2. Lecturer: Bahman Moghimi
M.Sc. Of “Industrial Marketing & e-Commerce”
Doctor of Business Administration
Consumer Markets and Consumer Buyer Behavior
University of Georgia
B.Moghimi@yahoo.c
B.Moghimi@yahoo.co.uk o.uk
4. Learning Goals
1. Define the consumer market and
construct a model of consumer buyer
behavior
2. Name the four factors that influence
buyer behavior
3. List and understand the types of
buying decision behavior and stages
in the process
4. Describe the adoption and diffusion
process for new products
B.Moghimi@yahoo.co.uk
5. Case Study
Harley Davidson
Building Success Measuring Success
• Understanding the • Currently 22% of all
customers’ emotions U.S. bike sales
and motivation • Demand above supply
• Determining the • Sales doubled in the
factors of loyalty past 5 years with
• Translating this earnings tripled
information to
effective advertising
5-5
B.Moghimi@yahoo.co.uk
6. Learning Goals
1. Define the consumer market and
construct a model of consumer buyer
behavior
2. Name the four factors that influence
buyer behavior
3. List and understand the types of
buying decision behavior and stages
in the process
4. Describe the adoption and diffusion
process for new products
B.Moghimi@yahoo.co.uk
7. Definitions
• Consumer buyer behavior refers to the
buying behavior of final consumers –
individuals and households who buy
goods and services for personal
consumption
• All of these final consumers combine to
make up the consumer market
B.Moghimi@yahoo.co.uk
8. Learning Goals
1. Define the consumer market and
construct a model of consumer buyer
behavior
2. Name the four factors that influence
buyer behavior
3. List and understand the types of
buying decision behavior and stages
in the process
4. Describe the adoption and diffusion
process for new products
B.Moghimi@yahoo.co.uk
9. Model of Consumer Behavior
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
Brand Choice Buyer’s Response Timing
Dealer Choice Purchase
Amount
B.Moghimi@yahoo.co.uk
10. Model of Buyer Behavior
Figure 5.1
5 - 10
B.Moghimi@yahoo.co.uk
13. Characteristics Affecting
Consumer Behavior
– Culture
Key Factors • Forms a person’s wants
and behavior
• Cultural – Subculture
• Groups with shared value
• Social systems
• Personal
– Social Class
• Psychological • Society’s divisions who
share values, interests and
behaviors
B.Moghimi@yahoo.co.uk
16. Characteristics Affecting Consumer Behavior
Sub-Culture
• Hispanic consumers: one third of the US
population
• Hispanic consumers tend to buy more
branded, higher quality products
• African-American consumers: they are
motivated by quality and selection. Brands
are important
B.Moghimi@yahoo.co.uk
17. Characteristics Affecting Consumer Behavior
Sub-Culture
• Asian American: they are the second
fastest growing population sub segment
after the Hispanics.
• More than 90% of the Asian American
Go online regularly and are most
comfortable with internet technology
such as online banking
B.Moghimi@yahoo.co.uk
18. Characteristics Affecting Consumer Behavior
Sub-Culture
• Mature consumers: very attractive market.
The entire U.S baby boom generation, the
largest and the wealthiest demographic
cohort in the country.
• Mature consumers are not stuck in their
ways
B.Moghimi@yahoo.co.uk
19. Characteristics Affecting
Consumer Behavior
– Groups
• Membership
Key Factors • Reference
– Aspiration
• Cultural • Opinion leaders
– Buzz marketing
• Social
• Personal – Family
• Psychological • Many influencers
– Roles and status
B.Moghimi@yahoo.co.uk
20. Characteristics Affecting Consumer Behavior
Social Factor
• In some social systems, members of different
classes are reared for certain roles and cant
change their social positions. In other country,
however, the lines between social classes are not
fixed and rigid, people can move to a higher
social class or drop into a lower one.
B.Moghimi@yahoo.co.uk
21. Characteristics Affecting Consumer Behavior
Social Factor
• Marketers are interested in social class
because within a given social class tend to
exhibit similar buying behavior. Social classes
show distinct product and brand preferences
in areas such as clothing , home furnishings,
and automobiles.
B.Moghimi@yahoo.co.uk
24. This
advertiser
knows teens
are strongly
influenced
by groups
when
purchasing
fashion
items B.Moghimi@yahoo.co.uk 5 - 24
Marketing in Action
25. Groups and Social Networks
Online Social Networks are
online communities where
people socialize or exchange
information and opinions
Include blogs, social
networking sites (Facebook),
virtual worlds (second life)
B.Moghimi@yahoo.co.uk
26. Social Factors ( family )
Family is the most important consumer-buying
organization in society
Marketers are interested in the roles and influence of
the husband, wife and children on the purchase of
different products and services
The wife traditionally has been the main purchasing
agent for the family.
B.Moghimi@yahoo.co.uk
27. Social Factors ( family )
Children may also have a strong influence on family
buying decisions
Studies found that kids influence family decisions
about where they take vacations , what cars or cell
phones they buy. As a result , marketers of cars , full
service restaurants , cell phones are now placing ads on
the children oriented TV networks
B.Moghimi@yahoo.co.uk
28. Social Factors (roles and status)
Social roles and status
are the groups, family,
clubs, and organizations
that a person belongs to
that can define role and
social status
A role consists of the
activities that people
expected to perform
according to the persons
around them
B.Moghimi@yahoo.co.uk
29. Social Factors (roles and status)
Each role carries a status reflecting the general esteem
given to it by society.
