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Consumer Market and Buyer Behaviour - Coggle Diagram
Consumer Market and Buyer Behaviour
Model of Consumer Behavior
Marketers Want to Know:
what consumers buy
Where they buy
How and how much they buy
When they buy
Why they buy
The Key: Understanding Stimuli Processing
1. Buyer Characteristics:
Cultural
: Values, Beliefs, Traditions
Social
: Reference groups, family, social media
Personal
: Age, occupation, lifestyle, income
Psychological
: Needs, motivations, perceptions
2. Buyer Decision Process:
Need Recognition
: Problem arises
Information Search
: Research begins
Alternative Evaluation
: Weighing options
Purchase Decision
: The choice is made
Post-Purchase Evaluation
: Satisfied or not?
Characteristics Affecting Consumer Behavior
Social Factors
1. Groups, Social Networks & Influencer Marketing
Membership Groups
: Directly influence buying behavior (e.g., sports teams, clubs)
Reference Groups
: Indirectly shape attitudes & choices (e.g., celebrities, online communities)
Social Networks & Influencer Marketing
: Leverage connections to reach target audiences
2. Family
Most important buying unit
Roles vary by product & buying stage
Traditional roles are evolving (e.g. shared purchasing decisions)
Marketers need to consider modern family structures
3. Roles & Status
Roles :
Activities expected of someone in a group (e.g. parent, doctor)
Status:
Social esteem given to a role
Personal Factors
1. Ocupation
Affects buying habits (e.g., construction workers need durable phones)
Marketers can target specific professions (e.g., Caterpillar's rugged phones)
2. Age & Life Stage
Needs and preferences change throughout life (e.g., young adults vs. families)
Life stages can be segmented for targeted marketing (e.g., "Young Achievers" vs. "Affluent Empty Nests")
3. Economic Situation
Consumer spending is affected by economic factors (e.g., income, savings)
Value-conscious marketing appeals to budget-minded consumers (e.g., Target's "Expect More. Pay Less.")
4. Environmental Situation
Consumers react to physical & social surroundings (e.g., d.light Solar's lighting for developing economies)
Marketers need to adapt to environmental disruptions (e.g., COVID-19's impact on online shopping)
5, Lifestyle
Psychographics: activities, interests, opinions (AIO)
Consumers buy products that reflect their lifestyles (e.g., Tesla = high-tech, eco-friendly)
Marketers can target specific lifestyles (e.g., Patagonia's outdoorsy brand)
6. Personality & Self-Concept
Personality traits influence buying decisions
Brands can have personalities that appeal to certain consumers (e.g., sincere vs. sophisticated)
Psychological Factors
1. Motivation
Needs drive buying decisions (e.g., physiological, social, esteem)
Freud: Subconscious motives (e.g., sporty car = feel young)
Maslow: Hierarchy of Needs (e.g., safety, love/belonging)
2. Perception
How we interpret information affects our actions
Selective Attention: We filter most stimuli
Selective Distortion: We bend info to fit our beliefs
Selective Retention: We remember info that confirms our beliefs
Buyer Decision Process
1. Need Recognition
Problem or need arises (triggered internally or externally)
Marketer's Goal: Be top-of-mind for consumer needs
2. Information Search
Consumer gathers info from various sources (personal, commercial, etc.)
Personal sources are most influential
3. Evaluation of Alternatives
Consumers narrow down options (consideration set -> choice set)
Importance & weighting of product attributes
4. Purchase Decision
Consumer chooses the most preferred brand
Influenced by:
Others' attitudes
Unexpected situations
5. Post-Purchase behavior
Satisfaction based on perceived performance vs. expectations
Marketer's Goal: Meet or exceed expectations
Types of Consumer Behavior
1. Complex Buying Behavior
High involvement, significant brand differences (e.g., expensive cars)
Consumers go through a learning process
2. Dissonance-Reducing Buying Behavior
High involvement, little perceived brand difference (e.g., carpeting)
Consumers experience postpurchase dissonance
Marketers should provide after-sale communication & support
3. Habitual Buying Behavior
Low involvement, little perceived brand difference (e.g., baking flour)
Consumers don't extensively search or evaluate brands
Marketers should:
Encourage habitual buying through availability & reminder advertising
4. Variety-Seeking Buying Behavior
Low involvement, significant perceived brand difference (e.g., cookies)
Consumers switch brands for variety
Market Strategies:
Market leader: Encourage habitual buying (shelf space, full stock, reminder ads)
Challenger brands: Encourage variety seeking (lower prices, promotions, ads for trying something new)
The Buyer Decision Process for New Products
Adoption Process
Awareness
: Consumer learns about the new product but has little information
Interest
: Consumer seeks information about the product's features and benefits.
Evaluation
: Consumer weighs the pros and cons of trying the product.
Trial
: Consumer tries the product on a small scale to assess its value.
Adoption
: Consumer decides to regularly use the product.
Marketing Strategies
Increase Awareness
: Utilize broad marketing channels (e.g., TV ads, social media)
Spark Interest
: Highlight unique features and benefits (e.g., informative blog posts, influencer marketing)
Simplify Evaluation
: Offer free trials, samples, or money-back guarantees
Encourage Trial
: Provide opportunities to try the product (e.g., demos, in-store samples)
Drive Adoption
: Offer loyalty programs, discounts for repeat purchases