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Consumer market

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Fahim Muntaha

1. A consumer market consists of household consumers who purchase goods for personal or family use rather than for resale. 2. Key characteristics of a consumer market include that it is a marketplace catering to individual consumers, with goods bought for individual or family consumption rather than resale. 3. Examples of goods purchased for individual use include clothes and shoes, while groceries, fuel and cars are typically for family consumption, and large appliances like refrigerators and beds are generally not for resale.

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Consumer Buying Behavior
The mostThe most important thing isimportant thing is to forecast whereto forecast where customers arecustomers are moving, and be inmoving, and be in front of them.front of them.
5 - 3 Learning Goals 1. Define the consumer market and construct a model of consumer buyer behavior 2. Name the four factors that influence buyer behavior 3. List and understand the types of buying decision behavior and 4. Describe the stages in the buying decision process
Case Study Harley Davidson Building Success • Understanding the customers’ emotions and motivation • Determining the factors of loyalty • Translating this information to effective advertising Measuring Success • Currently 22% of all U.S. bike sales • Demand above supply • Sales doubled in the past 5 years with earnings tripled 5 - 4
5 - 5 Learning Goals 1. Define the consumer market and construct a model of consumer buyer behavior 2. Name the four factors that influence buyer behavior 3. List and understand the types of buying decision behavior and stages in the process 4. Describe the adoption and diffusion process for new products
Chapter 4 Version 3e 6 Consumer Behavior Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use 11
Consumer market
Types of buyer • Individual buyer (Consumer market) • Business buyer (Business Market)
5 - 9 Consumer Market All of these final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies. Read more : http
5 - 10 Consumer buyer behavior Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption Consumer buying behavior is the sum total of a consumer's attitudes, preferences, intentions and decisions regarding the consumer's behavior in the marketplace when purchasing a product or service. The study of consumer behavior draws upon social science disciplines of anthropology, psychology, sociology, and economics.
Influence of Social science on buyer behavior studies • Economics: Human is a rational buyer who wants to take maximum utility out of fixed/minimum price. • Psychology: Acc. To psychology any human activity is directed towards meeting certain needs. ( maslow`s Need Hierarchy) • Sociology & anthropology: Effect of reference group, society, role in society, etc.
Figure 6.1 Model of Consumer Behavior
Figure 6.1 Model of Consumer Behavior : Buyer’s Blackbox
5 - 14 Characteristics Affecting Consumer Behavior – Culture • Forms a person’s wants and behavior – Subculture • Groups with shared value systems – Social Class • Society’s divisions who share values, interests and behaviors • Cultural • Social • Personal • Psychological Key FactorsKey Factors
5 - 15 Characteristics Affecting Consumer Behavior – Groups • Membership • Reference – Aspirational • Opinion Leaders – Buzz marketing – Family • Many influencers – Roles and Status Cultural Social Personal Psychological Key FactorsKey Factors Goal 2: Know the four factors that influence consumer buying behavior
This advertiser knows teens are strongly influenced by groups when purchasing fashion items Marketing in Action 5 - 16
5 - 17 Characteristics Affecting Consumer Behavior – Age and life cycle – Occupation – Economic situation – Lifestyle •Activities, interests and opinions •Lifestyle segmentation – Personality and self-concept Cultural Social Personal Psychological Key FactorsKey Factors Goal 2: Know the four factors that influence consumer buying behavior
5 - 18 Characteristics Affecting Consumer Behavior – Motivation – Perception – Learning – Beliefs and attitudes Cultural Social Personal Psychological Key FactorsKey Factors Goal 2: Know the four factors that influence consumer buying behavior
5 - 19 Psychological Factors Motivation • A motive is a need that is sufficiently pressing to direct the person to seek satisfaction • Maslow ordered needs based on how pressing they are to the consumer Example: • Are you hungry? - Buy food • Are you bored? - go to cinema.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Motivation Freud’s Theory Behavior is guided by subconscious motivations Maslow’s Hierarchy of Needs Behavior is driven by lowest, unmet need Herzberg’s Two-Factor Theory Behavior is guided by motivating and hygiene factors
Maslow’s Hierarchy of Needs
This ad demonstrates a product meeting physiological and social needs Marketing in Action 5 - 22
Discussion What consumer products might fulfill multiple levels of the Hierarchy of Needs? 5 - 23
5 - 24 Psychological Factors Perception • Perception is the process by which people select, organize, and interpret information. • Perception Includes: – Selective attention • Consumers screen out information (computer) – Selective distortion • People interpret to support beliefs (radio in computer section) – Selective retention • People retain points to support attitudes (more discount offers)
