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92 Cards in this Set
- Front
- Back
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The BUYING DECISION is the focal point of the marketer's effort
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true
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Marketing Stimuli
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Product
Place Price Promotion |
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Other Stimuli that affect Consumer Behavior
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Economic
Technological Social Cultural |
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Know fig. 5.2 for midterm!
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Review it now!
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Culture
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the set of basic values, perceptions wants, and behaviors learned by a member of society form family and other important institutions
Marketers try to stay abreast of "Cultural Shifts" (i.e. shift to being healthier, or "green" or more casual etc.) |
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Subcultures
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A group of people with shared value systems based on common life experiences and situations.
each culture contains subcultures Nationalities Religions Racial Groups Geographic Regions Hispanic African American Asian-American Mature Consumers |
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Fig 5.2--Factors Influencing Consumer Behavior
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<b>Cultural</b>
-Culture -Subculture -Social Class <b>Social</b> -Reference Groups -Family -Roles & Status <b>Personal</b> -Age & life cycle stage -Occupation -Economic Situation -Lifestyle -Personality & Self-Concept <b>Psychological</b> -Motivation -Perception -Learning -Beliefs & Attitudes <b>THE BUYER |
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Mature Consumers
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As the U.S. population ages, mature consumers are become a very attractive market. By2015 the entire baby boomer generation will control a larger portion of wealth, income, and consumption than any other generation
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Social Class
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Relatively Permanent and ordered divisions in a society whose members share similar values, interests, and behaviors
not determined by a single factor but is measured as a combination of occupation, income, education, wealth, and other variables |
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Social Factors
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small groups
family social roles status |
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Groups two or more people who interact to accomplish individual or mutual goals
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Groups
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Word-of-Mouth and Buzz Marketing
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Marketers try to figure out how to reach OPINION LEADERS
person within a reference group who, bec, of special skills, knowledge, personality or other characteristics, exerts social influence on others |
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Family
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the most important consumer buying organization in society. It has been researched extensively.
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Personality
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Unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment
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Brand Personality
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The specific mix of human traits that may be attributed to a particular brand.
Sincerity Excitement Competence Sophistication Ruggedness |
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Motive (Drive)
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A need that is sufficiently pressing to direct the person to seek satisfaction of the need
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Motivation Research
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Qualitative research designed to probe consumers' hidden, subconcious motivations.
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Maslows Hierarchy of needs
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self actualization
Esteem needs Social needs Safety needs Physiological needs |
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Perception
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the process by which people select, organize, and interpret information to form a meaningful picture of the world
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Learning
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changes in an individual's behavior arising from experience
<b>Drive:</b> -strong internal stimulus that calls for action. Stimulus Object Cues: minor stimuli that determine when, where, and how the person responds. |
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Learning Theory
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practical significance is that they can build up demand for a product by associating it with:
Strong drives motivating cues and positive reinforcement |
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Belief
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a DESCRIPTIVE though that a person holds about something
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Attitude
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a person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.
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Types of Buying Decision Behavior
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Know fig. 5.5 for midterm!
