ConsumerMarketsandConsumerBuyerBehaviorChapter66-1Objectives•Beabletodefinetheconsumermarketandconstructasimplemodelofconsumerbuyerbehavior.•Knowthefourmajorfactorsthatinfluenceconsumerbuyerbehavior.6-2Objectives•Understandthemajortypesofbuyingdecisionbehaviorandthestagesinthebuyerdecisionprocess.•Beabletodescribetheadoptionanddiffusionprocessfornewproducts.6-3•Harley“Hogs”accountfor1/5ofU.S.cyclesales•Saleshaveexceededsupplyforyears•1986-2000:Fourstocksplits,increaseof7,100%•Fiercelyloyalclientelerevolvesaround7corecustomertypes•Harleyownersusetheirbikestoexpresstheirlifestyleandattitudes•AdvertisingreflectstheHarleymystiqueHarley-DavidsonCaseStudy6-4Definitions•ConsumerBuyingBehaviorBuyingbehaviorofindividualsandhouseholdsthatbuyproductsforpersonalconsumption.•ConsumerMarketAllindividuals/householdswhobuyproductsforpersonalconsumption.6-5•StimulusResponseModelMarketingandotherstimulienterthebuyer’s“blackbox”andproducecertainchoice/purchaseresponses.Marketersmustfigureoutwhatisinsideofthebuyer’s“blackbox”andhowstimuliarechangedtoresponses.ModelofConsumerBehavior6-6CharacteristicsAffectingConsumerBehavior•Cultural•Social•Personal•Psychological•Culture•SubcultureHispanicconsumersAfricanAmericansAsianAmericansMatureconsumers•SocialClassKeyFactors6-7•Hispanics35millionconsumerspurchase$425billionworthofgoodsandservices.Expectedtogrow64%in20years.Spanishmediamakesgroupeasytoreach.Brandloyalgroup.CharacteristicsAffectingConsumerBehavior6-8•AfricanAmericans35millionconsumerspurchase$527billionworthofgoodsandservices.Growingmoreaffluent/sophisticated.Priceandbrandnameconscious;qualityandselectionareimportant.Certainmediatargetthisgroup.CharacteristicsAffectingConsumerBehavior6-9•AsianAmericans10millionconsumerspurchase$229billionworthofgoodsandservices.Fastestgrowing,mostaffluentsubculture.Manynationalitiescomprisethisgroup.Consumerpackagedgoodscompaniesnowtargetthisgroupmoreheavily.CharacteristicsAffectingConsumerBehavior6-10•MatureConsumers75millionconsumersaged50+willgrowto115millionwithin25years.Matureconsumerscontrol50%ofalldiscretionaryincome.Attractivemarketfortravel,restaurant,andcosmeticsproducts,amongothers.CharacteristicsAffectingConsumerBehavior6-11CharacteristicsAffectingConsumerBehavior•Cultural•Social•Personal•Psychological•GroupsMembershipReferenceAspirationalgroupsOpinionleadersBuzzmarketing•FamilyChildrencaninfluence•RolesandStatusKeyFactors6-12CharacteristicsAffectingConsumerBehavior•Cultural•Social•Personal•Psychological•Ageandlifecycle•Occupation•Economicsituation•LifestyleActivities,interests,andopinionsLifestylesegmentation•Personalityandself-conceptBrandpersonalityKeyFactors6-13BrandPersonalityDimensionsCharacteristicsAffectingConsumerBehavior•Sincerity•Ruggedness•Excitement•Competence•Sophistication6-14CharacteristicsAffectingConsumerBehavior•Cultural•Social•Personal•Psychological•MotivationNeedsprovidemotivesforconsumerbehaviorMotivationresearchMaslow’shierarchyofneeds•PerceptionSelectiveattention,selectivedistortion,selectiveretention•LearningDrives,stimuli,cues,responsesandreinforcement•BeliefsandattitudesKeyFactors6-15Maslow’sHierarchyofNeedsCharacteristicsAffectingConsumerBehaviorSelf-actualizationEsteemNeedsSocialNeedsSafetyNeedsPhysiologicalNeeds6-16TypesofBuying-DecisionBehaviorDifferencebetweenbrandsSignificantDifferencesComplexbuyingbehaviorLowFewDifferencesDissonance-reducingbuyingbehaviorHabitualbuyingbehaviorVariety-seekingbuyingbehaviorHighInvolvementLevel6-17•FiveStages:NeedrecognitionInformationsearchEvaluationofalternativesPurchasedecisionPostpurchasebehaviorTheBuyerDecisionProcess6-18TheBuyerDecisionProcess•Needrecognition•Informationsearch•Evaluationofalternatives•Purchasedecision•Postpurchasebehavior•Needscanbetriggeredby:InternalstimuliNormalneedsbecomestrongenoughtodrivebehaviorExternalstimuliAdvertisementsFriendsoffriendsProcessStages6-19TheBuyerDecisionProcess•Needrecognition•Informationsearch•Evaluationofalternatives•Purchasedecision•Postpurchasebehavior•Consumersexhibitheightenedattentionoractivelysearchforinformation.•Sourcesofinformation:PersonalCommercialPublicExperiential•Word-of-mouthProcessStages6-20TheBuyerDecisionProcess•Needrecognition•Informationsearch•Evaluationofalternatives•Purchasedecision•Postpurchasebehavior•Evaluationproceduredependsontheconsumerandthebuyingsituation.•Mostbuyersevaluatemultipleattributes,eachofwhichisweighteddifferently.•Attheendoftheevaluationstage,purchaseintentionsareformed.ProcessStages6-21TheBuyerDecisionProcess•Needrecognition•Informationsearch•Evaluationofalternatives•Purchasedecision•Postpurchasebehavior•Twofactorsintercedebetweenpurchaseintentionsandtheactualdecision:AttitudesofothersUnexpectedsituationalfactorsProcessStages6-22TheBuyerDecisionProcess•Needrecognition•Informationsearch•Evaluationofalternatives•Purchasedecision•Postpurchasebehavior•Satisfactionisimportant:Delightedconsumersengageinpositiveword-of-mouth.Unhappycustomerstellonaverage11otherpeople.Itcosts