CONSUMER MARKETS &

CONSUMER BUYER BEHAVIOR

Ms. Phuong Doan

thphuong.doan@gmail.com
 CONSUMER BUYER BEHAVIOR

Consumer buyer behavior = buying behavior of

final consumers individuals & households who buy
goods & services for personal consumption.

Consumer buyer behavior influences the choice of

target market & the composition of the marketing mix
Understanding consumers is a cornerstone
of Marketing
 CONTENTS
Model of Consumer Behavior
The Buyer Decision Process
Characteristics affecting Consumer Behavior
 MODEL OF CONSUMER BEHAVIOR

Marketing Stimuli
- Product Buyer Responses
- Price - Product choice
- Promotion - Brand choice
- Place - Dealer choice
Buyers Decision Process - Purchase
Buyers Characteristics timing
Others - Purchase
- Economic amount
- Technological - Purchase
- Social frequency
- Cultural
BUYER DECISION PROCESS
 BUYER DECISION PROCESS
Buying process starts long before the actual
purchase & continues long after.

Evaluation Post-
Need Information Purchase
of purchase
Recognition Search Decision
Alternatives Behavior

Focus on the entire process rather than

on the purchase decision only.
 NEED RECOGNITION
Evaluation Post-
Need Information Purchase
of purchase
Recognition Search Decision
Alternatives Behavior

Occurs when the buyer recognizes a

problem or need.
Internal Stimuli
Need Stimulation
External Stimuli
 SNICKERS
YOURE NOT YOU WHEN YOURE HUNGRY
 SNICKERS
YOURE NOT YOU WHEN YOURE HUNGRY

Snickers uses advertising messages

to stimulate impulse purchasing.
 INFORMATION SEARCH
Evaluation Post-
Need Information Purchase
of purchase
Recognition Search Decision
Alternatives Behavior

The objective of information search is to build up the

awareness set the array of brands that may
provide a solution to the problem.

It helps consumers to
learn about several brands available
drop certain brands from consideration
 INFORMATION SEARCH
Evaluation Post-
Need Information Purchase
of purchase
Recognition Search Decision
Alternatives Behavior

Sources of Information:
Personal sources (family, friends, acquaintances, etc.)
Commercial sources (advertising, salespeople, packaging,
websites, etc.)
Public sources (mass media, internet searches, etc.)
Experiential sources (handling, examining, using the
product)
 INFORMATION SEARCH

Personal Commercial Public Experiential

sources sources sources sources

Commercial sources:
controlled by marketers
provide information inform the buyer
Personal sources:
the most effective ones, esp. in this digital era
legitimize or evaluate products for buyer
 MOFF BAND
WEARABLE SMART TOY
 EVALUATION OF ALTERNATIVES
& PURCHASE DECISION
Evaluation Post-
Need Information Purchase
of purchase
Recognition Search Decision
Alternatives Behavior

Consumers use information to evaluate & rank

alternative brands in their choice set, and form
purchase intentions .
It depends on
individual consumer
specific buying situation
the Level of Involvement is the KEY
 LEVEL OF INVOLVEMENT

Level of Involvement

High involvement Low involvement

Purchases that are likely to
include high expenditure or
personal risk (house, car,
computer, etc.)
extensive evaluation
Simple purchases in which
consumers are likely to make
quick choices (a bottle of
water, a bar of chocolate, etc.)
simple evaluation
 HIGH INVOLVEMENT
T h e Fi s h b e i n & Aj zen M o d e l o f Re a s o n e d Ac t i o n

Personal
Attitudes
Beliefs
Purchase
Purchase
Intentions
Normative Subjective
Beliefs Norms

The buyer believes:

iPhone = more cost-saving
(which is very important to this buyer)
Both models are virtually identical on
other attributes (eg. reliability, design
& speed)
 LOW INVOLVEMENT

T h e E h r e n b e r g & G o o d h a rt Re p e a t P u r c h a s e M o d e l

Awareness Trial Repeat Purchase

The behavior becomes habitual

with little conscious thought or
formation of attitudes preceding
behavior.
Consumers are likely to look for
a satisfactory solution rather
than the best one.
 LEVEL OF INVOLVEMENT

FOUR TYPES OF BUYER BEHAVIOR

 POST-PURCHASE DECISION
Evaluation Post-
Need Information Purchase
of purchase
Recognition Search Decision
Alternatives Behavior

Consumers feel at least some post-purchase dissonance for

every purchase.

Cognitive dissonance = post-purchase concerns

Uncertainty about making the right decision
The choice of one product = The rejection of the alternatives
 POST-PURCHASE DECISION

Effective Marketing aims to create customer satisfaction

in both low- & high-involvement situations.

