Consumer Markets and Consumer Buyer Behavior

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Consumer Markets and Consumer Buyer Behavior
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Definitions

• Consumer Buying Behavior
• Buying behavior of individuals and households
  that buy products for personal consumption.
• Consumer Market
• All individuals/households who buy products for
  personal consumption.

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Model of Consumer Behavior
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Model of Consumer Behavior

• Stimulus Response Model
• Marketing and other stimuli enter the buyers
  black box and produce certain choice / purchase
  responses.
• Marketers must figure out what is inside of the
  buyers black box and how stimuli are changed
  to responses.

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Factors Influencing Consumer Behavior
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Components

• Individual Factors
• Consumers resources
• Motivation involvement
• Knowledge
• Attitudes
• Lifestyle personality

• Social Factors
• Family
• Interpersonal influence
• Social class
• Culture
• Situation
• Psychological Processes
• Attention perception
• Memory DM
• Learning
• Attitude change persuasion

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Characteristics Affecting Consumer Behavior

• Culture
• Subculture
• Social Class

Key Factors

• Cultural
• Social
• Personal
• Psychological

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Characteristics of Social Classes

• Within a class, people tend to behave alike
• Social class conveys perceptions of inferior or
  superior position
• Class may be indicated by a cluster of variables
  (occupation, education, wealth)
• Class designation is mobile over time

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SES Ölçegi
TEMEL YAKLASIM
Hane
Hane Reisi
Hane Reisinin Esi
Anne
Baba
Baba
Anne
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TEMEL YAKLASIM
SES Çalismasi

• Hane Reis Reisin Esi
• Reis Kendisi Babasi Annesi
• Reisin Esi Kendisi Babasi Annesi

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TEMEL YAKLASIM
SES Çalismasi

• Hane nin Egitim Durumu
• Hane nin Meslek Durumu

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HANENIN EGITIM DURUMU
0.70
Reisin babasinin egitimi
0.30
Reisin egitimi
Önceki kusagin egitimi
Reisin annesinin egitimi
0.30
Reisin kendi egitimi
0.70
0.70
Hanenin Egitim Durumu
0.30
0.70
Reis esinin kendi egitimi
Reisin esinin egitimi
0.70
Reis esinin babasinin egitimi
Önceki kusagin egitimi
Reis esinin annesinin egitimi
0.30
0.30
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HANENIN MESLEK DURUMU
0.70
Reisin babasinin meslegi
0.30
Reisin meslegi
Önceki kusagin meslegi
Reisin annesinin meslegi
0.30
Reisin kendi meslegi
0.70
0.70
Hanenin Meslek Durumu
0.30
0.70
Reis esinin kendi meslegi
Reisin esinin meslegi
0.70
Reis esinin babasinin meslegi
Önceki kusagin meslegi
Reis esinin annesinin meslegi
0.30
0.30
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EGITIM PUANLARI
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MESLEK PUANLARI
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SES Gruplari Puan Araliklari
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SES Dagilimi (AGBNMR/TIAK Örneklemi)
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Characteristics Affecting Consumer Behavior

• Groups
• Membership
• Reference
• Aspirational
• Dissociative
• Membership
• Primary/Secondary
• Opinion leaders
• Family
• Roles and Status

Key Factors

• Cultural
• Social
• Personal
• Psychological

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• Behavior changes
• according to life cycle stage
• Family
• Psychological
• Critical life events

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Characteristics Affecting Consumer Behavior

• Age and life-cycle
• Occupation
• Economic situation
• Lifestyle
• Activities, interests, and opinions
• Lifestyle segmentation
• Personality and self-concept

Key Factors

• Cultural
• Social
• Personal
• Psychological

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AIOs and Lifestyle Dimensions
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Characteristics Affecting Consumer Behavior

• MotivationInvolvement
• Needs provide motives
• Motivation research
• Perception
• Selective attention
• Selective distortion
• Selective retention
• Learning
• Drives, stimuli, cues, responses and
  reinforcement
• Beliefs and attitudes

