ANALYZING CONSUMER

MARKETS AND BUYER

BEHAVIOR
By : Agung Utama
introduction
 The aim of marketing is to meet and satisfy target
customer’s needs and wants.
 The field of consumer behavior studies how
individuals, groups, and organizations select, buy,
use and dispose of goods, services, ideas, or
experiences to satisfy their needs and desires.
 Understanding consumer behavior and knowing
customers is never simple. Customers may say one
thing but do another.
Influencing buyer behavior
 The starting model for understanding buyer
behavior is “stimulus response-model”
 The model describes that marketing and
environmental stimuli enter the buyer’s consciousness.
The buyer’s characteristics and decision processes
lead to certain purchase decisions.
 The marketer’s task is to understand what happen in
the buyer’s consciousness between the arrival of
outside stimuli and the purchase decisions.
 Model of buyer behavior.

Buyer’s
Decision Buyer’s
process Decision
•Problem •Product
Marketing Other Buyer’s recognition choice
stimuli stimuli charactristics •Information •Brand
•Product •economic •Cultural search choice
•Price •technlg •Social •Evaluation of •Dealer
•Place •Political •Personal alternatives choice
•promotion •cultural •psychological •Purchase •Purchase
decision timing
•Post purchase •Purchase
behavior amount
 Cultural factors
 Culture is the fundamental determinant of a person’s
wants and behavior.
 A person acquires a set of values, perceptions,
preferences, and behaviors through his or her family
and other key institutions.
 Each culture consists of smaller sub culture that provide
more specifications and socialization for their members.
 Sub cultures include nationalities, religions, racial groups,
and geographic regions.
 When subcultures grow large enough, companies often
design specialized marketing programs to serve them.
 Social factors
 Reference groups : consists of all the groups that have a
direct or indirect influence on the person’s attitudes or
behavior.
Groups having a direct influence on a person are called
memberships groups, such as: family, neighbors, friend, etc.
 Family
 Two kind of families in the buyer’s life :
1. The family of orientation: consists of parents and siblings.
From parents a person acquires an orientation toward
religion, politics, economics, sense of personal ambitions.
2. The family of procreation : consists of one’s spouse and
children.
 Roles and status
 A role consists of the activities a person is expected to
perform.
 Each role carries a status.
 People choose products that communicate their role and
status in society.
 Personal factors
 Age and stage in the life cycle : people buy different goods
and services over a lifetime.
 Occupation and economic circumstances.
Occupation influences consumption patterns, such as: a blue
collar worker will buy work clothes, work shoes, lunch-box,
while a company presidents will buy expensive suits, air
travel, and country club memberships.
 Life style
People from the same culture, social class, and occupation
may lead quite different lifestyles.
A lifestyle is a person’s pattern of living in the world as
expressed in activities, interests and opinions.
Marketers search for relationships between their products
and lifestyle groups.
 Personality and self-concept
each person has personality characteristics that influence his
or her buying behavior.
Personality is often described in term of such as self
confidence, dominance, autonomy, deference, sociability,
defensiveness, and adaptability.
Personality can be useful variable an analyzing consumer
brand choices. The idea is that brands also have
personalities, and that consumers are likely to choose brands
whose personalities match their own.
 Psychological factors
 Motivations

Maslow’s Theory: human’s needs ate arranged in a

hierarchy, from the most pressing to the least pressing. In
order of importance, they are physiological needs,
safety needs, social needs, esteem needs, and self-
actualization needs. People will try to satisfy their
important first needs, when a person succeeds in
satisfying an important needs, he or she will then try to
satisfy the next-most-important needs.
 5.
Self-
Actualization
Needs

4. Esteem Needs

3. Social needs (love)

2. Safety needs (security)

1. physiological needs
(food, water, shelter)
 Perception

A motivated person is ready to act, how the motivated

person actually acts is influenced by his or her
perception of the situations.
Perceptions can vary widely among individuals exposed
to the same reality. One person might perceive fast
talking salesperson as aggressive , another, as
intelligent and hekpful.
People can emerge with different perceptions of the
same object because of three perceptual processes:
selective attention, selective distortion, selective
retention.
 Beliefs and attitudes
A belief is a descriptive thought that a person hold about
something.
People’s belief about product or brand influence their
buying decisions.
Marketers are interested in the beliefs people carry in their
heads about their products and brands. Brands beliefs exist
in consumer’s memory .
Attitudes is a person’s enduring favorable or unfavorable
evaluations, emotional feelings, and actions tendencies
toward some object or idea.
A person’s attitude settle into a consistent pattern, so a
company would be well advised to fit its product into
existing attitude rather than to try to change attitudes might
pay off.
The buying decisions process
 Marketers have to go beyond the various influence
on buyers and understanding how consumers
actually make their buying decisions.
 Specifically marketers must identify who makes the
buying decisions, the types of buying decisions, and
the step in the buying decisions.
 Buying roles
 Buying roles change so the marketers must be careful in
making their targeting decisions.
 We can distinguish five roles people play in buying
decisions:
 Initiator: the person who first suggests the idea of buying the
product or service.
 Influencer : the person whose view or advice influences the
decisions.
 Decider : the person who decides on any component of a
buying decisions : whether to buy, what to buy, how to buy,
where to buy.
 Buyer : the person who makes the actual purchase
 User : the persons who consumes or uses the product or
service.
 Buying behavior
 Henry Assael distinguished four types of consumer
buying based on the degree of buyer involvement and
the degree of differences among brands.

