BUYER BEHAVIOUR

• MICHAEL KWAME-ADJEI

• Aim of module:

 To understand the factors that influences buyer behavior

• ASSESSMENT: Examination
 PRESENTATATION OUTLINE
1.0 Overview of Consumer Behaviour

2.0 Consumer Research

3.0 Analytical Segmentation system for consumers

4.0 Consumer Motivation, Perception and Involvement.

5.0 Consumer Attitudes

6.0 Social Class and Consumer Behaviour

7.0 The influence of Culture on Consumer Behaviour

8.0 Diffusion of Innovations

9.0 Consumer Decision Making.

 1.0 Overview of Consumer Behavior

1.1 The nature of consumer behavior

• Meaning of consumer behavior

• Factors that influence consumer behavior

• Marketing is the management process responsible for

identifying, anticipating and satisfying customer
requirements profitably (CIM).
 1.1 Meaning of consumer behavior

• Consumer Buying Behavior refers to the buying behavior

of the ultimate consumer

• Buyer behavior refers to the physical action of customers

that can be directly observed and measured by others.

• Consumer buying behavior refers to the selection,

purchase and consumption of goods and services for the
satisfaction of their wants.
 2.0 Key Factors that influence customer
behavior
1. Individual factors

• Motivation

• Learning

• Perception

• Attitudes

• Lifestyles
 2. Group factors

• Opinion leaders

• Reference group

• culture
 Marketing factors:

• Product factors

• Price factors

• Place factors

• Promotion factors
 Environmental factors: PESTEL

• Political factors

• Economic factors

• Social factors

• Technological factors

• Legal factors
 Factors Influencing Consumer Buying
Behavior

• 1. Internal or Psychological factors

• 2. Social factors

• 3. Cultural factors

• 4. Economic factors

• 5. Personal factors.
 1. Internal or Psychological factors

• Motivation

• Learning

• Perception

• Attitudes

• Lifestyles
 2. Social factors

• Family

• Reference Groups

• Roles and status.

 3. Cultural factors

• Culture

• Sub culture

• Social class
 4. Economic factors

• Personal Income

• Family income

• Income expectations

• Savings

• Liquid assets of the Consumer

• Consumer credit

• Other economic factors.

 5. Personal factors

• Age

• Occupation

• Income

• Life Style

• Personality
1.2 Models of consumer behavior

• The consumer decision making process

• Howard and Sheath

• Stimulus-Response model

• Personal-value models
 3. The individual decision making process

 Need recognition

 Information search

 Evaluation of alternatives

 Purchase decision

 Post purchase evaluation

Howard and Sheath
 Stimulus-Response model (Kotler, 1997)

• Marketing Stimuli

• Product

• Price

• Place

• Promotion;
 Marketing Environment Stimuli

• Political

• Economic

• Social-Cultural

• Technological,

The buyer’s mental processes is visualized as a black box

 Buyer Decisions

• Product choice

• Brand choice

• Dealer choice

• Purchase quantity

• Purchase timing
 Personal-value models

• Beliefs and attitudes

• Beliefs / values in turn influence attitudes;

attitudes are also influenced by marketing
stimuli, environment / society stimuli, experience
of usage and past decision making, and by the
rational and economic decision making aspect of
the individual consumer
 1.3 Marketing strategy, segmentation and
consumer behavior

• Market segmentation

• Bases for market segmentation

• Implementing segmentation strategies

 Market segmentation

• Market segmentation is the process of grouping customers in markets

with some heterogeneity into smaller, more similar or homogeneous
segments.

• Segmentation help to make the maximum use of rare resources.

• Segmentation help to achieve competiveness and organisational aim

• The concept of segmentation is applied to both consumer and

business markets. Business markets tend to be complex because the
decisions are made by a Decision Making Units (DMUs).
 Bases for market segmentation
Segmentation variables for consumer markets
• Geographic segmentation: Organisations can segment according to continents, regions,
countries, cities, towns and villages. This is important for organisations doing international
marketing.

