1. Chapter 5: Consumer Markets and
Consumer Buyer Behavior
Grace Andrews, Maddie Brown, Jenna Chamblee,
Walker Finklea, Kristin Freeman, and Colby Ireland
FTM 282
March 27, 2014
2. Objective 1: Model of Consumer Behavior
● Consumer buyer behavior is the buying behavior of final consumers.
● All the individuals and households that buy or acquire goods and services for
personal consumption make up the consumer market.
● The stimulus-response model is the simplest way to model consumer buying
behavior
● Marketers must figure out how to make inputs from the environment turn
into the responses they want to see in consumer buying behavior by trying to
understand the processes that go on in the buyer’s “black box”
3. FTAR Example
H&M Global Programs for Change
“With the aim to achieve long lasting improvements on a global scale within the focus areas of
education, clean water and strengthening women. The H&M Conscious Foundation supports three
global non-profit organizations that are well equipped to drive such a change.”
The economic and cultural stimuli in H&M’s Program for Change allows them
to enter the buyer's “black box” by affecting the buyer’s decision making
process. People are more likely to buy H&M’s product instead of a
competitor's if they are aware that H&M will donate proceeds to a charity
that relates to the buyers personal attitudes and preferences.
4. Objective 2: Characteristics Affecting Consumer
Behavior
● Buyer characteristics: cultural, social, personal, and psychological
● Culture: a person’s wants and behavior; anything from age to
ethnicity. Subcultures (nationalities, religions, racial groups, and
geographic regions) also make up important market segments and
marketers often design products tailored to their needs.
● Social: reference groups (family, friends, social networks,
professional organizations)
● Personal: the buyer’s age, life-cycle stage, occupation, economic
circumstances, personality, how they interact in the world
● Psychological: motivation, perception, learning, beliefs and attitudes
7. FTAR Example: TOMS
TOMS is guided by one simple mission statement:
“With every product you purchase, TOMS will help a person in need.
One for One.®
”
TOMS stands for a movement that not only benefits the consumers, but also the world. The one for
one movement allows customers to buy a pair of shoes and know that TOMS gives a pair to someone
in need. The idea has now expanded to purchases of TOMS’ eyewear to helping save and restore
sight to those in need. TOMS mission statement and goals allows them to reach their buyer
characteristics such as cultural, social, personal, and psychological. Culturally, TOMS appeals to
consumers for benefitting those in need of different cultures including nationalities, religions, racial
groups, and geographic regions. TOMS responds socially by appealing to and connecting people all
over the world. Socially, TOMS’ products are available for anyone of any age, style, occupation, or
economic situation. TOMS also appeals to consumers by helping others in need. Psychologically, this
comforts customers knowing that their proceeds are benefitting people that need help.
8. Objective 3: Types of Buying Decision Behavior and
The Buyer Decision Process
Types of Buying Decision Behavior
● Complex buying behavior: high consumer involvement in a
purchase and significant perceived differences among
brands
● Dissonance-reducing buying behavior:high involvement but
few perceived differences among brands
● Habitual buying behavior: low consumer involvement and
few significant perceived brand differences
● Variety-seeking buying behavior: low consumer involvement
but significant perceived brand differences
10. FTAR Example:
Urban Outfitters App:
“We did it! And now we have UO Mobile,
an iPhone app that lets you find the nearest store,
learn about events and special online promotions first,
and even read our blog! Download it now!”
The Urban Outfitters illustrated product involvement by making an online
website for virtual shoppers and also the UO App that allows consumers to
browse their products on the go while also finding the nearest store and
beneficial promotions. This availability of their product reaches other
consumer bases and ultimately sets them apart from competitor brands.
11. Objective 4: The Buyer Decision Process for New
Products
Consumers go through five stages when
adopting a new product:
● Awareness
● Interest
● Evaluation
● Trial
● Adoption
12. There are different levels of willingness of
consumers to try new products:
● Innovators
● Early adopters
● Early mainstream
● Late mainstream
● Lagging adopters
Each requires different marketing approaches.
