Contents of Chapter 6 Class Notes

What is Consumer Buying Behavior?

Stages of Consumer Buying Behavior?
Types of Consumer Buying Behavior.
Categories That Effect Consumer Buying Behavior.
o Personal
o Psychological
o Social
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What is Consumer Buying Behavior?
#efinition of Buying Behavior$
Buying Behavior is the decision processes and acts of people involved in !uying and
using products.
%eed to understand$
&hy consumers ma'e the purchases that they ma'e?
&hat factors influence consumer purchases?
the changing factors in our society.
Consumer Buying Behavior refers to the !uying !ehavior of the ultimate consumer. (
firm needs to analy)e !uying !ehavior for$
Buyers reactions to a firms mar'eting strategy has a great impact on the firms
success.
The mar'eting concept stresses that a firm should create a Marketing Mix *++,
that satisfies *gives utility to, customers- therefore need to analy)e the &hat-
&here- &hen and ho& consumers !uy.
+ar'eters can !etter predict ho& consumers &ill respond to mar'eting
strategies.
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Stages of the Consumer Buying Process
Six Stages to the Consumer Buying #ecision Process */or complex decisions,. (ctual
purchasing is only one stage of the process. %ot all decision processes lead to a
purchase. (ll consumer decisions do not al&ays include all 0 stages- determined !y
the degree of complexity...discussed next.
The 0 stages are$
1. Problem Recognition*a&areness of need,22difference !et&een the desired state
and the actual condition. #eficit in assortment of products. "unger22/ood.
"unger stimulates your need to eat.
Can !e stimulated !y the mar'eter through product information22did not 'no&
you &ere deficient? 3.E.- see a commercial for a ne& pair of shoes- stimulates
your recognition that you need a ne& pair of shoes.
4. Information search22
o 3nternal search- memory.
o External search if you need more information. /riends and relatives
*&ord of mouth,. +ar'eter dominated sources5 comparison shopping5
pu!lic sources etc.
( successful information search leaves a !uyer &ith possi!le alternatives-
the evoked set.
"ungry- &ant to go out and eat- evo'ed set is
o chinese food
o indian food
o !urger 'ing
o 'londi'e 'ates etc
6. Evaluation of Alternatives22need to esta!lish criteria for evaluation- features the
!uyer &ants or does not &ant. an'7&eight alternatives or resume search. +ay
decide that you &ant to eat something spicy- indian gets highest ran' etc.
3f not satisfied &ith your choice then return to the search phase. Can you thin'
of another restaurant? .oo' in the yello& pages etc. 3nformation from different
sources may !e treated differently. +ar'eters try to influence !y 8framing8
alternatives.
9. Purchase decision22Choose !uying alternative- includes product- pac'age-
store- method of purchase etc.
:. Purchase22+ay differ from decision- time lapse !et&een 9 ; :- product
availa!ility.
0. Post-Purchase Evaluation22outcome$ Satisfaction or #issatisfaction. Cognitive
Dissonance- have you made the right decision. This can !e reduced !y
&arranties- after sales communication etc.
(fter eating an indian meal- may thin' that really you &anted a chinese meal
instead.
Handout...Pillsbury !"##$s
12<== >s gives the consumer a &ay of communicating &ith the mar'eter after
purchase. This helps reduce cognitive dissonance &hen a mar'eter can ans&er any
concerns of a ne& consumer.
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%ypes of Consumer Buying Behavior
Types of consumer !uying !ehavior are determined !y$
.evel of 3nvolvement in purchase decision. 3mportance and intensity of interest
in a product in a particular situation.
Buyers level of involvement determines &hy he7she is motivated to see'
information a!out a certain products and !rands !ut virtually ignores others.
"igh involvement purchases22"onda +otor!i'e- high priced goods- products visi!le
to others- and the higher the ris' the higher the involvement. Types of ris'$
Personal ris'
Social ris'
Economic ris'
The four type of consumer !uying !ehavior are$
outine esponse7Programmed Behavior22!uying lo& involvement fre?uently
purchased lo& cost items5 need very little search and decision effort5 purchased
almost automatically. Examples include soft drin's- snac' foods- mil' etc.
.imited #ecision +a'ing22!uying product occasionally. When you need to
o!tain information a!out unfamiliar !rand in a familiar product category-
perhaps. e?uires a moderate amount of time for information gathering.