• Demographic segmentation: based on demographic factors such as age, gender, income,

family lifecycle, and social class.

• Psychographic / lifestyle segmentation: eg beliefs, opinions, motives and aspirations.

• Behavioural segmentation: eg benefits sought, loyalty, buyer readiness stage, usage rate
and attitude to segment a market.

 It is possible to combine one variable with other variables.

 Implementing segmentation strategies

• Criteria
 Levels of segmentation

• Mass marketing

• Segmented markets

• Niche marketing

• Micro marketing
 segmentation strategies

• Undifferentiated marketing: In this case, the organisation can

ignore the market segment differences and cater to the whole
market using one marketing mix.

• Differentiated marketing: The organisation can operate in several

market segments and designs different marketing mixes for each
segment.

• Concentrated marketing: This is the most focused approach and

the organisation specialises in serving one specific market segment.
 2. CONSUMER RESEARCH

• Developing research objectives

• Collecting secondary data

• Designing primary research

• - Qualitative research, scope of quantitative research,

quantitative research, data collection instruments

• Data analysis and reporting research findings

 3. MOTIVATION AND CONSUMER BEHAVIOUR

• Meaning of motivation

• Behavioral models of motivation

• System needs

• Goals

• Measurement of motives
 Motivation

• Motivation is a process that starts with some kind of motive

or need, the drive for action and the fulfillment of the need

• Motivation drives need (from actual stage to a desired stage

• Motivation can be weak or strong

• Motivation can be positive or negative

 Types of motivations

• Internal or intrinsic motivation: this is a desire

or a need to act that originates within the
individual

• External or extrinsic motivation: this is the

desire to act in other to obtain an external
reward
 Behavioral models of motivation
• Maslow’s Hierarchy of needs
 System needs

• Needs may be primary or secondary needs

• Primary needs are innate or biological

• Secondary needs are social and cultural needs

 GOALS

• A goal is an external object towards which a motive

is directed (Onkvist and Shaw 1994)

• Goal is external and pulls a person towards a

specific direction

• Drive is internal and pushes the individual

 Goals
• Goal setting theory states that people will perform better if they are working towards
some types of goals or objective they would like to achieve (Locke and Latham 1990).

• Goal Contents Theory (GCT) posits that people internalize and embrace different life
goals and aspirations that shape much of their day-to-day attitudes and behaviours
(Kasser and Ryan, 1996).

• GCT suggests that human goals and aspirations are shaped by numerous factors,
from family dynamics to economic, cultural, and media inputs (Ryan and Deci 2017).

• Goals affect beh and so direct and motivate efforts to achieve them

• Customers buy products that will enable them to achieve their goals
 Measurement of motives

• We measure motives to discover reasons behind brand purchase

• Types of motives

 Rational – products attributes (both tangibles and intangibles)

carefully considered (the head)

 Emotional – feel-good factors often intangible and sometimes difficult

to understand (the heart)

 Instinctive reasons - (the gut)

3.1 Nature and theories of personality

• What is personality

• Theories of personality

• Personality traits and consumer behavior

 Personality

• Personality is the collection of individual characteristics that make a

person unique, and which control an individual’s responses and
relationship with the external environment.

• It is a composite of subordinates process, for example attitude,

motivation and perception.

• It is the whole of a person, and the system that governs behavior

rather than the behavior itself

• The elements of personality are called personality traits

 Theories of personality

• Type theory

• Traits theory
 Type theory

• Type theory suggest that humans were born

with certain predispositions that would cause
people to behave and act in different ways.

• These ways of behaving, types and traits

would cluster and the end result would be the
personality of any one person
 Traits theory

• Traits theory suggest that individuals are more

of a mixture of many traits (the building blocks
of personality) rather than been restricted to a
broad category (Allport, 1967)
 The big five-factor model of personality (5
key traits)

• Open or shut mind (eg willingness to try new things)

• Conscientious or negligent (eg efficient/organized or careless

• Extrovert or introvert (eg outgoing/social or solitary/reserved)

• Agreeable or hostile (compassionate/co-operative or cold/unkind

• Neuroticism – emotional stability or instability (sensitive/nervous

or secure/confident)
 4. CONSUMER PERCEPTION

• The elements of perception

• Sensory system

• Sensory threshold

• Perceptual selection

• Marketing application of different thresholds

• Perceived quality and perceived risks

 The elements of perception

• Perception is the process of converting sensory input into an

understanding of how the world works.

