Consumer Buying

Model of Buying Behavior Marketing Other stimuli stimuli Product Price Place Promotion

Economic Technological Political Cultural

Buyer’s Buyer’s decision characteristics process Cultural Social Personal Psychological

Problem recognition Information search Evaluation Decision Postpurchase behavior

Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount

Cultural Factors Culture Subculture Social Class

Buyer

Culture A set of values, perceptions , preferences, and that guide one’s behaviors.

Culture Subculture Social Class

Buyer

Subculture

Smaller cultures that provide more specific identification and socialization for their members: nationalities, religions, racial groups, geographical regions

Culture Subculture Social Class

Buyer

Social Class

Relatively homogeneous divisions in a society, hierarchically ordered. In the US, they are based upon income, occupation, and education.

Culture Subculture Social Class

Buyer

Upper-middle-class

Michelob - Upper-middle-class product position: super premium price; prestige themes; status/professional backgrounds

Middle-class

Budweiser - Middle-class product position: premium price; achievement, sharing themes; middle-class backgrounds

Working-class

Busch - Working-class product position: popular price; sports themes; working-class backgrounds

Model of Buying Behavior Marketing Other stimuli stimuli Product Price Place Promotion

Economic Technological Political Cultural

Buyer’s Buyer’s decision characteristics process Cultural Social Personal Psychological

Problem recognition Information search Evaluation Decision Postpurchase behavior

Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount

Social Factors Reference Groups Family

Roles & Statuses

Roles Republican Church member College student Basketball player

Roommate

INDIVIDUAL

Bookstore employee AMA member

Daughter

Model of Buying Behavior Marketing Other stimuli stimuli Product Price Place Promotion

Economic Technological Political Cultural

Buyer’s Buyer’s decision characteristics process Cultural Social Personal Psychological

Problem recognition Information search Evaluation Decision Postpurchase behavior

Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount

Influences on Consumer Behavior Personal Influences Age and Family Life Cycle Stage Occupation & Economic Circumstances

Lifestyle Personality & Self-Concept

Family Life Cycle

Young Single Young Married Full nest 1 (> 35) Single parent 1 Middle aged single (36-65) Full nest 2 (36-65) Single Parent 2 (36-65) Empty Nest 1 (36-65) Older Single (<65) Empty Nest 2 (<65)

Kids at home Yes No          

Marital status S M          

http://future.sri.com/VALS/VALSindex.shtml

Dimensions of a Consumer’s Self-Concept Dimensions of Self-Concept

Actual Self-Concept

Ideal Self-Concept

Private Self

How I actually see myself.

How I would like to see myself.

Social Self

How others actually see me.

How I would like others to see me.

Model of Buying Behavior Marketing Other stimuli stimuli Product Price Place Promotion

Economic Technological Political Cultural

Buyer’s Buyer’s decision characteristics process Cultural Social Personal Psychological

Problem recognition Information search Evaluation Decision Postpurchase behavior

Buyer’s decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount

Psychological Factors

Motivation Beliefs & Attitudes Perception Learning

Maslow’s Hierarchy of Needs 5

Selfactualization (self-development and realization)

4 Esteem needs

(self-esteem, recognition)

Social needs 3 (sense of belonging, love)

2 1

Safety needs (security, protection) Psychological needs (food, water, shelter)

EXPECTANCY MODEL OF MOTIVATION

1. Expectancy -

If I try, can I achieve a given level of performance?

2. Instrumentality - If I achieve a given level of performance, will I be rewarded? 3. Valence -

Do I value the reward?

Attitudes and Beliefs Attitudes are the enduring favorable or unfavorable evaluations, emotions, and actions toward some object or idea. Beliefs are descriptive thoughts that a person holds about something.

Learning Changes in behavior caused by information and experience.

Four Types of Buying Behavior High Involvement Significant differences between brands Few differences between brands

Low Involvement

Complex Buying Behavior

VarietySeeking Behavior

DissonanceReducing Buying Behavior

Habitual Buying Behavior

Consumer Buying Process Problem recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior

Sources of consumer information Personal:

Family, friends, neighbors, acquaintances

Commercial: Advertising, salespeople, dealers, packaging, displays, web sites. Public:

Mass media, consumer ratings organizations

Experiential : handling, examining, using the product.  Which is most influential?  Which supplies the largest quantity of information?

How much searching will a consumer do? Depends upon….  Amount of information one starts with  Ease of obtaining information  Value of additional information  Satisfaction derived from searching  Importance of the product to the person

Attribute evaluation process Attributes Computer Memory Graphics

Weight

Price

A

10

8

6

4

B

8

9

8

3

C

6

8

10

5

D

4

3

7

8

Weight

.4

.3

.2

.1

Attribute evaluation process cont.. Computer A = 0.4(10) + 0.3(8) + 0.2(6) + 0.1(4) = 8 Computer B = 0.4(8) + 0.3(9) + 0.2(8) + 0.1(3) = 7.8 Computer C = 0.4(6) + 0.3(8) + 0.2(10) + 0.1(5) = 7.3 Computer D = 0.4(4) + 0.3(3) + 0.2(7) + 0.1(8) = 4.7

Decision Making Sets Total Set

Awareness Set

Consideration Set

Choice Set

Decision

Postpurchase Evaluation in Services

Consumer

Word-of-mouth communications

Past experience

Expected service Gap 5

Gap 1 Marketer

Personal needs

Perceived service Service delivery (including pre- and post-contacts)

Gap 3

External communiGap 4 cations to consumers

Translation of perceptions to service-quality specifications

Gap 2 Management perceptions of consumer expectations