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True
2x2 matrix |
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Complex buying behavior
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Consumer buying behavior in situations characterized by:
HIGH CONSUMER INVOLVEMENT SIGNIFICANT DIFFERENCES BTWN BRANDS Marketers of high involvement products must understand <b>the info gathering and evaluation behavior of high-involvement consumers</b> |
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Dissonance-reducing buying behavior
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Consumer buying behavior in situations characterized by:
<b>High involvement Few perceived differences among brands</b> <I>postpurchase dissonance</i> after sale discomfort when there are certain disadvantages/positive news of other foregone options |
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Habitual buying behavior
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Consumer buyer behavior in situations characterized by:
<b>LOW consumer involvement FEW significantly perceived brand differences</b> Brand Familiarity over Brand conviction Marketing should focus on: price & sales promotions Advertising: -high-repetition short duration messaging -visual symbols and imagery are important |
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Typical Consumer Behavioral Pattern
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Belief - Attitude - Behavior
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Variety Seeking Buying Behavior
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Consumer buying behavior in situations characterized by:
<b>LOW consumer involvement Significant perceived brand differences </b> Brand switching occurs for the sake of variety rather than bc of dissatisfaction market leader will try to encourage habitual buying behavior by dominating shelf space, keeping shelves fully stocked, running frequent remind advertising. Minor firms will encourage variety seeking by offering lower prices, special deals, coupons, free samples, and advertising that presents reasons for trying something new. |
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The Buyer Decision Process
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Marketers must focus on the entire buying process NOT just the purchase decision
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true
the actual purchase decision is just part of a much larger buying process. |
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**The Buyer Decision Process consists of 5 stages (in order)
KNOW FOR MIDTERM!! |
Need Recognition
Information Search Evaluation of Alternatives/substitutes Purchase Decision Post-Purchase Behavior In routine purchases consumers often skip or reverse some of the above stages--but the model can be a good basis for looking at situations when a consumer faces a NEW and COMPLEX purchase situation |
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Need Recognition
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buying process starts here.
can be triggered by an <b>internal or external stimuli |
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Information Search (heightened attention)
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Consumers obtain information from a number of sources:
-Personal -Commercial -Public (mass media, consumer rating organizations, internet searches) -Experiential Services (handling, examining, using the product) |
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The most effective sources, however, tend to be personal.
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true
commercial sources inform the buyer BUT PERSONAL SOURCES <B>LEGITIMIZE or EVALUATE</B> products for potential buyers |
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Evaluation of Alternatives
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The stage of the buyer decison process in which the consumer uses information to evaluate alternative brands in the choice set.
sometimes: -calculation & logical thinking -no evaluating-impulse -sometimes on their own, or consult friends, consumer guides, or salespeople KEY POINT IS KNOWING YOUR SPECIFIC SEGMENT AND WHERE, HOW, AND WHEN THEY WILL TURN TO FIND INFO AND EVALUATE POTENTIAL PRODUCTS |
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Purchase Decision
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Purchase Intention and Purchase decision
1. attitude of others 2. unexpected situational factors |
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Postpurchase Behavior
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the stage of the buyer decision process in which the consumers take further action after purchase, based on their satisfaction or dissatisfaction
Consumer Expectation vs. Perceived Performance determine postpurchase behavior disappointed satisfied delighted |
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Cognitive Dissonance
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Buyer discomfort caused by postpurchase conflict
A company should set up systems that ENCOURAGE people to complain so they learn what they're doing wrong-- |
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The Buyer Decision Process for NEW products
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Adoption Process
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The mental process through which an individual passes from first hearing about an innovation to final adoption.
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Stages in Adoption Process
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<b>Awareness</b>--learns about product but no real info about it.
<b>Interest</b>--Seeks out info <b>Evaluation</b>--Consider whether trying the new product makes sense <b>Trial</b>--tries new product on a small scale to improve estimate of its value <b>Adoption</b>--The consumer decides to make full and regular use of new product |
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Individual Differences in Innovativeness
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fig. 5.7
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Adopter categorization on the basis of relative time of adoption of innovations (review figure)
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5 Adopter Groups
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Innovators
Early Adopters Early Majority (deliberate) Late majority (skeptical) Laggards (tradition bound) |
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Innovators/early adopters tend to relatively younger, better educated, higher income than later adopters and nonadopters.
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they are more receptive to unfamiliar things, rely more on their own values and judgement, and are more willing to take risks.
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Stages in Adoption Process
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<b>Awareness</b>--learns about product but no real info about it.