Consumers Products
expectations perceived performance

Positive experiences from the purchase of

the products or services are essential.
 Evaluation Post-
Need Information Purchase
of purchase
Recognition Search Decision
Alternatives Behavior

Describe how you or your family

went through this process to make
a recent purchase.
 Evaluation Post-
Need Information Purchase
of purchase
Recognition Search Decision
Alternatives Behavior

not all consumers follow the same

However,
buyer decision process as above. Because the
consumer behavior process can be influenced by a
number of factors:

External Internal

Cultural Social Personal Psychological

 CHARACTERISTICS
AFFECTING
CONSUMER BEHAVIOR
 CHARACTERISTICS
AFFECTING CONSUMER BEHAVIOR
Cultural factors Social factors
Culture Groups & Social Networks
Subculture Family
Social class Roles & Status

Personal Factors Psychological Factors

Age & Life cycle stage Motivation
Occupation Perception
Economic situation Learning
Lifestyle Beliefs & Attitudes
Personality & Self-concept
(Course book, pp.135-150)
 CULTURAL FACTORS

Social
Culture Subculture
Class
 CULTURE

Culture = Traditions, taboos, values & basic attitudes

of the whole society in which an individual lives
Culture = The most basic cause of a persons wants
& behavior
Culture may vary greatly from country to country

Vietnamese cultural values emphasize the importance of

family and community . Its core values, which embrace the
principles of Confucianism, are harmony, duty & honor, respect,
education and allegiance to the family.
S o u rce : A s i a n C u l t u re B r i e f : V i e t n a m , h a w a i i . e d u
 TT FAMILY COMMUNITY
COCA COLA CNG GN KT - TT MI V
 CULTURE

Marketers are always trying to spot cultural shifts

to discover new products that might be wanted.

Greater concern for beauty & fitness

health and fitness service (such as spa, gym, herbal
medicine, plastic surgery, etc.)

Greater concern for life experience

travel and tourism-related service
 SUB-CULTURES

Groups of
people with
shared values
based on
common life
experiences &
situations
Describe at least one subculture to
which you belong to.
 SOCIAL CLASS

Social classes are societys relatively permanent and

ordered divisions whose members share similar values,
interests, and behaviors.
Upper-class
Middle-class
Lower-class

In the US, it is measured by a combination of occupation,

income, education, wealth, and other variables.
In the UK, it is largely based on occupation.
In Vietnam?
 SOCIAL FACTORS

Groups &
Family Role & Status
Social Networks
Membership groups The most important A role consists of
Reference groups consumer buying activities people are
Word-of-mouth organization in expected to perform
influence society according to people
Opinion Leader Buying roles change around them
Brand Ambassador based on evolving Each role carries a
Online social consumer lifestyles status reflecting the
networks & products/services general esteem
given to it by society
 SOCIAL FACTORS

Groups &
Social Networks
Family Role & Status
Membership groups The most important A role consists of
Reference groups consumer buying activities people are
Word-of-mouth organization in expected to perform
influence society according to people
Opinion Leader Buying roles change around them
Brand Ambassador based on evolving Each role carries a
Online social consumer lifestyles status reflecting the
networks & products/services general esteem
given to it by society
 GROUPS

Membership groups = groups to which a person already

belongs to
family, friends, co-workers, neighbors, etc.
religious, professional, trade unions, etc.

Reference groups = groups to which a person would

like to belong to
Opinion Leader/ Influential Brand Ambassador
Buzz Marketing (Word-of-mouth power + opinion leader)
OPINION LEADERS
In different areas
Buzz Marketing
 INFLUENTIAL
BRAND AMBASSADOR
ONLINE SOCIAL NETWORKS
OSCAR
SELFIE
Preplanned by
Samsung
Describe at least one subculture to
which you belong and identify any
reference groups that might influence
your consumption behavior.
 SOCIAL FACTORS

Groups &
Social Networks Family Role & Status

Membership groups The most important A role consists of

Aspirational groups consumer buying activities people are
Word-of-mouth organization in expected to perform
influence society according to people
Opinion Leader Buying roles change around them
Brand Ambassador based on evolving Each role carries a
Online social consumer lifestyles status reflecting the
networks & products/services general esteem
given to it by society
 FAMILY

Family = the most important consumer buying organization

in society

Family members have different roles & influence on the

purchase of different products & services
The buying roles of husband & wife are changing
The strong influence of kids on family buying decision

Understanding the roles (initiator/ influencer/ decider/

buyer/ user)* is very important for targeting persuasive
communications .
NESTL MILO
NESTL MILO
 *FAMILY MEMBERS DIFFERENT ROLES

Initiators who suggest purchasing a product

or service
Influencers who try to affect the outcome
decision with their opinions
Deciders who have the final decision
Buyers who are responsible for the contract
End users who actually use or consume the
item purchased
 SOCIAL FACTORS

Groups &
Social Networks
Family Role & Status
Membership groups The most important A role consists of
Aspirational groups consumer buying activities people are
Word-of-mouth organization in expected to perform
influence society according to people
Opinion Leader Buying roles change around them
Brand Ambassador based on evolving Each role carries a
Online social consumer lifestyles status reflecting the
networks & products/services general esteem
given to it by society
When a woman gets married,
she should concentrate on
keeping the home .
Do you agree?
P&G PROUD SPONSOR OF MOM
 PERSONAL FACTORS

