Chapter 5 – Consumer markets and consumer buyer behaviour



Chapter 5 – Consumer markets and consumer buyer behaviour Consumer behaviour: ?A consumer buys products or services for themselves or their household for final consumption ?Consumer (buyer) behaviour is the buying behaviour of final consumers – typically focused on why they did or did not make a purchase ?External factors: Including promotions, price, product issues, channels of distribution, positioning, environmental factors etc. This could also include some personal factors such as employment occupation income and lifestyle ?Internal factors: personal factors that influence purchase behaviour such as personality, motivation, beliefs, attitudes, traits, decision making style and economic situation ?Four types of buying behaviour ?Buyer Decision process?? Need recognition ?Need recognition is the first stage of the buyer decision process in which the consumer recognises a problem or need triggered by: Internal stimuliExternal stimuli ?Information Search ?- The stage of the buyer decision process in which the consumer is motivated to search for more information Sources of information: Personal sources Commercial sources Public sources Experiential sources ?Alternative EvaluationThe stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. ?Purchase decision - Buyer’s decision about which brand to purchase. - The purchase intention may not be the purchase decision due to attitude of others ?Post purchase behaviour-The stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction?SUMMARY OF THE BOOK: ?Objective 1: Name the four major factors that influence consumer buyer behaviour?Key words: Culture, subculture, social class, group, opinion leader, online social networks, lifestyles, personality, motive, perception, learning, belief, attitude ?- Consumer buyer behaviour is influenced by 4 sets of buyer characteristics: CulturalSocialPersonal Psychological - Can be useful in identifying interested buyers and shaping products and appeals to serve consumer needs better. - Culture is the most basic determinant of a person’s wants and behaviour - Subculture have distinct values and lifestyles and can be based on anything from age to ethnicity - Social factors also influence a buyer’s behaviour:A person’s reference groups (Family friends, social networks and professional associations) strongly affect product and brand choice Buyer’s age, life cycle stage, occupation and economic circumstances, personality, and other personal characteristics influence his or her buying decisions. - Consumer lifestyles – the whole pattern of acting and interacting in the world – are also an important influence on purchase decisions. ?- Consumer buying behaviour is also influenced by 4 major psychological facts: MotivationPerceptionLearning and beliefs Attitudes - Each of those provides a different perspective for understanding the workings of the buyer’s black box. ??Objective 2: List and define the major types of buying decision behaviour and the stages in the buyer decision process?Key words: Complex buying behaviour, Dissonance-reducing buying behaviour, habitual buying behaviour, variety seeking buying behaviour, need recognition, information search, alternative evaluation, purchase decision, postpurchase behaviour, cognitive dissonance ?- Buying behaviour may vary greatly across different types of products and buying decision - Consumers undertake complex buying behaviour when they are highly involved in a purchase and perceive significant differences among brands - Dissonance-reducing behaviour occurs when consumers are highly involved but see little difference among brands - Habitual buying behaviour occurs under conditions of low involvement and little significant brand difference - Variety-seeking buying behaviour is when there is a low involvement but significant perceived brand differences. ?Objective 3: Describe the adoption and diffusion process for new products ?Key words: New product, adoption process ?- Product adoption processmental process through which an individual passes from first hearing about the innovation to final adoption 5 steps: Awareness – the consumer becomes aware of the new product but lacks info about it Interest – The consumer seeks info about the productEvaluation – the consumer considers whether trying the new product makes sense Trial – The consumer tries the new product on a small scale to improve his/her estimate of its value Adoption – the consumer decides to make full and regular use of the new product ?- New product marketers must think about how to help consumers move through these stages With regards to the diffusion process consumers respond at different rates, depending consumer and product characteristics ................
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