Consumer Markets and Consumer Buyer BehaviorLearning GoalsCase Study Harley DavidsonDefinitionsStimulus-Response Model of Consumer BehaviorCharacteristics Affecting Consumer BehaviorSlide 7Slide 8Slide 9Slide 10Psychological Factors MotivationMaslow’s Hierarchy of Needs TheoryPsychological Factors PerceptionPsychological Factors LearningPsychological Factors Beliefs and AttitudesTypes of Buying Decision BehaviorThe Buyer Decision ProcessSlide 18Slide 19Slide 20Slide 21Buyer Decision Process for New ProductsSlide 23Slide 24Slide 25Slide 26Consumer Markets and Consumer Buyer BehaviorChapter 55 - 2Learning Goals1. Learn the consumer market and construct model of consumer buyer behavior 2. Know the four factors that influence buyer behavior3. Understand the types of buying decision behavior and stages in the process4. Comprehend the adoption and diffusion process for new products5 - 3Case StudyHarley DavidsonBuilding Success•Understanding the customers’ emotions and motivation•Determining the factors of loyalty•Translating this information to effective advertisingMeasuring Success•Currently 22% of all U.S. bike sales•Demand above supply•Sales doubled in the past 5 years with earnings tripled.5 - 4Definitions•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 marketGoal 1: Learn the consumer market & construct model of buyer behavior5 - 5Stimulus-Response Model of Consumer BehaviorStimuli4P’sOther characteristics• economic• technological• political• cultural Buyer ResponseProduct choiceBrand choiceDealer choicePurchase timingPurchase amountBuyer’s Black BoxBuyer characteristicsBuyer decision processGoal 1: Learn the consumer market & construct model of buyer behavior5 - 6Characteristics Affecting Consumer BehaviorCulture•Forms a person’s wants and behaviorSubculture•Groups with shared value systemsSocial Class•Society’s divisions who share values, interests and behaviorsCulturalSocialPersonalPsychologicalKey FactorsKey FactorsGoal 2: Know the four factors that influence consumer buying behavior5 - 7Characteristics Affecting Consumer BehaviorGroups•Membership•Reference–Aspirational•Opinion Leaders–Buzz marketingFamily•Many influencersRoles and StatusCulturalSocialPersonalPsychologicalKey FactorsKey FactorsGoal 2: Know the four factors that influence consumer buying behavior5 - 8Characteristics Affecting Consumer BehaviorAge and life cycleOccupationEconomic situationLifestyle•Activities, interests and opinions•Lifestyle segmentationPersonality and self-conceptCulturalSocialPersonalPsychologicalKey FactorsKey FactorsGoal 2: Know the four factors that influence consumer buying behavior5 - 9Brand Personality DimensionsCharacteristics Affecting Consumer Behavior• Sincerity• Ruggedness• Excitement• Competence• SophisticationGoal 2: Know the four factors that influence consumer buying behavior5 - 10Characteristics Affecting Consumer BehaviorMotivationPerceptionLearningBeliefs and attitudesCulturalSocialPersonalPsychologicalKey FactorsKey FactorsGoal 2: Know the four factors that influence consumer buying behavior5 - 11Psychological FactorsMotivation•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 consumerGoal 2: Know the four factors that influence consumer buying behavior5 - 12Maslow’s Hierarchy of Needs TheoryMaslow’s Hierarchy of Needs TheoryPhysiological Needsmost basic human physical needsSafety/Security Needssafe and secure physical and emotional environmentSocial Needsdesire to be accepted by one’s peersEsteem Needsdesire for a positive self-imageand to receive attentionSelf-ActualizationNeedsrepresent the need forself-fulfillment5 - 13Psychological Factors Perception•Perception is the process by which people select, organize, and interpret information•Perception Includes:Selective attention •Consumers screen out informationSelective distortion•People interpret to support beliefsSelective retention•People retain points to support attitudesGoal 2: Know the four factors that influence consumer buying behavior• Reach and Frequency5 - 14Psychological Factors LearningLearning describes changes in an individual’s behavior arising from experienceLearning 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 actionGoal 2: Know the four factors that influence consumer buying behavior5 - 15Psychological Factors Beliefs and AttitudesBelief a descriptive thought about a brand or servicemay be based on real knowledge, opinion, or faithAttitude describes a person’s evaluations, feelings and tendencies toward an object or ideaThey are difficult to changeGoal 2: Know the four factors that influence consumer buying behavior5 - 16Types of Buying Decision BehaviorComplexHighly involved, significant brand differences Example – computerDissonance-reducingHighly involved, little brand differences Example – carpetingHabitualLow involvement, little brand differences Example – saltVariety-seeking Low involvement, significant perceived brand differences Example – cookiesGoal 3: Understand types of buying decisions and stages in the process5 - 17The Buyer Decision ProcessNeed recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behaviorNeeds can be triggered by:Internal stimuli•Normal needs become strong enough to drive behaviorExternal stimuli•Advertisements•Friends of friendsProcess Process Stages Stages Goal 3: Understand types of buying decisions and stages in the process5 - 18The Buyer Decision ProcessNeed recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior•Consumers exhibit heightened attention or actively search for information.•Sources of information:PersonalCommercialPublicExperiential•Word-of-mouthProcess Process Stages Stages Goal 3: Understand types of buying decisions and stages in the process5 - 19The