Consumer Marketing and Consumer Buyer Behavior by xld14276


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									Consumer Marketing and
Consumer Buyer Behavior

Prof. Arto Lindblom
Department of Marketing and Management
Learning objectives

•     After this lecture you should be able to

       – Define a consumer market and construct a model of
         consumer buyer behavior

       – Describe factors that influence buyer behavior

Erik Pöntiskoski - February 2, 2009                          2
Consumer markets
Business to consumer market definition

• B2C is the final stage of the marketing process – the
  threshold where the end-market manifests

• Understanding consumer behavior is key
       – Consumer decision-making is a complex set of conscious
         and unconscious processes
       – Brands guide consumer perceptions through processes of
         cognitive dissonance

• Consumer buyer behavior refers to the buying behavior
  of final consumers – individuals and households who buy
  goods and services for personal consumption
      All of these final consumers combine to make up the
    consumer market

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In today’s marketplace, consumer shopping preferences and needs
continue to fragment as a result of changes in demographics and value
systems. These changes are making customers harder to define,
categorize and reach.

Source: Report of the Coca-Cola Retailing Research Council Europe / McKinsey & Company (2005)
Characteristics affecting Consumer Behavior
          Stimulus-response model of consumer

Stimuli                                Buyer’s Black Box         Buyer Response

• 4P’s                                 •Buyer characteristics    •Product choice
                                                                 •Brand choice
• Other characteristics
                                       •Buyer decision process   •Dealer choice
• economic
                                                                 •Purchase timing
• technological
• political                                                      •Purchase amount
• cultural

          Erik Pöntiskoski - February 2, 2009                                       7
      What influences the B2C buying process

                              Reference                            Psychological
                                                Age and life-
                                                cycle stage
Subculture                       Family                               Learning
                                                                    Beliefs and
                                              Personality and
                              Roles and
Social class

                                            These are the ”source” of all your choices!
      Erik Pöntiskoski - February 2, 2009                                                 8
          Howard and Sheth (1969)

        BEHAVIOURAL DETERMINANTS                                             INHIBITORS
                     Personality                                        Price of product, brand
                       Culture                                        Availability of products or
                     Social class                                                brands
            Importance of purchase decision                          Financial status of individual
                                                                         Time-constraints on
                                                                            individual etc.

    STIMULI                PERCEPTUAL                  PROCESSING                        OUTPUTS
                           REACTION                    DETERMINANTS
  Products, services,
           Feelings                                                                          Understanding
                          Perceptual bias              Purchase motivation                   Attitudes
Facts                                                  Available satisfactions               Purchase intentions
             Images       Sensitivity to information
                          Filtering of information     Past experience                       Purchase behaviour
                                                       Judgemental criteria                  Purchase decision
Engel, Kollat and Blackwell

                                                                                  Internal     External
     Inputs                                Info Processing        Dec. Process    Variables    Factors
                                                                   Problem         Beliefs     Cultural
       Stimuli of Marketers and Others

                                         Exposure                 Recognition                   Norms

                                         Attention                   Search                    Group
                                                                                 Intentions   Influence
                                                                   Alt. Eval.
                                         Acceptance                              Evaluative    Family
                                                                                  Criteria    Influence
                                          Retention                               Lifestyle
                                         Comprehension                           Normative     Circum-
                                                                   Satisf/Diss   Compliance    stances
Baker, J. – Parasuraman, D – Glenn, B. (2002) The Influence of Multiple Store Environment Cues on Perceived
Merchandise Value and Patronage Intentions. Journal of Marketing, Vol. 66 (April), 120-141.
Consumer behavior 1/4

• Cultural factors
       – Culture
                • Forms a person’s wants and behavior
       – Subcultures
                • Groups with shared value systems
       – Social class
                • Society’s divisions who share values, interests and
                • E.g. division of wealth in the US
                  From rich to poor, upper-uppers to lower-lowers
                  (1% - 2% - 12% - 32% - 38% - 9% - 7%)

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Consumer behavior 2/4

• Social factors
       – Groups
                • What groups are you a member of?
                • What groups do you hold as reference (compare
                  yourself to)
                • What group do you aspire to be a member of
                  (MTV programs where people “party like celebrities”)
       – Family
                • What form of a family you live in? Who makes purchase
                  decisions and who affects them?
                • Kids - I’ve heard that having them changes everything
       – Roles & status
                • What kind of roles do you have in your life, how is
                  purchasing different in each role

Erik Pöntiskoski - February 2, 2009                                      13
Consumer behavior 3/4

• Personal factors
       – Demographics
                • Age and life-cycle stage
                • Occupation
                • Economic situation
       – Lifestyle
                • Activities, interests and opinions
                • Lifestyle segmentation
                • E.g. active sports enthusiast, refined culture fan, home
                  designer, clubber, …
       – Psychographics
                • Personality and self-concept (brand personalities)

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Consumer behavior 4/4

• Psychological factors
       – Motivation (need/drive, Maslow)
                • A motive is a need that is sufficiently pressing to direct
                  the person to seek satisfaction
                        – Motivation research is based on Freud; Looks for hidden
                          and subconscious motivation
                • Maslow ordered needs based on how pressing they are
                  to the consumer
       – Perception
                • the process by which people select, organize, and
                  interpret information
                • Selective attention: Consumers screen out information
       – Selective distortion: People interpret to support beliefs
       – Selective retention: People retain points to support

Erik Pöntiskoski - February 2, 2009                                                 15

Erik Pöntiskoski - February 2, 2009   16
Lähde: Khalifa, A.S. (2004) Customer value: a review of recent literature and an integrative configuration.
Management Decisions, Vol. 42, No. 5.
Consumer behavior 4/4 (cont.)

• Psychological factors
       – Learning
               • Learning describes changes in an individual’s behavior arising
                 from experience
               • Learning occurs through:
                      –    Drives: Internal stimulus that calls for action
                      –    Stimuli: Objects that move drive to motive
                      –    Cues: Minor stimuli that affect response
                      –    Reinforcement: Feedback on action
       – Beliefs
               • a descriptive thought about a brand or service
               • may be based on real knowledge, opinion, or faith
       – Attitudes
               • describes a person’s evaluations, feelings and tendencies
                 toward an object or idea
               • They are difficult to change

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Postpurchase behavior

• Perceiving the link between perceived expectations
  and the product’s perceived performance
       – The larger the gap, the larger the dissatisfaction
• Cognitive dissonance
       –    Discomfort caused by post-purchase conflict
       –    Every purchase involves compromise
       –    Negative word-of-mouth (10/100 rule)
       –    Encouraging negative feedback and guiding it to
            ”constructive channels”

Erik Pöntiskoski - February 2, 2009                           19


 Expected quality             Total perceived quality       Experienced quality

• Marketing communications
• Sales
• Image
• Word of mouth
• Public relations
• Customer needs and values
                                                   Technical quality       Functional quality
Types of Buying Decision Behavior
           Buying decision behavior

                                       High involvement   Low involvement

Significant differences
                                            Complex       Variety-seeking
between brands                               buying           buying
                                            behavior         behavior

Few differences
                                       Dissonance-           Habitual
between brands                           reducing             buying
                                          buying             behavior

           Erik Pöntiskoski - February 2, 2009                              22
Thanks for your attention

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