Examples include Clothes22'no& product class !ut not the !rand.
Extensive #ecision +a'ing7Complex high involvement- unfamiliar- expensive
and7or infre?uently !ought products. "igh degree of
economic7performance7psychological ris'. Examples include cars- homes-
computers- education. Spend alot of time see'ing information and deciding.
3nformation from the companies ++5 friends and relatives- store personnel etc.
@o through all six stages of the !uying process.
3mpulse !uying- no conscious planning.
The purchase of the same product does not al&ays elicit the same Buying Behavior.
Product can shift from one category to the next.
/or example$
@oing out for dinner for one person may !e extensive decision ma'ing *for someone
that does not go out often at all,- !ut limited decision ma'ing for someone else. The
reason for the dinner- &hether it is an anniversary cele!ration- or a meal &ith a couple
of friends &ill also determine the extent of the decision ma'ing.
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Categories that &ffect the Consumer Buying 'ecision
Process
( consumer- ma'ing a purchase decision &ill !e affected !y the follo&ing three
factors$
1. Personal
4. Psychological
6. Social
The mar'eter must !e a&are of these factors in order to develop an appropriate ++
for its target mar'et.
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Personal
Ani?ue to a particular person. #emographic /actors. Sex- ace- (ge etc.
Who in the family is responsi!le for the decision ma'ing.
Boung people purchase things for different reasons than older people.
Handout...(rom choices to chec)out...
"ighlights the differences !et&een male and female shoppers in the supermar'et.
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Psychological factors
Psychological factors include$
*otives!!
( motive is an internal energi)ing force that orients a personCs activities to&ard
satisfying a need or achieving a goal.
(ctions are effected !y a set of motives- not Dust one. 3f mar'eters can identify
motives then they can !etter develop a mar'eting mix.
+(S.EW hierarchy of needsFF
o Physiological
o Safety
o .ove and Belonging
o Esteem
o Self (ctuali)ation
%eed to determine &hat level of the hierarchy the consumers are at to
determine &hat motivates their purchases.
Handout...Nutrament 'ebun)ed...
%utrament- a product mar'eted !y Bristol2+yers S?ui!! originally &as
targeted at consumers that needed to receive additional energy from their drin's
after exercise etc.- a fitness drin'. 3t &as therefore targeted at consumers &hose
needs &ere for either love and Belonging or esteem. The product &as not
selling &ell- and &as almost terminated. Apon extensive research it &as
determined that the product did sell &ell in inner2city convenience stores. 3t
&as determined that the consumers for the product &ere actually drug addicts
&ho couldnCt not digest a regular meal. They &ould purchase %utrament as a
su!stitute for a meal. Their motivation to purchase &as completely different to
the motivation that B2+S had originally thought. These consumers &ere at
the Physiologicallevel of the hierarchy. B+2S therefore had to redesign its ++
to !etter meet the needs of this target mar'et.
+otives often operate at a su!conscious level therefore are difficult to measure.
Perception!!
What do you see?? Perception is the process of selecting- organi)ing and
interpreting information inputs to produce meaning. 3E &e chose &hat info &e
pay attention to- organi)e it and interpret it.
3nformation inputs are the sensations received through sight- taste- hearing-
smell and touch.
Selective Exosure2select inputs to !e exposed to our a&areness. +ore li'ely if
it is lin'ed to an event- satisfies current needs- intensity of input changes *sharp
price drop,.
Selective !istortion2Changing7t&isting current received information-
inconsistent &ith !eliefs.
(dvertisers that use comparative advertisements *pitching one product against
another,- have to !e very careful that consumers do not distort the facts and
perceive that the advertisement &as for the competitor. ( current
example...+C3 and (T;T...do you ever get confused?
Selective Retention2emem!er inputs that support !eliefs- forgets those that
donCt.
(verage supermar'et shopper is exposed to 1G-=== products in a shopping visit
lasting 6= minutes20=H of purchases are unplanned. Exposed to 1-:==
advertisement per day. CanCt !e expected to !e a&are of all these inputs- and
certainly &ill not retain many.
3nterpreting information is !ased on &hat is already familiar- on 'no&ledge that
is stored in the memory.
Handout...South +frica ,ine....
Pro!lems mar'eting &ine from South (frica. Consumers have strong
perceptions of the country- and hence its products.
