CHAPTER FIVE
Final Consumers
and Their Buying
Behavior
For use only with
Perreault and McCarthy
texts.
© 2006 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
When we finish this lecture you should
1. Know how income affects consumer behavior and
spending patterns.
2. Understand the economic buyer model of buyer
behavior.
3. Understand how psychological variables affect an
individual’s buying behavior.
4. Understand how social influences affect an
individual’s and household’s buying behavior.
5. See why the purchase situation has an effect on
consumer behavior.
6. Know how consumers use problem-solving processes.
7. Have some feel for how a consumer handles all the
behavioral variables and incoming stimuli.
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Different Types of Spending
less
Taxes
Total
Income
Necessities
Discretionary
Income
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A Luxury Item
+
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Changing US Income Patterns
+
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Appealing to Higher Income Consumers
+
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Exhibit 5-1
Income Dimensions of the US Market
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Economics Needs Help You
Understand the Buying Process
+
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Exhibit 5-2
How We Will View Consumer Behavior
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Psychological Influences within an Individual
Needs
Wants
Drives
Consumers seek benefits to match
needs and wants!
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Several Needs at the Same Time
Personal
Needs
Social Needs
Safety Needs
Physiological Needs
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Interactive Exercise: Needs
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Personal Needs
+
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Perception Determines What
Consumers See and Feel
Selective
Exposure
Selective
Retention
Selective
Perception
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Learning Determines What Response Is Likely
Drive
Cues
Reinforcement
Response
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Cue
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Attitudes Relate to Buying
Belief: An
Opinion
Attitude: A
Point of View
Need To
Understand
Attitudes &
Beliefs
Key
Concepts
Meeting
Expectations
Is Important
Work with
Existing
Attitudes
Ethical Issues
May Arise
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Personality and Lifestyle Analysis
Personality: How
People See Things
Activities
Interests
Opinions
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Exhibit 5-7
The Family Life Cycle
+
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Family Life Cycle Implications
Acceptance of
new ideas
Reallocation
for teenagers
Key
Issues
Senior citizens
Empty nesters
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Credit Card Use
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Interactive Exercise: Family Life Cycle
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Social Influences Affect Consumer Behavior
+
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Simple Approaches for Measuring
Social Class in the U.S.
Occupation
Education
Type of
Housing
Location of
Housing
Income Is Not the Main Determinant!
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Other Social Influences
Reference Groups
Opinion Leaders
Culture
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Ethnic Dimensions of the US Market
Buy
Differently
Increasing
Median
Income
Avoid
Stereotypes
High Growth
Rate
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Appealing to Minority Consumers
+
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Individuals Are Affected by
the Purchase Situation
Purchase
Reason
Time Available
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Physical
Surroundings
Consumers Use Problem Solving Processes
Psychological
Variables
Social Influences
Need-want Awareness
Information Search
Set Criteria
Decide on Solution
Purchase Product
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Purchase
Situation
Exhibit 5-9
Grid of Evaluative Criteria Helps
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Three Levels of Problem Solving Are Useful
Low involvement
Frequently purchased
Inexpensive
Little risk
Little information
Routinized
Response
Behavior
Low involvement
High involvement
Infrequently purchased
Expensive
High risk
Much information desired
Limited
Problem
Solving
Extensive
Problem
Solving
High involvement
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Limited or Extensive Problem Solving?
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Problem Solving Is a Learning Process
Awareness
Interest
Evaluation
Trial
Decision
Confirmation
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Dissonance
may set in
after the
decision!
Problem Solving
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Several Processes Are Relevant to Strategy Planning
+
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Key Terms
• Discretionary income
• Economic buyers
• Economic needs
• Needs
• Wants
• Drive
• Physiological needs
• Safety needs
• Social needs
• Personal needs
• Perception
• Selective exposure
• Selective perception
• Selective retention
• Learning
• Cues
• Response
• Reinforcement
• Attitude
• Belief
• Expectation
• Psychographics
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Key Terms
• Lifestyle analysis
• Empty nesters
• Social class
• Reference group
• Opinion leader
• Culture
• Consideration set
• Extensive problem
•
•
•
•
•
solving
Limited problem
solving
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Routinized response
behavior
Low-involvement
purchases
Adoption process
Dissonance