1 CHAPTER 6 MARKETING STARTS WITH CUSTOMERS 6-1 Understanding Consumer Behavior 6-2 What Motivates Buyers? 6-3 Influencing Consumer Decisions Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 2 ©WYETH Focus Questions: Is the advertising appealing to children, parents, or both? In what ways? What is appealing about the product that would influence parents to purchase Dimetapp Cold & Allergy rather than another brand of medication? Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 3 6-1 UNDERSTANDING CONSUMER BEHAVIOR GOALS Describe the importance of understanding consumer behavior. Demonstrate an understanding of consumers’ wants and needs. Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 4 Marketers must understand consumer behavior to insure the success of a business Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 5 Consumer Behavior Two Basic Types: Final consumers Business consumers Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 6 Why is it important to understand consumer behavior Consumer behavior gives insights into why consumers buy certain products and how they use them, which marketers can Click tomarketing reveal answer use in developing strategy. Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 7 Consumers’ Wants and Needs A want is an unfulfilled desire. A need is anything you require to live. Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 8 According to Maslow’s hierarchy of needs, people progress through a series of needs from physiological to security, social, esteem, and finally selfactualization Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 9 Maslow’s Hierarchy of Needs Self-Actualization (to realize your potential) Esteem (respect and recognition) Social (friends, love, belonging) Security (physical safety and economic security) Physiological (food, sleep, water, shelter, air) Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 10 What factors determine consumer wants and needs? Physiological needs, desire for security, social needs, desire for respect and Click to reveal answer recognition from others, and selfactualization. Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 11 What are the five levels of human needs in Maslow’s hierarchy of needs? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 12 When a business buys consumable products that it uses as part of its internal operations, and does not pass those products on when it sells its own products to its customers, is it a final consumer or a business consumer? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 13 What is the study of consumers and how they make decisions? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 14 What is the key distinction between the need for esteem and the need for self-actualization? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 15 What kinds of things typically satisfy a person’s physiological needs? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 16 6-2 WHAT MOTIVATES BUYERS? GOALS Distinguish the types of buying motives. Describe the five steps of the consumer decision-making process. Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 17 Buying motives can be emotional, rational or patronage Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 18 Motivation Emotional motives are based on feelings, beliefs, or attitudes Rational motives are based on facts and logic Patronage motives are based on loyalty to a particular brand or business Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 19 Describe the different consumer buying motives. Emotional motives are reasons to purchase based on feelings, beliefs, or attitudes such as love, guilt, fear, or passion. Rational motives are reasons to buy based on facts Click to reveal answer or logic, such as saving money, durability, and saving time. Patronage motives are based on loyalty to a particular business or brand. Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 20 The Consumer Decision-Making Process Postpurchase Evaluation Purchase Alternative Evaluation Information Search Problem Recognition Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 21 What are the five stages of consumer decision-making? The five stages of consumer decision making are problem recognition, information search, alternative Click to reveal answer evaluation, purchase, and postpurchase evaluation. Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 22 Why do businesses try to avoid making purchases based on emotional motives? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 23 Why are emotional motives such powerful motivators of so many individuals’ purchasing decisions.? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 24 Why do businesses cultivate patronage motives in their customers and in potential customers? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 25 Why is problem recognition so crucial to consumers’ decisionmaking processes? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 26 Why do you think marketers have begun to pay more attention to the postpurchase evaluation stage of the decision-making process? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 27 The decision-making process is influenced by factors such as personality, social class, culture, and reference groups Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 28 6-3 INFLUENCING CONSUMER DECISIONS GOALS Describe important influences on the consumer decision-making process. Explain how consumers and businesses use each of the three types of decision making. Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 29 Influences on Buying Decisions Individual characteristics Personality Cultural and social environment Social Class Cultural Environment Reference Groups Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 30 Types of Decision-Making Routine decision making Limited decision making Extensive decision making Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 31 Marketers’ Response If the consumer considers alternatives If the consumer is brand loyal Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 32 How might a marketer target a particular cultural group that has been identified as a large consumer of a certain product? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 33 America is often referred to as a classless society. Does that mean that social class does not influence customer decisionmaking in the United States? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 34 Under what circumstances might something that normally involves only routine decision-making suddenly require limited or even extensive decision-making? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 35 Which do marketers prefer, people who use routine decision-making or more extensive decisionmaking? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning 36 How does the cost of a product correlate with the amount of time and effort spent on reaching a decision? Click icon to listen to answer Chapter 6 MARKETING © 2009 South-Western, Cengage Learning