+bility and -no,ledge!!
%eed to understand individuals capacity to learn. .earning- changes in a
personCs !ehavior caused !y information and experience. Therefore to change
consumersC !ehavior a!out your product- need to give them ne& information re$
product...free sample etc.
South (frica...open !ottle of &ine and pour itFF (lso educate american
consumers a!out changes in S(. %eed to sell a &hole ne& country.
When ma'ing !uying decisions- !uyers must process information.
"no#ledge is the familiarity &ith the product and expertise.
3nexperience !uyers often use prices as an indicator of ?uality more than those
&ho have 'no&ledge of a product.
%on2alcoholic Beer example$ consumers chose the most expensive six2pac'-
!ecause they assume that the greater price indicates greater ?uality.
$earning is the process through &hich a relatively permanent change in
!ehavior results from the conse?uences of past !ehavior.
+ttitudes!!
Ino&ledge and positive and negative feelings a!out an o!Dect or activity2
may!e tangi!le or intangi!le- living or non2 living.....#rive perceptions
3ndividual learns attitudes through experience and interaction &ith other
people.
Consumer attitudes to&ard a firm and its products greatly influence the success
or failure of the firmCs mar'eting strategy.
Handout....ldsmobile.....
Eldsmo!ile vs. .exus- due to consumers attitudes to&ard Eldsmo!ile *as
discovered !y class exercise, need to disassociate (urora from the Eldsmo!ile
name.
Exxon Jalde)2nearly 4=-=== credit cards &ere returned or cut2up after the
tragic oil spill.
"onda 8Bou meet the nicest people on a "onda8- dispel the unsavory image of
a motor!i'e rider- late 1K:=s. Changing mar'et of the 1KK=s- !a!y !oomers
aging- "ondas mar'et returning to hard core. To change this they have a ne&
slogan 8Come ride &ith us8.
(ttitudes and attitude change are influenced !y consumers personality and
lifestyle.
Consumers screen information that conflicts &ith their attitudes. #istort
information to ma'e it consistent and selectively retain information that
reinforces our attitudes. 3E !rand loyalty.
There is a difference !et&een attitude and intention to !uy *a!ility to !uy,.
Personality!!
all the internal traits and !ehaviors that ma'e a person uni?ue- uni?ueness
arrives from a personCs heredity and personal experience. Examples include$
o Wor'aholism
o Compulsiveness
o Self confidence
o /riendliness
o (dapta!ility
o (m!itiousness
o #ogmatism
o (uthoritarianism
o 3ntroversion
o Extroversion
o (ggressiveness
o Competitiveness.
Traits effect the &ay people !ehave. +ar'eters try to match the store image to
the perceived image of their customers.
There is a &ea' association !et&een personality and Buying Behavior- this may
!e due to unrelia!le measures. %i'e ads. Consumers !uy products that are
consistent &ith their self concept.
/ifestyles!!
ecent AS trends in lifestyles are a shift to&ards personal independence and
individualism and a preference for a healthy- natural lifestyle.
.ifestyles are the consistent patterns people follo& in their lives.
EL(+P.E healthy foods for a healthy lifestyle. Sun tan not considered
fashiona!le in AS until 1K4=Cs. %o& an assault !y the (merican (cademy of
#ermatology.
Handout...Here Comes the Sun to Confound Health Savvy /otion *a)ers..
Extra credit assignment from the ne&s group- to access Jalue and .ifestyles *J(.S,
Program- complete the survey and Email alex@udel.edu the results. This is a survey tool
that mar'eters can use to !etter understand their target mar'et*s,.
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Social (actors
Consumer &ants- learning- motives etc. are influenced !y opinion leaders- personCs
family- reference groups- social class and culture.
.pinion leaders!!
Spo'espeople etc. +ar'eters try to attract opinion leaders...they actually use
*pay, spo'espeople to mar'et their products. +ichael Mordon *%i'e-
+c#onalds- @atorade etc.,
Can !e ris'y...+ichael Mac'son...EM Simpson...Chevy Chase
0oles and (amily 1nfluences!!
ole...things you should do !ased on the expectations of you from your
position &ithin a group.
People have many roles.
"us!and- father- employer7ee. 3ndividuals role are continuing to change
therefore mar'eters must continue to update information.
