Consumer Markets and Consumer Buyer Behavior

Chapter PREVIEW

In the previous chapter, you studied how marketers obtain, analyze, and use information to understand the marketplace and to assess marketing programs. In this and the next chapter, we'll continue with a closer look at the most important element of the marketplace—customers. The aim of marketing is to affect how customers think and act. To affect the whats, whens, and hows of buying behavior, marketers must first understand the whys. In this chapter, we look at final consumer buying influences and processes. In the next chapter, we'll study the buyer behavior of business customers. You'll see that understanding buyer behavior is an essential but very difficult task.

To get a better sense of the importance of understanding consumer behavior, let's look first at Harley-Davidson, the maker of top-selling heavyweight motorcycles. Who rides these big Harley "Hogs"? What moves them to tattoo their bodies with the Harley-Davidson emblem, abandon home and hearth for the open road, and flock to Harley rallies by the hundreds of thousands? You might be surprised, but Harley-Davidson knows very well.

Few brands engender such intense loyalty as that found in the hearts of Harley-Davidson owners. Harley buyers are granitelike in their devotion to the brand. "You don't see people tattooing Yamaha on their bodies," observes the publisher of one motorcycle industry publication. And according to another industry insider, "For a lot of people, it's not that they want a motorcycle; it's that they want a Harley—the brand is that strong."

Each year, in early March, more than 350,000 Harley bikers rumble through the streets of Daytona Beach, Florida, to attend the Daytona Bike Week celebration. Bikers from across the U.S. lounge on their low-slung Harleys, swap biker tales, and sport T-shirts proclaiming "I'd rather push a Harley than drive a Honda."

Riding such intense emotions, Harley-Davidson has rumbled its way to the top of the heavyweight motorcycle market. Harley's "Hog" motorcycles, as they have come to be called, capture almost 50 percent of the heavyweight segment. For several years running, sales have outstripped supply, with customer waiting lists of up to two years for popular models and street prices running well above suggested list prices. During the past 10 years, annual revenues and earnings have grown at better than 14 percent and 23 percent, respectively. By 2007, Harley-Davidson had experienced 21 straight years of record sales and income, and its stock was at a record high.

Harley-Davidson's marketers spend a great deal of time thinking about customers and their buying behavior. They want to know who their customers are, what they think and how they feel, and why they buy a Harley Fat Boy Softail rather than a Yamaha or a Kawasaki or a big Honda motorcycle. What is it that makes Harley buyers so fiercely loyal? These are difficult questions; even Harley owners themselves don't know exactly what motivates their buying. But Harley management puts top priority on understanding customers and what makes them tick.

Who rides a Harley? You might be surprised. Motorcycles are attracting a new breed of riders—older, more affluent, and better educated. "While the outlaw bad-boy biker image is what we might typically associate with Harley riders," says an analyst, "they're just as likely to be CEOs and investment bankers." "You take off the leathers and the helmet and you'll never know who you'll find," says one hard-core Harley enthusiast, himself a former media producer. The average Harley customer is a 47-year-old male with a median income of $82,000. More than 12 percent of Harley purchases today are made by women.

Harley-Davidson makes good bikes, and to keep up with its shifting market, the

Few brands engender such intense loyalty as that found in the hearts of Harley-Davidson owners. "You don't see people tattooing Yamaha on their bodies."

Loyal Then Loyalty TattooCustomer Buying Behaviour

company has upgraded its showrooms and sales approaches. But Harley customers are buying a lot more than just a quality bike and a smooth sales pitch. To a Harley owner, whether it's the guy who sweeps the floors of the factory or the CEO at that factory, it's about something much deeper. To the hardcore Harley fan, it's all about independence, freedom, and power.

"It's much more than a machine," says the analyst. "It is part of their own self-expression and lifestyle." Another analyst suggests that owning a Harley makes you "the toughest, baddest guy on the block. Never mind that [you're] a dentist or an accountant. You [feel] wicked astride all that power." Your Harley renews your spirits and announces your independence.

One Harley owner sums it up this way on the Harley Owners Group Web site: "I believe in the itch that can only be scratched a on motorcycle. I believe in riding alone, with my wife, with a group. I believe in high mountain passes, tunnels of trees, lonely two-lane roads. I believe in family, friends, and God. I believe my Harley-Davidson can get me to all these places." Adds another, "Four wheels move the body . . . two wheels move the soul." The classic look, the throaty sound, the very idea of a Harley—all contribute to its mystique. Owning this "American legend" makes you a part of something bigger, a member of the Harley-Davidson family.

