Transcript U2W09_SU10_Lesson_11 - U2W09-2010

Business English Upper Intermediate
U2W09
John Silberstein
[email protected]
Agenda
•Homework
•Consumer and Buyer
Behavior
Marketing
Homework
Use the internet to find a career opportunity
on-line and write a cover letter expressing
interest in the position.
The opportunity should be posted in English
and you should cut and paste the
opportunity to your submission.
Marketing
Consumer and Buyer Behavior
What is meant by consumer and buyer behavior?
Buying Behavior is the decision processes and
acts of people involved in buying and using
products.
The study of individuals, groups, or organizations
and the processes they use to select, secure, use,
and dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that these
processes have on the consumer and society.
Marketing
Consumer and Buyer Behavior
Behavior occurs either for the individual, or
in the context of a group (e.g., friends
influence what kinds of clothes a person
wears) or an organization (people on the job
make decisions as to which products the
firm should use).
Marketing
Consumer and Buyer Behavior
Consumer behavior involves the use and
disposal of products as well as the study of how
they are purchased. Product use is often of
great interest to the marketer, because this may
influence how a product is best positioned or
how we can encourage increased consumption.
Since many environmental problems result from
product disposal (e.g., motor oil being sent into
sewage systems to save the recycling fee, or
garbage piling up at landfills) this is also an area
of interest.
Marketing
Consumer and Buyer Behavior
Consumer behavior involves services and
ideas as well as tangible products.
The impact of consumer behavior on
society is also of relevance. For example,
aggressive marketing of high fat foods, or
aggressive marketing of easy credit, may
have serious repercussions for the national
health and economy.
Marketing
Consumer and Buyer Behavior
Four main applications of consumer
behavior:
marketing strategy,
public policy,
social marketing and
make us better consumers.
Marketing
Consumer and Buyer Behavior
Four main applications of consumer behavior: marketing
strategy:
Designing better marketing campaigns. For example, by
understanding that consumers are more receptive to food
advertising when they are hungry, we learn to schedule snack
advertisements late in the afternoon.
By understanding that new products are usually initially adopted
by a few consumers and only spread later, and then only
gradually, to the rest of the population, we learn that (1)
companies that introduce new products must be well financed
so that they can stay afloat until their products become a
commercial success and (2) it is important to please initial
customers, since they will in turn influence many subsequent
customers’ brand choices.
Marketing
Consumer and Buyer Behavior
Four main applications of consumer behavior:
public policy
In the 1980s, Accutane, a near miracle cure for
acne, was introduced. Unfortunately, Accutane
resulted in severe birth defects if taken by pregnant
women. Although physicians were instructed to
warn their female patients of this, a number still
became pregnant while taking the drug. To get
consumers’ attention, the Federal Drug
Administration (FDA) took the step of requiring that
very graphic pictures of deformed babies be shown
on the medicine containers.
Marketing
Consumer and Buyer Behavior
Four main applications of consumer behavior: social
marketing
Social marketing involves getting ideas across to consumers
rather than selling something. Marty Fishbein, a marketing
professor, went on sabbatical to work for the Centers for
Disease Control trying to reduce the incidence of transmission
of diseases through illegal drug use. The best solution,
obviously, would be if we could get illegal drug users to stop.
This, however, was deemed to be infeasible. It was also
determined that the practice of sharing needles was too
ingrained in the drug culture to be stopped. As a result, using
knowledge of consumer attitudes, Dr. Fishbein created a
campaign that encouraged the cleaning of needles in bleach
before sharing them, a goal that was believed to be more
realistic.
Marketing
Consumer and Buyer Behavior
Four main applications of consumer behavior:
make us better consumers.
As a final benefit, studying consumer behavior
should make us better consumers. Common sense
suggests, for example, that if you buy a 64 liquid
ounce bottle of laundry detergent, you should pay
less per ounce than if you bought two 32 ounce
bottles. In practice, however, you often pay a
size premium by buying the larger quantity. In other
words, in this case, knowing this fact will sensitize
you to the need to check the unit cost labels to
determine if you are really getting a bargain.
Marketing: Consumer and Buyer Behavior
Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision
Process (For complex decisions).
Actual purchasing is only one stage of the
process. Not all decision processes lead to a
purchase.
All consumer decisions do not always include all
6 stages, determined by the degree of
complexity...discussed next.
Marketing: Consumer and Buyer Behavior
Stages of the Consumer Buying Process
The 6 stages are:
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Purchase
Post Purchase Evaluation
Marketing: Consumer and Buyer Behavior
Stages of the Consumer Buying Process
The 6 stages are:
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Purchase
Post Purchase Evaluation
Marketing: Consumer and Buyer Behavior
The four type of consumer buying behavior are:
Routine Response/Programmed Behavior-buying low involvement frequently purchased low
cost items; need very little search and decision
effort; purchased almost automatically. Examples
include soft drinks, snack foods, milk etc.
Limited Decision Making--buying product
occasionally. When you need to obtain information
about unfamiliar brand in a familiar product
category, perhaps. Requires a moderate amount of
time for information gathering. Examples include
Clothes--know product class but not the brand.
