prentice hall, copyright 2009 1 understanding consumer and business buyer behavior chapter 5 next...

Understanding Understanding Consumer Consumer

and and BusinessBusiness

Buyer Buyer BehaviorBehavior

Chapter 5Next Exit

2

5-2Prentice Hall, Copyright 2009

Rest Stop:Rest Stop: Previewing the ConceptsPreviewing the Concepts

1. Describe the consumer market and the major factors that influence consumer buyer behavior.

2. Identify and discuss the stages in the buyer decision process.

3. Describe the adoption and diffusion process for new products.

4. Define the business market and identify the major factors that influence business buyer behavior.

5. List and define the steps in the business buying decision process.


Building SuccessBuilding SuccessOffers good bikes,

upgraded showrooms and revised sales tactics.

Consumer emotions, motivations, and lifestyle research has been translated into effective advertising.

Harley riders are fiercely loyal to the brand, older, better educated, affluent.

Harley-Davidson –Harley-Davidson – Devoted ConsumersDevoted ConsumersCase StudyCase Study

Measuring SuccessMeasuring SuccessCurrently has 26% of all U.S.

bike sales and 50% of heavyweight segment.

Demand outstripped supply for several years; waits of up to 2 yrs. for some bikes.

Annual revenues / earnings have grown at 14% / 23% over past 10 years. 2007: 21st straight year of record sales and income.


Consumer Markets and Consumer Markets and Consumer Buying BehaviorConsumer Buying Behavior

Consumer buying behavior:– Refers to the buying behavior of people who

buy goods and services for personal use.– These people make up the consumer

market. The central question for marketers is:

– “How do consumers respond to various marketing efforts the company might use?”

Prentice Hall, Copyright 2009 5-5

Figure 5.1Figure 5.1Models of Buyer BehaviorModels of Buyer Behavior


Figure 5.2Figure 5.2Factors Influencing Consumer Factors Influencing Consumer

BehaviorBehavior


CultureCulture

Culture is the most basic cause of a person's wants and behavior.– Culture is learned from family, church,

school, peers, colleagues.– Culture reflects basic values,

perceptions, wants, and behaviors.– Cultural shifts create opportunities for

new products or may otherwise influence consumer behavior.


Subculture:– Groups of people with shared value

systems based on common life experiences.

Major subculture groups:– Hispanic consumers– African-American consumers– Asian-American consumers– Mature consumers

SubcultureSubculture


Targeting African-AmericansP&G has successfully targeted many African-American consumers via its Cover Girl Queen Latifah line, which is specially formulated to “celebrate the beauty of women of color.”

Marketing in Action


Social class:

– 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.

Social ClassSocial Class


Figure 5.3Figure 5.3Major American Social ClassesMajor American Social Classes


Groups and social networks:– Membership, reference, and

aspirational groups.•Marketers attempt to reach opinion

leaders in the hope that they will generate “buzz” about new products.

– Online social network use is growing more prevalent, and marketers are trying to capitalize upon this trend.

Social FactorsSocial Factors


Selling in a Digital World

Adidas is one of many marketers selling digital versions of itself on Second Life.

Other firms post ad clips on YouTube or use social networks to interact with users.

Marketing in Action


Fuel for ThoughtFuel for Thought

Using social networks such as MySpace, Facebook, and YouTube for marketing purposes can easily backfire because the content is user controlled.

Think about the online networks you belong to—what tips would you offer to help marketers avoid problems?


Family:– Most important consumer buying

organization. Roles and status:

– Role = Expected activities– Status = Esteem given to role by

society

Social FactorsSocial Factors


Personal FactorsPersonal Factors

Age and life-cycle stage:– People change the

goods they buy over their lifetimes.• Parents with

children purchase different vehicles than do older adults whose kids are grown.



Occupation:– Occupation influences the purchase of

clothing and other goods.

Economic situation:– Some goods and services are

especially income-sensitive.


People within the same subculture, social class, and occupation may have different lifestyles.– Patterns of living are expressed in

psychographics.



