Chaper 5, 7 Flashcards
(30 cards)
refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption
Consumer buyer behavior
The consumers are highly involved when
the product is expensive, risky, and
purchased infrequently and
highly self expressive.
Consumers want to learn about the brands
different attributes and benefits.
Example: Cars, Laptops
1-Complex buying behavior
The consumers are highly involved when
the product is expensive, risky,
purchased infrequently and highly
self expressive.
***BUT Consumers perceive little differences
among brands
Example: Suits, Textile
2-Dissonance-Reducing buying behavior
The consumers are low involved when
the product has low cost and is
frequently purchased.
Consumers perceive significant
differences among brands
Consumers do a lot of Brand Switching
Example: Clothes, Chocolates
3-Variety-seeking buying behavior
The consumers are low involved when
the product has low cost and is
frequently purchased.
Consumers perceive little differences
among brands
Example: Commodities
4-Habitual buying behavior
The first stage where the buyer recognizes
a problem or need
The need can be triggered by:
1. Internal stimulus
(normal need that becomes
strong enough to drive behavior)
2. External stimulus
(advertisement or discussions with friends)
1- Need Recognition
The second stage where the consumer is
aroused to search for more information
related to the need
Sources of information:
1.Personal
2.Commercial
3.Public
4.Experiential
2- Information Search
The third stage in which the consumer uses information to evaluate alternative brands in the choice set.
How does the consumer choose among the alternative brands?
3- Evaluation of Alternatives
The stage which the consumer actually buy the most preferred brand.
Two factors can come between purchase intention and purchase decision:
1. Attitudes of others
2. Unexpected situational factors
4- Purchase Decision
The last stage in which the consumer takes further action after purchase, based on his/ her satisfaction or dissatisfaction.
If Performance= expectations, Therefore, satisfaction.
If Performance > expectations, Therefore, delighted.
If performance < expectations, Therefore, dissatisfaction.
Cognitive dissonance is the discomfort caused by post-purchase conflict, where after the purchase, consumers may regret losing the benefits of the brands not purchased.
5- Post-Purchase Decision
Dividing the market based on location (urban vs. rural, different cities, climate conditions, and infrastructure) to tailor products/services accordingly.
Examples :
Carrefour opened luxury hypermarkets in Mall of Egypt, while BIM expanded in low-income neighborhoods for price-sensitive shoppers.
Mc Arabia in Arab Countries & Mc Mahraja in India
Market Segmentation Geographic segmentation
Dividing the market based on age, gender, income level, education, and occupation to tailor products and marketing messages.
Examples in Egypt:
LC Waikiki targets middle-class families with affordable fashion, offering clothing for men, women, and kids.
Concrete (Luxury Menswear Brand) focuses on high-income professionals, offering premium formal and business attire.
Gad (Local Egyptian Fast Food Chain) attracts lower-income families and students, providing budget-friendly meals.
Market Segmentation Demographic segmentation
- Age and life-cycle stage segmentation (Ex. School/University Students Needs)
- Gender segmentation divides the market based on male or female. (Ex. Nike women)
- Income segmentation divides the market into affluent or low-income consumers. (Ex. Juhayna vs. Bekhairo)
Targeting Based on Lifestyles & Values
Segmenting customers based on personality, interests, attitudes, and lifestyle choices.
Examples in Egypt:
Mercedes-Benz Egypt targets elite business executives with luxury cars emphasizing status and comfort.
Chevrolet (General Motors Egypt) appeals to middle-class consumers and fleet owners looking for affordable durability.
Mercedes-Benz uses “prestige advertising”, while Chevrolet highlights affordability and reliability in its campaigns.
Market Segmentation Psychographic segmentation
Targeting customers based on their purchasing behavior, brand loyalty, and product usage frequency.
Market Segmentation Behavioral segmentation
group buyers according to the different benefits that they seek from the product.
E.x: While purchasing a car , people look for safety , other for image or best gas mileage.
Market Segmentation based on Benefits Sought
buyers are grouped according to occasions when they get the idea to buy, actually make their purchase, or use the purchased item.
E.x: Enjoy Kamar el din at Ramadan, Valentine day gifts , mothers day
Market Segmentation based on Occasions
markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product.
E.x: Pampers segment newlyweds and mom to be as potential users
Market Segmentation based on User Status
markets can be segmented into light, medium , and heavy product users.
Market Segmentation based on Usage Rate
Buyers can be divided into groups according to their degree of loyalty to brands.
E.x: Vodafone Egypt targets loyal high-spending customers with its “Vodafone Red” premium plans.
Vodafone launched exclusive roaming deals for frequent travelers
Market Segmentation based on Loyalty Status
Requirements for Effective Segmentation
- Measurable the size, purchasing power, and profiles of the segments can be measured
- Accessible the market segments can be effectively reached and served
- Substantial (Segment size) the market segments are large or profitable enough to serve
- Differentiable the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs
- Actionable effective programs can be designed for attracting and serving the segments
Target market
consists of a set of buyers who share common needs or characteristics that the company decides to serve
This strategy ignores market segmentation and targets the entire audience with a single offering. It is suitable for products with universal appeal and focuses on high-volume sales.
Coca-Cola Egypt uses mass marketing to target all age groups, income levels,
and lifestyles.
They distribute through supermarkets, small shops, restaurants,
and vending machines, ensuring nationwide availability.
Target Marketing Strategies
: Undifferentiated = Mass marketing
Businesses develop different products and marketing messages for different customer segments. This allows companies to customize offerings while maintaining broad market reach.
Targets several different market segments and designs separate offers for each
Use different strategy for different audiences
Goal is to achieve higher sales and stronger position
More expensive than undifferentiated marketing
Ex. Vodafone Egypt segments its market into:
Vodafone Red (for high-income customers needing premium services).
Vodafone Flex (targeting students and cost-conscious users).
Vodafone Cash (for people with limited access to banking services).
Target Marketing Strategies
:Differentiated marketing = Segmented market
A company targets a highly specific customer group with tailored products or services. Niche marketing works well in luxury, specialized, or unique industries.
Targets a small share of a large market.
Target Marketing Strategies
:Concentrated marketing = Niche Marketing
