KOTCHA05.ppt 169KB Nov 01 2010 08:16:54 PM

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5-1

Chapter

5

Chapter

5

PRINCIPLES OF MARKETING

Eighth Edition

Philip Kotler and Gary Armstrong

Consumer Markets

and

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5-2

Consumer Buying Behavior

•

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?”

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Model of Consumer Behavior

Marketing and Other Stimuli

Marketing and Other Stimuli

Buyer’s Black Box

Buyer’s Response

Product Price Place

Promotion

Economic

Technological Political

Cultural

Characteristics Affecting

Consumer Behavior Buyer’s

Decision Process

Product Choice Brand Choice Dealer Choice

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5-4

Characteristics Affecting

Consumer Behavior

Characteristics Affecting

Consumer Behavior

Buyer

Psychological Personal

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Factors Affecting Consumer Behavior:

Culture

Factors Affecting Consumer Behavior:

Culture

Social Class

• People within a social class tend to exhibit similar buying behavior.

• _Occupation

• Income

• Education

• Wealth

Social Class

• People within a social class tend to exhibit similar buying behavior.

• _Occupation

• Income

• Education

• Wealth

•

Most basic cause of a person's wants and

behavior.

•

Values

•

Perceptions

•

Most basic cause of a person's wants and

behavior.

•

Values

•

Perceptions

Subculture

• Groups of people with shared value systems based on common life experiences.

• Hispanic Consumers

• African American Consumers

• Asian American Consumers

• Mature Consumers

Subculture

• Groups of people with shared value systems based on common life experiences.

• Hispanic Consumers

• African American Consumers

• Asian American Consumers

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Factors Affecting Consumer Behavior:

Social

Groups

• Membership • Reference

Groups

• Membership • Reference

Family

• Husband, wife, kids • Influencer, buyer, user

Family

• Husband, wife, kids • Influencer, buyer, user

Roles and Status

Social Factors

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5-7

Personal

Personal Influences

Age and Family Life Cycle Stage

Age and Family Life Cycle

Stage OccupationOccupation

Economic Situation

Lifestyle Identification

Activities

Activities Opinions_Opinions

Interests

Personality & Self-Concept

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5-8

VALS 2

Principle Oriented Status Oriented Action Oriented

Achievers

Actualizers

Strugglers

Strivers

Fulfilleds

Believers

Experiencers

Makers

Abundant Resources

Abundant Resources

Minimal Resources

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Factors Affecting Consumer Behavior:

Psychological

Psychological Factors

Motivation Motivation

Perception

Learning Learning Beliefs and

Attitudes Beliefs and

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5-10

Maslow’s Hierarchy of Needs

Esteem Needs (self-esteem, status)

Social Needs

(sense of belonging, love)

Safety Needs

(security, protection)

Physiological Needs

(hunger, thirst)

Self

Actualization

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5-11

Types of Buying Decisions

Complex Buying Behavior

Dissonance-Reducing Buying

Behavior

Variety-Seeking Behavior

Habitual Buying Behavior

High

Involvement Significant

differences between brands Few differences between brands

Low

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5-12

The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior

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5-13

Step 1. Need Recognition

External Stimuli

• _{TV advertising}

•_{Magazine ad}

• Radio slogan

•Stimuli in the environment

External Stimuli

• _{TV advertising}

•_{Magazine ad}

• Radio slogan

•Stimuli in the environment Internal Stimuli

• Hunger

• Thirst

• A person’s normal needs

Internal Stimuli

• Hunger

• Thirst

• A person’s normal needs

Need Recognition

Difference between an actual state and a desired state

Need Recognition

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5-14

The Buyer Decision Process

Step 2. Information Search

•Family, friends, neighbors

•Most influential source of information

•Advertising, salespeople

•Receives most information from these sources

•Mass Media

•Consumer-rating groups

•Handling the product

•Examining the product

•Using the product

Personal Sources Personal Sources

Commercial Sources Commercial Sources

Public Sources Public Sources

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5-15

The Buyer Decision Process

Step 3. Evaluation of Alternatives

Product Attributes

Evaluation of Quality, Price, & Features

Product Attributes

Evaluation of Quality, Price, & Features

Degree of Importance

Which attributes matter most to me?

Degree of Importance

Which attributes matter most to me?

Brand Beliefs

What do I believe about each available brand?

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?

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.

Evaluation Procedures

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The Buyer Decision Process

Step 4. Purchase Decision

Purchase Intention

Desire to buy the most preferred brand Purchase Intention

Desire to buy the most preferred brand

Purchase Decision Purchase Decision Attitudes

of others

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5-17

The Buyer Decision Process

Step 5. Postpurchase Behavior

Consumer’s Expectations of Product’s Performance

Consumer’s Expectations of Product’s Performance

Dissatisfied Customer

Satisfied Customer!

Product’s Perceived Performance

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5-18

Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption

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Adoption of Innovations

P

er

ce

nt

ag

e

of

A

do

pt

er

s

Time of Adoption

Early Late

In

no

va

to

rs

Early Adopters

Early Majority

2.5%

13.5%

34% 34%

16%

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5-20

Influences on the Rate of Adoption

of New Products

Influences on the Rate of Adoption

of New Products

Divisibility

Can the innovation be used on a

trial basis?

Compatibility

Does the innovation fit the values and experience of the

target market?

Complexity

Is the innovation difficult to

understand or use?

Relative Advantage

Is the innovation superior to existing

products?

Communicability

Can results be easily observed or described

to others?

Product