MKTG Chapter 5: Understanding Consumer and Business Buyer Behavior

True or false: people change the goods and services they buy over their lifetimes

True (age and life stage)

True or false: social class is determined by many factors.

True. It is not just determined by one factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variable.s

True or false: consumers pass through all five stages of the Buyer Decision Process (figure 5.4) with every purchase in a considered way.

True: May be fast or slow, may skip some stages or go in reverse.

What part is the most important consumer buying organization in society, and has been researched extensively?

The family

Examples of marketing stimuli (major forces and events in the buyer's environment)

The four P's Economic Technological Social Cultural All of these inputs enter the buyer's black box, where they are turned into a set of buyer responses - the buyer's attitudes and preferences, brand engagements and relationships, and what he or she buys, when, where, and how much.

Marketing stimuli must consist of what?

The four P's: product, price, place, and promotion.

Definition of word-of-mouth influence

The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior.

What is Internal Stimuli?

The need (from need recognition - step 1) can be triggered by this when one of the person's normal needs - for example hunger or thirst - rises to a level high enough to become a drive.

Definition of Perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world

Definition of Culture

The set of basic values, perceptions, wants, and behaviors, learned by a member of society from family and other important institutions

What is a Brand Personality?

The specific mix of human traits that may be attributed to a particular brand.

What is the starting point for the central question for marketers?

The stimulus-response model of buyer behavior

What is Selective Attention?

The tendency for people to screen out most of the information to which they are exposed - means that marketers must work especially hard to attract the consumer's attention

Definition of Personality

The unique psychological characteristics that distinguish a person or group

Example of Cultural Shift

Towards greater concern about health and fitness --> has created a huge industry for health-and-fitness services, exercise equipment and clothing, organic foods, and a variety of diets.

How does a person's economic situation affect his or her store and product choices?

Trends in spending, personal income, savings, and interest rates

What is Interpretive Consumer Research?

"Touchy feely" approaches to dig into the consumer psyches and develop better marketing strategies

What are the sources that consumers can obtain information from?

- Personal sources (family, friends, neighbors, acquaintances) - Commercial sources (advertising, salespeople, dealer and manufacturer Web and mobile sites, packaging, displays) - Public sources (Mass media, consumer ratings organizations, social media, online searches, and peer reviews) - Experimental sources (examining and using the product)

What two factors can come between the purchase Intention and the purchase Decision?

1) the Attitudes of Others 2) Unexpected Situational Factors (expected income, price, and product benefits may change during unexpected events)

What does Buzz Marketing involve?

Enlisting or even creating opinion leaders to serve as "brand ambassadors" who spread the word about a company's products.

Five Stages of the Buyer Decision Process (Figure 5.4)

1. Need recognition 2. Information search 3. Evaluation of Alternatives 4. Purchase decisions 5. Post-purchase behavior

What are the Five Brand Personalities?

1. Sincerity (down-to-earth, honest, wholesome, and cheerful) 2. Excitement (daring, spirited, imaginative, and up-to-date) 3. Competence (reliable, intelligent, and successful) 4. Sophistication (glamorous, upper class, charming) 5. Ruggedness (outdoorsy and tough)

Marketers want to understand how the stimuli are changed into responses inside the consumer's black box, which has two parts:

1. The buyer's characteristics influence how he or she perceives and reacts to the stimuli 2. The buyer's decision process itself affects his or her behavior

Consumer purchases are influenced strongly by the 'Factors Influencing consumer Behavior" (Figure 5.2). For the most part, can marketers control these behaviors?

5.2: Cultural, social, personal, and psychological characteristics; No, but they must take them into account.

Definition of Belief

A descriptive thought that a person holds about something

Definition of New Product

A good, service, or idea that is perceived by some potential customers as new.

Definition of Subculture

A group of people with shared value systems based on common life experiences and situations

Definition of Motive (drive)

A need that is sufficiently pressing to direct the person to seek satisfaction

Definition of Opinion Leader

A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others.

Definition of Lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions.

Definition of Attitude

A person's relatively consistently adorable or unfavorable evaluations, feelings, and tendencies toward and object or idea.

