Consumer

Markets and
Consumer Buyer
Behavior

Chapter 5

1
Learning Goals
1. Learn the consumer market and construct model of
consumer buyer behavior

2. Know the four factors that influence buyer behavior

3. Understand the types of buying decision behavior and

stages in the process

4. Comprehend the adoption and diffusion process for new

products
 Definitions
• Consumer buyer behavior:
refers to the buying behavior
of final consumers –
individuals and households
who buy goods and services
for personal consumption.

• All of the final consumers

combine to make up the
consumer market
 Model of Consumer Behavior

Environment Buyer’s Black Box Buyer Responses

Marketing Stimuli Other . Buying attitudes and
Buyer Characteristics preferences
Product Economic
Price Technological Purchase Behavior
Buyer Decision Process
Place Political Brand Engagements and
relationships
Promotion Cultural

Stimulus-Response Model of Consumer Behavior

 Characteristics Affecting Consumer Behavior

Cultural Social Personal Psychologica

Culture Groups and l
Age
Social Motivation
Subculture Network Life-cycle
stage Perception
Social Class Family
Occupation Learning Buyer
Roles and
Status Economic Beliefs and
Situation attitudes

Lifestyle

Personality
and self-
concept
 Characteristics Affecting Consumer Behavior

Culture
-The set of basic values, perceptions, wants and behaviors
learnt by a member of society from family and other
important institutions.

-Forms the most basic cause of a person’s wants and

behavior

Sub-culture
-Groups with shared value systems based on common life
experiences and situations
Culture and Sub-
culture
 Characteristics Affecting Consumer
Behavior
Total Marketing Strategy

The practice of integrating ethnic themes and cross-cultural

perspectives within their mainstream
marketing
 Characteristics Affecting Consumer Behavior

Social Class
-Divisions in a society whose members share similar
values, interests and behaviors.

-Upper class, upper-middle class, middle class,

working class etc.

-Not determined by “income” only

-Measured as a combination of occupation, income,

education, wealth, and other variables
 Characteristics Affecting Consumer Behavior:
Social Factors

Groups, Social Networks, and Influencer

Marketing
- Reference Group
- Opinion Leaders

- Word-of-mouth influence

- Online Social Networks

- Influencer Marketing
 Characteristics Affecting Consumer Behavior:
Social Factors

Family

- The most important membership reference group.

- Roles and influence of the husband, wife, and

children.

- Traditional gender roles are evolving, and marketers are

adapting their strategies accordingly.

- Children may also have influence on family buying

decisions.
Characteristics Affecting Consumer Behavior: Family

Gender roles have blurred and

no longer an accurate way of
segmentation for some
product categories.
 Characteristics Affecting Consumer Behavior:
Social Factors

Roles and Status

- A person plays different role in different groups

- The same person can play the following roles:

• Wife and mother in the family,

• HR Manager in the office

• President in the local charitable organization.

 Characteristics Affecting Consumer Behavior

Personal Factors
• Age and life stage

• Occupation

• Economic situation

• Lifestyle

• Personality and self-concept

 Characteristics Affecting Consumer
Behavior: Age

Based on Age:

-Banking need varies

-Preference for shoe varies (older prefer more comfort)

-Price point varies (affordability vs. luxury)

-Product preference varies (jeans from Dhaka college vs

from branded outlets)
Characteristics Affecting Consumer
Behavior: Occupation
Characteristics Affecting Consumer
Behavior: Economic Situation
 Characteristics Affecting Consumer
Behavior: Lifestyle

-A person’s pattern of living as expressed in his or her

activities, interests, and opinions. (AIO Dimensions)

-Consumers don’t just buy products; they buy the values and
lifestyles those products represent.
 Characteristics Affecting Consumer
Behavior: Personality & Self-concept

-Personality: The unique psychological characteristics that

distinguish a person or group.

- Traits such as:

• Self-confidence
• Openness
• Adaptability
• Dominance
• Optimism
 Characteristics Affecting Consumer
Behavior: Personality & Self-concept

• Brand personality
• The specific mix of human traits that may be
attributed to a particular brand.

• Five brand personality traits

• Sincerity (down-to-earth, honest, wholesome, and
cheerful)
• Excitement (daring, spirited, imaginative, and up-to date)
• Competence (reliable, intelligent, and successful)
• Sophistication (glamorous, upper class, charming)
• Ruggedness (outdoorsy and tough)
Characteristics Affecting Consumer
Behavior: Personality & Self-concept
Brand personality

Practicality Competence
and simplicity (reliable, intelligent,
and successful)

Happiness Freedom and

and ruggedness
friendliness
Characteristics Affecting Consumer
Behavior: Psychological Factors

Motivation Learning

Perception Beliefs and Attitudes

 Characteristics Affecting Consumer
Behavior: Psychological Factors
Motivation
Motive: A need that is sufficiently pressing to direct the
person to seek satisfaction of the need.

