MODEL OF CONSUMER BEHAVIOR AND THE CONSUMER DECISION PROCESS

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MODEL OF CONSUMER BEHAVIOR AND THE CONSUMER
DECISION PROCESS
Chapter 3

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In this chapter, we focus on 4 parts.
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• 1. The character of automobile consuming and
  classification of the customers
• 2. Framework for consumer research about the
  market7Os
• 3. Consumer's personal behavior
• 4. Organization buying behavior

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1 The character of automobile consuming and
classification of the customers
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• The character of automobile consuming
• As material for production
• As material for consumption
• A kind of merchandise
• Classification of the customers
• Consumer market
• Business market
• Government market
• Reseller market

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2 Framework for consumer research about the
market7Os
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
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3 Consumer's personal behavior
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• 3.1 Basic characteristics of personal consuming
  market
• 3.2 Major factors influencing buying behavior
• 3.3 Model of buyer behavior
• 3.4 Types of buying decision decision behavior
• 3.5 The buyer decision process

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3.1 Basic characteristics of personal consuming
market
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• (1)Flexibility-full. There is a higher
  sensitivity or elasticity in consumers personal
  demands. The needs might be actualized,
  suppressed, transferred, abandoned under a
  certain circumstance.
• (2)Diversity and difference. Consumers pursuit
  individualization.
• (3)Inductivity. Consumers personal demands can
  be derived from some factors.

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3.1 Basic characteristics of personal consuming
market
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• (4)Progression and expansibility. Consumers ask
  more and more perfectly in the driving operation,
  the maintenance, the product function and the
  performance of vehicles.
• (5)Dispersion. Because consumers are
  decentralization in residential regions.
• (6)Substitution. Consumers personal demands can
  be met by competitive products.

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3.1 Basic characteristics of personal consuming
market
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• (7)Flexibility-full. There is a higher
  sensitivity or elasticity in consumers personal
  demands. The needs might be actualized,
  suppressed, transferred, abandoned under a
  certain circumstance.
• (8)Diversity and difference. Consumers pursuit
  individualization.
• (9)Inductivity. Consumers personal demands can
  be derived from some factors.

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3.2 MAJOR FACTORS INFLUENCING BUYING BEHABIOR
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• 3.2.1 Cultural
• 3.2.2 Social
• 3.2.3 Personal
• 3.2.4 Psychological

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• 3.2.1 Cultural Factors
• What is culture?
• The whole value system.
• Include
• Culture
• Subculture groups of people with shared value
  system
• based on common life
  experiences and situation.
• ( different race)
• Social class members shared similar
  values,interests,
• and behaviors.(occupation,income
  ,education,
• wealth,and other variables)

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• 3.2.1 Cultural Factors
• Cultural factors exert the broadest influence
  on consumer behavior. The marketer needs to
  understand the role played by the buyers
  culture, subculture and social class.

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3.2.2 Social factors
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• Social factors Two or more people who interact
  to accomplish individual or mutual goals. Those
  factors consist of societal class, related group,
  family, roles and status (individual position in
  a special group).

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3.2.2 Social Factors
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• Reference Groups
• Groups that have a direct or indirect
  influence on the persons attitudes or behavior.
• Aspiration group(?????)
• Dissociative group(????)
• Opinion leader(?????)
• Family
• Roles And Statues

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3.2.3 PERSONAL FACTORS
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• ?Profession and occupation
• ?Economic situation
• ?Age and life-cycle stage
• ?Life style A persons pattern of living as
  expressed in his or her activities, interests,
  and opinions. ( 8 stages )
• ?Self-concept and Personality Personality is
  usually described in terms of traits such as
  self-confidence, dominance, sociability,
  autonomy, adaptability, defensiveness and
  aggressiveness.

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3.2.4 PSCHOLOGICAL FACTORS
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• (1)Motivation(Drive)
• A need that is sufficiently pressing to
  direct the person to seek satisfaction of the
  need.
• Freuds Theory of Motivation
• People are largely unconscious about the real
  psychological forces shaping their behavior.
• People does not fully understand his or her
  motivation.
• Herzbergs Theory of Motivation (Two-factor
  theory)
• Factors cause dissatisfaction
• Factors cause satisfaction

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.2.4 PSCHOLOGICAL FACTORS
(1)Motivation(Drive)
????(Customer Need)

• ?????(Stated needs)???????????
• ?????(Real needs)?????????????,???????????
• ??????(Unstated needs)????????????????
• ???????(Delight needs)????????,???????????????
• ?????(Secret needs)???????????????????????????(??
  ????