Such strong emotions and motivations are captured in a classic Harley-Davidson advertisement. The ad shows a close-up of an arm, the bicep adorned with a Harley-Davidson tattoo. The headline asks, "When was the last time you felt this strongly about anything?" The ad copy outlines the problem and suggests a solution: "Wake up in the morning and life picks up where it left off What once seemed exciting has now become part of the numbing routine. It all begins to feel the same. Except when you've got a Harley-Davidson. Something strikes a nerve. The heartfelt thunder rises up, refusing to become part of the background. Suddenly things are different. Clearer. More real. As

Harley-Davidson's marketers put top priority on understanding customers and what makes them tick. Harley customers are buying a lot more than just a quality bike and a smooth sales pitch: "Things are different on a Harley."

they should have been all along. Riding a Harley changes you from within. The effect is permanent. Maybe it's time you started feeling this strongly. Things are different on a Harley."1

To the hard-core Harley fan, it's all about independence, freedom, and power. Says one Harley owner, "Four wheels move the body ... two wheels move the soul."

Consumer buyer behavior

The buying behavior of final consumers-individuals and households that buy goods and services for personal consumption.

Consumer market

All the individuals and households who buy or acquire goods and services for personal consumption.

The Harley-Davidson example shows that many different factors affect consumer buying behavior. Buying behavior is never simple, yet understanding it is the essential task of marketing management. Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households that buy goods and services for personal consumption. All of these final consumers combine to make up the consumer market. The world consumer market consists of more than 6.6 billion people who annually consume an estimated $65 trillion worth of goods and services.2

Consumers around the world vary tremendously in age, income, education level, and tastes. They also buy an incredible variety of goods and services. How these diverse consumers relate with each other and with other elements of the world around them impacts their choices among various products, services, and companies. Here we examine the fascinating array of factors that affect consumer behavior.

Objective Outline

Define the consumer market and construct a simple model of consumer buyer behavior.

Model of Consumer Behavior 160

Name the four major factors that influence consumer buyer

Continue reading here: The Fastest-growing U.s. Population Subsegment Now Number Nearly 50 Million

