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PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong

Chapter

Consumer Markets and Consumer Buyer Behavior


Copyright 1999 Prentice Hall

Consumer Buying Behavior


Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption. Study consumer behavior to answer: How do consumers respond to marketing efforts the company might use?
Copyright 1999 Prentice Hall

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Model of Consumer Behavior


Product
Price Place Promotion

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Marketing and Other Stimuli

Economic
Technological Political Cultural

Buyers Decision Process

Buyers Black Box

Characteristics Affecting Consumer Behavior

Product Choice
Brand Choice Dealer Choice

Buyers Response

Purchase Timing
Purchase Amount

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Characteristics Affecting Consumer Behavior


Culture

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Social
Personal Psychological

Buyer

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Factors Affecting Consumer Behavior: Culture


Most basic cause of a person's wants and behavior. Values Perceptions
Subculture
Groups of people with shared value systems based on common life experiences.

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Social Class
People within a social class tend to exhibit similar buying behavior.
Occupation

Hispanic Consumers
African American Consumers Asian American Consumers Mature Consumers

Income Education Wealth

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Factors Affecting Consumer Behavior: Social


Groups Membership Reference

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Family Husband, wife, kids Influencer, buyer, user

Social Factors

Roles and Status

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Factors Affecting Consumer Behavior: Personal


Personal Influences
Age and Family Life Cycle Stage Economic Situation Occupation

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Personality & Self-Concept

Lifestyle Identification
Activities Opinions

Interests
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VALS 2
Actualizers
Principle Oriented Status Oriented

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Abundant Resources Action Oriented

Fulfilleds

Achievers

Experiencers

Believers

Strivers

Makers

Strugglers

Minimal Resources
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Factors Affecting Consumer Behavior: Psychological


Motivation

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Beliefs and Attitudes

Psychological Factors

Perception

Learning
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Maslows Hierarchy of Needs


Self Actualization
(Self-development)

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Esteem Needs
(self-esteem, status) Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)

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Types of Buying Decisions

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High Involvement Significant differences between brands Few differences between brands

Low Involvement

Complex Buying Behavior DissonanceReducing Buying Behavior

VarietySeeking Behavior Habitual Buying Behavior

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The Buyer Decision Process

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Need Recognition Information Search

Evaluation of Alternatives
Purchase Decision Postpurchase Behavior
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The Buyer Decision Process


Step 1. Need Recognition
Need Recognition

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Difference between an actual state and a desired state

Internal Stimuli
Hunger
Thirst
A persons normal needs

External Stimuli
TV advertising

Magazine ad
Radio slogan

Stimuli in the environment


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The Buyer Decision Process


Step 2. Information Search
Personal Sources
Commercial Sources

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Family, friends, neighbors Most influential source of information Advertising, salespeople Receives most information from these sources Mass Media Consumer-rating groups Handling the product Examining the product Using the product

Public Sources

Experiential Sources

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The Buyer Decision Process


Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features

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Degree of Importance
Which attributes matter most to me?

Brand Beliefs
What do I believe about each available brand?

Based on what Im looking for, how satisfied would I be with each product?

Total Product Satisfaction

Evaluation Procedures
Choosing a product (and brand) based on one or more attributes.
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The Buyer Decision Process


Step 4. Purchase Decision
Purchase Intention Desire to buy the most preferred brand

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Attitudes of others

Unexpected situational factors

Purchase Decision
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The Buyer Decision Process


Step 5. Postpurchase Behavior
Consumers Expectations of Products Performance
Products Perceived Performance

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Satisfied Customer!
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Dissatisfied Customer
Cognitive Dissonance

Stages in the Adoption Process


Awareness
Interest Evaluation Trial Adoption
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Adoption of Innovations

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Percentage of Adopters

Early Majority Innovators

Late Majority

Early Adopters
13.5%

34%

34%

Laggards

16%

2.5%

Time of Adoption Late

Early

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Influences on the Rate of Adoption of New Products


Communicability
Can results be easily observed or described to others?

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Relative Advantage
Is the innovation superior to existing products?

Divisibility
Can the innovation be used on a trial basis?

Product Characteristics

Compatibility
Does the innovation fit the values and experience of the target market?

Complexity
Is the innovation difficult to understand or use?

Copyright 1999 Prentice Hall

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