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Maslows Theory of Motivation
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.2.4 PSCHOLOGICAL FACTORS
(1)Motivation(Drive)
The law diminishing marginal utility
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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.2.4 PSCHOLOGICAL FACTORS

• (2)Perception
• The process by which people
  select,organize,and interpret information to form
  a meaningful picture of the world.
• Selective exposure (?????)
• Selective Distortion (?????)
• Selective Retention (?????)
• (3)Learning
• Changes in an individuals behavior arising
  from experience.

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.2.4 PSCHOLOGICAL FACTORS
(4)Belief A descriptive thought that a person
holds about something. ??????????
(5)Attitude A persons consistently favorable
evaluations,feelings and tendencies towards an
object or idea. ????(???????)

• Attention Belief and attitude might be come into
  being incorrectly relay an erroneous information.

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.3 MODEL OF BUYER BEHAVIOR

• Psychological stimuli-response school proposed
  the black-box theory affected by some stimulus,
  a consumer would have certain responses passing a
  complicated decision process that is regarded as
  a black box. It is expressed as the following
  figure

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3.3 MODEL OF BUYER BEHAVIOR
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• Stimulate Buyers black
  box Buyerresponse
• Marketing Other Buyers
  Buyers Buyer
  response
• Stimuli Stimuli
  Characteristics Decision process
• ---------------------------------
  -------------------------------------------------
  -----------------------
• Product Culture Cultural
  Problem recognition Product choice
• Price Economic Social
  Information search Brand choice
• Place Technological Personal
  Evaluation Dealer choice
• Promotion Political Psychological
  Decision Purchase
  timing
• 
  Postpurchase behavior
  Purchase amount
• StimulateResponse Model

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3.4 Types of Buying Decision Behavior
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
High involvement
Low involvement
Complex Buying Behavior (???????)
Variety-Seeking Buying Behavior (??????????)
Significant differences between brands
Dissonance-Reducing Buying Behavior (?????????)
Habitual Buying Behavior (????????)
Few differences between brands

• Complex Buying Behavior
• Dissonance-Reducing Buying Behavior
• Habitual Buying Behavior
• Variety-Seeking Buying Behavior

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3.5 Purchase decision-making process of a consumer
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• The process can be expressed by the following
  need recognition, information search, evaluation
  of alternatives, purchase decision, post-purchase
  behavior.
• ?Need recognition Internal stimulus External
  stimulus
• ?Information search personal sources (families,
  friends, acquaintances), commercial sources
  (advertising, salespeople, dealers, websites),
  public sources (mass media, consumer-rating
  organizations), experiential sources (handling,
  examining, using the product)

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
3.5 Purchase decision-making process of a consumer

• The process can be subscribed by the following
  (continue on the front page)
• ?Evaluations of alternatives
• ?Purchase decision the two factors, attitude of
  others and unexpected situation factors, come
  between the purchase intension and the purchase
  decision.
• ?Post-purchase behavior perception post purchase.

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4 Organization buying behavior
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• 4.1 The concept of Business Market
• 4.2 Characteristics of Business Markets
• 4.3 Major Types of Buying Situations
• 4.4 Participants in the Business Buying Process
• 4.5 Major influences on Business Buyers
• 4.6 The Business Buying Process

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.1 The Concept of Business Market

• Business market is consisted of group buyers
• Business market All organizations that buy goods
  and services for use in the production of other
  products and services that are sold, rented, or
  supplied to others.

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.2 Characteristics of Business Markets

• (1)Business markets contain a fewer but larger
  buyers.
• (2)Business customers are more geographically
  concentrated.
• (3)Business buyer demand is derived from final
  consumer demands.
• (4)Demand in many business markets is more
  inelastic especially not affected by price
  changes in short run.
• (5) Demand in business markets fluctuates more
  and more quickly.