Key Factors

• Cultural
• Social
• Personal
• Psychological

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Attitudes

• A predisposition to respond in a consistently
  favorable or unfavorable way
• An individuals affective reaction to or overall
  evaluation of an object, person, action, or
  concept

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Involvement

• Involvement Profile
• Personal interest in a product category
• Importance of negative consequences
• Probability of making a mistake
• Pleasure value of the product category
• Sign value of the product category
• How closely the product is related to the self

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Types of Buying Behavior
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The Buyer Decision Process
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The Buyer Decision Process
Stages

• Needs can be triggered by
• Internal stimuli
• Normal needs become strong enough to drive
  behavior
• External stimuli
• Advertisements
• Friends of friends

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior

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The Buyer Decision Process
Stages

• Consumers exhibit heightened attention or
  actively search for information.
• Sources of information
• Personal
• Commercial
• Public
• Experiential
• Word-of-mouth

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior

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The Buyer Decision Process
Stages

• Evaluation procedure depends on the consumer and
  the buying situation.
• Most buyers evaluate multiple attributes, each of
  which is weighted differently.
• At the end of the evaluation stage, purchase
  intentions are formed.

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior

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The Buyer Decision Process
Stages

• Two factors intercede between purchase intentions
  and the actual decision
• Attitudes of others
• Unexpected situational factors

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior

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The Buyer Decision Process
Stages

• Satisfaction is key
• Delighted consumers engage in positive
  word-of-mouth.
• It costs more to attract a new customer than it
  does to retain an existing customer.
• Cognitive dissonance

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior

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Elaboration Issue relevant thinking

• High Elaboration
• Extensive IP
• Extensive time
• Extensive mental capacity
• Extensive motivation
• Controlled thinking
• Deep thinking
• Systematic thinking
• Effortful analysis

• Low Elaboration
• Limited IP
• Limited time
• Limited mental capacity
• Limited motivation
• Automatic thinking
• Shallow thinking
• Heuristic thinking
• Mindless analysis

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ELM

• Persuasion f (Elaboration)
• Elaboration f (Motivation, Ability)
• Motivation
• Involvement
• Need for cognition
• Ability
• Capacity
• Timing
• Repetition
• Distraction

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Persuasion with ELM

• Target High Elaboration
• Strategy Central Route
• Persuasion occurs by
• Careful thinking
• Thoughtful analysis
• Deep consideration
• True merits of info

• Target Low Elaboration
• Strategy Peripheral Route
• Persuasion occurs by
• Simple cues
• Irrelevant info
• Hedonistic content
• Side issues

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The Source

• Source effects A message will have different
  effects if communicated by a different source.
• Two important source characteristics
• Credibility and Attractiveness
• Source credibility A sources perceived
  expertise, objectivity, or trustworthiness.
• Attractiveness A sources perceived likeability,
  similarity, celebrity.

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The Message

• Message Strength
• Relevancy
• Objectivity
• Verifiability
• One- Versus Two-Sided Arguments
• Supportive argument Presents only positive
  arguments
• Two-sided message Presents positive and negative
  info
• Drawing Conclusions
• Comparative Advertising
• A strategy in which a message compares two or
  more recognized brands and compares them on the
  basis of attributes.

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Buyer Decision Process for New Products

• New Products
• Good, service or idea that is perceived by
  customers as new.

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Stages in the Adoption Process
Awareness Consumer is aware of product, but
lacks information.
Interest Consumer seeks Information about new
product.
Evaluation Consumer considers trying new product.
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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.

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Adopter Categories Based on Relative Time of
Adoption
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Buyer Decision Process for New Products

• Product Characteristics and Adoption
• Five product characteristics influence the
  adoption rate.

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Influence of Product Characteristics on Rate of
Adoption
Relative Advantage Is the innovation superior
to existing products?
Communicability Can results be easily observed
or described to others?
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?