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PoM - Chapter 5

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PoM - Chapter 5

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locle30092004
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PRINCIPLES OF

MARKETING
Chapter 5
Consumer Markets and Buyer Behavior

Copyright © 2021, 2018, 2016 Pearson Education, Inc.


Learning
Objectives
5.1 Define the consumer market and construct a simple model of
consumer buyer behavior.
5.2 Name the four major factors that influence consumer buyer
behavior.
5.3 List and define the major types of buying decision behavior and
the stages in the buyer decision process.
5.4 Describe the adoption and diffusion process for new products.
SHINOLA: Nobody’s
Confusing Sh*t with
Shinola Anymore
“Shinola is selling much more than just
watches or bikes or leather accessories. It’s
selling gritty Detroit, authentically American
values, emotions, and a roll-up-our-sleeves
lifestyle, things that lie at the heart of
consumers’ feelings and behavior toward the
brand.”
Learning
Objective 1
Define the consumer market and construct
a simple model of consumer buyer
behavior.
Consumer Markets
and Buyer Behavior

Consumer buyer behavior is the buying behavior of final


consumers—individuals and households that buy goods
and services for personal consumption.
Consumer markets are made up of all the individuals and
households that buy or acquire goods and services for
personal consumption.
Learning Objective 2

Name the four major factors that influence


consumer buyer behavior.
Model of Consumer Behavior
Figure 5.1 The Model of Buyer Behavior
Characteristics Affecting Consumer
Behavior (1 of 15)
Figure 5.2 Factors Influencing Consumer Behavior
Characteristics Affecting Consumer
Behavior (2 of 15)
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.
Characteristics Affecting Consumer
Behavior (3 of 15)
Cultural Factors
Subcultures are groups of people within a culture
with shared value systems based on common life
experiences and situations.
Targeting Hispanic consumers: Nestle’s DiGiorno
brand worked with Twitter’s U.S. Hispanics team
and the NFL to create a football campaign with
Spanish tweets.
Characteristics Affecting
Consumer Behavior (4 of
15)
Cultural Factors
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
Characteristics Affecting Consumer
Behavior (5 of 15)
Influencer marketing: CoverGirl’s “I Am What I Make Up”
Groups and Social Networks campaign uses a diverse team of influential brand
ambassadors who explain authentically in their own words
• Reference groups what the slogan means to them.
• Opinion leaders
• Word-of-mouth influence
• Influencer marketing
• Online social networks
Characteristics Affecting Consumer
Behavior (6 of 15)
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.

Harnessing the power of mom-to-mom influence: Each year, Disney


invites 175 to 200 moms and their families to its Disney Social
Media Moms Celebration in Florida, an affair that’s a mix of public
relations event, educational conference, and family vacation with
plenty of Disney magic for these important mom influencers.
Characteristics Affecting Consumer
Behavior (7 of 15)
Personal Factors
Occupation affects the goods and
services bought by consumers.
Age and Life Stage affect tastes in
food, clothes, furniture, ad
recreation.
Economic situations include trends
in spending, personal income, Appealing to occupation segments: Medical
savings, interest rates. apparel maker FIGS sells modern, comfortable,
and functional scrubs direct to medical and
health professionals.
Characteristics Affecting
Consumer Behavior (8 of
15)
Personal Factors
Lifestyle is a person’s pattern of living as
expressed in his or her psychographics.
Personality refers to the unique
psychological characteristics that
Brand personality: MINI markets to personality
distinguish a person or group. segments of people who are “adventurous,
individualistic, open-minded, creative, tech-
savvy, and young at heart”— anything but
normal—just like the car.
Characteristics Affecting
Consumer Behavior (9 of
15)
Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs and attitudes

This classic ad from the American Association of


Advertising Agencies pokes fun at subliminal
advertising. “So-called ‘subliminal advertising’
simply doesn’t exist,” says the ad. “Overactive
imaginations, however, most certainly do.”
Characteristics Affecting
Consumer Behavior (10 of
15)
Psychological Factors
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.
Figure 5.3 Maslow’s Hierarchy of Needs

Characteristics
Affecting Consumer
Behavior (11 of 15)
Characteristics Affecting Consumer Behavior (12
of 15)
Psychological Factors
Perception is the process by which people
select, organize, and interpret information
to form a meaningful picture of the world.

