1. by Jeff Tanner and Mary Anne Raymondby Jeff Tanner and Mary Anne Raymond
Principles of Marketing

2. Chapter 3Chapter 3
Consumer Behavior—Consumer Behavior—
How People Make Buying DecisionsHow People Make Buying Decisions
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M
arketing needs
answers to these
questions !

4. Companies spend billions
studying consumer behaviors!
Provided by : www.themegallery.com
Getting the AnswersGetting the Answers
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1. Understand the six buying process stages
2. Distinguish between low and high
involvement buying decisions
Learning ObjectivesLearning Objectives

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Consumer Decision Making ProcessConsumer Decision Making Process

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Consumer Decision Making Process, cont’dConsumer Decision Making Process, cont’d

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Buying Decision TypesBuying Decision Types

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Distinct consumer buying phases
1.Realize a need
2.Search for information
3.Evaluate alternatives
4.Select a product and purchase
5.Assessing product performance
6.Disposing of the product
Consumer level of involvement
1.Low involvement
inexpensive, low risk
2.High involvement
expensive, failure risk
Key TakeawaysKey Takeaways

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Learning Objectives
• Describe situational factors affecting
what and when consumers buy.
• Explain how marketing can make situational
factors work to their advantage.
Factors Affecting Consumer Buying BehaviorFactors Affecting Consumer Buying Behavior

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Consumer Situational FactorsConsumer Situational Factors

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ATMOSPHERICS
Store design and layout
Store locations
Ambiance
UNCONTROLLED
Weather
Crowding
Some physical factors can be controlled by design, others must be accommodated.
Physical SituationPhysical Situation

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Circumstances in which
consumers may find
themselves.
Consumer Social SituationConsumer Social Situation

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Pressed for time?
Consumer Time SituationConsumer Time Situation

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Why is this purchase being made?
• is it a gift?
• is it an emergency?
• is time a factor?
Reason for Consumer’s PurchaseReason for Consumer’s Purchase

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Retailersemploydifferent
measurestolureshoppers
What Is the Consumer’s Mood?What Is the Consumer’s Mood?

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Situational influences have temporary effects on buyer behavior.
• Store layouts
• Store locations
• Music
• Aromas
Companies make physical factors favorable, and
use incentives such as discounts to encourage buyers.
Consumer’s situations for social and time factors as well as their
reason for buying affect their buying behavior.
Key TakeawaysKey Takeaways

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Learning Objectives
1. Explain how self-concept and ideal self affect purchasing decisions.
2. Describe how companies market products based on consumers’
-- gender
-- life stage
-- age
3. Explain lifestyles of consumers (VALS).
Personal Factors that Affect Buying BehaviorPersonal Factors that Affect Buying Behavior

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The link between personalities
and buying behavior is unclear!
Consumer Personality TraitsConsumer Personality Traits

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A better link to buying behavior is how you see yourself.
Your ideal self is how you would like to see yourself.
PEOPLE BUY PRODUCTS TO
ENHANCE HOW THEY FEEL
ABOUT THEMSELVES
Consumer Self ConfidenceConsumer Self Confidence

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Genders differ in buying behavior
Consumer GenderConsumer Gender

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Types of purchases by and for consumers change with age:
• chronological age
• cognitive age
Chronological age
Consumer’s Age and Life StagesConsumer’s Age and Life Stages

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Consumer lifestyles vary drastically!
Companies are researching lifestyles:
• using questionnaires
• what products do they like
• where do they live
• how they spend their time
• where do they go after work
• what are their priorities
• what are their values
Consumer Life StylesConsumer Life Styles

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• personality describes disposition
• people buy products that improve self image
• gender affects what and how you buy
• younger men and women shopping more alike
• cognitive age is how old you feel
• lifestyles are being watched more closely
Key TakeawaysKey Takeaways

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Learning Objectives
• Explain Maslow’s hierarchy of needs
• Outline the psychological factors that affect
consumer buying behavior
Psychological Factors Affect Buying BehaviorPsychological Factors Affect Buying Behavior

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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

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This is
how we
interpret the
world around us.
PerceptionPerception

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Selective perception—filters out irrelevant information
Selective retention—forgetting information that contradicts beliefs
Subliminal advertising—stealthily embedded messages in media
Shock advertising—surprising stimuli that can increase retention
Learning—changing behavior after receiving more information
or using a product
Attitudes—enduring feelings about products and their providers
Perception and Retention FactorsPerception and Retention Factors

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Maslow’s needs—lower level needs must be met before higher level needs
Perception—interpreting the world through using your brain and senses
Advertising—efforts to increase retention includes using shock and
subliminal techniques
Consumer attitudes—mental positions tend to be enduring and
difficult to change
Key TakeawaysKey Takeaways

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Learning Objectives
• Explain impact of culture and social class on buying behavior
• Describe reference groups and opinion leaders
Societal Factors Affecting Buying BehaviorSocietal Factors Affecting Buying Behavior

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Cultures are:
• shared beliefs
• customs
• behaviors
• attitudes
• a life style
An Important Marketing Note:
Cultures that share the same values
may not be consistent in purchasing behavior
across national borders.
SUBCULTURES—groups that share some
interests , but can differ in important ways
from a marketing perspective.
Consumer CulturesConsumer Cultures

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Reference Groups and Opinion LeadersReference Groups and Opinion Leaders

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Family Influence on Buying BehaviorFamily Influence on Buying Behavior