Quick FlickQuick FlickChanging Lifestyles Challenge Marketers

Click to play video


Lifestyle Analysis

Psychographics form the basis for lifestyle analysis, as they measure and track consumers activities (hobbies, sports, social events, etc.), interests (recreation, fashion, food, etc.) and opinions (social interests, etc.).

Marketing in Action


Personality: – Refers to the unique psychological

characteristics that lead to relatively consistent and lasting responses to one’s own environment.

– Generally defined in terms of traits.– Self-concept theory suggests that

people’s possessions contribute to and reflect their identities.



Psychological FactorsPsychological Factors

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

Maslow’s hierarchy of needs explains why people are driven by needs at particular times.


Figure 5.4Figure 5.4Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs


Perception:– Process by which people select,

organize, and interpret information to form a meaningful picture of the world.

– Perception can be influenced by:•Selective attention

•Selective distortion

•Selective retention



Learning:– Defined as a relatively permanent change in

behavior due to experience.– Occurs due to an interplay of drives, stimuli,

cues, responses, and reinforcement.– Is strongly influenced by the consequences

of an individual’s behavior.• Behaviors with satisfying results tend to be

repeated.

• Behaviors with unsatisfying results tend not to be repeated.



Belief: – A descriptive thought that a person

holds about something.

Attitude:– A person’s consistently favorable or

unfavorable evaluations, feelings, and tendencies toward an object or idea.

Beliefs and AttitudesBeliefs and Attitudes


Changing AttitudesAttitudes are difficult to change, but the National Fluid Milk Processor’s milk moustache campaign has succeeded in grand style. The long-running ad campaign has used a variety of celebrities appealing to many segments.

Marketing in Action


Figure 5.5Figure 5.5Buyer Decision ProcessBuyer Decision Process


Need recognition can be triggered by internal or external stimuli.

Several sources of information may used during information search:– Personal sources– Commercial sources– Public sources– Experiential sources

Need Recognition and Need Recognition and Information SearchInformation Search


Using Advertising as a TriggerAdvertising such as the ad at left can trigger consumer need recognition. This innovative ad from Clorox triggers need recognition by telling parents that:

“This is how babies see the world. Keep it clean.”

Marketing in Action


Evaluation process is dependent upon the specific buying situation and the individual consumers.

Two factors that may interfere with realization of purchase intentions:– Attitudes of others– Unexpected situational factors

Evaluation of Alternatives and Evaluation of Alternatives and Purchase DecisionPurchase Decision


Consumer satisfaction is a function of consumer expectations and perceived product performance.– Performance < Expectations:

Disappointment– Performance = Expectations:

Satisfaction– Performance > Expectations:

Delight

Post Purchase BehaviorPost Purchase Behavior


Cognitive DissonanceCognitive Dissonance

A buyer’s doubts shortly after a purchase about whether it

was the right decision.

Marketers combat cognitive dissonance via 1-800 numbers, FAQs, and Web

feedback forms.


Adoption ProcessAdoption Process

The mental process through which an individual passes from first hearing about an

innovation to final adoption.


1. Awareness: Consumer becomes aware of the new product, but lacks information about it.

2. Interest: Consumer seeks information about new product.

3. Evaluation: Consumer considers whether trying the new product makes sense.

4. Trial: Consumer tries new product on a small scale to improve his or her estimate of its value.

5. Adoption: Consumer decides to make full and regular use of the new product.

Stages in the Adoption ProcessStages in the Adoption Process


Encouraging TrialSales promotions tactics such as in-store, direct mail, or at-event sampling are very effective methods of generating product trial and stimulating adoption. Coupons can also be used to encourage trial as shown in the ad at left.

Marketing in Action


Individual differences influence the speed with which people will try to new products, yielding five adopter categories:– Innovators– Early adopters– Early majority– Late majority– Laggards

Adopter CategorizationAdopter Categorization


Relative Advantage: Is the innovation superior to existing products?

