Consumers Rule
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Transcript Consumers Rule
Consumer Behavior:
How and Why People Buy
Chapter Objectives
• Define consumer behavior and explain why consumers
buy what they buy
• Describe the prepurchase, purchase, and postpurchase
activities that consumers engage in when making
decisions
• Explain how internal factors influence consumers’
decision-making processes
• Show how situational factors at the time and place of
purchase influence consumer behavior
• Explain how consumers’ relationships with other people
influence their decision-making processes
• Show how the Internet offers consumers opportunities to
participate in consumer-to-consumer marketing
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Real People, Real Choices
• Meet Daniel Grossman at Wild Planet
• Creating brands/products that parents
endorse and kids find cool
• Future direction of Room Gear product line
Option 1: acknowledge that Wild Planet missed the
mark and drop the line
Option 2: retain line concept and develop products
similar to those already selling
Option 3: reposition the line toward either boys or girls
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Decisions, Decisions
• Consumer behavior: The process we use
to select, purchase, use, and dispose of
goods, services, ideas, or experiences to
satisfy needs/desires
• Internal, situational, and social influences
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Steps in Consumer Decision Process
• Extended problem-solving versus habitual
decision-making
• Involvement: relative importance of
perceived consequences of the purchase
• Perceived risk: choice of product has
potentially negative consequences
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Step 1: Problem Recognition
• Occurs when consumer sees a significant
difference between current state and ideal
state
• Marketers can develop ads that stimulate
problem recognition
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Step 2: Information Search
• Consumers need adequate information to make
a reasonable decision
• Search memory and the environment for
information
• Internet: search engines, portals, or “shopping
robots”
• Behavioral targeting: Marketers deliver ads for
products consumers look for, by watching what
they do
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Step 3: Evaluation of Alternatives
• Consumers are interested in a small number of
products, then narrow choices and compare
pros/cons
• Evaluative criteria: product characteristics
consumers use to compare competing
alternatives
• Marketers point out their brand’s superiority on
most important evaluative criteria.
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Step 4: Product Choice
• Deciding on one product and acting on
choice
• Heuristic: a mental rule of thumb used for
a speedy decision, such as:
Price equals quality
Brand loyalty
Country of origin
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Step 5: Postpurchase Evaluation
• Consumer satisfaction/dissatisfaction after
purchase of product
• Expectations of product quality are
met/exceeded or not
• Ads/communications must create accurate
expectations of product
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Internal Influences
on Consumer Behavior
• Factors that cause us each to interpret
information about the outside world differently:
Perception
Motivation
Learning
Attitudes
Personality
Age group
The family life cycle
Lifestyle
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Perception
• Process by which we select, organize, and
interpret information from outside world
• Necessary for perception to occur
• Exposure: capable of registering a
stimulus
• Attention: mental processing activity
• Interpretation: assigning meaning to a
stimulus
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Motivation
• Internal state that drives us to satisfy
needs by activating goal-oriented behavior
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Motivation (cont’d)
• Maslow’s Hierarchy of Needs
HIGHER-LEVEL NEEDS
Self-Actualization (US Army)
Figure 5.5 (Abridged)
Ego (BMW)
Belongingness (“Pepsi Generation”)
Safety (Allstate Insurance)
Physiological (Quaker Oats Bran)
LOWER-LEVEL NEEDS
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Learning
• A change in behavior caused by
information or experience
• Behavioral learning
Classical conditioning
Operant conditioning
Stimulus generalization
• Cognitive learning
Observational learning
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Attitudes
• Lasting evaluations of a person, object, or
issue
• Three attitude components
Affect (feeling): emotional response
Cognition (knowing): beliefs or knowledge
Behavior (doing): intention to do something
• Marketers must decide which attitude
component will drive consumer
preferences
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Personality
• The set of unique psychological
characteristics that consistently influences
the way a person responds to situations in
the environment
• Personality traits: Innovativeness,
materialism, self-confidence, sociability,
need for cognition
• Self-concept
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Age Group and Family Life Cycle
• Goods/services appeal to specific age
group
• Family Life Cycle: The stages through
which family members pass as they grow
older
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Lifestyle
• Lifestyle: A pattern of living that
determines how people choose to spend
their time, money, and energy
• Psychographics: group consumers
according to psychological and behavioral
similarities
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Situational Influences
on Consumer Decisions
• Physical environment dimensions such as
décor, smells, and lighting
• Arousal and pleasure determine
consumers’ reaction to store environment
• Time as a situational factor
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Social Influences
on Consumer Decisions
• We are members of many groups that
influence our buying decisions:
Culture/subcultures
Social class
Group memberships
Opinion leaders
Sex roles
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Culture
• The values, beliefs, customs, and tastes
produced or practiced by a group of
people
• Rituals such as weddings and funerals
• Cultural values: deeply held beliefs about
right and wrong ways to live
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Subcultures
• A group within a society whose members
share a distinctive set of beliefs,
characteristics, or common experiences
• Subcultures important to marketers are
racial and ethnic groups.
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Social Class
• The overall rank or social standing of
groups of people within a society,
according to factors such as family
background, education, occupation, and
income.
• Status symbols such as luxury products
provide a way for people to flaunt their
membership in higher social classes.
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Group Memberships
• Reference group: a set of people a
consumer wants to please or imitate and
that thus has an effect on an individual’s
evaluations, aspirations, or behavior
• Conformity means people change
behavior due to group pressure.
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Opinion Leaders
• People who influence others’ attitudes or
behaviors because others perceive them
as possessing expertise about the product
Have high interest in product category
Update knowledge by reading, talking with
salespeople, etc.
Impart both positive and negative product information
Are among the first to buy new products
•
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Gender Roles
• Society’s expectations regarding
appropriate attitudes, behaviors, and
appearance for men and women
• Consumers often associate “sex-typed”
products with one gender or the other.
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Consumer-to-Consumer
E-Commerce
• Online communications and purchases that
occur among individuals without directly
involving the manufacturer or retailer
• Groups of “netizens” around the world with
similar interests, united via the Internet
• Popular online C2C formats
Gaming
Chat rooms, rings, and lists
Boards
Blogs
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Real People, Real Choices
• Wild Planet (Daniel Grossman)
• Daniel chose option 3: reposition the line
toward either boys or girls
The firm renamed the line Girls Livin’ in Style (GLS),
which has had moderate success.
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Marketing in Action Case:
You Make the Call
• What decision must Facebook.com make?
• What factors are important in
understanding this decision situation?
• What are the alternatives?
• What decision(s) do you recommend?
• What are some ways to implement your
recommendation?
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Keeping It Real: Fast Forward to Next
Class Decision Time at PPG Industries
• Meet Vicki Holt, Senior VP, Glass & Fiber
Glass for PPG Industries, Inc.
• PPG’s Insulating Glazing Unit, or IGU,
has an aggressive competitor marketing a
complete IGU unit.
• The decision: How to react to the
competition.
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