Lecture fundamentals of marketing - Lecture 9: Consumer markets and consumer buyer behavior (Part 2)

In this chapter, the following content will be discussed: Model of consumer behavior, characteristics affecting consumer behavior, types of buying decision behavior, the buyer decision process, the buyer decision process for new products.

LECTURE­9 Consumer Markets and Consumer Buyer Behavior (Part-2) Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 11- 11 Characteristics Affecting Consumer Behavior Maslow’s Hierarchy of Needs SELF ACTUALIZATION ESTEEM NEEDS Prestige LOVE, AFFECTION, AND BELONGINGNESS NEEDS SAFETY NEEDS Security and Safety PHYSIOLOGICAL OR SURVIVAL NEEDS Food, Water, Warmth, Rest Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Characteristics Affecting Consumer Behavior • Psychological Factors Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes § § § Selective attention Selective distortion Selective retention Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- • Characteristics Affecting Consumer Behavior Psychological Factors Selective attention is the tendency for people to screen out most of the information to which they are exposed Selective distortion is the tendency for people to interpret information in a way that will support what they already believe Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing Copyright © 2012 Pearson Education, Inc 1- brands Publishing as Prentice Hall ã Đ Characteristics Affecting Consumer Behavior Psychological Factors Learning is the change in an individual’s behavior arising from experience and occurs through interplay of: Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Characteristics Affecting Consumer Behavior Psychological Factors ã ã Đ Beliefs and Attitudes Belief is a descriptive thought that a person has about something based on: § Knowledge § Opinion § Faith Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Characteristics Affecting Consumer Behavior Psychological Factors • § Attitudes: describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Types of Buying Decision Behavior Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Types of Buying Decision Behavior ã Four Types of Buying Behavior Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall 1- The Buyer Decision Process ã Buyer Decision Making Process Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 10 The Buyer Decision Process ã Đ Need Recognition Occurs when the buyer recognizes a problem or need triggered by: § Internal stimuli Đ External stimuli Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 11 The Buyer Decision Process ã Information Search ã Sources of Information Đ Personal sources—family and friends § Commercial sources—advertising, Internet § § Public sources—mass media, consumer organizations Experiential sources—handling, examining, using the product Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 12 The Buyer Decision Process ã Đ Evaluation of Alternatives How the consumer processes information to arrive at brand choices Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 13 The Buyer Decision Process ã Đ Đ Purchase Decision The act by the consumer to buy the most preferred brand The purchase decision can be affected by: § Attitudes of others § Unexpected situational factors Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 14 The Buyer Decision Process Post-Purchase Decision ã Đ Đ The satisfaction or dissatisfaction that the consumer feels about the purchase Relationship between: § Consumer’s expectations § Product’s perceived performance The larger the gap between expectation and performance, the greater the consumers dissatisfaction Đ Cognitive dissonance is the discomfort Copyright â caused 2012 Pearson Education, Inc by a post-purchase conflict 1- 15 Publishing as Prentice Hall § The Buyer Decision Process • Post-Purchase Decision Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 16 The Buyer Decision Process for New Products Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use • Stages in the process include: Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 17 The Buyer Decision Process for New Products • Differences in InnovativenessAdopter Categories § Innovators § Early Adopters § Early Majority Đ Late Majority Đ Laggards Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 18 What is Adoption? Adoption is an individual’s decision to become a regular user of a product Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 19 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 20 The Buyer Decision Process for New Products • • Influence of Product Characteristics on Rate of Adoption Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 21 Characteristics of an Innovation § Relative advantage § § Compatibility § § The degree to which the innovation appears superior to existing products The degree to which the innovation matches the values & experiences of the individuals Complexity § The degree to which the innovation is relatively difficult to understand or use Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 22 Characteristics of an Innovation § Divisibility § § The degree to which the innovation can be tried on a limited basis Communicability § The degree to which the beneficial results of use are observable or describable to others Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 23 Bibliography § § § § Principles of Marketing by Philip Kotler & Gary Armstrong Fifteenth Edition, Published by Prentice Hall Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc Principles and Practices of Marketing by Jobber, D 4th edition, McGraw Hill International Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 24 The End "Don't be afraid of the space between your dreams and reality If you can dream it, you can make it so." Belva Davis  Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 25 ... Prentice Hall 1- Types of Buying Decision Behavior Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Types of Buying Decision Behavior ã Four Types of Buying Behavior Copyright... Prentice Hall § The Buyer Decision Process • Post-Purchase Decision Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their... about a brand they favor and forget good points about competing Copyright © 2012 Pearson Education, Inc 1- brands Publishing as Prentice Hall ã Đ Characteristics Affecting Consumer Behavior Psychological