Chapter Five

Consumer Markets and

Consumer Buyer Behavior

Copyright © 2010 Pearson Education, Inc.

Chapter 5- slide 1
 Consumer Markets and Consumer
Buyer Behavior
Topic Outline

• Model of Consumer Behavior

• Characteristics Affecting Consumer Behavior
• Types of Buying Decision Behavior
• The Buyer Decision Process
• The Buyer Decision Process for New
Products

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Chapter 5- slide 2
 Model of Consumer Behavior

• Consumer buyer behavior refers to the buying

behavior of final consumers - individuals and
households who buy goods and services for personal
consumption.

• Consumer market refers to all of the personal

consumption of final consumers.

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Chapter 5- slide 3
 Characteristics Affecting
Consumer Behavior
• Culture is the learned values, perceptions, wants, and
behavior from family and other important institutions.
• Subculture are groups of people within a culture with
shared value systems based on common life
experiences and situations.
– Hispanic
– African American
– Asian
– Mature consumers

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Chapter 5- slide 4
 Characteristics Affecting
Consumer Behavior
• Social classes are society’s relatively permanent
and ordered divisions whose members share similar
values, interests, and behaviors.

• Measured by a combination of occupation, income,

education, wealth, and other variables.

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Chapter 5- slide 5
 Characteristics Affecting
Consumer Behavior
Groups and Social Networks

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Chapter 5- slide 6
 Characteristics Affecting
Consumer Behavior
Groups and Social Networks

• Word-of-mouth influence and buzz marketing

– Opinion leaders are people within a reference group
who exert social influence on others.
– Also called influentials or leading adopters.
– Marketers identify them to use as brand ambassadors.

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Chapter 5- slide 7
 Characteristics Affecting
Consumer Behavior
Groups and Social Networks

• Online social networks are online communities where

people socialize or exchange information and
opinions.

• Include blogs, social networking sites (Facebook,

Instagram, Telegram), virtual worlds (second life)

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Chapter 5- slide 8
 Characteristics Affecting
Consumer Behavior
Social Factors

• Family is the most important consumer-buying

organization in society.

• Social roles and status are the groups, family, clubs,

and organizations that a person belongs to that can
define role and social status.

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Chapter 5- slide 9
 Characteristics Affecting
Consumer Behavior
Personal Factors

• Age and life-cycle stage

• RBC Royal Band stages
 Youth - younger than 18
 Getting started -18-35
 Builders - 35-50
 Accumulators - 50–60
 Preservers - over 60
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Chapter 5- slide 10
 Characteristics Affecting
Consumer Behavior
Personal Factors

• Occupation affects the goods and services bought

by consumers
• Economic situation includes trends in:

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Chapter 5- slide 11
 Characteristics Affecting
Consumer Behavior
Personal Factors

• Lifestyle is a person’s pattern of living as expressed

in his or her psychographics.

• Measures a consumer’s AIOs (activities, interests,

opinions) to capture information about a person’s
pattern of acting and interacting in the environment.

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Chapter 5- slide 12
 Characteristics Affecting
Consumer Behavior
Personal Factors

• Personality and Self-Concept

– Personality refers to the unique psychological
characteristics that lead to consistent and lasting
responses to the consumer’s environment.
– Self-concept is how we perceive our behaviors,
abilities, and unique characteristics.

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Chapter 5- slide 13
 Characteristics Affecting
Consumer Behavior

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Chapter 5- slide 14
 Characteristics Affecting
Consumer Behavior
Psychological Factors

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Chapter 5- slide 15
 Characteristics Affecting
Consumer Behavior
Psychological Factors
Motivation

• Motive is a need that is sufficiently pressing to direct

the person to seek satisfaction

• Motivation research refers to qualitative research

designed to probe consumers’ hidden, subconscious
motivations

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Chapter 5- slide 16
 Characteristics Affecting
Consumer Behavior
Psychological Factors

• Perception is the process by which people select,

organize, and interpret information to form a
meaningful picture of the world from three perceptual
processes
 Selective attention
 Selective distortion
 Selective retention

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Chapter 5- slide 17
 Characteristics Affecting
Consumer Behavior
Psychological Factors

• Selective attention is the tendency for people to

screen out most of the information to which they are
exposed.
• Selective distortion is the tendency for people to
interpret information in a way that will support what
they already believe.
• Selective retention is the tendency to remember
good points made about a brand they favor and forget
good points about competing brands.