Discussion Question Perception 1. How many ads were you exposed to today? 2. Which ones do you remember? Why? 5 - 25
5 - 26 Psychological Factors Learning and Memory • Learning describes changes in an individual’s behavior arising from experience • Example: If you get some rewards from buying Dell computer, you will prefer to buy printer from DELL AGAIN. • Short and Long term memory also direct people to choose which product to buy.
5 - 27 Learning Goals 1. Define the consumer market and construct a model of consumer buyer behavior 2. Name the four factors that influence buyer behavior 3. List and understand the types of buying decision behavior and stages in the process 4. Describe the adoption and diffusion process for new products
Types of Buying Decision Behavior Figure 5.6 5 - 28
The Buyer Decision Process
Changes in life style and buying habits • Ready to eat food are popular now • Vacuum cleaner and cooking ranges have entered into households • Shift in woman`s attitude towards cooking • Yesterday`s luxuries are becoming necessities
5 - 31 Today we discussed 1. Consumer behavior 2. Types of consumers 3. Define the consumer market 4. Construct a model of consumer buyer behavior 5. Name the four factors that influence buyer behavior 6. List and understand the types of buying decision behavior 7. Decribe the stages in the buying decision process
5 - 32 Consumer Market All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies. Read more : http
5 - 33 Start with introduction/Definition All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies
5 - 34 Divide into paragraphs All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
5 - 35 Use suitable heading Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
5 - 36 Color or underline the heading Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
5 - 37 Give Proper spaces Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
5 - 38 Use bullets for key points Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: i. It is a marketplace ii. It consists of household consumers who buy goods  for individual consumption or  for family consumption and  Not for resale . It is different than a business market, in which businesses sell goods and services to other companies.
5 - 39 Write full sentences and add some examples Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: i. It is a marketplace ii. It consists of household consumers who buy goods  for individual consumption ( Ex: Clothes, shoes)or  for family consumption ( Ex: Grocery, Fuel, Car) and  Not for resale (Refrigerator, Bed) . It is different than a business market, in which businesses sell goods and services to other companies.
5 - 40 Finish with conclusion Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: i. It is a marketplace ii. It consists of household consumers who buy goods  for individual consumption ( Ex: Clothes, shoes)or  for family consumption ( Ex: Grocery, Fuel, Car) and  Not for resale (Refrigerator, Bed) . Basically Consumer Market is different than a business market, in which businesses sell goods and services to other companies.
5 - 41 A Sample Answer……. Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: i. It is a marketplace. ii. It consists of household consumers who buy goods  for individual consumption ( Ex: Clothes, shoes)or  for family consumption ( Ex: Grocery, Fuel, Car) and  Not for resale (Refrigerator, Bed) . Basically Consumer Market is different than a business market, in which businesses sell goods and services to other companies.
Business organizations Business organizations do not only sell. They also buy vast quantities of raw materials manufactured , components, plant and equipment, supplies , and business services .
Figure 8.1: Major Influences on Industrial Buying Behavior Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-43
The business market versus the consumerThe business market versus the consumer marketmarket
Participants in the Business Buying Process Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-45
Business Buyer Behavior Participants in the Business Buying Process Users are those that will use the product or service Influencers help define specifications and provide information for evaluating alternatives Buyers have formal authority to select the supplier and arrange terms of purchase Deciders have formal or informal power to select and approve final suppliers Gatekeepers control the flow of information 6-17
Major Influences on Buying Decisions • 1- Environmental Factors 2-Organizational Factors -Purchasing-Department Upgrading -Centralized Purchasing -Decentralized Purchasing of Small Ticket Items -Internet Purchasing
Figure 6.5 Successive Sets Involved in Consumer Decision Making Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-48
Table 6.4 A Consumer’s Evaluation of Brand Beliefs About Laptops Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-49
Figure 6.6 Stages between Evaluation of Alternatives and Purchase Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-50
Perceived Risk Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-51 FunctionalFunctional PhysicalPhysical FinancialFinancial SocialSocial PsychologicalPsychological TimeTime
Figure 6.7 How Customers Use and Dispose of Products Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-52
Questions
How to solve this Questions
Tips for standard writing

