Chapter 5Understanding Consumer and Business Buyer BehaviorRest Stop: Previewing the Concepts• Understand the consumer market and the major factors that influence consumer buyer behavior• Identify and discuss the stages in the buyer decision process• Describe the adoption and diffusion process for new products• Define the business market and identify the major factors that influence business buyer behavior• List and define the steps in the business buying decision processConsumer Buying Behavior- The buying behavior of individuals and households who buy goods and services for personal consumptionFigure 5.1 - Model of Buyer Behavior- We can measure the what’s, where’s, and whens of consumer buying behavior. But it’s very difficult to “see” inside the consumer’s head and figure out the whys of buying behavior (that’s why it’s called the black box). Marketers spend a lot of time and dollars trying to figure out what makes customers tick.Figure 5.2 - Factors Influencing Consumer Behavior- Cultural Factorso Many brands now target specific subcultures—such as Hispanic American, African American, and Asian American consumers—with marketing programs tailored to their specific needs and preferences. For example, P&G’s Cover Girl Queen cosmetics line was inspired by Queen Latifah to “celebrate the beauty of women of color.”• Personal Factorso People’s buying decisions reflect and contribute to their lifestyles—their whole pattern of acting and interacting in the world. For example, Pottery Barn sells more than just home furnishings. It sells an upscale yet casual, family- and friend-focused lifestyle.• An individual's buying decisions are affected by an incredibly complex combination of external and internal influences.Culture• Culture is the most basic cause of a person’s wants and behavioro Culture is learned from the society, family, and other institutionso Culture reflects basic values, perceptions, wants, and behaviorso Cultural shifts create opportunities for new products or may otherwise influence consumer behaviorSubculture- Groups of people with shared value systems based on common life experiences and situationso General Idea: Subcultures include nationalities, religions, racial groupsand geographic regions. Ask students to research and list products from a single company that have multiple versions catering to more than one distinct subculture.- Major subculture groups in the U.S.o Hispanic consumerso African-American consumerso Asian-American consumerso Mature consumersSocial Class- Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors- Note to Instructor: People in the U.S. can change their social class easier than can those living in many other countries. Discuss how this aspect of the U.S. population affects marketers.Figure 5.3 - The Major American Social Classes- Social class is not determined by a single factor but by a combination of all of these factors. America’s different social classes show distinct brand preferences. Social Factors• Groups and social networkso Membership, reference, and aspirational groups Marketers attempt to reach opinion leaders within groups important to target market Opinion leaders are recruited as brand ambassadors or for buzz marketing Word of Mouth Influence Buzz Marketing Online social networks allow marketers to interact with consumers- Mountain Dew’s DEWmocracy campaign• Family• Strongly influences buying behavior• Gender stereotypes for certain types of purchases are relaxing in the U.S.• Children are very influential, and have substantial disposable income of their own• Roles and status• Role = Expected activities• Status = Esteem given to role by societyLifestyle- A person’s pattern of living as expressed in his or her activities, interests, opinions- Lifestyle is expressed in terms of an individual’s psychographics.Personal Factors• People within the same subculture, social class, and occupation may have different lifestyles• People buy the lifestyles represented by products or services• Age and Life-Cycle• Occupation• Economic Situation• Lifestyle• Personalityo Refers to the unique psychological characteristics that distinguish a person or groupo Generally defined in terms of traitso Can be useful in analyzing consumer behavior for certain product or brand choiceso Brands may also have personalities• Personality Traitso Sincerity (down to earth, Honest, Wholesome Cheerful)o Excitement (daring, imaginative, up-to-date)o Competence (reliable, intelligent, successful) o Sophistication (upper class, Charming)o Ruggedness (outdoorsy, tough)• Self Concept• Products we buy are an extension of self. Psychological Factors- Motivationo A motive (drive) is a need that is sufficiently pressing to direct the person to seek satisfaction The term motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations. Consumers often don’t know or can’t describe whythey act as they do. Thus, motivation researchers use a variety of probing techniques to uncover underlying emotions and attitudes toward brands and buying situations. Figure 5.4 - Maslow’s Hierarchy of Needs- According to Maslow, human needs are arranged in a hierarchy. Starving people will take little interest in the latest happenings in the art world.Perception- Process by which people select, organize, and interpret information to form a meaningful picture of the world- Selective attention, selective distortion, and selective retention cause people to perceive differently.Types of Perception• Selective attention- tendency to screen out most of the information they are exposed to• Selective distortion – tendency to interpret information in a way that will support what they already believe• Selective retention – tendency to remember good points that we want to hear and forget bad points about what we don’t want to hearFamily is the number one influence on consumer behaviorPsychological Factors• Learning• Changes in an individual’s behavior arising from experience• Occurs due to an interplay of drives, stimuli, cues, responses, and reinforcement• Strongly impacted by the consequences of an individual’s behavior• Behaviors with satisfying results tend to be repeatedBelief- A descriptive thought that a person