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Chapter 5- slide 18
 Characteristics Affecting
Consumer Behavior
Psychological Factors

• Learning is the change in an individual’s behavior

arising from experience and occurs through interplay
of:

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Chapter 5- slide 19
 Characteristics Affecting
Consumer Behavior
Psychological Factors
Beliefs and Attitudes

• Belief is a descriptive thought that a person has

about something based on:
 Knowledge
 Opinion
 Faith

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Chapter 5- slide 20
 Characteristics Affecting
Consumer Behavior
Psychological Factors

• Attitudes describe a person’s relatively consistent

evaluations, feelings, and tendencies toward an
object or idea

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Chapter 5- slide 21
 Types of Buying Decision
Behavior

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Chapter 5- slide 22
 Types of Buying Decision
Behavior

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Chapter 5- slide 23
 Types of Buying Decision
Behavior
• Complex buying behavior - when the consumer is highly
involved in the purchase and the knowledge about significant
differences between brands. Buying a car is an example of
complex buying behavior.

• Variety seeking behavior - there is low involvement of the

consumer regarding the product, and there are significant
differences between brands. Consumers generally buy different
products not due to dissatisfaction but due to seek variety. For
instance, an individual may shop around for different breakfast
cereals because he/she wants variety in the mornings.

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Chapter 5- slide 24
 Types of Buying Decision
Behavior
• Dissonance buying behavior - the consumer is highly involved in
the purchase, but there are a few differences between brands.
Highly involvement again means that the product is expensive. An
example would be buying a diamond ring, as people believe there
is little difference between diamond brand manufacturers.

• Habitual buying behavior - there is low involvement of the

consumer regarding the product, and there are few differences
between brands. The consumer goes to the market and buys the
product. Purchase of a food commodity such as salt, flour, or sugar
is a good example.

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Chapter 5- slide 25
 The Buyer Decision Process

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Chapter 5- slide 26
 The Buyer Decision Process
Need Recognition

• Occurs when the buyer recognizes a problem or

need triggered by:
– Internal stimuli
– External stimuli

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Chapter 5- slide 27
 The Buyer Decision Process
Information Search
Sources of Information

• Personal sources - family and friends

• Commercial sources - advertising, Internet
• Public sources - mass media, consumer
organizations
• Experiential sources - handling, examining, using the
product

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Chapter 5- slide 28
 The Buyer Decision Process
Evaluation of Alternatives

• How the consumer processes information to arrive at

brand choices.

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Chapter 5- slide 29
 The Buyer Decision Process
Purchase Decision

• The act by the consumer to buy the most preferred

brand
• The purchase decision can be affected by:
– Attitudes of others
– Unexpected situational factors

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Chapter 5- slide 30
 The Buyer Decision Process
Postpurchase Decision

• The satisfaction or dissatisfaction that the consumer

feels about the purchase
• Relationship between:
– Consumer’s expectations
– Product’s perceived performance
• The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction.

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Chapter 5- slide 31
 The Buyer Decision Process
Post-Purchase Decision

• Customer satisfaction is a key to building profitable

relationships with consumers to keeping and growing
consumers and reaping their customer lifetime value.

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Chapter 5- slide 32
 The Buyer Decision Process for
New Products
• Adoption process is the mental process an
individual goes through from first learning about an
innovation to final regular use.
• Stages in the process include:

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Chapter 5- slide 33
 The Buyer Decision Process for
New Products
Influence of Product Characteristics
on Rate of Adoption

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Chapter 5- slide 34
 Task To Do
You intend to buy a new car and explain the each step that involve in buyer decision process.

Copyright © 2010 Pearson Education, Inc.

Chapter 5- slide 35
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permission of the publisher. Printed in the United States of America.
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Publishing as Prentice Hall

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Chapter 5- slide 36