Age & Life- Economic

Occupation
cycle Stage Situation

Personality &
Lifestyle
Self-concept
 AGE & LIFE-CYCLE STAGE

People change the goods & services they buy over their
lifetimes, for their needs, incomes, expenses, lifestyles,
etc. change over their lifetime

Buying is shaped by the stage of the family life-cycle

Appropriate products & marketing plans are

developed for each stage
 AGE & LIFE-CYCLE STAGE

Young couples, Middle-aged,

Single Young parents
no children parents

Empty nester, Empty nester,

Solitary,
married, married,
retired
retired working

A persons classic family life-cycle stage (Jobber, 2013)

 JOHN LEWIS
NEVER KNOWINGLY UNDERSOLD
 ECONOMIC SITUATION

Economic situation = personal income, savings &

interest rates
Affects a persons store & product choices

Products need to be redesigned, repositioned,

and repriced according to economic situations
 OCCUPATION

A person normally buys goods that suit his occupation.

Ex: A car might be considered as necessity for a

businessman but luxury for a teacher

Occupation affects the consumption of goods and

services
 DELL INSPIRE
SMALL BUSINESSES WITH BIG IDEAS
 LIFESTYLE

Lifestyle is the way of living that an individual chooses

according to his/her activities , interests , and opinions
( AIO dimensions ).
A = work, hobbies, shopping, sports, social events, etc.
I = food, fashion, family, recreation, etc.
O = about themselves, social issues, business, products, etc.

It profiles a persons whole pattern of acting &

interacting in the world.
 LIFESTYLE

Consumers dont just buy products,

they buy values and lifestyles those
products represent.
 PERSONALITY & SELF-CONCEPT

Personality = unique psychological characteristics

that distinguish a person or a group

Brands also have personalities , and consumers

are likely to choose brands that match their own.
We are what we have
SAMSUNG GALAXY A
 MAYHEM SAIGON
NOT RECOMMENDED FOR AVERAGE PEOPLE
What brands are your favorites or
do you often use? Why?
Can they reflect your personality or
lifestyle?
PSYCHOLOGICAL FACTOR

Motivation

Perception

Learning

Beliefs & Attitudes

 MOTIVATION

Needs Motives Actions Goals

aroused to a
sufficient level of
intensity Satisfaction

Simple Motivation Process

 APPLE THINK DIFFERENT
Heres to the crazy ones. The misfits.
The rebels. The troublemakers. The
round pegs in the square holes. The
ones who see things differently.
Theyre not fond of rules. And they
have no respect for the status quo.
You can quote them, disagree with
them, glorify, or vilify them. About the
only thing you cant do is ignore them.
Because they change things.
They push the human race forward.
And while some may see them as the
Everyone has the power to change
crazy ones, we see genius.
Because the people who are themselves and those around them.
crazy enough to think they can
change the world, are the ones
Apple satisfies the highest level of
who do. human needs: Self-actualization
 PERCEPTION
complex process by which people
Perception is the
select, organize, & interpret information to
form a meaningful picture of the world.
Selective Attention Selective Distortion Selective Retention
screen out most of interpret info in a remember good
the information to way that will points made about a
which they are support what they brand they favor
exposed already believe forget good points
ad needs to catch ad has to present about competing
attention message clearly brands
help reduce
cognitive dissonance
SUBLIMINAL ADVERTISING

People are affected

without notice.
COLORS & THE MIND
 LEARNING

Drive Stimulus Cue Response Reinforcement

Want to have a Look for a skincare

Sampling Take & use Good experience
fairer skin product to buy

The result of the learning process is the creation of product positioning.

Marketers have to create a clear & favorable position in the mind of
the consumer.
 BELIEFS & ATTITUDES

Beliefs = consumer thoughts about a product/service

Form Attitudes (favorable/unfavorable)

B&A play an important part in the evaluation of

alternatives in the buyer decision process.

It is essential for marketers to consider their:

Product design (match product attributes to beliefs & attitudes)
Persuasive communication (reinforce existing positive B&A; correcting
misconceptions & establish new B&A)

Pricing (match price with customers beliefs about what a good product would
cost)
 MC DONALDS
OUR FOOD. YOUR QUESTIONS.
BUYER DECISION PROCESS
FOR NEW PRODUCTS
 ADOPTION PROCESS
The mental process through which an individual
passes from first learning about an innovation
to final adoption.

Awareness Interest Evaluation Trial Adoption

This model suggests that the new-product

marketer should think about how to help
consumers move through these stages.
ADOPTER CATEGORIZATION
SUMMARY
Product/ Price/ Promotion/ Place Economic/ Technological/ Social/ Cultural

Need
Recognition

Information
Personal Cultural
Search

Evaluation of
Alternatives

Purchase
Psychological Social
Decision

Post-purchase
Behavior

Product choice/ Brand choice/ Dealer choice

Purchase timing/ Purchase amount/ Purchase frequency