5-1

PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter 5
Consumer Markets
and
Consumer Buyer Behavior
 Copyright 1999 Prentice Hall
Consumer Buying Behavior 5-2

• 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
Model of Consumer Behavior 5-3

Product Marketing and Economic

Other Stimuli
Price Technological
Place Political
Promotion Cultural

Buyer’s Characteristics
Decision Buyer’s Black Box Affecting
Process Consumer
Behavior

Product Choice Purchase

Buyer’s Response Timing
Brand Choice
Purchase
Dealer Choice Amount
 Copyright 1999 Prentice Hall
Characteristics Affecting 5-4

Consumer Behavior
Culture
Social
Personal
Psychological
Buyer

 Copyright 1999 Prentice Hall

 5-5
Factors Affecting Consumer Behavior:
Culture
• Most basic cause of a person's wants and
behavior.
• Values
• Perceptions
Subculture Social Class
• Groups of people with shared • People within a social class
value systems based on tend to exhibit similar buying
common life experiences. behavior.
• Hispanic Consumers • Occupation
• African American Consumers • Income
• Asian American Consumers • Education
• Mature Consumers • Wealth
 Copyright 1999 Prentice Hall
 5-6
Factors Affecting Consumer Behavior:
Social
Groups
•Membership
•Reference

Family
•Husband, wife, kids Social Factors
•Influencer, buyer, user

Roles and Status

 Copyright 1999 Prentice Hall

 5-7
Factors Affecting Consumer Behavior:
Personal
Personal Influences

Age and Family Life Cycle

Occupation
Stage

Economic Situation Personality & Self-Concept

Lifestyle Identification

Activities Opinions

Interests

 Copyright 1999 Prentice Hall

VALS 2 5-8

Actualizers Abundant Resources

Principle Oriented Status Oriented Action Oriented

Fulfilleds
Achievers Experiencers
(Innovator)

Believers Strivers Makers

Strugglers
Minimal Resources
 Copyright 1999 Prentice Hall
 5-9

VALS – According to SRI Int’l

Innovator. These consumers are on the leading edge of change,
have the highest incomes, and such high self-esteem and abundant
resources that they can induldge in any or all self-orientations. They
are located above the rectangle. Image is important to them as an
expression of taste, independence, and character. Their consumer
choices are directed toward the "finer things in life."

Thinkers. These consumers are the high-resource group of those

who are motivated by ideals. They are mature, responsible, well-
educated professionals. Their leisure activities center on their homes,
but they are well informed about what goes on in the world and are
open to new ideas and social change. They have high incomes but
are practical consumers and rational decision makers.

 Copyright 1999 Prentice Hall

 5-10

Vals..ctd..
Believers. These consumers are the low-resource group of those
who are motivated by ideals. They are conservative and
predictable consumers who favor American products and
established brands. Their lives are centered on family, church,
community, and the nation. They have modest incomes.

Achievers. These consumers are the high-resource group of those

who are motivated by achievement. They are successful work-
oriented people who get their satisfaction from their jobs and
families. They are politically conservative and respect authority and
the status quo. They favor established products and services that
show off their success to their peers.

 Copyright 1999 Prentice Hall

 5-11

Vals..ctd..
Strivers. These consumers are the low-resource group of those
who are motivated by achievements. They have values very
similar to achievers but have fewer economic, social, and
psychological resources. Style is extremely important to them as
they strive to emulate people they admire.

Experiencers. These consumers are the high-resource group of

those who are motivated by self-expression. They are the
youngest of all the segments, with a median age of 25. They have
a lot of energy, which they pour to physical exercise and social
activities. They are avid consumers, spending heavily on clothing,
fast-foods, music, and other youthful favorites, with particular
emphasis on new products and services.

 Copyright 1999 Prentice Hall

 5-12

Vals..ctd..
Makers. These consumers are the low-resource group of those
who are motivated by self-expression. They are practical people
who value self-sufficiency. They are focused on the familiar-
family, work, and physical recreation-and have little interest in
the broader world. As consumers, they appreciate practical and
functional products.

Survivors. These consumers have the lowest incomes. They

have too few resources to be included in any consumer self-
orientation and are thus located below the rectangle. They are
the oldest of all the segments, with a median age of 61. Within
their limited means, they tend to be brand-loyal consumers.

 Copyright 1999 Prentice Hall

 5-13
Factors Affecting Consumer Behavior:
Psychological

Motivation

Beliefs and Psychological

Factors Perception
Attitudes

Learning

 Copyright 1999 Prentice Hall

Maslow’s Hierarchy of Needs 5-14

Self
Actualization
(Self-development)

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

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)

 Copyright 1999 Prentice Hall

Types of Buying Decisions 5-15

High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between
brands Behavior Behavior
Few Dissonance- Habitual
differences Reducing Buying
between Buying
brands Behavior Behavior

 Copyright 1999 Prentice Hall

The Buyer Decision Process 5-16

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior
 Copyright 1999 Prentice Hall
The Buyer Decision Process 5-17

Step 1. Need Recognition

Need Recognition
Difference between an actual state and a desired state

Internal Stimuli External Stimuli

• Hunger • TV advertising

• Thirst • Magazine ad
• A person’s normal • Radio slogan
needs
•Stimuli in the
environment
 Copyright 1999 Prentice Hall
The Buyer Decision Process 5-18

Step 2. Information Search

Personal Sources •Family, friends, neighbors

•Most influential source of
information

Commercial Sources •Advertising, salespeople

•Receives most information
from these sources

Public Sources •Mass Media

•Consumer-rating groups

•Handling the product

Experiential Sources •Examining the product
•Using the product

 Copyright 1999 Prentice Hall

 5-19
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features

Degree of Importance
Which attributes matter most to me?

Brand Beliefs
What do I believe about each available brand?

Total Product Satisfaction

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

Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
 Copyright 1999 Prentice Hall
The Buyer Decision Process 5-20

Step 4. Purchase Decision

Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of others situational
factors

Purchase Decision

 Copyright 1999 Prentice Hall

The Buyer Decision Process 5-21

Step 5. Postpurchase Behavior

Consumer’s Expectations of
Product’s Performance

Product’s Perceived
Performance

Satisfied Dissatisfied
Customer! Customer

Cognitive Dissonance
 Copyright 1999 Prentice Hall
Stages in the Adoption Process 5-22

Awareness

Interest

Evaluation

Trial

Adoption
 Copyright 1999 Prentice Hall
Adoption of Innovations 5-23

Percentage of Adopters

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late

 Copyright 1999 Prentice Hall

Influences on the Rate of Adoption 5-24

of New Products

Communicability Relative Advantage

Can results be easily Is the innovation
observed or described superior to existing
to others? products?

Product
Divisibility Characteristics Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?

 Copyright 1999 Prentice Hall