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1. Chapter 5- slide 1
Chapter Five
Consumer Markets and Consumer Buyer
Behavior

2. Chapter 5- slide 2
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Consumer Markets and Consumer
Buyer Behavior
•Model of Consumer Behavior
•Characteristics Affecting Consumer
Behavior
•Types of Buying Decision Behaviors
•The Buyer Decision Process
•The Buyer Decision Process for New
Products
Topic Outline

3. Chapter 5- slide 3
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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
Model of Consumer Behavior

4. Chapter 5- slide 4
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Model of Consumer Behavior

5. Chapter 5- slide 5
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Characteristics Affecting
Consumer Behavior
Factors Influencing Consumer Behavior

6. Chapter 5- slide 6
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Culture is the learned values, perceptions,
wants, and behavior from family and other
important institutions
Characteristics Affecting
Consumer Behavior

7. Chapter 5- slide 7
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Characteristics Affecting
Consumer Behavior
Subcultures are groups of people within a culture
with shared value systems based on common life
experiences and situations
•Kashmiri
•Sindhi
•Balochi
•Parktown's
•Punjabis
•Gilgit's

8. Chapter 5- slide 8
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Subcultures
Nationalities
Religions
Racial groups
Geographic regions

9. Chapter 5- slide 9
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2. Social

10. Chapter 5- slide 10
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Social Factors
Reference
groups
Social
roles
Statuses
Family

11. Chapter 5- slide 11
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Social classes A group of people in a society who are
considered nearly equal in status or community
esteem, and whose member share similar values
interest and behavioral norms.
Factors of social class
1.Income
2.Occupation
3.Education
4.Wealth
5.Other variables
Characteristics Affecting
Consumer Behavior

12. Chapter 5- slide 12
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Social Classes
Upper uppers
Lower uppers
Middle uppers
Middle class (5classes)
Working class
Upper lowers
Lower lowers
Middle Classes
Deprived households.
Annual income Less than
90,000
Aspirers
Annual income 90,000-200,000
Seekers
200,000-500,000
Strivers
500,000-1,000,000
Global Indians
1,000,000 0r above

13. Chapter 5- slide 13
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Characteristics of Social Classes
•Within a class, people tend to behave alike
•Social class conveys perceptions of inferior
or superior position
•Class may be indicated by a cluster of
variables (occupation, income, wealth)
•Class designation is mobile over time

14. Chapter 5- slide 14
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Characteristics Affecting
Consumer Behavior
•Online Social Networks are
online communities where
people socialize or exchange
information and opinions
•Include blogs, social
networking sites (facebook),
virtual worlds (second life)
Groups and Social Networks

15. Chapter 5- slide 15
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Characteristics Affecting
Consumer Behavior
•Family is the most important consumer-
buying organization in society
•The groups, family, clubs, and organizations
that a person belongs to define his/her social
role and status
Social Factors

16. Chapter 5- slide 16
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Characteristics Affecting
Consumer Behavior
•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
Personal Factors

17. Chapter 5- slide 17
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Characteristics Affecting
Consumer Behavior
Occupation affects the goods and services
bought by consumers
Economic situation includes trends in:
Personal Factors

18. Chapter 5- slide 18
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Characteristics Affecting
Consumer Behavior
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
Personal Factors

19. Chapter 5- slide 19
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Characteristics Affecting
Consumer Behavior
Psychological Factors

20. Chapter 5- slide 20
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Characteristics Affecting
Consumer Behavior
A 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
Psychological Factors
Motivation

21. Chapter 5- slide 21
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Characteristics Affecting
Consumer Behavior
Maslow’s
Hierarchy of Needs

22. Chapter 5- slide 22
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Characteristics Affecting
Consumer Behavior
Perception is the process by which
people select, organize, and interpret
information to form a meaningful picture
of the world
Psychological Factors

23. Chapter 5- slide 23
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Characteristics Affecting
Consumer Behavior
•Learning is the change in an individual’s
behavior arising from experience and
occurs
Psychological Factors

24. Chapter 5- slide 24
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Characteristics Affecting
Consumer Behavior
Belief is a descriptive thought that a person
has about something based on:
•Knowledge
•Opinion
•Faith
Psychological Factors
Beliefs and Attitudes

25. Chapter 5- slide 25
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Characteristics Affecting
Consumer Behavior
Attitudes describe a person’s relatively
consistent evaluations, feelings, and
tendencies toward an object or idea
Psychological Factors

26. Chapter 5- slide 26
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Types of Buying Decision
Behavior

27. Chapter 5- slide 27
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Types of Buying Decision
Behavior
Four Types of Buying Behavior

28. Chapter 5- slide 28
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Four Types of Buying Behavior
Complex buying behavior
•It is encountered particularly when consumers are buying an
expensive product, so the consumer involvement is very high.
•In this infrequent transaction, consumers are highly involved in
the purchase decision.
•Consumers will research 
thoroughly before committing to invest.
•Consumer behaves very differently when buying an expensive
product or a product that is unfamiliar to them.
•When the risk of buying a product is very high, a consumer
consults friends, family, and experts before making the decision.

29. Chapter 5- slide 29
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Four Types of Buying Behavior
Complex buying behavior
For example:
when a consumer is buying a car for the first time, it’s a big
decision as it involves high economic risk.
• There is a lot of thought on how it looks, how his friends and
family will react, how will his social status change after buying
the car, and so on.
•It is important to
 
create an advertising message
 
in a way that
influences the buyer’s beliefs and attitudes.