<b>Interest</b>--Seeks out info <b>Evaluation</b>--Consider whether trying the new product makes sense <b>Trial</b>--tries new product on a small scale to improve estimate of its value <b>Adoption</b>--The consumer decides to make full and regular use of new product HOW to help consumers move through these stages? |
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CHAPTER 6--Business Markets & Biz Buyer Behavior
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Major Types of Buying Situations
3 Major Types... |
<b>Straight Re-Buy</b>:
A business buying situation in which the buyer routinely reorders something without any modifications Modified Re-Buy New Task |
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Straight Re-Buy
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reorders something without modifications.
Buyer chooses from the various suppliers on its list. "IN" suppliers try to maintain product and service quality. They often propose automatic reodring systems so purchasing agents save on ordering time. "OUT" suppliers try to find new ways to add value or exploit dissatisfaction so that the buyer will consider them. |
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Modified Re-Buy
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A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
"In" suppliers become nervous about losing an account "out" suppliers see the situation as an opportunity to maek a better offer and gain new business |
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New Task
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A business buying situation in which the buyer purchases a product or service for the FIRST TIME.
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Many business buyers prefer to buy a complete solution to a problem from a single seller instead of buying separate products and services from several suppliers
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true
this is called Systems selling (solutions selling) |
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Systems selling (solutions selling)
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Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
Often a key business marketing strategy for winning and holding accounts |
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Participants in the Business Buying Process
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<b>Buyer Center</b>
Users Influencers Buyers Deciders GateKeepers |
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Buyer Center
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ALL the individuals and units that play a role in the purchase decision-making process
Is NOT a fixed and formally identified unit within the buying organization. it is A SET OF BUYING ROLES assumed by different people for different purchases. for some routine purchases, one person may assume all the roles. For more complex buying situations, the Buyer Center may include 20-30 people from different levels and departments within the organization. |
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Users
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Members of the BUYING organization who will actually use the purchased product or service
usually initiate the buying proposal and help define the specs. |
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Influencers
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People in organizations buying center who affect the buying decision; they often help define specs and also provide info for evaluating alternatives
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Buyers
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The ppl in the org. buying center who make an actual purchase
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Deciders
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People in the organization's buying center who have formal or informal power to select or approve the final suppliers
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Gatekeepers
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Ppl in the organization's buying center who control the flow of information to others
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The Business Buying Center concept presents a major marketing challenge.
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true.
the business marketer must learn WHO participates in the decison, each participant's relative influence, and what evalution criteria each decision particpant uses--this can be difficult. |
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Lecture
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75% of first midterm is from lectures...! 25% come from readings in book.
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GO over lecture slides!
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Previous Lecture Review
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-Good consumer of market research
-Know market research PROCESS -Research approach slide -exploratory -descriptive causal -concept behind the phrase that we are NOT ALWAYS THE CONSUMER--important. |
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Consumers
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Most challenging of all the 4 C's
--Consumers are ALL so different! in lots of different ways Understanding consumer behavior is a challenge. |
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Why do we buy the things we buy?
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The Power of Marketing
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Some people fear power of studying consumer behavior
-to much ambiguity/no solid answers |
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The nature of consumer behavior
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there is only one boss--the consumer. and he/she can fire everyobodyi nteh company from the chairman on down simply by spending money elsewhere--sal walton
Listen to the whispers so you don't have to hear the screams--Cherokee Saying Ice Cream is associated with love. |
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Class Exercise
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Die Hard Cougar Fan (Corey)
Not so much (Dave Fryer) Our backgrounds and where we come from/what we've experienced WILL AND DOES influence our purchasing decision |
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So often when we get loyalties (brands or products)
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our heart starts to outweigh our minds--sometimes price becomes irrelevant
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Fig. 5.2
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know it for midterm
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Culture
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<b>Culture</b>
<b>Sub-culture</b> -America is a giant melting pot of sub-cultures -LDS community is a subculture <b>Social Class</b> -what social classes have you seen--in your ward, at school, neighborhoods? |
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Social
consumer package good companies will go to high-school students (opinion leaders) and pay them to wear their products at the schools! |
<b>Reference Groups</b>
-Oprah -Warren Buffet <b>Family</b> -most powerful consumer organization--super influential <b>Roles & Status</b> -have dramatic impact on how we think about purchasing decisions (i.e. getting married, etc.) |
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Personal
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<b>Age & Life Cycle</b>
purchasing behavior changes over time (i.e. highschool, to married with kids, to empty nesters, etc.) <b>Occupation</b> -will influence your hobbies, needs, purchasing decisions <b>Economic Situations</b> -changes buying power, perspective, long-term & short-term decisions <b>LIfestyle</b> -what we like to do shapes how we think and feel, and as a result how and what we buy <b>Personality & self-concept</b> -how we view ourselves influences how we think about products and what we buy |
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**We're not always the consumer
Video to make the point. |
true!