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.2 Characteristics of Business Markets

• (6) Business purchases involve more participants
• (7) Business buying involves a more professional
  purchasing effort.
• (8) Business buyers usually face more complex
  buying decisions.
• (9) The business buying process is more
  formalized.
• (10) In business buying, buyers and sellers work
  more closely together and build close long-run
  relationships..

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.3 Major Types of Buying Situations

• ? New task
• A business buying situation in which the
  buyer purchases a product or service for the
  first time.
• ? System buying
• Buying a packaged solution to a problem from
  a single seller.
• ? Modified re-buy
• A business buying situation in which the
  buyer wants to modify product specifications,price
  s,terms,or suppliers.
• ? Straight re-buy
• A business buying situation in which the
  buyer routinely reorders something without any
  modifications.

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Chapter 3 Model of Consumer Behavior
and the Consumer Decision Process

• Initiators Members of the organization who
  request that something be
• purchased
• Users Members of the organization who
  will use the product or service
• Influencers People in the organizations buying
  center who affect the buying
• decision.
• Deciders People in the organizations buying
  center who have formal or
• informal power to select or
  approve the final suppliers.
• Buyers People who have formal authority to
  select the supplier and
• arrange the purchase terms
• Approvers People who authorize the proposed
  action of deciders or buyers
• Gatekeepers People in the organizations buying
  center who control the flow
• of information to others.
• Buying center All the individuals and units that
  participate in the
• business buying-decision
  process.

4.4 Participants in the Business Buying Process
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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.5 Major influences on Business Buyers

• ? Environmental macro economy development level
  and its tendencies, interest rates, technological
  innovations, political and legal situations,
  competitiveness.
• ? Organizational objectives, organization
  structures and mechanisms, purchase programs.
• ? Interpersonal authorities and powers, roles
  and status, relationship of participants.
• ? Individual age, educated level, income level,
  position, hobbies and characters, risk attitude,
  backstairs influences.

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4.6 The Business Buying Process
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• (1) Problem recognition
• The first stage of the business buying process
  in which someone in the company recognizes a
  problem or need that can be met by acquiring
  goods or services.
• (2) General need description
• To determine the needed items general
  characters and quantity needed.

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4.6 The Business Buying Process
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• (3) Product specification
• Develop the items technical specification.
• (4) Supplier search
• (5) Proposal solicitation
• The stage of the business buying process in
  which the buyer invites qualified suppliers to
  submit proposals.

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.6 The Business Buying Process

• (6) Supplier selections
• The stage of the business buying process in
  which the buyer reviews proposals and selects a
  supplier or several suppliers.
• (7) Order-routine specification
• The stage of the business buying process in
  which the buyer writes the final order with the
  chosen suppliers, listing the chosen
  specifications, needed quantity, expected time of
  delivery, payment and return policies, and
  warranties.

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4.6 The Business Buying Process
Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process

• (8) Performance review
• The stage of the business buying process in
  which the buyer rates its satisfaction with
  suppliers, makes a decision whether to continue,
  modify, or drop them.

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
4.6 The Business Buying Process
(8) Performance review Some Points for Attention

• ?Business buyers usually pay close attention to
  suppliers qualification, trading prices, the
  product quality, the date of delivery, technical
  trainings, after-services and warranties,
  historical cooperation records. Most of former
  agreements, altogether with the way and currency
  of payment, the detail goods and fittings
  listing, the dispute resolution mechanism, must
  be clearly written in the business contract.

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
(8) Performance review Some Points for Attention

• ?Modes of business buyers purchasing invitation
  for public bidding, negotiation for bid.
• ?public bidding, also called as competitive
  bidding, is the application in the case of many
  suppliers. On the contrary negotiation bid is
  suitable to the case of a fewer suppliers.
• ? commercial/business bribery the behavior of
  bribing and accepting bribes is the same crime as
  one of prostitutes and whoremongers.

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Chapter 3 Model of Consumer Behavior and
the Consumer Decision Process
(8) Performance review Some Points for Attention

• ? Group buyer behaviors of whole vehicles
  similar to procedures of teaching instruments
  purchased by colleges and universities.
• ? Group buyer behaviors of automotive parts and
  elements the business is concerning the
  department of procurement, quality, RD, finance,
  and so on.