CHAPTER 6 ANALYZING CONSUMER MARKETS AND BUYER BEHAVIOR

INFLUENCING FACTORS IN BUYING BEHAVIORS n Cultural Factors: » Culture: n Wants and behaviors of consumers » Subculture: n Nationalities, religion and regional differences » Social Class: n Income factor: – social classes differ in many characteristics-high, middle and low income groups – members behave more alike within each class – members perceived as inferior/superior – clusters of variation exists in each class – members move from one class to another.

INFLUENCING FACTORS IN BUYING BEHAVIORS n Social Factor: » Reference Groups-membership groups: n n n primary-family, relatives, co-workers secondary-professional groups aspirational dissociative opinion leaders » Family: n Husband, wife and children » Role and Status.

INFLUENCING FACTORS IN BUYING BEHAVIORS n Personal Factors: » Age and Life Cycle Stages n n family life cycle psychological life cycle » Occupation: n White color or blue color workers » Economic Circumstances: n Spending/saving » Life Style: n Psychographics and Value and life styles (VALS principle » Personality and Self-Concept-self image: n n n actual self-concept-how you view yourself ideal self-concept-how you would like to view yourself others self-concept-how you think others view yourself

INFLUENCING FACTORS IN BUYING BEHAVIORS n Psychological Factors: » Motivation: n Need satisfaction and drive to act: – biogenic-hunger, thirst – psychogenic-esteem, recognition – motive-pressing person to act » Theories of motivation: n n n Freud’s theory -unconscious behaviors Maslow’s theory-need satisfaction Herzberg’s theory-satisfiers/dissatisfiers » Perception-How the motivated person act: n n n Selective attention: – People do not pay attention everything around them Selective distortion: – People twist information into personal meaning Selective Retention: – People will forget what they learn

INFLUENCING FACTORS IN BUYING BEHAVIORS » Learning-arise from experience n n n Drive: – Strong internal stimulus impelling action Cue: – Minor stimuli Reinforcement: – Rewarding experience » Beliefs and Attitudes: n n Beliefs: – Descriptive thought based on knowledge and opinion Attitudes: – Favorable/unfavorable feelings

BUYING PROCESS n Buying Roles: » » » n initiator-person who suggests the idea influencer-person who gives advise decider-person who decides to buyer-person who makes actual purchase user-person who consumes Buying Behavior: » complex buying behaviors: n High-involvement: – Develop beliefs – Develop attitudes – Purchase decision

BUYING PROCESS (CONT. ) » Dissonance reducing behaviors n Few differences between brands: – Infrequent purchase » Habitual behavior: n n Low-involvement: – Brand familiarity and conviction. Techniques to convert high involved purchase to low involved purchase: – link the product to some issues(problem solving) – link to personal situation – trigger emotions – add important features, » Variety-seeking buying behaviors: n Brand switching

BUYING PROCESS (CONT. ) n Buying Decision Process: » Problem recognition » Information search: n n n personal-family friend commercial-advertising, salesperson public-consumer union experiential-personal experience Information about competing set of brands: – total set – awareness set – consideration set – choice set – final decision

BUYING PROCESS (CONT. ) » Evaluation of alternatives: n Brand belief and brand image(needs and benefits) » Purchase: n n attitudes of others unanticipated situational factors perceived risk Purchase sub-decisions: – Brand, vendor, quantity, timing and payment method » Post Purchase behaviors: n n n Post-purchase satisfaction: – Satisfied, somewhat satisfied, dissatisfied Post-purchase action: – Repeat purchase – Complains Post-purchase use and disposal of product: – Storage and new uses of the product