13. Main Product Characteristics that Influence
Rate of Adoption:
● Relative Advantage
● Compatibility
● Complexity
● Divisibility
● Communicability
14. FTAR Example: Old Navy
Old Navy creating awareness
for their new line of pants
using commercials
https://www.youtube.
com/watch?
v=ySjlNbgDMWE
15. Intro Case: GoPro
GoPro is a fast-growing company that makes small, wearable HD cameras at
an affordable price. However, GoPro understands that customer behavior is
driven by much more than just a high-quality product with innovative
features.
Much of GoPro’s success is from their loyal customers because GoPro is able
to develop a deep understanding of their customer’s behavior. The brand is
centered around what the cameras actually let the customers do. The
consumer market is young males who want to create an emotional connection
between the storyteller (themselves) and their audience.
https://www.youtube.com/watch?v=ev5JqIJvbiE
16. Intro Case: GoPro
The brand's slogan: GoPro- Be a HERO sums up the company’s deeper
motivations to not just capture a moment, but also create, broadcast and
develop recognition for the consumer.
According to Nick Woodman, the founder of GoPro, “Success begins with
understanding the customer’s needs and motivations.”
GoPro accomplishes this in their understanding of how to wrap technology
around humans needs so that it matters to people.
17. Article 1: GoPro Sees Opportunity in Its
Amateur Daredevils
● This article discusses how GoPro is on the way to becoming a more media
focused company
● Recently GoPro has become more well-known on YouTube and other
Internet sites because of the adrenaline-soaked videos
● If GoPro can build up their media business it could help fortify their
business in a market where smartphones and tablets have devastated
dedicated cameras
● GoPro is now reaching different markets such as Microsoft with Xbox
game consoles and they recently began working in television and film
● GoPro has sponsored athletes such as Kelly Slater and Shaun White who
shoot themselves in action
18. Case Study: Harnessing the Power of Online Social
Influence
In today’s world people are constantly sharing their brand
experiences with friends and family over the internet.
Because of this marketers focusing on getting people to
interact with their brands online in positive ways.
Examples of these interactions:
● Online brand ambassadors
● Using existing online influentials and social networks
● Developing conversation-provoking events and videos
19. Ford Fiesta Movement Campaign
Ford gave away Fiestas to 100
20-something Millennials for six
months. During these six
months the “Fiesta
Ambassadors” shared their
experiences via blogs, tweets,
Facebook updates, and
Youtube posts. The campaign
generated 58% pre-launch
awareness with 4.3 million
YouTube views, 50,000 sales
leads, and 35,000 test drives.
20. Article 2: Consumer Activity in social media: Managerial approaches to
consumers’ social media behavior
● Consumers today are constantly sharing knowledge about products and it is assumed it is done
via social media
● Recent studies suggest that consumers are not necessarily as active online as many have
believed
● By offering a more detailed description of the differences in consumers’ use of social media
we were able to see more research on consumer related activities that were related to user-
created content
● Consumers' online behavior is developing at a fast rate, consumers are taking part in a variety
of activities ranging from consuming content, participating in discussions, and sharing
knowledge with other consumers contributing to other consumers' activities
● This research found 15 activities grouped together under three themes that helped organize
suggested managerial strategies related to different levels of consumer activity
● Overall this study helped give tools to uncover managerial challenges and for planning
responses to consumer activities
21. Case Study: Pet Owner Lifestyles-and Marketing to
Them
● 62 percent of all households in the U.S. own at least
one pet.
● Pet owners in the U.S. spend more than $50 billion a
year on pets, which is more than the gross domestic
product of all but 72 countries in the world.
● Pet owning is a specific lifestyle segment and
marketers find success in being able to successfully
target this large, growing group.
● “For many devoted pet parents,having a pet affects
just about every decision they make”
22. Case Study: Pet Owner Lifestyles - and Marketing to
Them
● The “Dream Dog” program at The Benjamin Hotel in New York City
○ Provides dog beds in a variety of styles, plush doggie bathrobes, canine
room service, DVDs for dogs, spa treatments, etc.
○ “We understand that you pet is a special addition to your family.”
● Pet Airways
○ Serves nine U.S. cities using twenty aircraft
○ Climate controlled cabins with cages only
○ Pet owners can track their pets using the company website
Companies such as these saw an opportunity to specifically target the pet owner
lifestyle and problems that can arise while having a pet during travel.
Understanding these needs in the travel industry has led to success for them
both.