• Perception can be seen as the way that humans use their

senses to explore, experience, and try to understand the
world around them.

• The process of selecting, organizing and interpreting sensory

data into usable mental representations of the world
 Sensory system

Basic five senses:

• Touch

• Taste

• Smell

• Sight

• Hearing

Each sense feeds into the brain (black box) which process the information
 Six components of perception (Warr &
Knapper, 1968

• Stimulus

• Input selector

• Processing centre

• Consumer’s current state (eg mood, motivation, goals, physical state of the
individual

• Consumer’s stable characteristics (age, gender, personality, social class, education,

intelligence etc

• Response
 Perceptual selection

• Selectivity is the degree to which the brain is selecting from the

environment

• The individual cut out the extraneous noise

• Experiment has shown that some information is flitted out by

the optic nerve even before they get to the brain

• In effect the brain makes automatic decisions as to what is

relevant and what is not
 Factors that influence selectivity

• How much is going on in the environment

• An individual interest and motivation regarding the subject area

• The degree of concentration the individual has on the task in

hand

• Expectations

• Past experience
 Sensory threshold
• The sensory threshold is the level at which
individuals are able to detect or to lose the
presence of a sensory stimulus

• Sensory thresholds are important in marketing

because ultimate consumer enjoyment is totally
dependent on whether product feels, taste,
smells, look or sound right to the particular
segment
 Marketing application of different
thresholds

• Difference threshold is the amount of change needed for

a consumer to recognize that a change has occurred.

• This change is referred to as just noticeable differences

• The difference threshold seems to make a lot of

difference to consumers when choosing product eg
cosmetics, food
Absolute sensory and recognition thresholds

• Absolute sensory threshold is the point where something first becomes

noticeable to the senses. Eg the minimum quality of service and
reputation one group of consumers might be prepared to accept before
using the brand.

• Recognition threshold is the level at which we are able to recognize the

particular stimulus for what is, naming the additive, distinguishing a
sound, recognizing an object by sight or touch and so on

• Through practice and experience professional tea, wine, and coffee

tasters and perfumers are able to distinguish the smallest of differences
taste, smell and flavors
 Perceived quality

• Perceived quality is an overall feeling about a

brand that is regarded to generate firms'
values (Aaker, 2009)

• Perceived quality is “the consumer's

subjective judgment about a product's overall
excellence or superiority” (Zeithaml 1988)
 Perceived risks

• Perceived risk is defined as the potential for

loss in pursuing a desired outcome; it is a
combination of uncertainty with the possibility
of serious of outcome (Ko et al., 2010).
 Perceived risks
• Performance risk – will the product perform?

• Financial risk – can I afford? Will I get value for money?

• Physical risk – will it harm me?

• Social risk – what will others say ?

• Ego risk – am I doing the right thing?

• Time risk – will it take much time and effort to get it?

 Marketers need to identify the risk at any time and also must be aware that different
people have a different attitude towards taking risk.
 5. LEARNING AND CONSUMER
INVOLVEMENT

• Meaning and nature of learning

• Elements of consumer learning

• Behavioral learning theories

• Cognitive learning theories

• Role of memory in learning

• Consumer involvement
 Meaning and nature of learning

• Learning is defined as the behavioral changes that occur over

time relative to an external stimulus conditions (Onkvisit &
Shaw 1994:66).

