5 MARKETING AN INTRODUCTION
Armstrong/Kotler
Global Edition
Consumer Markets
and Consumer Behaviour
Copyright © 2011 Pearson Education
Chapter Outline
Consumer Markets and Business Markets and
Consumer Buyer Behavior Business Buyer Behavior
Model of Consumer Behavior
Business Markets
Characteristics Affecting
Consumer Behavior Business Buyer Behavior
The Buyer Decision Process The Business Buying Process
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Consumer Markets and Consumer Behavior
• Consumer behavior refers to the buying behavior
of final consumers.
• All of these final consumers combine to make up
the consumer market.
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Model of Consumer Behavior
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Discussion Question
Which
characteristics/factors
affect Consumer
Behavior?
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Characteristics Influencing
Consumer Behavior
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Factors Influencing Consumer Behavior
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
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Factors Influencing Consumer Behavior
Cultural Factors
Subculture is a group of people with shared
value systems
based on common
life experiences
and situations.
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Discussion Question
Each student gives one
example about “How
has your culture
influenced you as a
consumer?”
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Cultural Dimensions
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Cultural Dimensions
Power Way members perceive differences in power
Distance when they form interpersonal relationships
Uncertainty Degree to which people feel threatened by
Avoidance ambiguous situations
Masculine
versus Degree to which sex roles are clearly delineated
Feminine
Individualism
Extent to which culture values the welfare of the
versus individual versus that of the group
Collectivism
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Cultural Dimensions
Longterm Way members perceive differences in power
Orientation when they form interpersonal relationships
Indulgence Degree of freedom
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Factors Influencing Consumer Behavior
Social Class
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Factors Influencing Consumer Behavior
Social Factors
Reference Family Social roles and
groups status
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Factors Influencing Consumer Behavior
Personal Factors
Age & Life-Cycle Stage
Economic Situation
Lifestyle
Personality and Self-Concept
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Factors Influencing Consumer Behavior
Psychological Factors
Motivation
Perception
Learning
Beliefs and Attitudes
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Factors Influencing Consumer Behavior
Psychological Factors - Motivation
A motive (or
drive) is a need
that is
sufficiently
pressing to
direct the
person to seek
satisfaction of
the need
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Factors Influencing Consumer Behavior
Psychological Factors - Perception
Perception is a process by which people
select, organize,
and interpret
information to
form a
meaningful
picture
of the world.
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Factors Influencing Consumer Behavior
Psychological Factors - Learning
Learning describes
changes in an
individual’s behavior
arising from
experience
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The Buyer Decision Process
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Stages in Consumer Decision
Making
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Stage 1: Problem Recognition
• Problem recognition is the first stage.
• It can occur when a consumer’s state of being declines (which
then triggers a desire to return to normality)
• or when a consumer recognizes an ideal state he or she wishes to
achieve.
=> Occurs when consumer sees difference between current state and
ideal state
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Figure 1: Problem Recognition
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Problem Recognition
For example: A great example of how marketers are taking advantage of
the current state of society, rushing out and crowding stores to experience
massive savings due to the tradition of Black Friday.
As the world of ecommerce has grown, marketers target those online
users that would rather save and shop online. Using key words such as
Black Friday Now or Black Friday All Weekend or even “Skip the Line” are
key when targeting this ecommerce era that prefer to shop online, but
also want to experience the savings and “hype” of black Friday.
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Stage 2: Information Search
• The process by which we survey the
environment for appropriate data to make a
reasonable decision
– Prepurchase or ongoing search
– Internal or external search
– Online search
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8
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2
8
Table 8.2 A Framework for
Consumer Information Search
Prepurchase versus Ongoing Search
Prepurchase Search Ongoing Search
Determinants Involvement with Involvement with product
purchase
Motives Making better purchase Building a bank of
decisions information for future use
Outcomes Better purchase Increased impulse buying
decisions
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Do Consumers Always Search
Rationally?
• Some consumers avoid external search,
especially with minimal time to do so and with
durable goods (e.g. cars,…)
• Symbolic items require more external search
• Brand switching: we select familiar brands
when decision situation is ambiguous
• Variety seeking: desire to choose new
alternatives over more familiar ones
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Step 3: Evaluation of Alternatives
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Step 4: Purchase decision
How Do We Decide?
• Once we assemble and evaluate relevant
options from a category, we must choose
among them
• Decision rules for product choice can be very
simple or very complicated
– Prior experience with (similar) product
– Present information at time of purchase
– Beliefs about brands (from advertising)
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Step 4: Post purchase behaviour
If people feel good, they think about the product
and brand. When customer satisfaction is high, we
can remind them to take positive actions to help our
brands.
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The Buyer Decision Process for New Products
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Discussion Question
Where do you
see yourself on
the Adopter
Categorization
Curve? Why?
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Business Markets
Types of decisions
Nature of the buying • Straight rebuy
unit • Modified rebuy
• New task
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Discussion Question
For your university
or college, provide
an example of a:
•Straight rebuy
•Modified rebuy
•New task
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Business Buyer Behavior
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Business Buyer Behavior
Major Influences
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The Business Buying Process
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E-Procurement
Purchasing through
electronic
connections
between buyers and
sellers – usually
online.
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