Consumer market

Consumer market and consumer buying process

1. Consumer Buying Behavior

2. The most The most
important thing is important thing is
to forecast where to forecast where
customers are customers are
moving, and be in moving, and be in
front of them.front of them.

3. 5 - 3
Learning Goals
1.Define the consumer market and construct a
model of consumer buyer behavior
2.Name the four factors that influence buyer
behavior
3.List and understand the types of buying
decision behavior and
4.Describe the stages in the buying decision
process

4. Case Study
Harley Davidson
Building Success
•Understanding the
customers’ emotions and
motivation
•Determining the factors
of loyalty
•Translating this
information to effective
advertising
Measuring Success
•Currently 22% of all U.S. bike
sales
•Demand above supply
•Sales doubled in the past 5
years with earnings tripled
5 - 4

5. 5 - 5
Learning Goals
1.Define the consumer market and construct a
model of consumer buyer behavior
2.Name the four factors that influence buyer
behavior
3.List and understand the types of buying
decision behavior and stages in the process
4.Describe the adoption and diffusion process
for new products

6. Chapter 4 Version 3e 6
Consumer Behavior
Processes a consumer uses to
make purchase decisions, as well
as to use and dispose of
purchased goods or services; also
includes factors that influence
purchase decisions and the
product use
11

8. Types of buyer
•Individual buyer (Consumer market)
•Business buyer (Business Market)

9. 5 - 9
Consumer Market
All of these final consumers combine to make up the
consumer market. A consumer market is a marketplace
consisting of household consumers who buy goods for
individual or family consumption rather than resale. It is
different than a business market, in which businesses sell
goods and services to other companies.
Read more : http

10. 5 - 10
Consumer buyer behavior
Consumer buyer behavior refers to the buying behavior of
final consumers – individuals and households who buy
goods and services for personal consumption
Consumer buying behavior is the sum total of a
consumer's attitudes, preferences, intentions and
decisions regarding the consumer's behavior in the
marketplace when purchasing a product or service.
The study of consumer behavior draws upon social science
disciplines of anthropology, psychology, sociology, and
economics.

11. Influence of Social science on buyer
behavior studies
•Economics: Human is a rational buyer who wants to
take maximum utility out of fixed/minimum price.
•Psychology: Acc. To psychology any human activity is
directed towards meeting certain needs. ( maslow`s
Need Hierarchy)
•Sociology & anthropology: Effect of reference group,
society, role in society, etc.

12. Figure 6.1
Model of Consumer Behavior

13. Figure 6.1
Model of Consumer Behavior :
Buyer’s Blackbox

14. 5 - 14
Characteristics 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 behaviors
•Cultural
•Social
•Personal
•Psychological
Key FactorsKey Factors

15. 5 - 15
Characteristics Affecting Consumer
Behavior
–Groups
•Membership
•Reference
–Aspirational
•Opinion Leaders
–Buzz marketing
–Family
•Many influencers
–Roles and Status
Cultural
Social
Personal
Psychological
Key FactorsKey Factors
Goal 2: Know the four factors that influence consumer buying behavior

16. This advertiser
knows teens
are strongly
influenced by
groups when
purchasing
fashion items
Marketing in Action
5 - 16

17. 5 - 17
Characteristics Affecting Consumer
Behavior
–Age and life cycle
–Occupation
–Economic situation
–Lifestyle
•Activities, interests and opinions
•Lifestyle segmentation
–Personality and self-concept
Cultural
Social
Personal
Psychological
Key FactorsKey Factors
Goal 2: Know the four factors that influence consumer buying behavior

18. 5 - 18
Characteristics Affecting Consumer
Behavior
–Motivation
–Perception
–Learning
–Beliefs and attitudes
Cultural
Social
Personal
Psychological
Key FactorsKey Factors
Goal 2: Know the four factors that influence consumer buying behavior

19. 5 - 19
Psychological Factors
Motivation
•A motive is a need that is sufficiently pressing
to direct the person to seek satisfaction
•Maslow ordered needs based on how pressing
they are to the consumer
Example:
•Are you hungry? - Buy food
•Are you bored? - go to cinema.

20. Copyright © 2009 Pearson
Education, Inc. Publishing as
Prentice Hall
6-20
Motivation
Freud’s
Theory
Behavior
is guided by
subconscious
motivations
Maslow’s
Hierarchy
of Needs
Behavior
is driven by
lowest,
unmet need
Herzberg’s
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors

21. Maslow’s Hierarchy of Needs

22. This ad
demonstrates a
product meeting
physiological and
social needs
Marketing in Action
5 - 22

23. Discussion
What consumer
products might fulfill
multiple levels of the
Hierarchy of Needs?
5 - 23

24. 5 - 24
Psychological Factors Perception
•Perception is the process by which people select,
organize, and interpret information.
•Perception Includes:
–Selective attention
•Consumers screen out information (computer)
–Selective distortion
•People interpret to support beliefs (radio in computer section)
–Selective retention
•People retain points to support attitudes (more discount offers)

25. Discussion Question
Perception
1.How many ads were
you exposed to
today?
2.Which ones do you
remember? Why?
5 - 25

26. 5 - 26
Psychological Factors
Learning and Memory
•Learning describes changes in an individual’s
behavior arising from experience
•Example: If you get some rewards from buying Dell
computer, you will prefer to buy printer from DELL
AGAIN.
•Short and Long term memory also direct people to
choose which product to buy.