• Learning is a relatively permanent change in behavior and

ways of thinking, brought about by perceptual and cognitive
experiences and social and cultural interactions

• It represents a change in behavior resulting from external

stimulus
 Elements of consumer learning
• Motives – Motives arouse individuals and as a result they respond. This arousal
function is essential because it activates the energy needed to engage in learning
activity. – By achieving the goal ,the arousal reduces, but have a greater tendency to
occur again, that is why marketers put their product in a way that when relevant
consumer motive arouse their products are their to satisfy the need. – This result that
consumer will learn a connection b/w the product and motive .

• Cues – Capable of providing direction i.e. it influences the manner in which customers
respond to motive. e.g. hungry man is guided by restaurant signs or aroma of food.

• Response – Mental or physical activity in reaction to a stimulus.

• Reinforcement – Anything that follows the response and increase the tendency of
response to reoccur in a similar situation.
 How Consumers Learn

• Cognitive Learning (Thinking) – Consumers learn through

information processing and problem solving

• Behavioral Learning
 Classical conditioning – Learning via association
 Operant conditioning - try and error
 Instrumental learning – Learning via reinforcement

• Modeling Processes (Modeling) – Based on observation of

outcomes and consequences experienced by others
 Behavioral learning theories

• Behavioral theories believed that human behavior

could best be understood by watching (and
experimenting) how animals behave and then use this
information to learn about people

• It can be safely assume that all animals and human

behavior is solely the results of reflex stimulus-
response associations and the workings of the mind
are irrelevant (Pavlov 1927)
 Types of behavioral theories

• Classical conditioning

• Operational conditioning
(Or instrumental learning)
 Classical conditioning

• Classical conditioning occurs when a person forms an

involuntary reflexive association between two stimuli, so
that encountering one stimulus makes the person think of
the other. These feelings can be good or bad

• Classical conditioning says that learning is an associative

process with an already existing relationship b/w a stimuli
and response. e.g. of food and salivation that is not taught
rather it already exists. or we can say food is unconditional
stimuli and so as unconditional response salivation.
 Operational conditioning

• Operant conditioning OR instrumental learning

• By trial and error animals learn to seek out those things they find rewarding
while avoiding those things they find threatening. Edward Thorndike – try and
error

• B F. Skinner Operant conditioning - reward and punishment and complex

reinforcement

• With operant conditioning, a reward (food) is given only after a certain response
is made. The animal will continue to make the same response as long the same
reinforcement continues. Conversely, a response that produces punishment will
be avoided
 Operant conditioning or instrumental learning

• Operant conditioning suggest that the individual must

actively operate or act on some aspect of environment for
learning to occur. Also called instrumental conditioning.

• Operant conditioning argued that a learner or consumer will

discover the appropriate response that will be reinforced. eg

• Press a button = conditional stimuli

• Food appears = positive reinforcement
 Cognitive learning theories

• Cognitive learning theories assume that there is a conscious

process going on.

• With cognitive learning, the emphasis is not on what is

learned (as is stimulus - response theories) but on how it is
learned.

• Cognitive learning does not believe that learning is automatic,

instead, put emphasis on what happens in the black box
 Role of memory in learning

• Memory is the ability to retain information over a period of time,

and is essential to learning. Thus without memory, there will be no
learning.

• Memory is the mechanism by which learned information is stored.

• Some information will eventually become unrecoverable by the

conscious mind (forgotten) but the brain still retain the
information and can be stimulated to recall it, either by hypnosis
or by association of ideas.
 Role of memory in learning

• Cognitive learning recognize that consumers influence the

outcome in an active manner, so the learning process is not always
easy to for an outsider (ie the marketing person) to manage.

• Cognitive learning usually involves some form of reasoning –

people need to think about what they are seeing or hearing in
other to remember the information

• Cognitive learning process are important to marketers since they

are helpful in predicting consumer responses to advertising
 Three stage process of memory

• Sensory memory (few seconds)

• Short-term working memory (15 – 30 seconds)

• Long-term working memory (almost

indefinitely)
 Memory process
• Encoding – the way we put data into our memory; how it goes in affect how it comes
out

• Storage – how and where information is stored will enable god or bad
memory/retrieval. Often in seconds if we understand the system

• Retrieval – how easy it is to access the data. Information use regularly easily pop out

• Memory is a set of encoded neutral connections. The stronger the connections, how
effective the data is learnt and encoded, the stronger the memory.

