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CHAPTER 3 Marketing environment and Consumer Buyer Behavior - Coggle…
CHAPTER 3
Marketing environment and Consumer Buyer Behavior
The Marketing Environment
Microenvironment (Immediate forces):
The Company: Internal departments (Finance, R&D, Purchasing, Operations, Accounting).
Suppliers: Provide resources; treated as partners in the value delivery network.
Marketing Intermediaries: Resellers, physical distribution firms, marketing services agencies, financial intermediaries.
Competitors: Must provide greater customer value and satisfaction than rivals.
Publics: Any group that has an interest in or impact on the organization (Financial, Media, Government, Local, General, Internal).
Customers: 5 types of markets (Consumer, Business, Reseller, Government, International).
Macroenvironment (Larger societal forces):
Demographic: Age, family structure, geographic shifts, educational characteristics, and population diversity.
Economic: Factors affecting consumer purchasing power and spending patterns (e.g., Engel’s Law).
Natural: Shortages of raw materials, increased pollution, and government intervention in natural resource management.
Technological: The most dramatic force; creates new markets and opportunities but renders old technologies obsolete.
Political-Social: Laws, government agencies, and pressure groups (Social Responsibility and Cause-Related Marketing).
Cultural: Institutions and forces that affect a society’s basic values, perceptions, preferences, and behaviors.
2. Consumer Behavior Model
The Environment: Marketing Stimuli (4Ps: Product, Price, Place, Promotion) + Other Stimuli (Economic, Tech, Social, Cultural).
Buyer's Black Box:
Buyer's Characteristics: Influence how he/she perceives and reacts to stimuli.
Buyer's Decision Process: The actual steps leading to the purchase.
Buyer Response: Brand choice, purchase timing, purchase amount, and relationship with the brand.
3. The Buyer Decision Process
Need Recognition: Triggered by internal stimuli (hunger, thirst) or external stimuli (advertising).
Information Search: Sources include Personal, Commercial, Public, and Experiential.
Evaluation of Alternatives: Processing information to arrive at brand choices.
Purchase Decision: The act of buying the most preferred brand (affected by attitudes of others and unexpected situational factors).
Post-purchase Behavior: Consumers take further action after purchase based on their satisfaction or dissatisfaction (Cognitive Dissonance).
4. Types of Buying Decision Behavior
Complex Buying Behavior: High involvement + Significant differences between brands (e.g., buying a PC).
Dissonance-Reducing Behavior: High involvement + Few differences between brands (e.g., buying a carpet).
Habitual Buying Behavior: Low involvement + Few differences between brands (e.g., buying salt).
Variety-Seeking Behavior: Low involvement + Significant brand differences (e.g., buying cookies).
5. Characteristics Affecting Consumer Behavior
Cultural: Culture, Subculture, Social Class.
Social: Reference groups, Opinion leaders, Family, Roles, and Status.
Personal: Age and life-cycle stage, Occupation, Economic situation, Lifestyle (AIO: Activities, Interests, Opinions), Personality.
Psychological: Motivation (Maslow’s Hierarchy), Perception, Learning, Beliefs, and Attitudes.
Buyer Decision Process for New Products (Adoption)
Adopter Categories:
Early Majority (34%): Deliberate, adopt before the average person.
Early Adopters (13.5%): Opinion leaders, adopt new ideas early but carefully.
Late Majority (34%): Skeptical, adopt only after a majority of people have tried it.
Laggards (16%): Tradition-bound, suspicious of changes.
Innovators (2.5%): Venturesome, try new ideas at some risk
-Stages of Adoption: Awareness → Interest → Evaluation → Trial → Adoption.