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									Analyzing Consumer Markets
            and
 Consumer Buying Behavior


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

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


                                            5-1
Factors Influencing Consumer
           Behavior




                           5-2
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
                     consumers
 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
 Cultural
                      • Many influencers may
 Social                 be in family. Like
                        Father, mother etc.
 Personal
 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
                      opinions
 Psychological       •Lifestyle segmentation
                   Personality and self-concept
                     • Different nature and
                        personality of people
                        show different behavior.
                                              5-5
Factors Influencing Consumer Behavior
                    Motivation
                         Needs provide motives
                         Motivation research
                         Maslow’s hierarchy of
   Key Factors            needs
                    Perception
                         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




                         5-7
   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
                                    behavior.
                             •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
                               product.
Evaluation of alternatives
Purchase decision            • Two factors intercede
Postpurchase behavior          between purchase
                               intentions and the actual
                               decision:
                                 Attitudes of others
                                 Unexpected situational
                                  factors
                                                        5 - 11
   The Buyer Decision Process
                             • Satisfaction is very
                               important:
 Process Stages                  Delighted consumers
                                  engage in positive
                                  word-of-mouth.
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
                                         Performance
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior                               Dissatisfied
                              Satisfied
                             Customer!               Customer



                              Cognitive Dissonance
                                                                5 - 13
End of Chapter




                 5 - 14

								
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