•Price
•Place
•promotio
n
Other
stimuli
•economic
•technlg
•Political
•cultural
Buyer’s
charactris
tics
•Cultural
•Social
•Personal
•psychologi
cal
Buyer’s
Decision
process
•Problem
recognition
•Informatio
n search
•Evaluation
of
alternative
s
•Purchase
decision
•Post
purchase
behavior
Buyer’s
Decisio
n
•Product
choice
•Brand
choice
•Dealer
choice
•Purcha
se
timing
•Purcha
se
amount
Cultural factors
Culture is the fundamental determinant of a
person’s wants and behavior.
A person acquires a set of values, perceptions,
preferences, and behaviors through his or her
family and other key institutions.
Each culture consists of smaller sub culture
that provide more specifications and
socialization for their members.
Sub cultures include nationalities, religions,
racial groups, and geographic regions.
When subcultures grow large enough,
companies often design specialized marketing
programs to serve them.
Social factors
Reference groups : consists of all the groups that
have a direct or indirect influence on the person’s
attitudes or behavior.
Groups having a direct influence on a person are
called memberships groups, such as: family,
neighbors, friend, etc.
Family
Two kind of families in the buyer’s life :
1. The family of orientation: consists of parents
and siblings. From parents a person acquires an
orientation toward religion, politics, economics,
sense of personal ambitions.
2. The family of procreation : consists of one’s
spouse and children.
Roles and status
A role consists of the activities a person is
expected to perform.
Each role carries a status.
People choose products that communicate their
role and status in society.
Personal factors
Age and stage in the life cycle : people buy
different goods and services over a lifetime.
Occupation and economic circumstances.
Occupation influences consumption patterns,
such as: a blue collar worker will buy work
clothes, work shoes, lunch-box, while a
company presidents will buy expensive suits,
air travel, and country club memberships.
Life style
People from the same culture, social class, and
occupation may lead quite different lifestyles.
A lifestyle is a person’s pattern of living in the world
as expressed in activities, interests and opinions.
Marketers search for relationships between their
products and lifestyle groups.
Personality and self-concept
each person has personality characteristics that
influence his or her buying behavior.
Personality is often described in term of such as self
confidence, dominance, autonomy, deference,
sociability, defensiveness, and adaptability.
Personality can be useful variable an analyzing
consumer brand choices. The idea is that brands
also have personalities, and that consumers are
likely to choose brands whose personalities match
their own.
Psychological factors
Motivations
Maslow’s Theory: human’s needs ate
arranged in a hierarchy, from the most
pressing to the least pressing. In order of
importance, they are physiological needs,
safety needs, social needs, esteem needs,
and self-actualization needs. People will try
to satisfy their important first needs, when a
person succeeds in satisfying an important
needs, he or she will then try to satisfy the
next-most-important needs.
5.
SelfActualization
Needs
4. Esteem Needs
3. Social needs (love)
2. Safety needs (security)
1. physiological needs
(food, water, shelter)
Perception
A motivated person is ready to act, how the
motivated person actually acts is influenced
by his or her perception of the situations.
Perceptions can vary widely among
individuals exposed to the same reality. One
person might perceive fast talking
salesperson as aggressive , another, as
intelligent and hekpful.
People can emerge with different perceptions
of the same object because of three
perceptual processes: selective attention,
selective distortion, selective retention.
Beliefs and attitudes
A belief is a descriptive thought that a person
hold about something.
People’s belief about product or brand influence
their buying decisions.
Marketers are interested in the beliefs people
carry in their heads about their products and
brands. Brands beliefs exist in consumer’s
memory .
Attitudes is a person’s enduring favorable or
unfavorable evaluations, emotional feelings, and
actions tendencies toward some object or idea.
A person’s attitude settle into a consistent
pattern, so a company would be well advised to
fit its product into existing attitude rather than
to try to change attitudes might pay off.
The buying decisions
process
Marketers have to go beyond the various
influence on buyers and understanding
how consumers actually make their
buying decisions.
Specifically marketers must identify who
makes the buying decisions, the types of
buying decisions, and the step in the
buying decisions.
Buying roles
Buying roles change so the marketers must
be careful in making their targeting decisions.
We can distinguish five roles people play in
buying decisions:
Initiator
: the person who first suggests the idea of
buying the product or service.
Influencer : the person whose view or advice
influences the decisions.
Decider : the person who decides on any
component of a buying decisions : whether to
buy, what to buy, how to buy, where to buy.
Buyer : the person who makes the actual
purchase
User : the persons who consumes or uses the
product or service.
Buying behavior
Henry Assael distinguished four types of
consumer buying based on the degree of
buyer involvement and the degree of
differences among brands.
High Involvement
Complex
Involvement buying
behavior
Significant
differences
between brands
Few differences
between brands
Dissonance
reducing
buying
behavior
Variety
seeking
buying
behavior
Habitual
buying
behavior
Low
Complex buying behavior
Consumers engage in complex buying behavior
when they are highly involved in a purchase and
aware of significant differences among brands.
This is usually the case when a product is
expensive, bought infrequently, risky, and highly
self –expressive, like an automobiles.