23. Article 3: PET.
● Nestle Purina Petcare has been strengthening their
bonds between pet owners and the stores they shop in
through marketing strategies
● They created a website called “Tales for the Pet
Lover’s Heart” because they felt it was important for
shoppers to buy pet food from companies that actually
care about their pets
● Nestle Purina has continuously presented out of the
box strategies that have better helped them connect
with their pet consumers and market better to them
24. Company Case: Porsche: Guarding the Old While
Bringing in the New
● Porsche is a company that has always been niche, and that makes cars for a distinctive group
of financially successful buyers
● Must Porsche buyers consider the car like a piece of clothing, something that they wear and
are seen in, which means that they care about their appearance
● Because of the car’s high expense, it is obvious that they thoroughly enjoy driving the car, or
they would resort to driving a car of average value
● However, Porsche encountered a problem...Were there enough buyers to keep the company
afloat?
○ In order to grow, the amount of buyers must increase at least a little in time
○ This led to Porsche thinking outside the box and extending their brand
○ They introduced a new car, the 914. This:
■ was cheaper than the 911
■ increased sales
● However, this did not fix everything, but Porsche did not give up without a fight...
○ They revamped their cars to have a more “race-like” engine and body
○ They began to appeal to their original group of buyers once again
○ By 2002, they introduced the SUV
25. Interview Highlights
● Reece Gonzalez- sales associate
● Best Buy markets typically online, but also prints advertisements and eals
on the receipt so customers always have access to our information.
● Best Buy’s target market can really apply to any age or demographic
group as they have many products that can appeal anywhere from
children in entertainment to a businessman working on a presentation for
work.
● Best Buy makes sure they can reach the appropriate target market by
having demonstrations set up of the variety of products in the store
available to try out and see how the product or service performs.
● The holidays is obviously a big shopping time of year, but the products
range throughout the year so there is no particular trend they follow.
26. Interview Highlights Cont’d
● Best Buy influences customers to buy and remain loyal by implementing exceptional
customer service and making sure that they meet all of the customers’ wants and
needs. “They need to be recognized as more than a customer and know that we value
their concerns and demands.” - Gonzalez
● Usually any company that markets electronics has to come out with something new or
at least enhance the current product. Best Buy’s job is to market these new products
that come out.
● The most important characteristic of a good marketing campaign according to Best Buy
is being able for the customer to get hands on, try out, and view the product so that
they can trust in their decision to purchase a product.
● “It is important to educate consumers on what we have to offer and why we are the
best. If e do not have what the customer wants, if we cant get it we will. Even ship it to
them.” - Gonzalez
● Unlike other stores in this particular competitive market, Best Buy is able to carry both
appliances and electronics, not one or the other.
27. Works Cited
Armstrong, Gary. "Consumer Markets and Consumer Buyer Behavior." Principles of Marketing. By Philip Kotler. 15th ed. Upper Saddle River: Pearson Education, 2014. 134-65. Print.
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Heinonen, K. (2011), Consumer activity in social media: Managerial approaches to consumers' social media behavior. Journal of Consumer Behaviour, 10: 356–364. doi: 10.1002/cb.376
(2013, April 22). Sharing is selling - ford fiesta - gamification. Retrieved from iGamify website: http://www.igamify.com/_blog/Blog/post/sharing-is-selling---ford-fiesta---gamification/
(2014, March 7). Wardrobe interview. Retrieved from Youtube website: https://www.youtube.com/watch?v=ySjlNbgDMWE
Life Long Programme (Ed.). (n.d.). Consumer Behaviour. Retrieved March 26, 2014, from Rebel website:
http://www.responsiblebusiness.eu/display/rebwp4/3.+Consumer+Behaviour
UO Mobile iPhone App [Image]. (n.d.). Retrieved from http://blog.urbanoutfitters.com/blog/
uo_mobile_iphone_app
Wingfield, N. (2014, Jan 30). Gopro sees opportunity in its amateur daredevils. The NewYork Times, Retrieved from http://www.nytimes.com/2014/01/31/technology/gopro-works-on-its-brand.html?
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(2014, March) (n.d.) Retrieved from http://www.oldnavy.com
(2014, March) (n.d.) Retrieved from http://www.hm.com/us/
(2014, March) (n.d.) Retrieved from http://www.TOMS.com
(2014, March) (n.d.) Retrieved from http://www.urbanoutfitters.com