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Readers' Questions

  • iole de luca
    What is a consumer buying behavior model?
    4 months ago
  • A consumer buying behavior model is a theoretical framework that helps explain and predict how consumers make purchasing decisions. It aims to understand the various factors that influence individuals or groups when they decide what products or services to buy and how they should be bought. There are several different models and theories that have been developed over the years, but one commonly used model is the buyer decision process model, also known as the Five Stages of Consumer Buying Behavior, which includes the following stages:
    1. Need Recognition: The consumer realizes that there is a gap between their current state and a desired state, leading to the recognition of a need or want.
    2. Information Search: The consumer seeks information about potential solutions to fulfill their need, which can be done through internal (memory, past experiences) or external (friends, family, internet) sources.
    3. Evaluation of Alternatives: The consumer evaluates different choices or options available to fulfill their need, comparing factors such as quality, price, features, and benefits.
    4. Purchase Decision: The consumer makes a decision on which product or service to purchase. This may involve considering aspects like brand reputation, availability, and price.
    5. Post-Purchase Evaluation: After purchasing a product, the consumer evaluates their satisfaction and whether the product meets their expectations. This can influence future buying decisions and the likelihood of repurchasing or recommending the product to others.
    6. It is important to note that this is just one model, and there are many other factors, such as cultural influences, social factors, and individual differences, that can also impact consumer buying behavior.
    • Demetria
      Is the buying behavior of final consumers.?
      1 year ago
    • Consumer buying behavior refers to the processes and decisions consumers make when purchasing goods and services. It includes factors such as the consumer's needs, wants, preferences, and choices of products; their assessments of different products and services; and their spending patterns. Consumer buying behavior is an important factor in marketing strategies since it helps marketers understand what motivates people to buy and why.
      • daniel
        Is harley davidson categorized as consumer discretion?
        1 year ago
      • Yes, Harley Davidson is categorized as a consumer discretionary company.
        • Savanna
          What do you think which personal factor affect harley davidson consumer choice?
          1 year ago
        • Some of the personal factors that may affect Harley Davidson consumer choice include lifestyle, budget, hobbies/interests, age, gender, and location. For example, a consumer who enjoys outdoor activities and is looking for a powerful bike to go off-roading with may opt for a Harley Davidson bike that has more power and is off-road ready. On the other hand, a consumer who is on a limited budget or does not have much money to spend may opt for a less-expensive option such as a scooter or a used motorcycle. Additionally, each consumer's age, gender, and location may also influence their Harley Davidson purchasing decision based on the activities they are likely to engage in and geographic availability of authorized dealerships.
          • jaden
            Why are harley buyers loyal?
            1 year ago
          • Harley buyers are loyal due to a number of reasons. The brand has a strong and well-established reputation for quality, safety, and style. The company engages in innovative marketing campaigns that connect with its customer base. There is a strong community surrounding Harley and the people who own them, which encourages riders to stay loyal. Additionally, Harley motorcycles offer a unique combination of power, performance, and style that appeals to riders of all backgrounds.
            • patricia darosa
              What is the objectifs of the consumer markets and consumer buyer behavior?
              1 year ago
            • The objective of consumer markets and consumer buyer behavior is to understand how and why individuals make decisions to purchase goods and services. This involves research into consumer attitudes, motivations, needs, and preferences as they relate to purchasing decisions. It also involves exploring the influence of external factors such as cultural norms, environmental conditions, economic status, and marketing strategies. Understanding consumer markets and consumer buyer behavior helps businesses develop effective marketing strategies and gain competitive advantages.
              • Hiewan
                Why is understanding consumer behavior important for harley davidson?
                1 year ago
              • Understanding consumer behavior is important for Harley Davidson because it helps them understand their customers' motivations, preferences, and attitudes. It allows them to identify the needs of their target audience and tailor their products and services accordingly. With this knowledge, Harley Davidson can develop campaigns, create better products and services, and build stronger customer relationships, all of which can ultimately help them to increase sales and loyalty.
                • eve
                  WHAT INFLUENCES A HARLEY BUYER'S DECISION PROCESS?
                  1 year ago
                  1. Brand loyalty: Harley-Davidson has a large and devoted fanbase, and many potential buyers may make the decision to buy based on their loyalty to the brand.
                  2. Price: Price is an important factor when making a purchasing decision, and potential buyers will consider how much a Harley will cost them before making a purchase decision.
                  3. Style: Harley-Davidson motorcycles come in a variety of styles and designs, and potential buyers often make their decision based on the look and feel of the bike.
                  4. Quality & Reliability: Potential buyers will take into consideration the quality and reliability of a Harley-Davidson before making a purchase decision.
                  5. Technology & Engine Size: Harley-Davidson motorcycles come with a variety of engines and technology, and potential buyers may take this into consideration when deciding which Harley to buy.
                  • ivan
                    What marketing strategies that use by harley davidson to influence buyer in india?
                    1 year ago
                    1. Promotional campaigns: Harley Davidson have been using traditional and digital media to create awareness about its brand and products among its customers in India. They have been using television commercials, print advertisements, billboards, radio spots, and digital media like social media and influencer campaigns to reach their target audience.
                    2. Celebrity endorsements: Harley Davidson has also used famous Bollywood celebrities to endorse their products in India. This has helped them to give their brand a high visibility and create a strong presence in the Indian market.
                    3. Experiential events: Harley Davidson has also been organizing experiential events in India. These events allow them to directly interact with their customers and demonstrate the capabilities of their bikes.
                    4. Showroom presence: They have presence in all the major cities in India. This allows them to engage with their customers directly, understand their needs and preferences better and provide them customized services.
                    5. Product customization: Harley Davidson also offers a wide range of customization options for customers in India. This allows customers to design their own unique bike and make it a true reflection of their individual style.
                    • roland
                      What influence harley davidson owners?
                      1 year ago
