Marketing Ch5

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.

Culture

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

Subculture

A group of people with shared value systems based on common life experiences and situations.

Social class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

Group

Two or more people who interact to accomplish individual or mutual goals.

Opinion leader

Person within a reference group who, because of special skills, knowledge, personality or other characteristics, exerts social influence on others.

Online social networks

Online social communities�blogs, social networking sites, or even virtual worlds�where people socialize or exchange information and opinions.

Lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions.

Personality

The unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment.

Brand personality

The specific mix of human traits that may be attributed to a particular brand.

Motive (drive)

A need that is sufficiently pressing to direct the person to seek satisfaction of the need.

Perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world.

Learning

Changes in an individual's behavior arising from experience.

Belief

A descriptive thought that a person holds about something.

Attitude

A person's consistently favorable or unfavorable evaluation, feelings, and tendencies toward an object or idea.

Complex buying behavior

Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.

Dissonance-reducing buying behavior

Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands.

Cultures

Our human environment;
tells what to do and what not to do;
gives norms and consequences;
learned;
value laden and subjective;

Subcultures in the US

Salad bowl" or ethnic pluralism;
Ethnic (Hispanic: 15% and growing; language errors/blunders; larger family; differences in nationalities);
Age (baby boomers, target age group);
Religion (Mormon ads);
Geographic Area (target local market; Broncos ads in

Social Class

In the US:
Upper Upper (1%, inherited wealth, 3 generations),
Lower Upper (earned wealth, 1/3 change over each year),
Upper Middle (prestigious occupations),
Middle Middle (not manual labor),
Lower Middle (blue collar, manual labor),
Upper Lower (hourly,

Social Factors

Groups:
Reference groups (any organization, friends, discuss products together, tend to synchronize likes/dislikes),
Opinion leadership (expert within group, can change depending on topic);
Word-of-mouth;
Family (privately consumed products are influenced

Personal Factors

Family life-cycle;
Occupation;
Economic Situation;
Personality and Self-concept (difficult to measure, often lumped in with life-style);
Life-style (psychographic)

VALS

Survivors (lower lower; cautious);
Makers (self-sufficient, practical, tried & true);
Experiencers (risk takers, action oriented, cool/trendy);
Strivers (achievements, want to be "achiever", status oriented);
Achievers (duty, structure, money);
Believers

VALS short comings

individual;
not predictive of small item purchases

Psychological Factors

Motivation (Freud, Maslow );
Perception:
Selective attention,
Selective distortion,
Selective retention,
Subliminal perception

Psychological Factors: Motivation

Freud (not conscious of motives)
Maslow (hierarchy of needs)

Psychological Factors: Perception

marketers must overcome consumer perceptions;
Selective attention (only remember what is important to individual),
Selective distortion (get side tracked by personal issues/opinions),
Selective retention (forget what ad was about, only remember the funny

Learning

must see things at least 3 times;
too much repetition can be bad (use variation);
after image: residual image left by bright light

Values

Beliefs - facts, what you know about the product, Easy to change;
Attitudes -- value judgments, how you think about the product, Difficult to change: start by changing specific facts, move to broader generalizations.

Consumer purchase decision process

Problem recognition (what triggers the need);
Information search (internal, external);
Evaluation of alternatives (compare facts with needs/wants);
Purchase decision (can change at the last minute);
Postpurchase behavior (rationalizing attitudes with acti

Euroconsumer emerging?

European TV (consolidating products offered across countries);
Young generation (don't have to change attitudes about new products);
Prestige / Industrial products (usually same across countries);
Advertising Styles (very different);
Inter-market segments

Maslow's Hierarchy

Self actualization (accomplishment, freedom) ;
Esteem needs (recognition, status);
Social needs (belonging, love);
Safety needs (security, protection);
Physiological needs (hunger, thirst)

Maslow's Hierarchy Example

Makes Anything Possible" (Craftsman Tools) ;
100% Prestige, 100% Performance (Tag Heuer);
"Drivers Wanted" (Volkswagen);
"You're in Good Hands" (Allstate);
"Eat Great, Even Late" (Wendy's)