Perceptual Processes
• Selective attention
• Selective distortion
• Selective retention
Characteristics Affecting Consumer Behavior (13
of 15)
Psychological Factors
Selective attention is the tendency for people to screen out most of the
information to which they are exposed.
Selective distortion is the tendency for people to interpret information in a
way that will support what they already believe.
Selective retention is the tendency to remember good points made about a
brand they favor and forget good points made about competing brands.
Characteristics Affecting Consumer Behavior (14
of 15)
Psychological Factors
Learning is the change in an individual’s behavior arising from
experience and occurs through the interplay of:
• Drives
• Stimuli
• Cues
• Responses
• Reinforcement
Characteristics Affecting Consumer Behavior (15
of 15)
Psychological Factors
A belief is a descriptive thought that a person
has about something based on:
• knowledge
• opinion
• faith

An attitude describes a person’s relatively


consistent evaluations, feelings, and
tendencies toward an object or idea.
SPANX: Changing the Way Women Think about
“Shapewear”
SPANX changed the way women–and even men–think about both
clothing and their body types
Learning
Objective 3
List and define the major types of buying
decision behavior and the stages in the buyer
decision process.
Types of Buying
Decision Behavior (1 of
2)
• Complex buying behavior
• Dissonance-reducing buying behavior
• Habitual buying behavior
• Variety-seeking buying behavior
Types of Buying Decision Behavior (2
of 2)
Figure 5.4 Four Types of Buying Behavior

Source: Adapted from Henry Assael, Consumer Behavior and Marketing Action (Boston: Kent Publishing Company, 1987), p.
87. Used with permission of the author.
Figure 5.5 The Buyer Decision Process
The Buyer Decision Process (1 of
6)
Need Recognition
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
The Buyer Decision Process (2 of
6)
Information Search
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 (3 of
6)
Evaluation of Alternatives
Alternative evaluation is the stage
of the buyer decision process in
which the consumer uses
information to evaluate alternative
brands in the choice set.
The Buyer Decision Process (4
of 6)
Purchase Decision
Purchase decision is the buyer’s decision
about which brand to purchase.
The purchase intention may not be the
purchase decision due to:
• Attitudes of others
• Unexpected situational factors
The Buyer Decision Process (5 of
6)
Postpurchase Behavior
Postpurchase behavior is the
stage of the buyer decision
process in which consumers
take further action after
purchase, based on their
satisfaction or dissatisfaction.
The Buyer Decision Process (6 of
6)
Postpurchase Behavior
Cognitive dissonance is buyer discomfort caused by postpurchase conflict.

Postpurchase cognitive dissonance: Postpurchase


customer satisfaction is a key to building profitable
customer relationships. Most marketers go beyond merely
meeting the customer expectations—they aim to delight
customers.
The Customer Journey
Customer journey: the sum of the ongoing experiences consumers have with a
brand that affect their buying behavior, engagement, and brand advocacy over
time.

The customer journey: By understanding


the customer journey, marketers can
work to create brand experiences that
will result in positive purchase behavior,
engagement, and brand advocacy over
time.
Learning Objective 4

Describe the adoption and diffusion process for new


products.
The Buyer Decision Process for
New Products (1 of 3)
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:
⚬Awareness
⚬Interest The adoption process: To help get tentative consumers
⚬Evaluation over the buying decision hump, Beyond Meat invited
⚬Trial consumers to “try some free—zip, zero, zilch” at their
⚬Adoption local grocery store.
The Buyer Decision
Process for New
Products (2 of 3)
Individual Differences in
Innovativeness
• Innovators
• Early Adopters
• Early Mainstream
• Late Mainstream
• Lagging Adopters
The Buyer Decision Process for New
Products (3 of 3)
Figure 5.6 Adopter Categories Based on Relative Time of Adoption of Innovations
Analyzing and Using Marketing Information

Influence of Product Characteristics on Rate of Adoption


• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability
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