Example: food,
Essential for physical
Biological Needs water, air, clothing
existence
etc.

Learned from
Example: self-
parents, social
Psychological esteem, power,
environment, and
Needs prestige, affection,
interactions with
achievement etc.
others
 Characteristics Affecting Consumer
Behavior: Psychological Factors

• Theory by Sigmund Freud: suggest that a person’s

buying behavior is affected by subconscious motives that
even the buyer may not fully understand.

• Theory by Abraham Maslow: suggest that human needs

are arranged in a hierarchy from the most pressing at the
bottom to the least pressing at the top.
Maslow’s hierarchy of needs
 Characteristics Affecting Consumer
Behavior: Psychological Factors

• Perception
The process by which people select, organize, and
interpret sensory information to form a meaningful
picture of the world.

• People can form different perceptions of the same

stimulus:
• Selective attention
• Tendency to screen out most of the information
• Selective distortion
• Tendency to interpret in a way that support existing
beliefs
 Characteristics Affecting Consumer
Behavior: Psychological Factors

• Learning
-Changes in an individual’s behavior arising from
experience
• Learning occurs through:
• Drives
-Internal stimulus that calls for action
• Stimuli
-Objects that move drive to motive
• Cues
-Minor stimuli that affect response (when, where, and how)
• Response
• Reinforcement
• Feedback on action
 Characteristics Affecting Consumer
Behavior: Psychological Factors
• Belief
• A descriptive thought that a person holds about
something
• May be based on real knowledge, opinion, or faith
• May or may not carry emotional charge.

• Attitude
• Describes a person’s relatively consistent evaluations,
feelings and tendencies toward an object or idea.
• They are difficult to change
• Influences our mind to like/dislike something.
 Types of Buying Decision
Behavior
High Involvement Low Involvement

Complex Variety-
Significant Buying Seeking
differences Behavior Buying Behavior
Between brands

Dissonance- Habitual
Few differences Reducing Buying
between brands Buying behavior Behavior

Four Types of Buying Behavior

The Buyer Decision
Process
 Jane’s Decision Process of
Buying a Laptop

Jane
Need Recognition

Internal Stimuli-

• Hunger, Thirst

External Stimuli-

• Marketing communications
• Discussion with a friend
Information Search

• Personal Sources- Family,

Friends
• Commercial Sources- Ads,
salespeople, product websites
• Public Sources- Review
websites, social media, online
search
• Experiential sources- Trying Jane asks her friend who
and using the product is an expert in tech
• Note: As you search more products. She also
info, your knowledge about watches some review
available products increases videos about HP Laptops
uploaded on YouTube.
Evaluation of Alternatives

• Consumers don’t use a uniform

method to evaluate alternatives.

• It depends/varies based on a lot

of factors (e.g., consumer Jane got to know that there are 5
characteristics) laptop options (from different
brands) available within her
• You might shortlist 3 options, budget. Her preferred laptop
and then evaluate them based features are lightweight,
on your preferred criteria (style, durability and reliable
durability etc.) performance. She now evaluates
the 5 laptop brands based on her
• Consumers develop purchase preferred criteria. Then she
intention at this stage finally ranks 1. Laptop-A and 2.
Laptop-B
 Purchase Decision
• Buyer’s decision about which brand to
purchase, from whom to purchase and
when to purchase.

• Purchase Intention might not

After going to the store, always lead to purchase decision
Jane found out her first
preferred laptop (Laptop-
A) is out of stock. • Attitude of others
Therefore, she decides to • Unexpected situational factors
go for Laptop-B.
 Post-Purchase Behavior

• Purchase leads to satisfaction or

dissatisfaction.

• “Consumers’ expectations vs.

Jane feels satisfied after
using the product for a
product’s perceived performance”
few weeks. She shares a
positive review on the • Cognitive Dissonance: Buyer
company website. She
discomfort caused by post-purchase
also tells her friends about
her positive experience
conflict.
with the product.
 Buyer Decision Process for New Products

Awareness Interest Evaluation Trial Adoption

Stages in the Adoption Process

 Individual Differences in
Innovativeness
Five Adopter Groups

1. Innovators: Venturesome; they try new ideas at some risk

2. Early Adopters: Opinion leaders; adopt new ideas early but
carefully
3. Early Mainstream: Adopt new ideas before the average
person
4. Late Mainstream: Skeptical; adopt only after majority have
tried
5. Lagging Adopters: Suspicious of changes; adopt when it
QUESTIONS?