More Related Content

Consumer market

  • 2. The mostThe most important thing isimportant thing is to forecast whereto forecast where customers arecustomers are moving, and be inmoving, and be in front of them.front of them.
  • 3. 5 - 3 Learning Goals 1. Define the consumer market and construct a model of consumer buyer behavior 2. Name the four factors that influence buyer behavior 3. List and understand the types of buying decision behavior and 4. Describe the stages in the buying decision process
  • 4. Case Study Harley Davidson Building Success • Understanding the customers’ emotions and motivation • Determining the factors of loyalty • Translating this information to effective advertising Measuring Success • Currently 22% of all U.S. bike sales • Demand above supply • Sales doubled in the past 5 years with earnings tripled 5 - 4
  • 5. 5 - 5 Learning Goals 1. Define the consumer market and construct a model of consumer buyer behavior 2. Name the four factors that influence buyer behavior 3. List and understand the types of buying decision behavior and stages in the process 4. Describe the adoption and diffusion process for new products
  • 6. Chapter 4 Version 3e 6 Consumer Behavior Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use 11
  • 8. Types of buyer • Individual buyer (Consumer market) • Business buyer (Business Market)
  • 9. 5 - 9 Consumer Market All of these final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies. Read more : http
  • 10. 5 - 10 Consumer buyer behavior Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption Consumer buying behavior is the sum total of a consumer's attitudes, preferences, intentions and decisions regarding the consumer's behavior in the marketplace when purchasing a product or service. The study of consumer behavior draws upon social science disciplines of anthropology, psychology, sociology, and economics.
  • 11. Influence of Social science on buyer behavior studies • Economics: Human is a rational buyer who wants to take maximum utility out of fixed/minimum price. • Psychology: Acc. To psychology any human activity is directed towards meeting certain needs. ( maslow`s Need Hierarchy) • Sociology & anthropology: Effect of reference group, society, role in society, etc.
  • 12. Figure 6.1 Model of Consumer Behavior
  • 13. Figure 6.1 Model of Consumer Behavior : Buyer’s Blackbox
  • 14. 5 - 14 Characteristics Affecting Consumer Behavior – Culture • Forms a person’s wants and behavior – Subculture • Groups with shared value systems – Social Class • Society’s divisions who share values, interests and behaviors • Cultural • Social • Personal • Psychological Key FactorsKey Factors
  • 15. 5 - 15 Characteristics Affecting Consumer Behavior – Groups • Membership • Reference – Aspirational • Opinion Leaders – Buzz marketing – Family • Many influencers – Roles and Status Cultural Social Personal Psychological Key FactorsKey Factors Goal 2: Know the four factors that influence consumer buying behavior
  • 16. This advertiser knows teens are strongly influenced by groups when purchasing fashion items Marketing in Action 5 - 16
  • 17. 5 - 17 Characteristics Affecting Consumer Behavior – Age and life cycle – Occupation – Economic situation – Lifestyle •Activities, interests and opinions •Lifestyle segmentation – Personality and self-concept Cultural Social Personal Psychological Key FactorsKey Factors Goal 2: Know the four factors that influence consumer buying behavior
  • 18. 5 - 18 Characteristics Affecting Consumer Behavior – Motivation – Perception – Learning – Beliefs and attitudes Cultural Social Personal Psychological Key FactorsKey Factors Goal 2: Know the four factors that influence consumer buying behavior
  • 19. 5 - 19 Psychological Factors Motivation • A motive is a need that is sufficiently pressing to direct the person to seek satisfaction • Maslow ordered needs based on how pressing they are to the consumer Example: • Are you hungry? - Buy food • Are you bored? - go to cinema.
  • 20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Motivation Freud’s Theory Behavior is guided by subconscious motivations Maslow’s Hierarchy of Needs Behavior is driven by lowest, unmet need Herzberg’s Two-Factor Theory Behavior is guided by motivating and hygiene factors
  • 22. This ad demonstrates a product meeting physiological and social needs Marketing in Action 5 - 22
  • 23. Discussion What consumer products might fulfill multiple levels of the Hierarchy of Needs? 5 - 23
  • 24. 5 - 24 Psychological Factors Perception • Perception is the process by which people select, organize, and interpret information. • Perception Includes: – Selective attention • Consumers screen out information (computer) – Selective distortion • People interpret to support beliefs (radio in computer section) – Selective retention • People retain points to support attitudes (more discount offers)
  • 25. Discussion Question Perception 1. How many ads were you exposed to today? 2. Which ones do you remember? Why? 5 - 25
  • 26. 5 - 26 Psychological Factors Learning and Memory • Learning describes changes in an individual’s behavior arising from experience • Example: If you get some rewards from buying Dell computer, you will prefer to buy printer from DELL AGAIN. • Short and Long term memory also direct people to choose which product to buy.
  • 27. 5 - 27 Learning Goals 1. Define the consumer market and construct a model of consumer buyer behavior 2. Name the four factors that influence buyer behavior 3. List and understand the types of buying decision behavior and stages in the process 4. Describe the adoption and diffusion process for new products