Dissonance reducing buyer behavior
Consumers sometimes engage in highly involved
in a purchase but sees little differences in
brands.
The high involvement based on the fact that the
purchase is expensive, infrequent, and risky.
In this case the buyer will shop around to learn
what is available. If they find quality differences
in the brands, they might go for the higher price.
If they find little differences, they might simply
buy on price or convenience.
Habitual buying behavior
Many products are bought under conditions of
low involvement and the absence of significant
brand differences, for example: salt.
There is good evidence that consumers have low
involvement with most low-cost, frequently
purchased products.
Variety seeking buying behavior
Some buying situations are characterized by low
involvement but significant brand differences.
Here consumers often do a lot of brand
switching.
Brand switching occurs for the sake of variety
rather than dissatisfaction.
Stages of the buying decisions
process
Five stage model of the consumer buying
process.
Problem
Recogniti
on
Informati
on
search
Evaluatio
n
Of
Alternativ
es
Purchase
Decision
s
Post
purchase
Decision
s
Problem recognition
The buying process starts when the buyer recognize a
problem or need.
The need can be triggered by internal or external stimuli.
Marketers need to identify the circumstances that trigger
a particular need.
Information search
An aroused consumer will be inclined to search more
information.
Two levels of arousal consumer:
Heightened attention : a person simply becomes more receptive
to information about product
Active information search : a person who looking for reading
material, phoning friends, and visiting stores to learn about
product.
Consumer information sources:
Personal sources : family, friends
Commercial sources : advertising, sales persons
Public sources : mass media
Experiential sources : using the product.
Through gathering information, the consumer
learns about competing brands and their
features as depicted follows:
Total sets
IBM
APPLE
DELL
HWELETT
-P
TOSHIBA
COMPAQ
NEC
AXIOO
ZYREX
Awareness set
IBM
APPLE
TOSHIBA
COMPAQ
AXIOO
ZYREX
Consideration set
Decision
IBM
TOSHIBA
COMPAQ
AXIOO
Choice set
TOSHIBA
COMPAQ
AXIOO
?
Evaluation of alternatives
Some basic concepts will help us understand
consumer evaluation process:
First:
The consumer is trying to satisfy needs
Second: The consumers is looking for certain benefits
from the product solution
Third: The consumers sees each product as a bundle
of attributes with varying abilities for delivering
benefits sought to satisfy this needs.
The attributes of interest to buyers vary by product:
Cameras: picture sharpness, camera speeds, camera size
Hotels: location, cleanliness, price, atmosphere
Tires: safety, tread life, price, ride quality.
Mouthwash: color, effectiveness, germ-killing capacity,
price, taste/flavor
Consumers
will pay the most attention to attributes
that deliver the sought benefits.
Purchase decisions
In the evaluation stage, the consumers form
preferences among the brands in the choice set.
The consumers may also form an intention to buy the
most preferred brand.
How ever two factors can intervene between the
purchase intention and the purchase decision.
The first factor is the attitudes of others. The extent to
which another person’s attitude reduces one’s
preferred alternatives depends on two things:
The 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 wishes
The second factor is unanticipated situational factors
that may erupt to change the purchase intention.
In executing a purchase intention, the consumers may
make up to five purchase sub decisions: a brand
decisions, vendor decisions, quantity decisions, timing
decisions, payment method decisions .
Steps between evaluation of alternatives and
a purchase decision.
Attitudes of
others
Evaluation
of
alternatives
Purchase
decisions
Purchase
intentions
Un
anticipated
Situational
factors
Post purchase behavior
After purchasing the product, the consumer will experience
some level of satisfaction or dissatisfaction.
Marketers must monitor post purchase satisfaction, post
purchase actions and post purchase product uses.
Post purchase satisfaction
The buyer’s satisfaction is a function of the closeness between
the buyer’s expectations and the product’s perceived
performance.
If performance falls short of expectations, the customer is
disappointed; if it meets expectations, the customer is
satisfied; if it exceeds expectations, the customer is delighted.
Post purchase actions
satisfaction or dissatisfaction with the product will influence a
consumer ‘s subsequent behavior.
If the consumer is satisfied, he or she will exhibit a higher
profitability of purchasing the product again.
If the consumer is dissatisfied, they may abandon or return
the product. They may take public action by complaining to
the company, going to a lawyer. They may take private actions
Post purchase use and disposal
Marketers should also monitor how buyers use
and dispose of the product.
If consumers store the product in a closet, the
product is probably not very satisfying.
If they sell or trade the product, new product
sales will be depressed.
If the consumers throw the product away, the
marketer needs to know how they dispose of it,
especially if it can hurt the environment (such
as: beverages containers and diapers).
How customers use or dispose of products?
Source from: Jacob jacoby, Carol.K. berning, and Thomas
F.Dietvorst,”What about disposition?”
Rent it
Get Rid
of it
temporar
ily
Produ
ct
Get Rid of
it
permanentl
y
Keep it
Give it
away
To be
(resoled)
Lend it
Trade it
Use it to
serve
original
purpose
convert it to
serve a new
purpose
Store it
To be used
Sell it
Direct to
consumer
Throw
it
Through
middleman
To
intermediar
y