Chapter Five Final Consumers and Their Buying Behavior

Chapter Five Final Consumers and Their Buying Behavior For use only with Perreault and Mc. Carthy texts. © 2003 Mc. Graw-Hill Companies, Inc. Mc. Graw-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. © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

A Luxury Item + © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Exhibit 5 -1 Income Dimensions of the US Market © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Appealing to Higher Income Consumers + © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

The Behavioral Sciences Help You Understand the Buying Process + © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Exhibit 5 -2 How We Will View Consumer Behavior © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Psychological Influences within an Individual Needs Wants Drives Consumers seek benefits to match needs and wants! © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Several Needs at the Same Time Personal Needs Social Needs Safety Needs Physiological Needs © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Interactive Exercise: Needs © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Personal Needs + © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Perception Determines What Consumers See and Feel Selective Exposure Selective Retention Selective Perception © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Learning Determines What Response is Likely Drive Cues Reinforcement Response © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Cue © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Attitudes Relate to Buying Belief: an opinion Attitude: a point of view Need to Understand Attitudes attitudes & Beliefs Key Concepts Meeting Expectations Is Important Work With Existing Attitudes Ethical Issues May Arise © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Personality and Lifestyle Analysis Personality: how people see things Activities Interests Opinions © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Exhibit 5 -7 The Family Life Cycle + © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Family Life Cycle Implications Acceptance of new ideas Reallocation for teenagers Key Issues Senior Citizens Empty Nesters © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Credit Card Use © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Social Influences Affect Consumer Behavior + © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Exhibit 5 -8 Social Class Affects Attitudes, Values, & Buying + © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Other Social Influences Reference Groups Opinion Leaders Culture © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Ethnic Dimensions of the US Market Buy Differently Avoid Stereotypes High Growth Rate © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Appealing to Minority Consumers + © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Individuals Are Affected by the Purchase Situation Purchase Reason Time Available © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Physical Surroundings

Consumers Use Problem Solving Processes Marketing Mixes All Other Stimuli Psychological Variables Social Influences Person Making Decision Need-want Awareness Purchase Situation Routinized Response Information Search Set Criteria Feedback of Information as Attitudes Decide on Solution Postpone Decision Purchase Product Response Postpurchase Evaluation

Exhibit 5 -10 Grid of Evaluative Criteria Helps © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

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 © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Limited or Extensive Problem Solving? + © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Problem Solving is a Learning Process Awareness Interest Evaluation Trial Decision Confirmation © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Dissonance may set in after the decision!

Problem Solving © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

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 Lifestyle analysis Empty nesters © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Key Terms § § § Social class Reference group Opinion leader Culture Extensive problem solving § Limited problem solving § Routinized response behavior § Low-involvement purchases § Adoption process § Dissonance © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin