1999 Prentice-Hall Canada Inc.

, Scarborough, Ontario

Consumer Markets

and

Buyer Behaviour

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Model of Buyer Behaviour

Marketing and other stimuli
Product Price Place Promotion Economic Technological Political Buyers responses Cultural

Buyers black box

Buyer characteristics Buyer decision process

Product choice Brand choice Dealer choice Purchase timing Purchase amount

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences

Cultural
Social
Personal

Culture
Subculture Social class

Reference groups

Family Roles and status

Age and life-cycle Occupation Economic situation Lifestyle Personality and

self-concept

Psychological
Motivation Perception Learning Beliefs and attitudes

Buyer

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: cultural factors

Culture Set of basic values, perceptions and behaviours learned by a member of society from family and other important institutions

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: characteristics of culture

Learned behaviour Values constantly shifting Found in all groups and societies Role of Canadian values Spotting shifts critical

5-5

 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: cultural factors

Subculture Group of people with shared value systems based on common life experiences and situations

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Canadian subcultures

Native Canadians Ethnic communities based on national origin Mature consumers Internet users

5-7

 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Canadian subcultures

Native Canadians Over 400 000 Status Indians Over 700 000 including non-status natives and Inuit Distinct native culture Important influence on rest of Canada
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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: visible minorities in urban centres

City 1996 Population 2001 Population Metro Toronto Vancouver Montreal Edmonton Calgary W innipeg Ottawa-Hull Halifax Victoria Regina 1 470 000 578 000 512 000 182 000 182 000 122 000 126 000 40 000 32 000 20 000 2 110 000 830 000 737 000 260 000 260 000 147 000 182 000 57 0 00 45 0 00 25 0 00

5-9

 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: ethnic consumers

Tracking ethnic trends key to success 24% of Canadian purchasing power Project 30% of purchasing power by 2000 Goods and services estimated at $300 B Many ethnic groups feel neglected or misrepresented
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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: mature consumers

14% of population over 65 by 2000 Age 50 up have 2/3 of disposable income 25% of population 85% are retired Most healthy and active Regional factors apply

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: internet users

Netiquette No hard-sell 30 million users 2 million Canadian 50% university 1/3 over $75 000 Male/female 70/30 15% Silicon Valley North

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: social class

Relatively permanent ordered divisions in a society whose members share similar: Values Interests Behaviours
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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Social Factors

Groups membership reference Family most important consumer influence changing family roles children may influence strongly
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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Social Factors

Roles Activities people expected to perform Status Esteem given a role by society

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Personal Factors

Age Life-cycle stage Occupation Economic situation Lifestyle Personality Self-concept
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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Personal Factors

Occupation affects goods or services purchased identify occupations with product need specialized professional products Economic situation indicator for income sensitive products
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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Table 5-3

Life-Cycle Stages
Middle-Aged
Single Married without children Married with children Married without dependent children Divorced without children Divorced with children Divorced without dependent children

Young
Single Married without children Married with children Divorced with children

Older Older married Older unmarried

Sources: Adapted from Patrick E. Murphy and William A. Staples, A Modernized Family Life Cycle, Journal of Consumer Research, June 1979, p. 16, copyright Journal of Consumer Research, Inc., 1980. Also see Leon G. Schiffman and Leslie Lazar Kanuk, Consumer behaviour (Englewood Cliffs, NJ: Prentice Hall, 1994), pp.. 361-70.

 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Personal Factors

Lifestyle A persons pattern of living as expressed in his of her activities interests opinions
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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Personal Factors

Psychographics Technique of measuring lifestyles Developing lifestyle classifications By measuring activities interests opinions

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Personal Factors

Personality traits may predict behaviour Self-concept self-image possessions reflect identity
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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Psychological Factors

Motivation biological needs psychological needs Motive Need sufficiently pressing to drive a person to seek satisfaction may be unconscious

5-22

 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Psychological Factors

Learning Changes in individual behaviour arising from experience Drive Strong internal stimulus for action

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Psychological Factors

Stimulus object Raises drive to level of motivation Cues Minor stimuli determining response when where and how
5-24

 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Maslows Hierarchy of Needs

Self-

Actualization needs
Esteem needs

Safety needs Psychological needs 5-25

 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Influences: Psychological Factors

Perception Process by which people: select, organize and interpret information to form a meaningful picture of the world Selective retention Selective attention Selective distortion

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Buying Roles

Initiator Influencer Decider Buyer User

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Types of Buying Behaviour

High involvement Low involvement Varietyseeking behaviour

Significant differences between brands

Complex buying behaviour

Few differences between brands

Dissonance reducing behaviour

Habitual buying behaviour

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Buyer Decision Process

Postpurchase behaviour Purchase decision Evaluation of alternatives Information search Need recognition 5-29

 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Buyer Decision Process: information search

Personal sources Commercial sources Public sources Experiential sources

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Buyer Decision Process: for new products

Adoption Process Stages Awareness Interest Evaluation Trial Adoption
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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Adopter Categorization: relative time of adoption

34% 34% Early Late majority majority 16% Laggards

2.5% Innovators

13.5% Early adopters

Time of adoption of innovations

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Influence of Product Characteristics on Rate of Adoption

Relative advantage Compatibility Complexity Divisibility Communicability

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 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

Consumer Behaviour Across International Borders

Values, attitudes and behaviours vary Difference often subtle Empathy essential Environment different Conditions of use? Adapt approach? Standardize methods?
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