                    • Harley Davidson owners are strongly influenced by the culture and style of the brand. They often take pride in the brand and strive to meet a certain standard when it comes to their riding style and look. Harley Davidson owners take great pride in their ride, and many participate in community events and gatherings in an effort to show off their bike. Additionally, they are often influenced by the lifestyle of freedom and adventure that the brand promotes.
                      • Ursula
                        Who influenced harley buyer’s decision process?
                        1 year ago
                      • The primary influencers for Harley buyers' decision process are family and friends, personal taste, and financial resources. Additionally, motorcycle enthusiasts, popular culture, brands, lifestyle trends, and reviews and ratings of Harley motorcycles have been known to have an impact on the decision process of customers.
                        • gail abbas
                          What factors influence a harley buyers decision?
                          1 year ago
                          1. Price: The most influential factor in Harley buyers’ decisions will likely be the price of the motorcycle.
                          2. Quality: Buyers want to make sure they are getting a quality product. Harley-Davidson is known for its quality, so buyers may be willing to pay a premium for a Harley over a less expensive brand.
                          3. Style: Harley-Davidson has a strong brand identity and loyal following. Its bikes have a distinctive style that many buyers appreciate.
                          4. Reputation: Harley is a well-known motorcycle brand and has been around for a long time. This gives buyers confidence that they are getting a reliable product.
                          5. Technology: Harley has continued to innovate and introduce new technology to its bikes. This could be a deciding factor for buyers who want the latest features.
                          6. Features: Buyers may be looking for certain features on a motorcycle, such as a powerful engine or superior sound system.
                          7. Financing: Harley-Davidson offers competitive financing options and special offers that can make ownership more affordable.
                          8. Accessories: Many Harley buyers customize their bikes with aftermarket accessories. These can influence their decision to purchase a particular model.
                          • omar
                            What factors influence a harley davidson buyer?
                            1 year ago
                            1. Lifestyle: Harley Davidson buyers tend to be more concerned with their lifestyle than any other type of rider. These riders often view their Harley Davidson as an extension of their lifestyle, and they are drawn to certain features that reflect their unique lifestyle.
                            2. Price: Price is always a factor when it comes to buying a Harley Davidson. Buyers often factor in the cost of ownership, including maintenance, insurance, fuel costs, and accessories, when making a purchasing decision.
                            3. Quality: Harley Davidson buyers want a bike that has a reputation for quality and dependability. A bike that has been tuned and serviced in compliance with Harley Davidson standards will be well-maintained and reliable.
                            4. Brand: Harley Davidson buyers tend to be very brand loyal. They are often attracted to the feeling of owning a Harley Davidson and being part of a larger Harley community.
                            5. Performance: Performance is also a factor for Harley Davidson buyers. They tend to be interested in the engine power, handling, and other performance features that are important to them.
                            • DANIELLA
                              How does branding influence consumer buyer behavior?
                              1 year ago
                            • Branding can have a significant impact on consumer buyer behavior, as it shapes customers’ perceptions of a company and its products or services. It can influence the customer’s decision to make a purchase, as well as their loyalty towards a brand. Branding can evoke trust and loyalty, which encourages customers to purchase from the same brand rather than from competitors. By creating an emotional connection with the customer through a strong brand, businesses can communicate their message and values, as well as create loyalty and trust. This, in turn, can help businesses gain repeat customers, as they will know what to expect from the brand in terms of quality and customer service.
                              • Christina
                                What is harley davidson old consumers market?
                                1 year ago
                              • Harley Davidson’s traditional consumer market was heavily concentrated on middle-aged men who were seeking a sense of freedom from the mundane of everyday life. Many of the early adopters of Harley Davidson were those who served in the military, outdoorsmen, and men who were drawn to the freedom and power of the open road that Harley Davidson represented.
                                • beniamino
                                  How is harley davidson using marketing to influence buyer?
                                  1 year ago
                                • Harley Davidson is heavily investing in digital marketing channels to reach and influence buyers. They are engaging customers on social media platforms like Facebook, Twitter, and Instagram, as well as developing custom content for their website and YouTube channel. Harley Davidson has also implemented influencer partnerships to promote their products and engage with their customers. Additionally, they have invested heavily in event sponsorship and experiential marketing initiatives to create powerful brand experiences.
                                  • Fesahaye
                                    What percentage of people got the harley davidson tattoo on their body?
                                    1 year ago
                                  • The exact percentage of people who have gotten a Harley Davidson tattoo on their body is impossible to determine. However, according to a survey conducted by Insights West in 2019, 5% of people from British Columbia have a tattoo representing some sort of brand, with Harley Davidson being one of the most popular choices.
                                    • girma senay
                                      What motivates their buying harley davidson?
                                      1 year ago
                                    • motorcycle The primary factor that motivates people to buy a Harley Davidson motorcycle is the sense of freedom and adventure it provides. Riders feel an sense of connection with the brand and its community, which gives them a sense of belonging. On a practical level, Harley Davidson bikes are well built, with strong engines that provide a powerful and thrilling ride. Finally, Harley Davidson motorcycles are built to last, and riders appreciate the dependability and reliability of the brand.
                                      • Paula
                                        Why are harley owners so fiercely loyal?
                                        1 year ago
                                      • Harley owners are fiercely loyal because of the company's deep roots in American culture and history, their distinct and recognizable style, their commitment to customer satisfaction and the relationships formed from sharing their passion for the brand with other Harley owners. Additionally, Harley owners love having the opportunity to customize their rides, the unique sound of their engines, and the strong sense of community that comes with owning a Harley motorcycle.
                                        • Costanzo
                                          Who founded consumer buyer behaviour?
                                          1 year ago
                                        • The founders of consumer buyer behavior are the two American economists and marketing strategists, John Howard and Jagdish Sheth. They developed theories on consumer behavior and published several influential books on the subject.