What is a Drive? (under Learning)

A strong internal stimulus that calls for action

Examples of activities, interests, and opinions? (under lifestyle)

Activities: work, hobbies, shopping, sports, social events Interests: food, fashion, family, recreation Opinions: about themselves, social issues, business, products

Examples of three subculture groups that make up important market segments

African Americans - Ford, Hyundai, P&G Hispanics - Large, fast-growing market; Differences - Mexicans, Costa Ricans, Argentineans, or Cuban Asian Americans - The most affluent U.S. demographic segment; Relatively educated; The most brand-conscious group, fiercely brand loyal

Definition of Consumer Market

All the individuals and households that buy or acquire goods and services for personal consumption

What is External Stimuli?

Another way a need can be triggered by (from need recognition - step 1). For example, an advertisement or discussion with a friend might get you thinking about buying a new car.

Why are marketers interested in social class?

Because people within a given social class tend to exhibit similar buying behavior. Social classes show distinct product and brand preferences in areas such as clothing, home furnishings, travel and leisure activity, financial services, and automobiles.

How does a person's occupation affect the goods and services they buy?

Blue collar workers - tend to buy more rugged work clothes Executives - Buy more business suits Ex/ tradesmen shop at Duluth Trading Co. - "taking care of working guys"

Definition of Cognitive Dissonance

Buyer discomfort caused by postpurchase conflict

Definition of Learning

Changes in an individual's behavior arising from experience

Example of Total Market Strategy

Cheerios and Swiffer that feature interracial families

Almost all major purchases result in what?

Cognitive dissonance

A total market strategy appeals to what?

Consumer similarities across subcultural segments, rather than differences.

What are social factors that consumer's behavior is influenced by? (4)

Consumer's small groups, social networks, family, and social roles and status.

Marketers are always trying to spot what?

Cultural Shifts - so as to discover new products that might be wanted.

__________ __________ exert a brand and deep influence on consumer behavior.

Cultural factors Marketers need to understand the role played by the buyer's CULTURE, SUBCULTURE, and SOCIAL CLASS.

The most basic cause of a person's wants and behavior

Culture. Human behavior is largely learned.

Many marketers go beyond merely Meeting the expectations of customers - they aim to what?

Delight customers.

Examples of things that Life-stage changes result from?

Demographics and life changing events - marriage, having children, purchasing a home, divorce, children going to college, changes in personal income, moving out of the house, and retirement.

What is Selective Distortion?

Describes the tendency of people to interpret information in a way that will support what they already believe.

Study Figure 5.2, page 135!

Factors Influencing Consumer Behavior

True or False: Consumers always know exactly what influences their purchases

False

True or false: Preferences and purchase intentions always result in an actual purchase choice.

False.

True or false: the marketer's job ends when the product is bought.

False. After purchasing the behavior, the consumer will either be satisfied or dissatisfied, and will engage in postpurchase behavior, of which is interest to the marketers

What is Sigmund Freud's theory of motivation?

He assumed that people are largely unconscious about the real psychological forces shaping their behavior. His theory suggests that a person's buying decisions are affected by subconscious motives that even the buyer may not fully understand. Thus, an aging baby boomer who buys a sporty BMW convertible might explain that he simply likes the feel fo the wind in his thinning hair. At a deeper level, he may be trying to impress other with his success. At a still deeper level, he may be buying the car to feel young and independent again.

What is alternative evaluation?

How consumers process information to choose among alternative brands. For consumers, several evaluation processes are at work - they don't know how to just do one simple one.

What is the central question for marketers?

How do consumers respond to various marketing efforts the company might use?

What is Maslow's theory of motivation?

Human needs are arranged in a hierarchy, from the most pressing on the bottom to the least pressing at the top. (Bottom to top) -Physiological needs: hunger, thirst -Safety needs: security, protection -Social needs: sense of belonging, love -Esteem needs: self-esteem, recognition, status -Self actualization: self-development and realization As each need is satisfied, the next most important need will come into play.

Two other names for Opinion Leader

Influentials and Leading Adopters

Definition of Total Market Strategy

Integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences.

How should a company measure customer satisfaction regularly?

It should set up systems that Encourage customers to complain.

Study Figure 5.3

Maslow's Hierarchy of Needs

What is Selective Retention?

Means that consumers are likely to remember goods points about a brand they favor and forget good points made about competing brands.

