Consumer Markets and Buyer Behavior: Key Influences

UNIT 5: Consumer Markets and Buyer Behavior

1. Model of Consumer Behavior

The buying decision is the focal point of a marketer’s effort. Marketers study consumer purchases to determine what, where, and how much consumers buy. The central question for marketers is: "How do consumers respond to various marketing efforts?" Stimuli, including the 4 Ps (product, price, place, and promotion) and economic, technological, social, and cultural factors, influence these responses. Marketers aim to understand how these stimuli are processed within the consumer's "black box." Buyer characteristics influence perception and reaction, while the decision process itself affects behavior.

2. Characteristics Affecting Consumer Behavior

2.1. Cultural Factors

a) Culture

Culture is the most basic determinant of a person’s wants and behavior. It encompasses values, perceptions, wants, and behaviors learned from family and institutions. Cultural influences on buying behavior vary across countries and regions.

b) Subculture

Subcultures are groups within a culture sharing value systems based on common experiences. This includes nationalities, religions, racial groups, and geographic regions. Marketers often tailor products and programs to specific subcultures.

• Hispanic American Consumers: A large, fast-growing market, often family-oriented, with children influencing brand choices.
• African American Consumers: Price-conscious but also value quality and selection; brands are important.
• Asian American Consumers: The second-fastest-growing subsegment, brand-conscious, and often fiercely loyal.
• Cross-Cultural Marketing: Incorporates ethnic themes and perspectives into mainstream marketing, appealing to similarities across subcultures.

c) Social Class

Social classes are society's relatively permanent divisions based on shared values, interests, and behaviors. Determined by occupation, income, education, wealth, and other variables, social class influences buying behavior.

2.2. Social Factors

a) Groups and Social Networks

Small groups influence behavior. Membership groups have a direct influence, while reference groups serve as points of comparison. Reference groups expose individuals to new behaviors, influence attitudes, and create conformity pressures affecting product and brand choices.

• Word-of-Mouth Influence: The impact of personal recommendations from trusted sources on buying behavior.
• Opinion Leader: A person within a reference group who exerts social influence due to special skills, knowledge, or personality.
• Online Social Networks: Digital communities (blogs, social media) where people socialize and exchange information.

b) Family

Family members strongly influence buyer behavior; it is the most important consumer buying organization in society.

c) Roles and Status

An individual's position within a group is defined by role and status. People choose products appropriate to their roles and status.