Marketing: Consumer and Buyer Behavior
The four type of consumer buying behavior are:
Extensive Decision Making/Complex high
involvement--unfamiliar, expensive and/or
infrequently bought products. High degree of
economic/performance/psychological risk.
Examples include cars, homes, computers,
education. Spend a lot of time seeking
information and deciding.
Information from the companies MM; friends
and relatives, store personnel etc. Go through
all six stages of the buying process.
Impulse buying -- no conscious planning.
Marketing: Consumer and Buyer Behavior
The four type of consumer buying behavior are:
The purchase of the same product does not always
elicit the same Buying Behavior. Product can shift
from one category to the next.
For example:
Going out for dinner for one person may be
extensive decision making (for someone that does
not go out often at all), but limited decision making
for someone else. The reason for the dinner,
whether it is an anniversary celebration, or a meal
with a couple of friends will also determine the
extent of the decision making.
Marketing: Consumer and Buyer Behavior
Categories that Effect the Consumer Buying Decision Process
A consumer, making a purchase decision
will be affected by the following three
factors:
Personal
Psychological
Social
The marketer must be aware of these factors
in order to develop an appropriate Marketing
Mix for its target market.
Marketing: Consumer and Buyer Behavior
Categories that Effect the Consumer Buying Decision Process
Personal
Unique to a particular person.
Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the
decision making.
Young people purchase things for different
reasons than older people.
Marketing: Consumer and Buyer Behavior
Categories that Effect the Consumer Buying Decision Process
Psychological factors
1.
2.
3.
4.
5.
6.
Motives
Perception
Ability and knowledge
Attitudes
Personality
Lifestyles
Marketing: Consumer and Buyer Behavior
Categories that Effect the Consumer Buying Decision Process
Psychological factors: Motives
A motive is an internal energizing force that orients a
person's activities toward satisfying a need or achieving a
goal.
Actions are effected by a set of motives, not just one. If
marketers can identify motives then they can better develop
a marketing mix.
MASLOW hierarchy of needs can help identify what may
motivate a purchase decision for a specific product.
Physiological
Safety
Love and Belonging
Esteem
Self Actualization
Marketing: Consumer and Buyer Behavior
Categories that Effect the Consumer Buying Decision Process
Psychological factors: Motives
Perception is the process of selecting, organizing and interpreting information inputs to
produce meaning. We chose what info we pay attention to, organize it and interpret it.
Selective Exposure- select inputs to be exposed to our awareness. More likely if it is linked
to an event, satisfies current needs, intensity of input changes.
Selective Distortion-Changing/twisting current received information, inconsistent with
beliefs.
Advertisers that use comparative advertisements (pitching one product against another),
have to be very careful that consumers do not distort the facts and perceive that the
advertisement was for the competitor. A current example...MCI and AT&T...do you ever get
confused?
Selective Retention-Remember inputs that support beliefs, forgets those that don't.
Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30
minutes-60% of purchases are unplanned. Exposed to 1,500 advertisement per day. Can't be
expected to be aware of all these inputs, and certainly will not retain many.
Marketing: Consumer and Buyer Behavior
Categories that Effect the Consumer Buying Decision Process
Psychological factors: Ability and Knowledge
Learning changes a person's behavior. This is caused by information and
experience. Therefore to change consumers' behavior about your product, you
need to give them new information, such as free samples or information about
the product.
When making buying decisions, buyers must process information.
Knowledge is the familiarity with the product and expertise.
Inexperienced buyers often use prices as an indicator of quality more than
those who have knowledge of a product.
Non-alcoholic Beer example: consumers chose the most expensive six-pack,
because they assume that the greater price indicates greater quality.
Learning is the process through which a relatively permanent change in
behavior results from the consequences of past behavior.
Marketing: Consumer and Buyer Behavior
Categories that Effect the Consumer Buying Decision Process
Psychological factors: Attitudes
Knowledge and positive and negative
feelings about an object or activity-whether
tangible or intangible, living or non- living
drive perceptions. An individual learns
attitudes through experience and interaction
with other people.
Consumer attitudes toward a firm and its
products greatly influence the success or
failure of the firm's marketing strategy.
Marketing: Consumer and Buyer Behavior
Categories that Effect the Consumer Buying Decision Process
Psychological factors: Personality
The internal traits and behaviors that make a person
unique. Uniqueness arrives from a person's heredity
and their personal experiences. Examples include:
Work ethic, Compulsiveness, Self confidence,
Friendliness, Adaptability, Ambitiousness,
Dogmatism, Authoritarianism, Introversion,
Extroversion, Aggressiveness, Competitiveness.
Traits effect the way people behave. Marketers try to
match the product image to the perceived image of
the product by their customers.
Marketing: Consumer and Buyer Behavior
Categories that Effect the Consumer Buying Decision Process
Psychological factors: Lifestyles
Lifestyles are the consistent patterns
people follow in their lives.
EXAMPLES:
Healthy foods for a healthy lifestyle.