CHAPTER SIX

Final Consumers and Their Buying Behavior

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When we finish this lecture you should

1. 2. 3. 4. 5.

Describe how economic needs influence the buyer decision process. Understand how psychological variables affect an individuals buying behavior. Understand how social influences affect an individuals buying behavior. Explain how characteristics of the purchase situation influence consumer behavior. Explain the process by which consumers make buying decisions

Consumer Behavior for Marketing Strategy Planning (Exhibit 6-1)

Consumer Behavior for Marketing Strategy Planning (Exhibit 6-1)

Final Consumers

CH 5: Demographic Dimensions of Final Consumer Markets

CH 6: Buying Behavior Of Final Consumers

Global Consumer Markets Population trends Income growth & distribution Urbanization, literacy, & other differences

The U.S. Market Population trends Income growth & distribution Spending patterns Ethnic dimensions

Consumer Behavior for Marketing Strategy Planning (Exhibit 6-1)

Final Consumers
CH 6: Buying Behavior of Final Consumers

Marketing Mixes

All other stimuli

Person making a buying decision

Economic needs Psychological variables Social influences Purchase Situation

Consumer decision process Person does or does not purchase (response)

How We Will View Consumer Behavior (Exhibit 6-2)

Marketing mixes All other stimuli

Person Making Decision

Economic needs Economy of purchase Convenience Efficiency in use Dependability Psychological variables Motivation Perception Learning Attitude Personality/ lifestyle Social influence Family Social class Reference groups Culture Purchase situation Purchase reason Time Surroundings

Consumer decision process

Person does or does not purchase (response)

Economic Needs Affect Many Buying Decisions But Theyre Not the Whole Story
They call it a crash test. We call it a product demonstration.

As an economic buyer we have a need to make the best

use of our money and time

Psychological Influences within an Individual

Basic, natural

Needs
Acquired or learned needs

Wants
Internal forces that create action

Drives Consumers seek benefits to match needs and wants!

Several Needs at the Same Time: PSSP Hierarchy of Needs (Exhibit 6-4)

Personal Needs

Social Needs

Safety Needs

Physiological Needs

Personal Needs
If you have a faucet You can have a facial.

Perception Determines What Consumers See and Feel

Perception: how we gather & interpret information & objects from the world around us

Selective Exposure

See what you want to see

Selective Retention
Remember only what you want to remember

Selective Perception
Believe what you want to believe

Learning Determines What Response Is Likely

(Exhibit 6-5)
Learning: thought processes shaped by our prior experience

YouTube: Whats Zoom Zoom

Drive

YouTube: Qantas

e.g. Pavlovs experiment, 6 oclock news

Cues
Reinforcement Response

Attitudes Relate to Buying

I like flat-screen HDTVs, it takes less space on my TV shelf than traditional tube TVs

Belief: An Opinion Attitude: A Point of View

Need To Understand Attitudes & Beliefs

Key Concepts
Meeting Expectations Is Important Ethical Issues May Arise Work with Existing Attitudes

Personality and Lifestyle Analysis

Personality: How People See Things

Activities

Interests Opinions

Personality and Lifestyle Analysis

Harley-Davidson Video

Social Influences Affect Consumer Behavior

Simple Approaches for Measuring Social Class in the U.S.

Occupation

Education

Type of Housing

Location of Housing

Income Is Not the Main Determinant!

Other Social Influences

Reference Groups

Opinion Leaders

Culture

Individuals Are Affected by the Purchase Situation

Purchase Reason

Time Available

Physical Surroundings

Expanded Model of Consumer Behavior (Exhibit 6-7)

Marketing mixes All other stimuli

Economic needs

Psychological Variables

Social influences

Purchase situation

Consumer decision process

Need awareness Routinized response Problem Solving
Information search Identify alternatives Set criteria Evaluate alternatives

Purchase decision

Experience After the purchase

Postpone decision Feedback based on experience

Problem Solving Continuum (Exhibit 6-9)

Low involvement Frequently purchased Inexpensive Little risk Little information

High involvement Infrequently purchased Expensive High risk Much information desired

Routinized Response Behavior

Limited Problem Solving

Extensive Problem Solving

Low involvement

High involvement

Limited or Extensive Problem Solving?

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Adoption Process Steps

Awareness Interest Evaluation Trial Dissonance may set in after the decision!

Decision
Confirmation

Decision Making (Exhibit 6-10)

Decision-making steps Adoption process steps 1. Becoming aware of need 2. Gathering info about choices 3. Setting criteria, evaluation, possible trial 4. Deciding on the solution 5. Evaluating the purchase experience Awareness and interest Interest and evaluation Cues Evaluation, maybe trial Decision Confirmation
Reinforcement

Learning steps

Drive

Response

You now

1. 2. 3. 4. 5.

Describe how economic needs influence the buyer decision process. Understand how psychological variables affect an individuals buying behavior. Understand how social influences affect an individuals buying behavior. Explain how characteristics of the purchase situation influence consumer behavior. Explain the process by which consumers make buying decisions

Key Terms

Economic buyers Economic needs Needs Wants Drive Physiological needs Safety needs Social needs Personal needs Perception Selective exposure

Selective perception Selective retention Learning Cues Response Reinforcement Attitude Belief Expectation Psychographics Lifestyle analysis

Key Terms

Social class Reference group Opinion leader Culture Extensive problem solving Limited problem solving Routinized response behavior Low-involvement purchases Dissonance Adoption process