27. 5 - 27
Learning Goals
1.Define the consumer market and construct a
model of consumer buyer behavior
2.Name the four factors that influence buyer
behavior
3.List and understand the types of buying
decision behavior and stages in the process
4.Describe the adoption and diffusion process
for new products

28. Types of Buying
Decision Behavior
Figure 5.6
5 - 28

29. The Buyer Decision Process

30. Changes in life style and buying
habits
•Ready to eat food are popular now
•Vacuum cleaner and cooking ranges have
entered into households
•Shift in woman`s attitude towards cooking
•Yesterday`s luxuries are becoming necessities

31. 5 - 31
Today we discussed
1.Consumer behavior
2.Types of consumers
3.Define the consumer market
4.Construct a model of consumer buyer behavior
5.Name the four factors that influence buyer behavior
6.List and understand the types of buying decision
behavior
7.Decribe the stages in the buying decision process

32. 5 - 32
Consumer Market
All of the final consumers combine to make up the
consumer market. A consumer market is a marketplace
consisting of household consumers who buy goods for
individual or family consumption rather than resale. It is
different than a business market, in which businesses sell
goods and services to other companies.
Read more : http

33. 5 - 33
Start with introduction/Definition
All of the final consumers combine to make
up the consumer market. A consumer market
is a marketplace consisting of household
consumers who buy goods for individual or family
consumption rather than resale. It is different than
a business market, in which businesses sell goods
and services to other companies

34. 5 - 34
Divide into paragraphs
All of the final consumers combine to make up the
consumer market.
A consumer market is a marketplace consisting of
household consumers who buy goods for individual or
family consumption rather than resale. It is different than a
business market, in which businesses sell goods and
services to other companies.

35. 5 - 35
Use suitable heading
Consumer Market:
All of the final consumers combine to make up the
consumer market.
A consumer market has following characteristics:
A consumer market is a marketplace consisting of
household consumers who buy goods for individual or
family consumption rather than resale. It is different than a
business market, in which businesses sell goods and
services to other companies.

36. 5 - 36
Color or underline the heading
Consumer Market:
All of the final consumers combine to make up the
consumer market.
A consumer market has following characteristics:
A consumer market is a marketplace consisting of
household consumers who buy goods for individual or
family consumption rather than resale. It is different than a
business market, in which businesses sell goods and
services to other companies.

37. 5 - 37
Give Proper spaces
Consumer Market:
All of the final consumers combine to make up the
consumer market.
A consumer market has following characteristics:
A consumer market is a marketplace consisting of
household consumers who buy goods for individual or
family consumption rather than resale. It is different than a
business market, in which businesses sell goods and
services to other companies.

38. 5 - 38
Use bullets for key points
Consumer Market:
All of the final consumers combine to make up the
consumer market.
A consumer market has following characteristics:
i. It is a marketplace
ii. It consists of household consumers who buy goods
 for individual consumption or
 for family consumption and
Not for resale .
It is different than a business market, in which businesses
sell goods and services to other companies.

39. 5 - 39
Write full sentences and add some
examples
Consumer Market:
All of the final consumers combine to make up the
consumer market.
A consumer market has following characteristics:
i. It is a marketplace
ii. It consists of household consumers who buy goods
 for individual consumption ( Ex: Clothes, shoes)or
 for family consumption ( Ex: Grocery, Fuel, Car) and
Not for resale (Refrigerator, Bed) .
It is different than a business market, in which businesses
sell goods and services to other companies.

40. 5 - 40
Finish with conclusion
Consumer Market:
All of the final consumers combine to make up the consumer market.
A consumer market has following characteristics:
i. It is a marketplace
ii. It consists of household consumers who buy goods
 for individual consumption ( Ex: Clothes, shoes)or
 for family consumption ( Ex: Grocery, Fuel, Car) and
Not for resale (Refrigerator, Bed) .
Basically Consumer Market is different than
a business market, in which businesses sell
goods and services to other companies.

41. 5 - 41
A Sample Answer…….
Consumer Market:
All of the final consumers combine to make up the consumer
market.
A consumer market has following characteristics:
i. It is a marketplace.
ii. It consists of household consumers who buy goods
 for individual consumption ( Ex: Clothes, shoes)or
 for family consumption ( Ex: Grocery, Fuel, Car) and
Not for resale (Refrigerator, Bed) .
Basically Consumer Market is different than a business market,
in which businesses sell goods and services to other companies.

42. Business organizations
Business organizations do not only
sell. They also buy vast quantities
of raw materials manufactured ,
components, plant and
equipment, supplies , and
business services .

43. Figure 8.1: Major Influences on
Industrial Buying Behavior
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44. The business market versus the consumer The business market versus the consumer
marketmarket

45. Participants in the Business Buying
Process
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46. Business Buyer Behavior
Participants in the Business Buying Process
Users are those that will use the product or service
Influencers help define specifications and provide information
for evaluating alternatives
Buyers have formal authority to select the supplier and arrange
terms of purchase
Deciders have formal or informal power to select and approve
final suppliers
Gatekeepers control the flow of information
6-17

47. Major Influences on Buying Decisions
•
1- Environmental Factors
2-Organizational Factors
-Purchasing-Department Upgrading
-Centralized Purchasing
-Decentralized Purchasing of Small Ticket
Items
-Internet Purchasing

48. Figure 6.5 Successive Sets Involved in
Consumer Decision Making
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49. Table 6.4 A Consumer’s Evaluation of Brand
Beliefs About Laptops
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50. Figure 6.6 Stages between Evaluation of
Alternatives and Purchase
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51. Perceived Risk
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-51
FunctionalFunctional
PhysicalPhysical
FinancialFinancial
SocialSocial
PsychologicalPsychological
TimeTime

52. Figure 6.7 How Customers Use and Dispose of
Products
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-52

53. Questions

54. How to solve this Questions

55. Tips for standard writing