Essentials of Marketing Chapter 5 Final Consumers and Their Buying Behavior McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. At the end of this presentation, you should be able to: 1. 2. 3. 4. 5. 6. Describe how economic needs influence the buyer decision process. Understand how psychological variables affect an individual’s buying behavior. Understand how social influences affect an individual’s buying behavior. Explain how characteristics of the purchase situation influence consumer behavior. Explain the process by which consumers make buying decisions. Understand important new terms. 5–2 Consumer Behavior for Marketing Strategy Planning (Exhibit 5-1) 5–3 Consumer Behavior and Marketing Strategy Planning (Exhibit 5-1) Final Consumers CH 5: Final Consumers and Their Buying Behavior CH 6: Business and Organizational Customers and Their Buying Behavior Marketing mixes All other stimuli Person making decisions Economic needs Psychological variables Social influences Purchase Situation Consumer decision process Person does or does not purchase (response) 5–4 A Model of Influences on Consumer Behavior (Exhibit 5-2) Marketing mixes All other stimuli Person making decision Economic needs • Economy of purchase • Convenience • Efficiency in use • Dependability • Income Psychological variables • Motivation • Perception • Learning • Attitude • Trust • Lifestyle Social influence • Family • Social class • Reference groups • Culture • Ethnic groups Purchase situation • Purchase reason • Time • Surroundings Consumer decision process Person does or does not purchase (response) 5–5 Economic Needs Affect Many Buying Decisions—But They’re Not the Whole Story Courtesy of The Procter & Gamble Company. 5–6 Psychological Influences within an Individual Needs Wants Drives Consumers seek benefits to match needs and wants! 5–7 Possible Needs Motivating a Person to Some Action (Exhibit 5-3) 5–8 The PSSP Hierarchy of Needs (Exhibit 5-4) Personal Needs Social Needs Safety Needs Physiological Needs 5–9 Checking Your Knowledge Ads for Haynes Jeep-Chrysler feature the slogan, “Come to Haynes, where the fun begins.” This is an appeal to the consumer’s: A. physiological need. B. safety need. C. personal need. D. social need. E. information need. 5–10 A New Role for Yogurt 5–11 Interactive Exercise: Needs 5–12 Perception Determines What Consumers See and Feel Selective Exposure Selective Retention Selective Perception 5–13 Checking Your Knowledge Pat purchased a Ford Taurus, but traded it for another brand before it was out of warranty because it constantly needed repairs. Now, every time Pat sees an ad that mentions the quality of Ford’s new vehicles all she can think about is the problems she had with her Taurus. This an example of: A. need-based thinking. B. selective retention. C. selective exposure. D. selective perception. E. psychographics. 5–14 The Learning Process (Exhibit 5-5) Drive Cues Reinforcement Response 5–15 Attitudes Relate to Buying Attitude: A Point of View Building Consumer Trust Meeting Expectations Is Important Belief: An Opinion Key Issues “Green” attitudes and beliefs Changing Negative Attitudes Ethical Issues May Arise 5–16 Psychographics Focus on Activities, Interests, and Opinions Activities Interests Opinions 5–17 Lifestyle Dimensions (and some related demographic dimensions) (Exhibit 5-6) 5–18 Family Life Cycle Influences Needs (Exhibit 5-7) 5–19 5-20 Family Life Cycle 5–20 5-21 Interactive Exercise: Family Life Cycle 5–21 Social Influences Affect Consumer Behavior Courtesy of The Procter & Gamble Company. 5–22 Simple Approaches for Measuring Social Class in the U.S Occupation Education Type of Housing Location of Housing Income Is Not the Main Determinant! 5–23 Other Social Influences Reference Groups Opinion Leaders Culture 5–24 Checking Your Knowledge Anime, the cartoon-like Japanese art form, has generated significant interest among Generation Y consumers in the U.S. Anime conventions occur frequently and the largest ones draw more than 20,000 attendees. Anime fans, many in costume, come to these conventions to shop, participate in anime workshops, and to simply hang out with people with similar interests. Promotion of these conventions capitalizes mainly on: A. learning. B. psychological needs. C. selective processes. D. reference group influences. E. culture. 5–25 Individuals Are Affected by the Purchase Situation Purchase Reason Time Available Physical Surroundings 5–26 An Expanded Model of Consumer Behavior (Exhibit 5-8) Marketing mixes Economic needs All other stimuli Psychological variables Social influences Purchase situation Consumer decision process Need awareness Routinized response Problem solving Purchase decision • Information search • Identify alternatives • Set criteria • Evaluate alternatives Experience after the purchase Postpone decision Feedback based on experience 5–27 Problem Solving Continuum (Exhibit 5-10) Low involvement Frequently purchased Inexpensive Little risk Little information needed Routinized Response Behavior Low involvement High involvement Infrequently purchased Expensive High risk Much information desired Limited Problem Solving Extensive Problem Solving High involvement 5–28 Limited or Extensive Problem Solving? Courtesy of The Procter & Gamble Company. 5–29 Adoption Process Steps Awareness Interest Evaluation Trial Decision Dissonance may set in after the decision! Confirmation 5–30 Problem Solving 5–31 Checking Your Knowledge Alice was a bit unsure about her decision after buying a new car. Her uneasiness was diminished after receiving a congratulatory note from the owner of the dealership. The note contained a coupon stating that her first scheduled maintenance on the vehicle would be free. These tactics are part of the dealer’s strategy to reduce: A. dissonance. B. low involvement purchasing. C. routinized response behavior. D. social influences. E. information search. 5–32 You should now be able to: 1. 2. 3. 4. 5. 6. Describe how economic needs influence the buyer decision process. Understand how psychological variables affect an individual’s buying behavior. Understand how social influences affect an individual’s buying behavior. Explain how characteristics of the purchase situation influence consumer behavior. Explain the process by which consumers make buying decisions. Understand important new terms. 5–33 Key Terms Economic buyers Perception Economic needs Selective exposure Discretionary income Selective perception Needs Selective retention Wants Learning Drive Cues Physiological needs Response Safety needs Reinforcement Social needs Attitude Personal needs Belief 5–34 Key Terms Expectation Culture Trust Extensive problem solving Psychographics Limited problem solving Lifestyle analysis Routinized response behavior Empty nesters Low-involvement purchases Social class Dissonance Reference group Adoption process Opinion leader 5–35