People usually choose products appropriate to their
roles and status. Consider the roles a working mother
plays
B.Moghimi@yahoo.co.uk
30. Characteristics Affecting
Consumer Behavior
– Age & Lifestyle
Key Factors •Activities, interests and
opinions
• Cultural •Lifestyle segmentation
• Social – Occupation
– Economic situation
• Personal
– Personality and self-concept
• Psychological
B.Moghimi@yahoo.co.uk
37. Psychological Factors
Motivation
• A motive is a need that is sufficiently pressing to
direct the person to seek satisfaction
• Motivation research is based on Freud. Looks
for hidden and subconscious motivation
• Maslow ordered needs based on how pressing
they are to the consumer
B.Moghimi@yahoo.co.uk
43. Psychological Factors
Perception
• Perception is the process by which people
select, organize, and interpret information.
• Perception Includes:
– Selective attention
• Consumers screen out information
– Selective distortion
• People interpret to support beliefs
– Selective retention
• People retain points to support attitudes
B.Moghimi@yahoo.co.uk
44. Discussion Question
Perception
1. How many ads
were you exposed
to today?
2. Which ones do you
remember? Why?
B.Moghimi@yahoo.co.uk 5 - 44
45. Psychological Factors
Learning
• Learning describes changes in an individual’s
behavior arising from experience
• Learning occurs through
– Drives
• Internal stimulus that calls for action
– Stimuli
• Objects that move drive to motive
– Cues
• Minor stimuli that affect response
– Reinforcement
• Feedback on action
B.Moghimi@yahoo.co.uk
46. Psychological Factors
Beliefs and Attitudes
• Belief
– a descriptive thought about a brand or
service
– may be based on real knowledge, opinion,
or faith
• Attitude
– describes a person’s evaluations, feelings
and tendencies toward an object or idea
– They are difficult to change
B.Moghimi@yahoo.co.uk
47. Learning Goals
1. Define the consumer market and
construct a model of consumer buyer
behavior
2. Name the four factors that influence
buyer behavior
3. List and understand the types of
buying decision behavior and stages
in the process
4. Describe the adoption and diffusion
process for new products
B.Moghimi@yahoo.co.uk
50. The Buyer Decision
Process
Process Stages • Needs can be triggered by:
– Internal stimuli
• Need recognition • Normal needs become
• Information search strong enough to drive
• Evaluation of behavior
alternatives – External stimuli
• Purchase decision • Advertisements
• Postpurchase • Friends of friends
behavior
B.Moghimi@yahoo.co.uk
51. The Buyer Decision Process
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
B.Moghimi@yahoo.co.uk
52. The Buyer Decision
Process
Process Stages • Consumers exhibit
heightened attention or
• Need recognition actively search for
information
• Information search
• Sources of information:
• Evaluation of
alternatives – Personal
• Purchase decision – Commercial
• Postpurchase – Public
behavior – Experiential
– Word-of-mouth
B.Moghimi@yahoo.co.uk
53. The Buyer Decision Process
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
B.Moghimi@yahoo.co.uk
54. The Buyer Decision
Process
Process Stages • Evaluation procedure
depends on the consumer and
• Need recognition the buying situation.
• Information search • Most buyers evaluate multiple
• Evaluation of attributes, each of which is
alternatives weighted differently.
• Purchase decision • At the end of the evaluation
stage, purchase intentions are
• Postpurchase
formed.
behavior
B.Moghimi@yahoo.co.uk
55. 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.
B.Moghimi@yahoo.co.uk
56. The Buyer Decision
Process
Process Stages • Two factors intercede
between purchase
• Need recognition intentions and the actual
• Information search decision:
• Evaluation of – Attitudes of others
alternatives – Unexpected situational
• Purchase decision factors
• Postpurchase
behavior
B.Moghimi@yahoo.co.uk
57. The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Unexpected
Attitudes
situational
of others
factors
Purchase Decision
B.Moghimi@yahoo.co.uk
58. The Buyer Decision
Process
Process Stages • Satisfaction is important:
– Delighted consumers
• Need recognition engage in positive word-
• Information search of-mouth.
• Evaluation of – Unhappy customers tell
on average 11 other
alternatives people.
• Purchase decision • Cognitive dissonance is
• Postpurchase common
behavior
B.Moghimi@yahoo.co.uk
59. The Buyer Decision Process
Step 5. Post-purchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived
Performance
Satisfied Dissatisfied
Customer! Customer
Cognitive Dissonance
B.Moghimi@yahoo.co.uk
61. Learning Goals
1. Define the consumer market and
construct a model of consumer buyer
behavior
2. Name the four factors that influence
buyer behavior
3. List and understand the types of
buying decision behavior and stages
in the process
4. Describe the adoption and diffusion
process for new products
B.Moghimi@yahoo.co.uk
62. Buyer Decision Process
for New Products
• Stages in the Adoption Process
– Marketers should help consumers move
through these stages.
• New Products
– Good, service or idea that is perceived by
customers as new.
B.Moghimi@yahoo.co.uk
63. Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
B.Moghimi@yahoo.co.uk
64. Buyer Decision Process
for New Products
• Individual Differences in Innovativeness
– Consumers can be classified into five
adopter categories, each of which behaves
differently toward new products.
• Product Characteristics and Adoption
– Five product characteristics influence the
adoption rate.
B.Moghimi@yahoo.co.uk
67. 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?
B.Moghimi@yahoo.co.uk
68. Discussion Question
• Why might the
adoption process
be slow for a home
robot?
5 - 68
Marketing in Action Source: Business Week
B.Moghimi@yahoo.co.uk Source: Business Week
69. Buyer Decision Process
for New Products
• International Consumer Behavior
– Values, attitudes and behaviors differ greatly in
other countries.
– Physical differences exist which require changes in
the marketing mix.
– Customs vary from country to country.
– Marketers must decide the degree to which they
will adapt their marketing efforts.
B.Moghimi@yahoo.co.uk