  • 28. Types of Buying Decision Behavior Figure 5.6 5 - 28
  • 30. Changes in life style and buying habits • Ready to eat food are popular now • Vacuum cleaner and cooking ranges have entered into households • Shift in woman`s attitude towards cooking • Yesterday`s luxuries are becoming necessities
  • 31. 5 - 31 Today we discussed 1. Consumer behavior 2. Types of consumers 3. Define the consumer market 4. Construct a model of consumer buyer behavior 5. Name the four factors that influence buyer behavior 6. List and understand the types of buying decision behavior 7. Decribe the stages in the buying decision process
  • 32. 5 - 32 Consumer Market All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies. Read more : http
  • 33. 5 - 33 Start with introduction/Definition All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies
  • 34. 5 - 34 Divide into paragraphs All of the final consumers combine to make up the consumer market. A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
  • 35. 5 - 35 Use suitable heading Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
  • 36. 5 - 36 Color or underline the heading Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
  • 37. 5 - 37 Give Proper spaces Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption rather than resale. It is different than a business market, in which businesses sell goods and services to other companies.
  • 38. 5 - 38 Use bullets for key points Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: i. It is a marketplace ii. It consists of household consumers who buy goods  for individual consumption or  for family consumption and  Not for resale . It is different than a business market, in which businesses sell goods and services to other companies.
  • 39. 5 - 39 Write full sentences and add some examples Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: i. It is a marketplace ii. It consists of household consumers who buy goods  for individual consumption ( Ex: Clothes, shoes)or  for family consumption ( Ex: Grocery, Fuel, Car) and  Not for resale (Refrigerator, Bed) . It is different than a business market, in which businesses sell goods and services to other companies.
  • 40. 5 - 40 Finish with conclusion Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: i. It is a marketplace ii. It consists of household consumers who buy goods  for individual consumption ( Ex: Clothes, shoes)or  for family consumption ( Ex: Grocery, Fuel, Car) and  Not for resale (Refrigerator, Bed) . Basically Consumer Market is different than a business market, in which businesses sell goods and services to other companies.
  • 41. 5 - 41 A Sample Answer……. Consumer Market: All of the final consumers combine to make up the consumer market. A consumer market has following characteristics: i. It is a marketplace. ii. It consists of household consumers who buy goods  for individual consumption ( Ex: Clothes, shoes)or  for family consumption ( Ex: Grocery, Fuel, Car) and  Not for resale (Refrigerator, Bed) . Basically Consumer Market is different than a business market, in which businesses sell goods and services to other companies.
  • 42. Business organizations Business organizations do not only sell. They also buy vast quantities of raw materials manufactured , components, plant and equipment, supplies , and business services .
  • 43. Figure 8.1: Major Influences on Industrial Buying Behavior Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-43
  • 44. The business market versus the consumerThe business market versus the consumer marketmarket
  • 45. Participants in the Business Buying Process Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-45
  • 46. Business Buyer Behavior Participants in the Business Buying Process Users are those that will use the product or service Influencers help define specifications and provide information for evaluating alternatives Buyers have formal authority to select the supplier and arrange terms of purchase Deciders have formal or informal power to select and approve final suppliers Gatekeepers control the flow of information 6-17
  • 47. Major Influences on Buying Decisions • 1- Environmental Factors 2-Organizational Factors -Purchasing-Department Upgrading -Centralized Purchasing -Decentralized Purchasing of Small Ticket Items -Internet Purchasing
  • 48. Figure 6.5 Successive Sets Involved in Consumer Decision Making Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-48
  • 49. Table 6.4 A Consumer’s Evaluation of Brand Beliefs About Laptops Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-49
  • 50. Figure 6.6 Stages between Evaluation of Alternatives and Purchase Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-50
  • 51. Perceived Risk Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-51 FunctionalFunctional PhysicalPhysical FinancialFinancial SocialSocial PsychologicalPsychological TimeTime
  • 52. Figure 6.7 How Customers Use and Dispose of Products Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 6-52
  • 54. How to solve this Questions
  • 55. Tips for standard writing

Editor's Notes

  1. There are many products that fit several levels. Hotels, for instance, will satisfy basic physiological needs, but the best room at the Ritz Carlton may meet many higher levels.
  2. Did students include Internet ads, logos on clothing, ads in the subway, billboards, logos on drinks, in the classroom, TV or radio ads? This should prompt discussion of selective attention, distortion and retention. Was it that they are loyal to these brands? Did they break through the clutter? Were they bombarded by a particular brand message?