Transcript Consumer Buying Behavior - Cook's Classroom | …raising

Consumer Buying
Behavior
What makes people consumers?
Topics
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Buying Behavior
Characteristics Affecting Behavior
Buying Decisions
Buying Process
New Product Adoption
Consumers
• Consumer Market
– All individuals and households who buy for
personal use
• Consumer buying behavior
– Reasons and logic behind purchasing
decisions
• U.S. market > 300 million
• Worldwide > 6 billion
– Expected to be over 8 billion by 2025
Consumers
• How do consumers respond to marketing
attempts?
• Influences
– Marketing Mix: price, place, product, promotion
• Consumer
– Characteristics and decision process
• Responses
– Product, brand, dealer choice, purchase timing
Behavior Characteristics
• Cultural
– Broadest and
deepest influence
• Includes
– Culture
– Subculture
– Social class
Culture
• Most basic cause of wants and needs
• Cultural behavior is learned, not inherited
• Different cultures have different values
– Recall from earlier sections
• Marketers need to be aware of cultural
shifts in order to target products correctly
Subculture
• Smaller groups within a culture that share
common interests and traits
– Typically identifiable through demographics
• 4 major divisions
– Hispanics
– African Americans
– Asian Americans
– 50 plus
Social Class
• Permanent divisions in the subculture
• Not just by income, but also occupation,
education, type of wealth
• Some countries have fixed classes, i.e.
India
• 7 flexible distinction in U.S.
Social Class
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Upper Uppers - > 1%
Lower Uppers – 1%
Upper Middle – 15%
Middle Class – 30%
Working Class – 38%
Upper Lower – 13%
“Working poor”
• Lower Lower – 12%
Social Factors
• Groups
– Membership groups – direct influence
– Reference groups – points of comparison
• Aspirational groups – a group you want to belong
to, sports teams, bands, etc.
– Opinion leaders – those who influence based
on status, skills or personality
Social Factors
• Family
– Most important buying organization
– Continuing changes in family require constant
marketing adaptation
• Role and Status
– Activities people are expected to perform
based on others
– General esteem given by society
Personal Factors
• Age and Life Cycle
Young
Single
Married no kids
Married w/kids
Divorced w/kids
Middle-Aged
Older
Single
Older Married
Married no kids Older Unmarried
Married w/kids
Divorced w/kids
Divorced no kids
Personal Factors
• Occupation
– Mechanics buy differently than lawyers
• Economic situation
– Disposable vs. discretionary income
• Lifestyle
– Pattern of living, dictated by psychographics
Lifestyles
• AIO dimensions
– Activities, Interests,
and Opinions
• VALS – Values and
Lifestyles
• Principle Oriented
• Status Oriented
• Action Oriented
Psychological Factors
• Motivation
• Perception
– Selective Attention
– Selective Distortion
– Selective Retention
Subliminal Messages
• A 1957 study showed that flashing ads
every 5 seconds for 1/300th of a second
increased buying rates
• Later proved to be false information
• Does not work
Buying Decisions
High Involvement
Low
Involvement
Significant Complex
Difference
Variety Seeking
Little
Difference
Habitual
Dissonance
Reducing
Buying Decisions
• Complex Buying
– Product is expensive, risky, purchased
infrequently, great difference in brands
– Computers, Cars
• Dissonance Reducing
– Expensive, infrequent, little difference
between brands
– Carpeting
Buying Decisions
• Habitual Buying
– Low cost, little difference in brands
– Salt, butter, toothpaste
• Variety Seeking
– Low cost, high perceived difference
– Cookies, candy, cereal
Buying Process
• Need Recognition
– Realizes want or need
• Information Search
– Looks for information
– Passively – heightened awareness
– Actively – internet, in store, word-of-mouth,
experiential
Buying Process
• Evaluate Alternatives
– Now informed, considers different brands
• Purchase
– Intention – decides on brand
– Choice – actual purchase of item
• Many factors can change the intention
• Post purchase
– Satisfied customer tells 3 -4 people
– Dissatisfied tells at least 10
New Product Adoption
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Awareness – knows of product
Interest – seeks information
Evaluation – considers purchase
Trial – experiences on small scale
Adoption – accepts or rejects new product
Adoption Curve
Adoption Curve
• Innovators
– tries at great cost
• Early Adopters
– opinion leaders
• Early Majority
– pick up on hot
trend
• Late Majority
– skeptics
• Laggards
– only adopt when it
become a tradition