/amily is the most !asic group a person !elongs to. +ar'eters must understand$
o that many family decisions are made !y the family unit
o consumer !ehavior starts in the family unit
o family roles and preferences are the model for childrenCs future family
*can reDect7alter7etc,
o family !uying decisions are a mixture of family interactions and
individual decision ma'ing
o family acts an interpreter of social and cultural values for the individual.
The /amily life cycle$ families go through stages- each stage creates different
consumer demands$
o !achelor stage...most of BA(#6=1
o ne&ly married- young- no children...me
o full nest 3- youngest child under 0
o full nest 33- youngest child 0 or over
o full nest 333- older married couples &ith dependant children
o empty nest 3- older married couples &ith no children living &ith them-
head in la!or force
o empty nest 33- older married couples- no children living at home- head
retired
o solitary survivor- in la!or force
o solitary survivor- retired
o +oderni)ed life cycle includes divorced and no children.
Handout...%,o 1ncome *arriages +re No, the Norm
Because 4 income families are !ecoming more common- the decision ma'er
&ithin the family unit is changing...also- family has less time for children- and
therefore tends to let them influence purchase decisions in order to alleviate
some of the guilt. *Children influence a!out N16= !illion of goods in a year,
Children also have more money to spend themselves.
0eference 2roups!!
3ndividual identifies &ith the group to the extent that he ta'es on many of the
values- attitudes or !ehaviors of the group mem!ers.
/amilies- friends- sororities- civic and professional organi)ations.
(ny group that has a positive or negative influence on a persons attitude and
!ehavior.
Membershi grous *!elong to,
(ffinity mar'eting is focused on the desires of consumers that !elong to
reference groups. +ar'eters get the groups to approve the product and
communicate that approval to its mem!ers. Credit Cards etc.FF
Asiration grous *&ant to !elong to,
!isassociate grous *do not &ant to !elong to,
"onda- tries to disassociate from the 8!i'er8 group.
The degree to &hich a reference group &ill affect a purchase decision depends
on an individuals suscepti!ility to reference group influence and the strength of
his7her involvement &ith the group.
Social Class!!
an open group of individuals &ho have similar social ran'. AS is not a classless
society. AS criteria5 occupation- education- income- &ealth- race- ethnic groups
and possessions.
Social class influences many aspects of our lives. 3E upper middle class
(mericans prefer luxury cars +ercedes.
o Apper (mericans2upper2upper class- .6H- inherited &ealth- aristocratic
names.
o .o&er2upper class- 1.4H- ne&er social elite- from current professionals
and corporate elite
o Apper2middle class- 14.:H- college graduates- managers and
professionals
o +iddle (mericans2middle class- 64H- average pay &hite collar &or'ers
and !lue collar friends
o Wor'ing class- 6<H- average pay !lue collar &or'ers
o .o&er (mericans2lo&er class- KH- &or'ing- not on &elfare
o .o&er2lo&er class- GH- on &elfare
Social class determines to some extent- the types- ?uality- ?uantity of products
that a person !uys or uses.
.o&er class people tend to stay close to home &hen shopping- do not engage in
much prepurchase information gathering.
Stores proDect definite class images.
/amily- reference groups and social classes are all social influences on
consumer !ehavior. (ll operate &ithin a larger culture.
Culture and Sub!culture!!
Culture refers to the set of values- ideas- and attitudes that are accepted !y a
homogenous group of people and transmitted to the next generation.
Culture also determines &hat is accepta!le &ith product advertising. Culture
determines &hat people &ear- eat- reside and travel. Cultural values in the AS
are good health- education- individualism and freedom. 3n american culture
time scarcity is a gro&ing pro!lem. 3E change in meals. Big impact on
international mar'eting.
Handout...Will British ,arm up to iced tea?
%o...!ut that is my opinionFF...Tea is a part of the British culture- hot &ith mil'.
#ifferent society- different levels of needs- different cultural values.
Culture can !e divided into su!cultures$
o geographic regions
o human characteristics such as age and ethnic !ac'ground.
3E West Coast- teenage and (sian (merican.
Culture affects &hat people !uy- ho& they !uy and &hen they !uy.
%nderstanding &onsumer Buying Behavior offers consumers greater satisfaction
'%tility() *e must assume that the comany has adoted the Marketing &oncet and
are consumer oriented)