5-Principles of marketing.ppt (618Kb)

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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

_{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

Buyer’s Black Box

Buyer’s Response

Product

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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5-6

Factors Affecting Consumer Behavior:

Social

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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Factors Affecting Consumer Behavior:

Personal

Factors Affecting Consumer Behavior:

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

Fulfilleds

(Innovator)

Fulfilleds

(Innovator)

Abundant Resources

Minimal Resources

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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,

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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

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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

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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.

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Factors Affecting Consumer Behavior:

Psychological

Factors Affecting Consumer Behavior:

Psychological

Factors

Motivation

P

erception

P

erception

Learning

Beliefs and

Attitudes

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5-14

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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Types of Buying Decisions

Complex Buying Behavior

Dissonance-Reducing Buying

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5-16

The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior

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The Buyer Decision Process

Step 1. Need Recognition

The Buyer Decision Process

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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5-18

The Buyer Decision Process

Step 2. Information Search

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

Commercial Sources

Public Sources

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The Buyer Decision Process

Step 3. Evaluation of Alternatives

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

Evaluation Procedures

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5-20

The Buyer Decision Process

Step 4. Purchase Decision

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

Attitudes

of others

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The Buyer Decision Process

Step 5. Postpurchase Behavior

The Buyer Decision Process

Step 5. Postpurchase Behavior

Consumer’s Expectations of

Product’s Performance

Consumer’s Expectations of

Product’s Performance

Dissatisfied

Customer

Dissatisfied

Customer

Satisfied

Customer!

Satisfied

Customer!

Product’s Perceived

Performance

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5-22

Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption

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Adoption of Innovations

P

Time of Adoption

Early Late

I

Early Majority

2.5%

13.5%

34% 34%

16%

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5-24

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