IM1019 L5 Consumer Markets and Buyer Behavior
IM1019 L5 Consumer Markets and Buyer Behavior
IM1019 L5 Consumer Markets and Buyer Behavior
Adapted from Kotler P. T. & Amstrong G. 2018, Principles of Marketing (17th Global Edition), Pearson.
Learning objectives
1. Define the consumer market and construct a simple model of consumer buyer
behavior.
2. Name the four major factors that influence consumer buyer behavior.
3. List and define the major types of buying decision behavior and the stages in the
buyer decision process.
Consumer markets are made up of all the individuals and households that
buy or acquire goods and services for personal consumption.
Consumer markets and buyer behavior
The buyer’s characteristics influence how he/she perceives and reacts to the stimuli.
The buyer’s decision process itself affects the buyer’s behavior.
The ‘Why’ of consumer behavior
Cultural factors
Culture is the set of basic values, perceptions, wants, and behaviors learned
by a member of society from family and other important institutions.
Subcultures are groups of people within a culture with shared value systems
based on common life experiences and situations (e.g. nationalities,
religions, racial groups, and geographic regions).
Social classes are society’s relatively permanent and ordered divisions whose
members share similar values, interests, and behaviors. Measured as a
combination of occupation, income, education, wealth, and other variables.
Cross-cultural marketing strategy
There is controversy about the extent to which cross-cultural
marketing strategies, particularly advertising, should be standardized.
Social factors
Groups and social networks
• Membership groups: Groups with direct influence and to which a person
belongs.
• Reference groups: Groups that form a comparison or reference in
forming attitudes or behavior.
• Aspirational groups: Groups an individual wishes to belong to.
Characteristics affecting consumer behavior
Reference groups
… expose a person to new behaviors
and lifestyles
… influence the person’s attitudes and
self-concept
… create pressures to conform that
may affect the person’s product and
brand choices.
Characteristics affecting consumer behavior
Social factors
Family is the most important consumer-buying organization in society.
Role and status can be defined by a person’s position in a group.
Characteristics affecting consumer behavior
Personal factors
Age and life-cycle stage
Occupation
Economic situations include trends in: spending, personal income, savings,
interest rates.
Lifestyle - a person’s pattern of living as expressed in his or her
psychographics (e.g. activities, interests, opinions)
Personality - the unique psychological characteristics that distinguish a
person or group.
Characteristics affecting consumer behavior
Psychological factors
Motivation
Perception
Learning
Beliefs and attitudes
Characteristics affecting consumer behavior
A motive (or drive) is a need that is sufficiently pressing to direct the person
to seek satisfaction of the need.
Motivation research refers to qualitative research designed to probe
consumers’ hidden, subconscious motivations.
Characteristics affecting consumer behavior
Perceptual process
Selective attention - people tend to screen out most of the information to
which they are exposed.
Retail strategy
Location of often-sought-after items and high-
margin items
Shelf position
Point-of-purchase displays
A belief is a descriptive thought that a person has about something based on:
knowledge
opinion
faith
Need recognition is the first stage of the buyer decision process, in which the
consumer recognizes a problem or need triggered by:
Internal stimuli
External stimuli
Problem recognition
Ideal state
Actual state
Information search is the stage of the buyer decision process in which the
consumer is motivated to search for more information.
Sources of information:
Personal sources
Commercial sources
Public sources
Experiential sources
The buyer decision process
Compensatory models
Mental cost-benefit analysis model
Negative features can be compensated for by positive ones
Noncompensatory models
Simple decision model
Negative information leads to rejection of option
Hoyer W. D., MacInnis D. J. and Pieters R. (2018), Consumer Behavior, 7th ed., Cengage Learning.
Mothersbaugh D., Hawkins D., Kleiser S.D. (2019), Consumer Behavior - Building Marketing Strategy 14th, McGraw Hill
The buyer decision process
Mothersbaugh D., Hawkins D., Kleiser S.D. (2019), Consumer Behavior - Building Marketing Strategy 14th, McGraw Hill
Responses to dissatisfaction
Complaining
Switching
The adoption process is the mental process an individual goes through from
first learning about an innovation to final regular use.
Stages in the adoption process include:
Relative
Compatibility Complexity
advantage
Divisibility Communicability