• Repetition help to keep the information in memory. Hence constant promotion to

make brand experience a positive and integral part of our lives.
 Marketing and retrieving information

Brands will be more easily remembered if:

• It is the first in the market

• There are limited brands in the market

• It has been in the market for a long time or short time

• If the brand is descriptive, with a distinct or short easily encoded names

• If the brand is a global brand

• Good promotional/branding activity

• Well known corporate and product brand name

 Consumer involvement

• Involvement is a person’s perceived relevance of the object

based on the person’s inherent needs, values, and interests
(Zaichowsky 1985)

• Consumer involvement is the degree to which the individual

feels attached to the product or brand, and the loyalty felt
towards it.

• Consumer involvement is the degree of importance

individuals place on buying the correct brand or product.
 Consumer involvement

• Consumer involvement posit that when consumers developed interest for a

brand, they would want to share their excitement with others

• The customer become loyal and an influencer

• High involvement is an important concept in buyer behavior because it

relates to the goals and values of consumers: from marketers view point, it
also relates to brand loyalty and frequency of purchase

• Involvement is not only about product purchase but may be message –

response involvement or advertising involvement in which customers
become eager to process information about the brand (Batra and Ray, 1983)
 Categories of involvement

• Product involvement

• Purchase situation involvement

• Message –response involvement

• Ego involvement
 Dimensions of involvement

• Personal interest

• Risk importance (of potential negative consequences due to wrong

choice

• The probability of making a bad purchase

• Pleasure value of the product category

• The sigh value of the product category (how closely it relates to the
self)
 Significance of consumer involvement to
marketers

• Marketers use involvement levels to segment the market.

• Marketers try to increase customer involvement of their brands by:

 Appealing to the hedonic needs

 By using unusual stimuli to attract attention

 Using celebrity endorsement

 By using prominent stimuli such as fast action or loud music to attract attention

 Using CRM techniques

 6. CONSUMER ATTITUDE FORMATION AND CHANGE

• Attitudes and its functions

• Attitudes and their formation

• Attitude models

• Changing motivational functions of attitudes

• Cognitive dissonance theory

• Attitude change strategies

 Attitudes and its functions

• Attitudes are feelings, beliefs and ways of behaving that

people develop about objects, events, people and issues
over a lifetime through learning and experientially
interacting with people and the environment

• Attitude can be strong or weak

• Attitude can be positive or negative

 Components of attitude

Attitude is form due to constant interactions between the

following components:

• Beliefs – consumers hold beliefs about brands base on

information from many sources

• Emotions – feelings towards the brand (the energy behind the

attitude)

• Behavior - how we act (based on the belief and emotions)

 Attitudes and their formation
• Consumers may form, or have existing attitude reinforced, before, during, or after purchase

• Attitude become more entrenched and more resistant to change the older a person
becomes

• Attitudes are adopted for different reasons:

 Utilitarian purpose (gain reward or avoid punishment)

 Value expression purpose (fit into an individual’s life values)

 Ego defensive purpose (protect self-esteem)

 Knowledge function purpose (through knowledge and understanding)

 Attitude models

1. The ABC model

• Affect (emotion)

• Behavior (how one act)

• Cognition (beliefs)
 2. Hierarchy of effect model (Alternative
consumer attitude)

• High consumer involvement (rational decision making

process eg buying consumer durables)

• Low consumer involvement (Minimal cognitive process eg

FMGC)

• Emotional consumer involvement (feel good process) –

consumers become interested in brand because it makes
them feel happy, sexy, important, love, nostalgic, proud etc
 AIDA MODEL

• Awareness

• Interest

• Desire

• Action
Changing motivational functions of attitudes

The elaboration likelihood model (Petty, Caccioppo and

Schumann, 1983) suggest two routes:

• Central route – appealing to the rational and cognitive elements

of the individual. Focus is on the benefits and features and is
applicable for high involvement purchase eg consumer durables

