Principles of Marketing
Eighteenth Edition
Chapter 4
Consumer Markets and Buyer
Behavior
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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.
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Consumer Markets and Buyer Behavior
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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.
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Model of Consumer Behavior
Figure 5.1 The Model of Buyer Behavior
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Factors Influencing Consumer
Behavior
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Factors Affecting Consumer Behavior
Culture is the set of basic values, perceptions,
Cultural
•
wants, and behaviors learned by a member of
• Social society from family and other important institutions.
Personal
Subcultures are groups of people within a culture
•
• Psychological with shared value systems based on common life
experiences and situations.
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
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Factors Affecting Consumer Behavior
Groups and Social Networks
• Cultural
• Reference groups
• Social
• Opinion leaders
• Personal • Word-of-mouth influence
• Psychological • Influencer marketing
• Online social networks
Family
• is the most important consumer-buying organization in
society.
• Many influencers
Role and status can be defined by a person’s position in a
group.
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Factors Affecting Consumer Behavior
Age and Life-cycle Stage affect tastes in food,
• Cultural
clothes, furniture…
• Social
Occupation affects the goods and services
• Personal bought by consumers.
• Psychological Economic situations include trends in spending,
personal income, savings, interest rates.
Lifestyle is a person’s pattern of living
AIO - Activities, interests and opinions
Personality refers to the unique psychological
characteristics that distinguish a person or group
self-concept
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Brand personality: MINI markets to personality segments of people who
are “adventurous, individualistic, open-minded, creative, tech-savvy, and
young at heart”— anything but normal—just like the car.
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Copyright © 2021, 2018, 2016 Pearson Education, Inc.
Copyright © 2021, 2018, 2016 Pearson Education, Inc.
Factors Affecting Consumer Behavior
• Motivation
• Cultural – A need that drives the person to seek
• Social
satisfaction of the need
• Personal • Perception
– The process by which people select,
• Psychological organize, and interpret information
• Learning
– Changes in an individual’s behaviour arising
from experience
• Beliefs
– A descriptive thought about something
• Attitudes
– A person’s consistently favourable or
unfavourable evaluations, feelings, and
tendencies towards something
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Factors Affecting Consumer Behavior
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 is based on Freud’s thoughts.
designed to probe consumers’ hidden, subconscious
motivations.
Maslow ordered needs based on how pressing they are to
the consumer
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Copyright © 2021, 2018, 2016 Pearson Education, Inc.
Factors Affecting Consumer Behavior
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.
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The Buyer Decision Process
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The Buyer Decision Process
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The Buyer Decision Process
Need recognition is the first stage of the buyer decision
process, in which the consumer recognizes a problem or
need triggered by:
– Internal stimuli (person’s normal needs)
– External stimuli (advertisements, friends)
Must reach an intensity high enough to become a drive
Needs are basic, wants are learned behaviour to satisfy
them
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The Buyer Decision Process
• Information Search
– Influenced by level of involvement (interest) in
the decision
– Memory (internal) search
– External search: personal, commercial, public,
experiential sources of information
– Word-of-mouth sources are most influential
(credibility)
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6-21
The Buyer Decision Process
• Evaluation of Alternatives
– Evaluation procedure depends on the consumer and
the buying situation
– Attributes and importance weights are chosen as
criteria
– Alternatives compared against the criteria
– Marketers can influence this stage; personal selling
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The Buyer Decision Process
Evaluation of Alternatives
• Consumer May Use Careful Calculations &
Logical Thinking
• Consumers May Buy on Impulse and Rely on
Intuition
• Consumers May Make Buying Decisions on Their
Own.
• Consumers May Make Buying Decisions Only
After Consulting Others.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
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The Buyer Decision Process
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
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The Buyer Decision Process
Postpurchase behavior
• What the consumer thinks and does after purchasing and
using the product or service
• Satisfaction: relationship between consumer expectation
and perceived performance
– Delighted consumers engage in positive word-of-
mouth.
– Unhappy customers tell on average 11 other people.
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The Buyer Decision Process
Postpurchase Behavior
Cognitive dissonance is buyer discomfort caused by
postpurchase conflict.
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Decision Process for New Products
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The Buyer Decision Process for New
Products
• New Products: Good, service or idea that is perceived
by customers as new.
• The adoption process is the mental process an individual
goes through from first learning about an innovation to final
regular use.
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The Buyer Decision Process for New
Products
Individual Differences in Innovativeness: Consumers can
be classified into five adopter categories, each of which
behaves differently toward new products.
• Innovators, Early Adopters, Early Mainstream, Late
Mainstream, Lagging Adopters
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Analyzing and Using Marketing
Information
Influence of Product Characteristics on Rate of Adoption
• Relative advantage: Is the innovation superior to existing
products?
• Compatibility: Does the innovation fit the values and
experience of the target market?
• Complexity: Is the innovation difficult to understand or
use?
• Divisibility: Can the innovation be used on a trial basis?
• Communicability: Can results be easily observed or
described to others?
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6-31
Buyer Decision Process for New Products
• Consumer Behaviour across International Borders
– Values, attitudes and behaviours differ greatly in other
countries.
– Physical differences exist which require changes in the
marketing mix.
– Customs vary from country to country.
– Marketers must decide the degree to which they will
adapt their marketing efforts.
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Business Buyer Behavior
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Business Buyer Behavior
Business buyer behavior refers to the buying behavior of
the organizations that buy goods and services for use in the
production of other products and services that are sold,
rented, or supplied to others.
The business buying process is the process where
business buyers determine which products and services are
needed to purchase, and then find, evaluate, and choose
among alternative brands.
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Characteristics of Business Markets
Market Structure and Demand
• Fewer, larger buyers
• Geographically concentrated
• Demand derived from consumers
• Fluctuating demand
Nature of the Buying Unit
• More buyers
• More professional purchasing
effort
Types of Decisions & the
Decision Process
• More complex decisions
• Process is more formalized
• Buyer and seller are more
dependent on each other
• Build close long-term relationships
with customers
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Figure 6.1 A Model of Business Buyer Behavior
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6-36
Business Buying Situations
New Task Buying
Involved Decision Making
Modified Rebuy
Straight Rebuy
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6-37
Participants in the Business Buying
Process: The Buying Center
Gatekeepers Users
Buying Center
Buyers Deciders
Influencers
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Major Influences on Business
Buyer Behavior
Environmental
Economic, Technological, Political, Competitive
Organizational
Objectives, Policies, Procedures,
Structure, & Systems
Interpersonal
Authority, Status, Empathy &
Persuasiveness
Individual
Age, Education, Job Position, Personality &
Risk Attitudes
Buyers
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Stages of the Business
Buying Process
Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order Routine Specification
Performance Review
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