Principles of Marketing

(MKT101)

Tanveer Kabir
Lecturer: East West University
MBA, IBA, University of Dhaka
BBA, IBA, University of Dhaka
CHAPTER 5

CONSUMER MARKETS &

CONSUMER BUYER BEHAVIOR
 Definitions

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
Characteristics Affecting Consumer Behavior

Cultural Social Personal Psychological

Age and Life-cycle
Groups and Social Stage Motivation
Culture Networks
Occupation
Perception

Subculture Family Economic Situation

Learning
Lifestyle

Social Class Roles and Status Personality and Self- Beliefs and Attitudes
concept
 Culture
Culture is the learned values,
perceptions, wants, and
behavior from family and other
important institutions

Marketers always try to spot

Cultural Shifts to discover
future product/service needs

Cultural Social Personal Psychological

 Subculture

Subculture are groups of people within a culture with

shared value systems based on common life experiences
and situations

Cultural Social Personal Psychological

 Social Class
Social classes are society’s relatively permanent and
ordered divisions whose members share similar values,
interests, and behaviors

Measured by a combination of occupation, income,

education, wealth, and other variables (See Figure 5.3)

Cultural Social Personal Psychological

 Social

Groups

Cultural Social Personal Psychological

 Social

Groups

Membership Aspirational
Groups Groups

Cultural Social Personal Psychological

 Social

WORD OF MOUTH influence can have a powerful impact on

consumer buying behavior.

Cultural Social Personal Psychological

 Social
Opinion Leader
– A person within a reference
group who exerts social
influence on others
– Also called influentials or
leading adopters
– Marketers identify them to use
as brand ambassadors
(BUZZ MARKETING)

Cultural Social Personal Psychological

Buzz Marketing
Buzz Marketing
Buzz Marketing
 Social
Online Social Networks
– online communities where people socialize or exchange
information and opinions

Cultural Social Personal Psychological

 Social
Family
– The most important consumer-buying organization in society
– Marketers are interested in the roles and influence of the
husband, wife and children on the purchase of different products

Roles and Status

– A person’s position within a group can be defined in terms of
role and status.
– People choose products appropriate to their roles and status.

Cultural Social Personal Psychological

 Personal
Age and Life-Cycle Stage

– People change the goods and services they buy over their
lifetimes
– Tastes in food, clothes, furniture and recreation are often age
related and they change over time

Cultural Social Personal Psychological

 Personal
Occupation

– A person’s occupation affects the goods and services he/she

purchases
– Example: Blue Collar workers tend to buy more rugged work
clothes where executives buy more business suits

Cultural Social Personal Psychological

 Personal
Economic Situation
– A person’s economic situation affects his/her store and product
choices.
– Economic situation includes trends in:

Personal Interest
Savings
Income Rates

Cultural Social Personal Psychological

 Personal
Lifestyle
– Lifestyle is a person’s pattern of living as expressed in his or
her psychographics
– Marketers measure a consumer’s AIOs (activities, interests,
opinions) to capture information about a person’s pattern of
acting and interacting in the environment

Cultural Social Personal Psychological

 Personal
Personality and Self-Concept
– Personality refers to the unique psychological characteristics
that distinguish a person or group
– Brands also have Personalities
– Customers tend to choose brands with personalities that match
their own
– Self Concept is a person’s beliefs about himself/herself

Cultural Social Personal Psychological

 Personal
Personality and Self-Concept
– A Brand Personality is the specific mix of human traits that
may be attributed to a particular brand
– One researcher attributed FIVE brand personality traits
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness

Cultural Social Personal Psychological

 Psychological
Motivation
• A motive (or drive) is a need
that is sufficiently pressing to
direct the person to seek
satisfaction of the need.

Cultural Social Personal Psychological

 Psychological

Sigmund Freud assumed that people are

largely unconscious about the REAL
psychological forces shaping their
behavior.

See Example:
Aging Baby Boomer Buying a BMW Convertible

Cultural Social Personal Psychological

 Psychological
• A qualitative research designed to probe consumers’
hidden and subconscious motivations is known as
motivation research.
• Many companies employ teams of psychologists,
anthropologists and other social scientists to carry out
motivation research.

Cultural Social Personal Psychological

 Psychological

Abraham Maslow sought to

explain why people are driven
by particular needs at
particular times. His answer to
human needs are arranged in a
hierarchy.

Cultural Social Personal Psychological

Maslow’s Hierarchy of Needs
 Psychological
Perception
• The process by which people select, organize, and interpret
information to form a meaningful picture of the world
• Three perceptual processes:
– Selective attention
– Selective distortion
– Selective retention

Cultural Social Personal Psychological

 Psychological

3000 to 5000
People are exposed to an estimated
ad messages every day.

Cultural Social Personal Psychological

 Psychological
Learning
• The changes in an individual’s behavior arising from
experience
• Learning Occurs through the interplay of:

Drives Stimuli Cues Responses Reinforcement

Cultural Social Personal Psychological

 Psychological
Beliefs and Attitudes
• Belief is a descriptive thought that a person has about
something based on:
– Knowledge, Opinion or Faith
• Attitude is a person’s consistently favorable or unfavorable
evaluations, feelings and tendencies towards an object or
idea.

Cultural Social Personal Psychological

Types of Buying Decision Behavior
 Variety-
Complex
seeking

Dissonance-
Habitual
reducing
 Suggested Marketing Strategies
• Complex Buying Behavior
– Strategies:
• Describe brand features, benefits etc using print media with long copy
• Motivate store salespeople and buyer’s acquaintances to influence the
final brand choice
• Dissonance-Reducing Buying Behavior
– Strategies:
• Positive after-sale communication strategies
 Suggested Marketing Strategies
• Habitual Buying Behavior
– Strategies:
• Use Price and Sales Promotions
• Add Product pack features or enhancements
• Variety-Seeking Buying Behavior
– Strategies:
• For Market Leader: Dominate shelf space
• For Minor Brands: Lower Prices, Special Deals, Free Samples etc.
The Buyer Decision Process
 The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior
 The Buyer Decision Process
• Need Recognition
– The first stage of the buyer decision process, in which the consumer
recognizes a problem or need
• Information Search
– The stage of the buyer decision process in which the consumer is
motivated to search for more information
– Information sources:
• Personal (Family, Friends, Neighbors, Acquaintances)
• Commercial Sources (Advertising, Salespeople, Dealer Websites)
• Public Sources (Mass Media, Consumer Rating, Peer Reviews)
• Experiential Sources (Handling, Examining, using the Product)
 The Buyer Decision Process
• Evaluation of Alternatives
– The stage of the buyer decision process in which the consumer
uses information to evaluate alternative brands in the choice set
• Purchase Decision
– The buyer’s decision about which brand to purchase
– However, TWO factors might come between the purchase
intention and the purchase decision:
• Attitudes of others
• Situational factors
 The Buyer Decision Process
• Post-purchase Behavior
– The stage of the buyer decision process in which consumers
take further action after purchase, based on their satisfaction
or dissatisfaction
– If the product’s perceived performance matches the consumer’s
expectations the customer may consider re-purchase
– Note: No matter how good or bad the purchase was in reality,
the consumers will face some sort of discomfort after purchase.
This is known as Post-purchase Cognitive Dissonance.