30. Chapter 5- slide 30
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Dissonance-reducing buying behavior
•In dissonance-reducing buying behavior, consumer involvement
is very high.
•This might be due to high prices and infrequent purchases.
•There is low availability of choices
 
with fewer significant
differences among brands.
•In this type, a consumer buys a product that is easily available.
 
•Consumers buy certain products based on the
•products available,
•time limitations,
•budget limitations,
•without a lot of research.
Four Types of Buying Behavior

31. Chapter 5- slide 31
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Four Types of Buying Behavior
•For example, a consumer who is looking for a new folding
table that can be taken for camping quickly decides on the
product based on a few brands available.
•The main criteria here will be the use and the feature of the
folding table and the budget available to him.
•Marketers should run after-sale service campaigns
that
 
deliver focused messaging.
 
• These marketing campaigns should focus on building repeat
purchases and referrals by offering discounts and incentives.
 

32. Chapter 5- slide 32
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Four Types of Buying Behavior
Habitual buying behavior
•Habitual Buying Behavior
 is depicted when a consumer has
low involvement in a purchase decision.
•In this case, the
 consumer is perceiving only a
few significant
differences between brands.
 
•Customer do not put lot of effort on research just go and buy
it
•When consumers are buying products that they use for their
daily routine, they do not put a lot of thought.
•They either buy their favorite brand or the one that they use
regularly – or the one available in the store or the one that
have low cost.

33. Chapter 5- slide 33
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Four Types of Buying Behavior
•For example, when a consumer
 buys an energy drink, he
tends to buy the flavor/taste that he likes without actually
putting in a lot of research and time.
 
•Many products fit into this category. Products such as
chocolates, cakes, juices, etc.,
•Marketers must use repetitive advertisements to
 build
brand familiarity.
•Further to initiate product trial, marketers should use
tactics like price drop promotions and sales promotions.
 
•Consumers can easily remember visual advertisements
and can associate with a brand.

34. Chapter 5- slide 34
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Four Types of Buying Behavior
Variety seeking buying behavior
•In variety-seeking
 consumer behavior,
consumer
involvement is low.
•There are significant differences between brands.
• Here consumers often do a lot of brand switching.
• The cost of switching products is low, and hence consumers
might want to try out new products just out of curiosity or
boredom.
 
•Consumers generally buy different products not because of
dissatisfaction but mainly with an urge to seek variety.

35. Chapter 5- slide 35
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Four Types of Buying Behavior
•For example, a consumer likes to buy a cookie and choose a brand
without putting much thought into it.
 
•Next time, the same consumer might choose a different brand out
of a wish for a different taste.
•Brand switching occurs often and without intention.
•Brands have to adopt different strategies for such types of
consumer behavior.
•Marketers should
•Avoid out-of-stock conditions,
•Frequent advertising,
•Offer lower prices,
•Discounts, Deals,
 Coupons, & Free samples to attract consumers.
• 

36. Chapter 5- slide 36
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The Buyer Decision Process
Buyer Decision Making Process

37. Chapter 5- slide 37
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The Buyer Decision Process
•Result of an imbalance between actual &
desired states.
•Occurs when the buyer recognizes a
problem or need triggered by:
–Internal stimuli-Hunger or thirst
–External stimuli- Advertisement or discussion
with friend
Need Recognition

38. Chapter 5- slide 38
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The Buyer Decision Process
•Personal sources—family and friends
•Commercial sources—advertising, Internet
•Public sources—mass media, consumer
organizations
•Experiential sources—handling, examining,
using the product
Information Search
Sources of Information

39. Chapter 5- slide 39
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The Buyer Decision Process
•How the consumer processes information
to arrive at brand choices
Evaluation of Alternatives

40. Chapter 5- slide 40
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The Buyer Decision Process
•The act by the consumer to buy the most
preferred brand
•The purchase decision can be affected by:
–Attitudes of others
–Unexpected situational factors
Purchase Decision

41. Chapter 5- slide 41
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Evaluation
of
alternatives
Purchase
intention
Un-expected
situational
factors
Attitude
of others
Purchase
decision

42. Chapter 5- slide 42
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The Buyer Decision Process
•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
•Cognitive dissonance is the discomfort caused
by a post-purchase conflict
Post-Purchase Decision

43. Chapter 5- slide 43
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The Buyer Decision Process
Customer satisfaction is a key to building
profitable relationships with consumers—
to keeping and growing consumers and
reaping their customer lifetime value
Post-Purchase Decision

44. Chapter 5- slide 44
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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:

45. Chapter 5- slide 45
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The Buyer Decision Process for
New Products
Stages in the Adoption process:
1.Awareness: The consumer becomes aware
of the new product but lacks information
about it
2.Interest: The consumer search for
information about the new product

46. Chapter 5- slide 46
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The Buyer Decision Process for
New Products
Stages in the Adoption process:
3.Evaluation: The consumer considers
whether trying the new product makes
sense.
4.Trial: The consumer tries the new product
on a small scale
5.Adoption: The consumer decides to make
full and regular use of the new product

47. Chapter 5- slide 47
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Enough for today. . .Enough for today. . .