When it comes to business it is important to remember that NOT EVERYONE THINKS LIKE WE DO--we are not always the consumer, we must strive to listen to the actual consumer and separate ourselves from the process when we're in business--LISTEN to what the consumer says--not all of them are going to think like me, treat them with love--listen to them. |
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Class exercise
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<b>Capturing Glove Savings</b>
<b><u>What would you do to identify cost savings opportunities?</b></u> -<b>Figure out financial goals/benchmarks</b> -What liberty do we have to do this (certain departments, positions, free range?) -<b>Talk to employees that use gloves figure out internal segments</b>: (what level of protection, features, product lifetime, how many pair does each worker require, uses can we use different kinds for different segments? are there ways where employees can share gloves (reduce waste)) <b>Supplier/Purchasing Alternatives</b> -2x2 matrix(Suppliers Existing New model x Gloves-Existing/New model <b>Long-Term strategic implications</b> -Can we bundle anything else with glove purchases to glean additional cost savings (volume, cross purchasing savings, etc.?) |
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the higher you can get your brand on Maslow's hierarchy of need the more loyal your consumers will be
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True!
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Psychological
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-Motivation
-Perception -Learning -Beliefs & Attitudes |
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Motivation
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<b>Motivation</b>
-Maslow's Hierarchy of needs (basic needs on bottom (food) take care of basics and then you can begin to sell to them) -In marketing brands can be fitted into Maslow's hierarchy of needs e.g. Marie calendars (Physiological, Esteem, status, social needs) Harley Davidson (social needs, self-actualization) |
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Perception
"how many f's?" |
Consumer's "Black Box"--Their mind.
-select -organize -interpret Selective Attention, Distortion, Retention Our brains are really good at picking what they want to hear/take in/ see marketers want to figure out 2 things: -break through & perception |
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Subliminal Advertising
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is not effective...
No empirical evidence |
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Beliefs & Attitudes
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Very very difficult to overcome!
church membership example "People come with their bags packed." Changing minds is HARD and VERY EXPENSIVE! |
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The Envrionment
REVIEW FIG. 5-1 |
Stiuli & Other
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Consumer behavior process
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Problem recognition
Information search evalute alternatives Purchase post-purchase evaluation |
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information search
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personal
commercial public experiential |
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**evaluation of alternatives
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multiattribute model
<b>GO OVER SLIDE WITH FORMULA</b> |
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Purchase
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when
where how much |
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post-purchase evaluation
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<b>Cognitive Dissonance</b>= buyers remorse = expectations>outcome
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**if you really want to make change you need to...
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Direct the rider (analysis of cost savings)
Motivate the elephant (424 diff types of gloves on conf. table w/price tags) Shape the path (provide clear timeline, recommendations, and implementation plan.) |
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Consumer vs. Business Markets
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Business Markets:
<b>contain FEWER</b> but LARGER buyers Business buyer demand is DERIVED from final consumer demand <b>Demand in business markets is MORE INELASTIC</b> not affected as much by short run price changes demand in business markets FLUCTUATES MORE and more quickly <b>business markets usually face more complex buying decisions</b> <b>buying process more formalized</b> buyers and sellers work together in business markets to <b>build close long-term relationships</b> |
