Consumer Buyer Behaviour

Topics: Marketing, Sociology, Social network service Pages: 6 (1154 words) Published: November 14, 2013
Chapter 5: Consumer Markets and Consumer Buyer Behaviour

Consumer buyer behaviour
- Refers to buying behaviour of final consumers (individuals & households that buy goods and services for personal consumption)

Consumer market
- Total number of final customers

Marketing stimuli consists of the 4Ps

1. Product
2. Price
3. Place
4. Promotion

As well as other major forces in the buyer’s environment

1. Economic
2. Technological
3. Political
4. Cultural
5. Social

Understand how stimuli are changed into responses inside the buyer’s black box, which contains:

1. Buyer’s characteristics – perception and reaction to stimuli 2. Buyer’s decision process

Consumer characteristics are strongly influenced by:

1. Cultural – Culture/Subcultural/Social Class
2. Social – Reference Groups/Family/Roles & Status
3. Personal – Age & Life/Economic Situation/Lifestyle/Personality & Self-Concept 4. Psychological – Motivation/Perception/Learning Beliefs & Attitudes

Marketers cannot control such factors but must take them into account.

- Most basic cause of a person’s wants and behaviour and is largely learned. - Cultural influences vary greatly from country to country and a failure to adjust to these differences can result in ineffective and even embarrassing marketing and/or mistakes. - Role and identifying of Cultural shifts

- Groups of people with shared value systems based on common life experiences and situations that include nationalities, religions, racial groups and geographical regions that make up culture as a whole. - Subcultures make up important market segments and it is essential for marketers to understand these needs e.g. gamers and mature consumers

E.g. Mature Consumers:
- Due to advances in longevity, people are redefining what the mature life stage and “…are having a second middle-age before becoming elderly” and marketers need to appeal to these consumers in a vibrant but authentic way.

Social Class
- Society’s relatively permanent and ordered divisions whose members share similar values, interests and behaviors. - Each class is measured by a combination of occupation, education, wealth and other variables. - People in a given social class tend to exhibit similar buying behavior and show distinct product and brand preferences thus marketers need to study and understand these consumers better in order to better plan marketing strategies.

Groups & Social Networks
- Defined as two or more people who interact to accomplish individual or mutual goals. - Membership groups: Groups that have a direct influence and which a person belongs to - Reference groups: Serve as direct (face-to-face) or indirect points of comparison or reference in forming a person’s attitudes or behaviour. Reference groups people do not belong in will influence a person’s attitudes, self-concept and create pressures to confirm that may affect the person’s product and brand choices. For example, an aspirational group where one aspires to emulate Christiano Ronaldo often influence people. - Marketers need to understand the importance of group influence and identify the reference groups of their target market - Such influence is strongest when the product is visible to people whom the buyer respects.

Word of Influence
- Personal words and recommendations of trusted friends, associates and other consumers tend to be more credible than those coming from commercial sources e.g. advertisements and/or salespeople

Opinion leaders (or influential or leading adopters)
- People within a reference group who because of special skills, knowledge, personality or other characteristics exert social influence on others. - For brands subjected to strong group influence, Marketers must try to identify opinion leaders, reach them and direct marketing efforts towards them. - Word-of-mouth happens naturally which marketers cannot affect but can look to create positive conversations...
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