Chapter 5

Consumer Markets and

Consumer Buying Behavior

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 Definitions
• Consumer Buying Behavior
 Buying behavior of individuals and
households that buy products for
personal consumption.
• Consumer Market
 All individuals/households who buy
products for personal consumption.

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 Factors Influencing
Consumer Behavior (Fig.
Cultural
5.2)
Social
Personal
Age and Psycho-
Culture Reference logical
Culture groups life-cycle
Occupation Motivation
Perception Buyer
Sub-
Sub- Family Economic
culture situation Learning
culture
Lifestyle Beliefs and
Roles attitudes
Social Personality
Social and and
class
class status self-concept

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 Characteristics Affecting
Consumer Behavior
Key Factors • Culture
• Subculture
• Cultural  Hispanic consumers
• Social  African Americans
• Personal  Asian Americans
 Mature consumers
• Psychological
• Social Class

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 Factors Affecting Consumer Behavior: Culture

Culture is the Most Basic Cause of a Person's Wants

and Behavior.
Subculture
• Group of people with shared value
systems based on common life
experiences.
• Hispanic Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers

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 Characteristics Affecting
Consumer Behavior
• Hispanics
 35 million consumers purchase $425
billion worth of goods and services.
 Expected to grow 64% in 20 years.
 Spanish media makes group easy to
reach.
 Brand loyal group.
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 Characteristics Affecting
Consumer Behavior
• African Americans
 35 million consumers purchase $527 billion
worth of goods and services.
 Growing more affluent / sophisticated.
 Price and brand name conscious; quality and
selection are important.
 Certain media target this group.
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Characteristics Affecting
Consumer Behavior
• Asian Americans
 10 million consumers purchase $229 billion
worth of goods and services.
 Fastest growing, most affluent subculture.
 Many nationalities comprise this group.
 Consumer packaged goods companies now
target this group more heavily.
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Characteristics Affecting
Consumer Behavior
• Mature Consumers
 75 million consumers aged 50+ will grow to
115 million within 25 years.
 Mature consumers control 50% of all
discretionary income.
 Attractive market for travel, restaurant, and
cosmetics products, among others.

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 Factors Affecting
Consumer Behavior:
Culture
Culture is the Set of Values, Perceptions, Wants &
Behavior Learned by a Member of Society from Family.

Social Class
• Society’s relatively permanent &
ordered divisions whose members
share similar values, interests, and
behaviors.
• Measured by: Occupation,
Income, Education, Wealth and
Other Variables.

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 Characteristics Affecting
Consumer Behavior
Key Factors • Groups
 Membership
• Cultural  Reference
 Family, Friends, Colleagues,
Purchase pal
• Social
• Family
• Personal  Children can influence
• Psychological • Roles and Status

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 Factors Affecting Consumer Behavior: Personal

Personal Influences
Personal Influences

Age
Age and
andLife
Life Economic
Economic Personality
Personality&&
Occupation
Occupation Situation Self-Concept
Cycle Stage
Stage Situation Self-Concept

Lifestyle Identification
Identification

Activities
Activities Interests
Interests Opinions
Opinions

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 Characteristics Affecting
Consumer Behavior
Key Factors • Age and life cycle
• Occupation
• Cultural • Economic situation
• Lifestyle
• Social  Pattern of living that expressed in
his/her Activities, interests, and
• Personal opinions

• Personality and self-

• Psychological concept
 Brand personality

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• Personality
The unique psychological characteristics that that lead to
relatively consistent and lasting responses top one’s own
environment.
• Brand personality
The specific mix of human traits that may be attributed to a
particular brand.

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 Characteristics Affecting
Consumer Behavior
Key Factors • Motivation
 Needs provide motives for
consumer behavior
 Motivation research
• Cultural  Maslow’s hierarchy of needs
• Perception
• Social  Selective attention, selective
distortion, selective retention
• Personal • Learning
 Drives, stimuli, cues, responses
• Psychological and reinforcement
• Beliefs and attitudes

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Characteristics Affecting
Consumer Behavior
Maslow’s Hierarchy of Needs
Self-actualization
Esteem Needs
Social Needs
Safety Needs
Physiological Needs

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 The Buyer Decision
Process
• Five Stages:
 Need recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Postpurchase behavior
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 The Buyer Decision
Process
Process Stages • Needs can be triggered
by:
• Need recognition  Internal stimuli
• Information search  Normal needs become
• Evaluation of alternatives strong enough to drive
behavior
• Purchase decision
 External stimuli
• Postpurchase behavior  Advertisements
 Friends of friends

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 The Buyer Decision
Process
Process Stages • Consumers exhibit
heightened attention or
• Need recognition actively search for
information.
• Information search
• Evaluation of alternatives • Sources of information:
 Personal
• Purchase decision
 Commercial
• Postpurchase behavior  Public
 Experiential
• Word-of-mouth
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 The Buyer Decision Process
Step 2. Information Search

Personal •Family, friends, neighbors

PersonalSources
Sources •Most effective source of
information

Commercial •Advertising, salespeople

CommercialSources
Sources •Receives most information from
these sources

Public •Mass Media

PublicSources
Sources •Consumer-rating groups

•Handling the product

Experiential
ExperientialSources
Sources •Examining the product
•Using the product
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 The Buyer Decision
Process
• The stage of buyer decision process
in which the consumer uses
Process Stages information to evaluate alternative
brands in the choice set.
• Evaluation procedure depends on the
• Need recognition consumer and the buying situation.
• Information search • Most buyers evaluate multiple
attributes, each of which is weighted
• Evaluation of alternatives differently.
• Purchase decision • At the end of the evaluation stage,
purchase intentions are formed.
• Postpurchase behavior

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 The Buyer Decision
Process
Process Stages • Two factors intercede
between purchase
• Need recognition intentions and the
• Information search actual decision:
• Evaluation of alternatives  Attitudes of others
• Purchase decision  Unexpected situational
• Postpurchase behavior factors. Ex: Expected
income/price /product
benefit.
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 The Buyer Decision Process
Step 4. Purchase Decision

Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of Others Situational
Factors

Purchase Decision
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 The Buyer Decision Process
Step 5. Post purchase Behavior

Satisfied Customer!

Consumer’s
Expectations of Product’s Performance.

Cognitive Dissonance
Product’s Perceived
Performance.

Dissatisfied Customer
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 The Buyer Decision
Process
Process Stages • Satisfaction is important:
 Delighted consumers engage
in positive word-of-mouth.
• Need recognition  Unhappy customers tell on
• Information search average 11 other people.
 It costs more to attract a new
• Evaluation of alternatives customer than it does to
• Purchase decision retain an existing customer.
• Postpurchase behavior

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