• Peripheral route – involve the affective element by associating

the product with another attitudinal object eg celebrity
endorsement (applicable for low involvement purchase)
 Cognitive dissonance theory (Festinger, 1957)

• Cognitive dissonance theory suggest that there seems to be

the need for individuals to seek consistency between their
beliefs, opinions and attitudes (disharmony in thinking)

• Cognitive dissonance is the mental stress or discomfort

experienced by an individual who holds two or more
contradictory beliefs, ideas, or values at the same time

• It is incompatibility that an individual might perceive between

two or more attitudes or behaviors
 Cognitive dissonance

• Cognitive dissonance theory suggests that we have an inner drive

to hold all our attitudes and beliefs in harmony and avoid
disharmony (or dissonance).

• According to Festinger, we hold many cognitions about the world

and ourselves; when they clash, a discrepancy is evoked, resulting
in a state of tension known as cognitive dissonance.

• As the experience of dissonance is unpleasant, we are motivated to

reduce or eliminate it, and achieve consonance (i.e. agreement).
 Cognitive dissonance

• Cognitive dissonance theory state that holding two competing

cognitions leads to discomfort and an eventual readjustment by:

• Rejecting the competing cognition

• Introducing a third ideal which resolve the conflict between the

two

• It is a powerful force to change attitude because the individual is

personally involved in the process
 How To Reduce Cognitive Dissonance

• Change one or more of the attitudes

• Acquire new information

• Reduce the importance of the cognitions

• Adding new cognition

• Justify the behavior

 Attitude change strategies

• Add a new salient belief

• Change the strength of a salient belief

• Change the valuation of existing belief

• Make existing belief more salient

 7. GROUP DYNAMICS AND CONSUMER REFERENCES

• Reference group

• Word of mouth

• Opinion leadership

• Diffusion and innovation

• Segmenting by adopter categories

 Reference group

• A group is two or more persons who share a set of norms and whose
relationship makes their behavior interdependent.

• Reference group is a group of people that significantly influences

individual’s behavior (Beardon and Etzel, 1982:184).

• A reference group is a group of people with whom an individual associates.

• Reference groups are groups that people identify with and refer to in order
to evaluate and regulate their beliefs, opinions and actions
 Reference group

• It is a group of people who strongly influence a person’s attitudes

values and behavior directly or indirectly

• Reference groups provide standard or norms by which consumers

judge their attitudes and behaviors

• Groups have considerable influence on buyer behavior because:

 One need certain items to join the group

 Be part of joint consumption

 Types of groups

• Primary groups – groups that we see most

often eg family, friends etc

• Secondary group – groups that we see

occasionally, and with whom we have some
shared interest
 Types of groups
• Associative groups – realistically belong

• Aspirational groups – would like to belong

• Dissociative group – would hate to belong

• Contrived or emergent group (form for specific purpose)

• Formal group

• Informal group

• Automatic group

• Virtual group
Brand communities
 Word of mouth

• Word of month is informal communication about a brand

between individuals who are not marketers.

• It is conducted without the ulterior motive of profiting from the

sale

• It has a strong influence on peoples behavior and attitude

• In recent years word of month is supplemented by word of

mouse
 Opinion leadership

• Opinion leaders are highly respected people in

society.

• They influence behavior and attitudes of others

• The strength of their influence depend upon the

personal characteristics of the opinion leader such
as …….
 Diffusion and innovation

• Product innovation refers to development of new

product to customers (Leckie et al., 2018)

• Innovation diffusion is the time that it takes for the

different segments to accept the product.

• Groups influences the adoption and diffusion of

new products
Segmenting by adopter categories

• Innovators – 2.5%

• Early adopters – 13.5%

• Early majority – 34%

• Late majority – 34%

• Laggards - 16%
 8. CULTURAL INFLUENCE ON CONSUMER BEHAVIOUR

• What is culture

• Cultures role and dynamics

• Learning cultural values

• Measuring cultural values

 What is culture?

