Chapter 5 Marketing and Consumer Behavior: The Foundations of Advertising William F. Arens McGraw-Hill/Irwin Michael F. Weigold Christian Arens Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. George Whitefield (1734-1770) Chapter Overview The relationship between marketing activities and consumer behavior 5-3 Chapter Objectives Define marketing & relate consumer needs and product utility Identify key participants in the marketing process Explain why consumer behavior is to IMC strategy Describe motives behind consumer purchases Outline the psychological processes in human behavior Discuss interpersonal influences on consumer behavior Explain nonpersonal influences on consumer behavior 5-4 Know the Consumer Consumer behavior — the mental and emotional processes and the physical activities of people who purchase and use goods to satisfy needs and wants 5-5 Marketing Context of Advertising Marketing Conception Pricing Promotion Distribution Advertising 5-6 Q. 1. What are the key concepts in Marketing? Customer Needs / Product Utility Need Satisfaction Functional Needs Utility Psychological Wants 5-8 Goal of Marketing & Advertising Perception Exchange Satisfaction 5-9 Q. 2. Who are the participants in the Marketing process? Marketing Participants: Customers Current customers Prospective customers Centers of influence Total Market 5-11 Market Types Consumer Business Government Local Regional or National Transnational or Global 5-12 Marketing Participants: Market Customers Markets Marketers 5-13 Q. 3. What are the steps in the decision making process? Consumer Decision Process 5-15 Q. 4. What are the three components of the Personal Process in consumer behavior? Consumer Decision Process 5-17 Nehemiah Nehemiah’s Prayer Nehemiah Rebuilding the Wall The Wall Finished Q. 5. Define Perception. Perception Perception — information we receive through our five senses. 5-24 Q. 6. What are the key elements in the perception process? Consumer Perception Process 5-26 Persuasion Persuasion — change in belief, attitude, or behavioral intention is caused by promotion communication 5-27 Elaboration Likelihood Model 5-28 Q. 7. Define Learning. Learning Learning — relatively permanent change in thought process or behavior that occurs as a result of reinforced experience. 5-30 Q. 8. What are the two theories in Learning? Learning Theories Cognitive Theory Conditioning Theory 5-32 Q. 9. What are the effects of learning? Results of Learning Loyalty Habit Interest Attitude 5-34 Consumer Motivation Process Motivation: underlying forces driving decisions Needs, basic & instinctive Wants, learned during lifetime 5-35 Q. 10. What are the five stages in Maslow’s hierarchy of needs? Maslow’s Hierarchy of Needs 5-37 Consumer Motivation Rossiter & Percy’s Fundamental Motives Negative Motives: problem removal or avoidance Positive Motives: benefit, bonus, or reward 5-38 Q. 11. What are the interpersonal influences on consumer behavior? Influences on Consumer Behavior Interpersonal Family Culture and Subculture Society – Groups we belong to, people we relate to, and people we trust 5-40 Influences on Behavior U.S. Army ad focused on a Spanish- speaking audience 5-41 Q. 12. What are the nonpersonal influences on consumer behavior? Influences on Consumer Behavior Nonpersonal Time Place of Sale Environment 5-43 Influences on Behavior Red Cross ad focused on its presence during an earthquake disaster 5-44 Purchase Decision Evoked Set: Evaluative Criteria Smart Phones • iPhone • Android • Blackberry • Features • Style • Cost • Service Cognitive Dissonance • Was it worth the money? • Does the data plan work for me? • Could I have found a better price? 5-45