High Involvement Low Involvement

Significant
Complex buying Variety seeking
differences behavior buying behavior
between brands

Dissonance Habitual buying

Few differences
reducing buying behavior
between brands behavior
 Complex buying behavior
 Consumers engage in complex buying behavior when they
are highly involved in a purchase and aware of significant
differences among brands.
 This is usually the case when a product is expensive, bought
infrequently, risky, and highly self –expressive, like an
automobiles.
 Dissonance reducing buyer behavior
 Consumers sometimes engage in highly involved in a
purchase but sees little differences in brands.
 The high involvement based on the fact that the purchase is
expensive, infrequent, and risky.
 In this case the buyer will shop around to learn what is
available. If they find quality differences in the brands, they
might go for the higher price. If they find little differences,
they might simply buy on price or convenience.
 Habitual buying behavior
 Many products are bought under conditions of low
involvement and the absence of significant brand
differences, for example: salt.
 There is good evidence that consumers have low
involvement with most low-cost, frequently purchased
products.
 Variety seeking buying behavior
 Some buying situations are characterized by low
involvement but significant brand differences.
 Here consumers often do a lot of brand switching.

 Brand switching occurs for the sake of variety rather

than dissatisfaction.
 Stages of the buying decisions process
 Five stage model of the consumer buying process.

Evaluation Post
Problem Information Purchase
Of purchase
Recognition search Decisions
Alternatives Decisions
 Problem recognition
 The buying process starts when the buyer recognize a problem or
need.
 The need can be triggered by internal or external stimuli.
 Marketers need to identify the circumstances that trigger a
particular need.
 Information search
 An aroused consumer will be inclined to search more information.
 Two levels of arousal consumer:
 Heightened attention : a person simply becomes more receptive to
information about product
 Active information search : a person who looking for reading material,
phoning friends, and visiting stores to learn about product.
 Consumer information sources:
 Personal sources : family, friends
 Commercial sources : advertising, sales persons
 Public sources : mass media
 Experiential sources : using the product.
 Through gathering information, the consumer learns about
competing brands and their features as depicted follows:

Total sets Awareness set Consideration set Choice set Decision

?
IBM TOSHIBA
IBM IBM
APPLE COMPAQ
APPLE TOSHIBA
DELL AXIOO
TOSHIBA COMPAQ
HWELETT-P
COMPAQ AXIOO
TOSHIBA
AXIOO
COMPAQ
ZYREX
NEC
AXIOO
ZYREX
 Evaluation of alternatives
 Some basic concepts will help us understand consumer
evaluation process:
 First:
The consumer is trying to satisfy needs
 Second: The consumers is looking for certain benefits from the
product solution
 Third: The consumers sees each product as a bundle of attributes with
varying abilities for delivering benefits sought to satisfy this needs.
The attributes of interest to buyers vary by product:
 Cameras: picture sharpness, camera speeds, camera size
 Hotels: location, cleanliness, price, atmosphere
 Tires: safety, tread life, price, ride quality.
 Mouthwash: color, effectiveness, germ-killing capacity, price, taste/flavor
 Consumers will pay the most attention to attributes that deliver the
sought benefits.
 Purchase decisions
 In the evaluation stage, the consumers form preferences among the
brands in the choice set.
 The consumers may also form an intention to buy the most
preferred brand.
 How ever two factors can intervene between the purchase
intention and the purchase decision.
 The first factor is the attitudes of others. The extent to which
another person’s attitude reduces one’s preferred alternatives
depends on two things:
 The intensity of the other person’s negative attitude toward the
consumer’s preferred alternative
 The consumer’s motivation to comply with the other person’s wishes
 The second factor is unanticipated situational factors that may
erupt to change the purchase intention.
 In executing a purchase intention, the consumers may make up to
five purchase sub decisions: a brand decisions, vendor decisions,
quantity decisions, timing decisions, payment method decisions .
 Steps between evaluation of alternatives and a purchase
decision.
 Post purchase behavior
 After purchasing the product, the consumer will experience some level of
satisfaction or dissatisfaction.
 Marketers must monitor post purchase satisfaction, post purchase actions and post
purchase product uses.
 Post purchase satisfaction
The buyer’s satisfaction is a function of the closeness between the buyer’s
expectations and the product’s perceived performance.
If performance falls short of expectations, the customer is disappointed; if it
meets expectations, the customer is satisfied; if it exceeds expectations, the
customer is delighted.
 Post purchase actions
satisfaction or dissatisfaction with the product will influence a consumer ‘s
subsequent behavior.
If the consumer is satisfied, he or she will exhibit a higher profitability of
purchasing the product again.
If the consumer is dissatisfied, they may abandon or return the product. They
may take public action by complaining to the company, going to a lawyer. They
may take private actions include : stop buying the products, warning friends,
etc.
 Post purchase use and disposal
Marketers should also monitor how buyers use and dispose
of the product.
If consumers store the product in a closet, the product is
probably not very satisfying.
If they sell or trade the product, new product sales will be
depressed.
If the consumers throw the product away, the marketer needs
to know how they dispose of it, especially if it can hurt the
environment (such as: beverages containers and diapers).
 How customers use or dispose of products?
 Source from: Jacob jacoby, Carol.K. berning, and Thomas F.Dietvorst,”What about
disposition?”

Rent it

Get Rid of Give it

it away
temporarily To be
Lend it
(resoled)

Trade it
Get Rid of it
Product permanently
To be used
Use it to serve
original purpose Sell it
Direct to
consumer
convert it to
serve a new
Throw it
Keep it purpose Through
middleman

Store it
To
intermediary