• Culture can be described as the particular ways that people in different

countries and regions across the world organize society and behave and
live their lives

• Culture consist of different ways of behaving, family living, sex and

marriage, talking, eating, dressing, working, relaxing as well as
infrastructures and artifacts that are passed down from one generation to
another

• Culture consist of knowledge, belief, art, morals, law, customs, and any
other capabilities and habits acquired by man as a member of society.
every thing that is socially learned and shared by the members of society.
 Elements of culture
• Beliefs

• Religion

• Language/tribe

• Customs

• Rituals

• Myths

• Food

• Sacred consumption
 Cultures role and dynamics
(Characteristics of culture)

• Culture influences our way of life (perception, behavior, attitude)

• Culture influences our buying behavior and consumption

• Culture is learned – From one generation to an other

• Culture is socially shared – American culture in our society / TV

programs etc.

• Culture are similar but diff. – e.g. calendar / education/ family/ music/
gestures/ housing etc
 Characteristics of culture

• Organized as well as integrated. – Tends to form a

consistent and integrated as a whole.

• Is persistent – Cultural elements are handed down from

generation to generations cant escape ur cultural heritage

• Is adaptive/dynamic – in spite of its resistance or

persistent, culture is changing gradually but the rate of
change varies.
Learning cultural values
Measuring cultural values
 9. SUB-CULTURES AND CONSUMER BEHAVIOUR

• What is sub culture?

• Sub cultures

• Localization vs standardization

• Global marketing opportunities

 What is sub culture?

• Sub-cultures are made up of small number of

groups of people, within the common culture
with shared beliefs and value systems based
on common life experiences
 Sub cultures

• Age

• Gender

• Ethic origin

• Religion

• Beliefs

• Social class
 Localization vs standardization

• Localization refers to producing goods and

services to meet the local needs and
expectations of customers

• Standardization refers to producing standardize

products and services to meet both local and
international needs and expectations of
customers.
 Global marketing opportunities

• According to global expects, many people

around the world seems to share the same
vision and set of values about a brand
 10. SOCIAL CLASS INFLUENCE ON CONSUMER BEHAVIOUR

• What is social class?

• Components of social class

• Measuring social class

• Social class characteristics and consumer behavior

• How social class affects purchase decisions

• Selected consumer behavior applications of social class

 What is social class?

• Consumer behavior is determined by the social class to

which they belong.

• Social class is relatively a permanent and ordered

division in a society whose members share similar value,
interest and behavior.

• The classification of socioeconomic groups is known as

Socio-Economic Classification (SEC).
Components of social class
 Measuring social class

• Income

• Occupation

• Education

• Authority/power

• Property ownership

• life styles

• Consumption
Social class characteristics and consumer behavior
 Social classes and the affects on purchase
decisions

• Upper class: buy high-class goods to maintain

their status in society

• Middle class: buy medium-class goods to

maintain their status in society

• Lower class: buy ordinary products

Selected consumer behavior applications of social class
 11. DIFFUSION OF INNOVATION

• What is diffusion?

• The diffusion processes

• The adoption processes

• Product features that affect adoption

 What is diffusion?

• Innovation diffusion is the time that it takes

for the different segments to accept the
product.

• Innovation diffusion refers to the speed of the

new product adoption
 The diffusion processes

• Diagram

1. Innovators – 2.5%

2. Early adopters – 13.5%

3. Early majority – 34%

4. Late majority – 34%

5. Laggards - 16%
 The adoption processes

1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Adoption
 Product features that affect adoption

• Relative advantage – is it better than the known?

• Compatibility – will it fit customers lifestyle?

• Complexity – is the product difficult t use?

• Triability – can it be tested before buying?

• Observability - Can it be seen in use?

 12. CONSUMER DECISION MAKING
• Consumer decision model

AIDA model
• Attention – interest – desire – action

Adoption process model

• Awareness – interest – evaluation – trial – adoption

Hierarchy of effect model

• Awareness – knowledge – liking – preference – conviction
- adoption