Chapter Three
Chapter Three
Chapter Three
TYPES OF MARKET
Over view:
It is good always goods to have a dynamic and
1 active consumer.
Overview…
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3.1. Consumer Market
1. Cultural factors:
Cultural factors exert the broadest and deepest influence
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…cont’d
a. Culture: Culture is a set of learned beliefs, values,
attitudes, habits and forms of behavior that are shared by
society.
It transmitted from generation to generation with in
that society.
It is the most determinant of a person’s want and
behavior because human behavior is largely learned.
Therefore, marketers should seriously consider the culture
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in choosing target market and preparing market programs.
…contd
b. Subculture: A subculture is a distinct and identifiable
cultural group that has value in common with the overall
society but also has certain characteristics that are unique
to it.
c. Social class: Social class is defined by social satisfaction
that is the ranking of people in a given society.
It is society’s relatively permanent and ordered divisions
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Cont…!
Marketer are interested in social class because people in
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2. Social factors
A consumer’s behavior is influenced also by social
10 Secondary groups.
I. Primary Reference groups includes: membership,
aspiration, disclaim ant and avoidance reference groups.
Membership reference group: a group to which a person holds
frequent interaction with other members of the groups.
He/she comes in regular & formal contact with the
members of this groups.
Aspiration reference group: a group to which an individual
does not holds any membership but desire to belong to
the groups. He/she tries to copy the attitudes & behaviors
11 of other members.
Disclaim ant reference group: it is a reference group to
which an individual holds a membership but does not
want to belong and therefore all his action would be
opposed to the group.
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Household: is a group of two or more people stayed
together but may not have blood relationship.
Types of family
4. Psychological characteristics
The important psychological activities that play a role in
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Types of buying decision behavior
Based on the degree of buyer involvement and
differentiation among brand, there are four buying
behaviors.
1. Complex buying behavior: When the product is
expensive, risky, purchased infrequently, and lightly.
Self – expressive consumer may be highly involved.
They are highly involved in a purchase and perceive
significant difference among brand.
Marketer should make consumer aware of brand feature
and understand their information gathering and
evaluation behavior of high involvement product.
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2. Dissonance- Reducing Buying Behavior:
It occurs when consumers are highly involved with an
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4. Variety Seeking Buying Behavior
Consumers of such behavior reflect very
low involvement and however with
comprehensive perceived brand difference.
Varity seekers move from a brand to
other in their purchase not out of
dissonance but boredom.
Marketer either stock shelves or deliver
on time or program sales promotion and
less price.
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3.5 The Buying Decision Process
1. Need Recognition: 1st stage of the buyer decision
process, in which the consumer recognizes a problem
or need.
2. Information Search: Consumers can obtain
information from any of several sources. These
includes:
a. Personal sources (family, friends, neighbors,
acquaintances),
b. Commercial sources (advertising, sales people,
dealers, packaging, displays),
c. Public sources (mass media, consumer rating
organizations), and
c. Experiential sources (handling, examining, using
28 the product).
3. Evaluation Of Alternatives:
The stage of the buyer decision process in which
the consumer uses information to evaluate
alternative brands in the choice set.
The marketer needs to know about alternative
evaluation – that is, how the consumer processes
information to arrive at brand choices
unfortunately, consumers do not use a simple and
single evaluation process in all buying situations.
Marketers should study buyers to find out how
they actually evaluate brand alternatives. If they
know what evaluative process goon, marketers
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can take steps to influence the buyer’s decision.
4. Purchase Decision:
The consumer purchase decision will be to buy the
most preferred brand, but two factors can come
between the purchase intention and the purchase
decision. The first factor is the attitudes of others.
The second factor is unexpected situational factors.
consumer may form purchase intension based on
factors such as expected income, expected price,
and expected product benefits.
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5. Post Purchase Behavior:
The stage of the buyer decision process in which
consumers take further action after purchase, based on
their satisfaction or dissatisfaction marketer’s job does
not end when the product is bought.
After purchasing the product the consumer will be
satisfied or dissatisfied and will engage in post purchase
behavior of interest to the marketer.
Almost all major purchase result in cognitive dissonance,
or discomfort caused by post purchase conflict
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3.6 Business Market
Business market is a process of buying goods and
services for use in the production of other product and
services that are sold, rented or supplied to other
purpose. It also includes behavior of reserving or renting
them to other at a profit.
3.6.1 Nature and scope of business Market
The business market consist all individual and
organization that buy goods and service for one of the
following process:
To make other goods and service, to resell to other
business user or to consumer and to conduct the
organization operations. Each buyer with in the business
32 market is termed as a business user.
Reading assignment
Characteristics of Business Market
Purchase Decision Process
Business Buying Behavior and its Major Types of
Busying Situation
Participants in the Business buying process
Major influences on Business Buyers
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Thank you 4
your Attention!!
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