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									Analyzing Consumer Markets
 Consumer Buying Behavior

         Chapter 3
• Consumer Behavior;
   Consumer Behavior is the response of
  individuals and households who buy
  goods and services for personal

• All of these final consumers combine to
  make up the consumer market.

Factors Influencing Consumer

Factors Influencing Consumer Behavior
                    Culture
                     Culture is the most basic
                     cause of a person's wants
                     and behavior and its Values.
  Key Factors       Subculture
                     Groups of people with
                     shared value systems based
 Cultural            on common life experiences.
                     For Example; Mature
 Social              Consumers, Immature
 Personal           Social Class
 Psychological       People within a social class
                     tend to exhibit similar
                     buying behavior but
                     different with others.
                     For example; Upper, Middle
                     and Lower social classes. 5 - 3
Factors Influencing Consumer Behavior

                    Reference Groups
                      • Membership
                      • Friends
  Key Factors         • Opinion Leaders
                          – Buzz marketing
                    Family
                      • Many influencers may
 Social                 be in family. Like
                        Father, mother etc.
 Psychological      Roles and Status
                      • A person may be single,
                        married or married with
                        kids, so the roles and
                        status changes our
                        behavior.              5-4
Factors Influencing Consumer Behavior
                   Age and life cycle
                     •Child, Young, Elder etc
                   Occupation
   Key Factors       •Employed, Unemployed or
                      self employed
                   Economic situation
 Cultural            •A person economic or
                      income situation
 Social            Lifestyle
 Personal            •Activities, interests and
 Psychological       •Lifestyle segmentation
                   Personality and self-concept
                     • Different nature and
                        personality of people
                        show different behavior.
Factors Influencing Consumer Behavior
                         Needs provide motives
                         Motivation research
                         Maslow’s hierarchy of
   Key Factors            needs
                         Selective attention,
Cultural                  selective distortion,
                          selective retention
Social              Learning
Personal                 Drives, stimuli, cues,
                          responses and
Psychological             reinforcement
                    Beliefs and attitudes
                         Muslims has different
                          beliefs than non-
                          Muslims                5-6
The Buyer Decision Process

   The Buyer Decision Process
                             •Need recognition
                             Difference between an actual

 Process Stages
                             state and a desired state.
                             •Needs can be triggered by:
                             •Internal Stimuli
Need recognition                  Hunger
Information search                Thirst
Evaluation of alternatives        A person’s normal
Purchase decision                   needs become strong
Postpurchase behavior               enough to drive
                             •External Stimuli
                                  TV advertising
                                  Magazine ad
                                  Radio slogan
                                  Friends of friends     5-8
   The Buyer Decision Process
                             • Consumers exhibit
                               heightened attention or
                               actively search for
 Process Stages                information.
                             • Sources of information:
Need recognition                  Personal
Information search                Commercial
Evaluation of alternatives        Public
Purchase decision                 Experiential
Postpurchase behavior        • Information may be
                               received through Word-of-
                               mouth, which means that
                               one customer shares
                               his/her experience with
                               other customers.        5-9
   The Buyer Decision Process
                             • Evaluation procedure
                               depends on the consumer
 Process Stages                and the buying situation.

Need recognition             • Most buyers evaluate
Information search             multiple attributes or
Evaluation of alternatives     features of product, each
Purchase decision              of which is weighted
Postpurchase behavior          differently.

                             • At the end of the
                               evaluation stage, purchase
                               intentions are formed.
                                                       5 - 10
   The Buyer Decision Process
                             • Purchase Intention means
                               Desire to buy the most
                               preferred brand.
 Process Stages
                             • In this stage, you actually
Need recognition               purchase your selected
Information search
Evaluation of alternatives
Purchase decision            • Two factors intercede
Postpurchase behavior          between purchase
                               intentions and the actual
                                 Attitudes of others
                                 Unexpected situational
                                                        5 - 11
   The Buyer Decision Process
                             • Satisfaction is very
 Process Stages                  Delighted consumers
                                  engage in positive
Need recognition                 Unhappy customers tell
Information search                on average 11 other
Evaluation of alternatives        people.
Purchase decision                It costs more to attract
Postpurchase behavior             a new customer than it
                                  does to retain an
                                  existing customer.

                             • Cognitive dissonance is
                               common in all customers.
                                                       5 - 12
   The Buyer Decision Process
                                   Consumer’s Expectations of
                                     Product’s Performance

 Process Stages                       Product’s Perceived
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior                               Dissatisfied
                             Customer!               Customer

                              Cognitive Dissonance
                                                                5 - 13
End of Chapter

                 5 - 14

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