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

Complexity: Is the innovation difficult to understand or use?

Divisibility: Can the innovation be used on a limited basis?

Communicability: Can results be easily observed or described to others?

Product Characteristics That Product Characteristics That Influence the Rate of AdoptionInfluence the Rate of Adoption


Rate Netflix’s Characteristics

The characteristics which influence the rate of product adoption also impact how quickly services are adopted.

Review the ad at right, and rate Netflix on each characteristics. Which characteristics will hinder or help adoption?

Marketing in Action


Business Markets and Business Business Markets and Business Buyer BehaviorBuyer Behavior

The business market is vast and involves far more dollars and items than do consumer markets.

Business buyer behavior:– Refers to the buying behavior of the

organizations that buy goods and services for use in the production of other products and services, or for the purpose of reselling, or renting them to others for a profit.


Figure 5.7Figure 5.7A Model of Business Buyer BehaviorA Model of Business Buyer Behavior


Business MarketsBusiness Markets

Market Structure and Demand:– Contains far fewer

but larger buyers.– Buyers are more

geographically concentrated.

– Business demand is derived from consumer demand.

Nature of the Buying Unit:– Business

purchases involve more decision participants.

– Business buying involves a more professional purchasing effort.


Derived Demand

The demand for Intel’s computer chips is derived from the demand for PCs.

Intel has invested heavily in ads targeting PC users, as their desires will influence Dell and other PC firms’ choice of chip supplier.

Marketing in Action


Business MarketsBusiness Markets

Key differences exist between business and consumer buying situations:– Business buyers usually face more complex

buying decisions.– The business buying process tends to be more

formalized.– Buyers and sellers are much more dependent

on each other in business markets.


Straight rebuy:– Buyer routinely reorders something without

any modifications. Modified rebuy:

– Buyer wants to modify product specifications, prices, terms, or suppliers.

New task:– Buyer purchases a product or service for

the first time.– Systems (solution) selling is becoming more

common.

Types of Buying SituationsTypes of Buying Situations


Buying CenterBuying Center

All the individuals and units that participate in the

business buying-decision process.


Participants in the Business Participants in the Business Buying ProcessBuying Process

A buying center is not a fixed or formally identified unit.

Membership will vary for different products and different tasks.


Figure 5.8Figure 5.8Major Influences on Major Influences on

Business Buyer BehaviorBusiness Buyer Behavior


Figure 5.9Figure 5.9Stages in the Stages in the

Business Buying ProcessBusiness Buying Process


Business-to-Business Ads

Business-to-business advertising can help buyers to recognize needs and assist in the supplier search process.

Marketing in Action


e-Procuremente-Procurement

Online purchasing (also callede-procurement) can be implemented many ways:– Reverse auctions– Trading exchanges– Company buying sties– Extranet links with key suppliers


Online Buying

Sun Microsystems’ site helps business customers who want to buy online by providing deep information on its thousands of complex products and services. Users can also email, fax, phone, or engage in a live-online chat.

Marketing in Action



Advantages for buyers:– Access to new suppliers– Lowers purchasing costs– Hastens order processing and delivery

Advantages for vendors:– Share information with customers– Sell products and services– Provide customer support services– Maintain ongoing customer relationships



Key benefits:– Reduces transaction costs to buyers and

sellers, and makes for more efficient purchasing.

– Reduces the time between order and delivery.– Frees purchasing staff to focus on more

strategic issues. Key problems:

– May erode long-standing customer relationships.

– May create potential security disasters.

55


Rest Stop:Rest Stop: Reviewing the ConceptsReviewing the Concepts

1. Describe the consumer market and the major factors that influence consumer buyer behavior.

2. Identify and discuss the stages in the buyer decision process.

3. Describe the adoption and diffusion process for new products.

4. Define the business market and identify the major factors that influence business buyer behavior.

5. List and define the steps in the business buying decision process.

56


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mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

prentice hall, copyright 2009 1 understanding consumer and business buyer behavior chapter 5 next...

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