Groups that have a direct influence and to which a person belongs are called what?

Membership groups

What are the four psychological factors that influence a person's buying choices?

Motivation, Perception, Learning, and Beliefs and Attitudes

Subcultures include what 4 things?

Nationalities, religions, racial groups, and geographic regions.

What do reference groups expose a person to?

New behavior and lifestyles. Also influence a person's attitude and self-concept, and create pressures to conform that may affect the person's product and branch choices.

What are the personal factors that influences a buyer's decision?

Occupation, age and life-cycle stage, economic situation, lifestyle, and personality and self-concept

What is an aspirational group?

One to which the individual wishes to belong, but will never be.

Definition of Online Social Networks

Online communities - blogs, social networking Web sites, and other online communities - where people socialize or exchange information opinions.

What is Information Search?

Paying more attention to ads, conversations, etc. related to the need (Step 2 of 5) You may actively search online, talk with friends, or gather information in other ways.

What is Motivation Research and who is it carried out by?

Probes the unconscious motivations underlying consumers' options and behaviors toward brands. Conducted by teams of psychologists, anthropologists, and other social scientists hired by companies

Definition of Social Class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

Cues (stimuli) influence a consumer's ____________ to his or her interest in buying the product

Response

The person's position in each group can be defined in terms of what?

Roles and Status

People can form different perceptions of the same stimulus because of the three perceptual processes:

Selective attention, selective distortion, and selective retention

What are reference groups?

Serve as direct (face-to-face) or indirect points of comparison by reference in forming a person's attitudes or behaviors. People are often influenced by reference groups to which they do not belong. Opposite of membership groups.

How many classes have social scientists identified in America?

Seven; upper upper class, lower upper class, upper middle class, middle class, working class, upper lower class, and lower lower class.

What is Subliminal Advertising?

Some consumers fear that we are being manipulated by subliminal messages. Example of "Eat popcorn" and "Drink Coca-Cola" flashing on Movie theater screen (founded to be a lie) Little or no link between theses and consumer behavior.

What does the Model of Buyer Behavior (Figure 5.1) show?

That marketing and other stimuli enter the consumer's "black box" and produce certain responses. Marketers must figure out what is in the buyer's black box.

What is the idea of Self-Concept (or Self-Image) that marketers use related to personality?

That people's possessions contribute to and reflect their identities - that is, "we are what we consume." Thus, to understand consumer behavior, marketers must first understand the relationship between consumer self-concept and possessions.

Study Figure 5.4 - page 149!

The Buyer Decision Process - all the considerations that arise when a consumer faces a new and complex purchasing situation

Go Study Figure 5.1 - Page 135!!

The Model of Buyer Behavior

What makes a buyer either satisfied or dissatisfied?

The answer lies in the relationship between the Consumer's Expectations and the product's Perceived Performance. If the product falls short of expectations, the consumer is disappointed; If the product meets expectations, the consumer is satisfied; If it exceeds expectations, the consumer is delighted

What is Need Recognition?

The buyer recognizes a problem or need. (Step 1 of 5)

Definition of Consumer Buyer Behavior

The buying behavior of final consumers - individuals and households that buy goods and services for personal consumption

What do consumers trust more? Recommendations of trusted friends, family, associates, and other consumers or commercial sources (advertisements and sales people)?

Trusted friends, family, etc. (word-of-mouth influences)

Definition of Group

Two or more people who interact to accomplish individual or mutual goals.

When is group influence strongest?

When the product is visible to others whom the buyer respects

Most large companies research _________ _________ _________________ in great detail to answer questions about what consumers buy, where they buy, how and how much they buy, when they buy, and why they buy.

consumer buying decisions

Sometimes, who can even become a brand's best evangelists?

everyday customers

Most effective word-of-mouth marketing programs begin with:

generating person-to-person branch conversations and integrating both offline and online social influence strategies.

The importance of __________ _________ varies across products and brands

group influence

Brands attract persons who are what?

high on the same personality traits (see 5 brand personalities)

Learning about the ________'s behind consumer buying behavior is not as easy as learning about the ______, ___________, and _____ ________.

why; what, where, how much

Instead of throwing one-way commercial messages at consumers, marketers are hoping to use digital, mobile, and social media to ___________ with customers.

interact

A drive becomes a motive when:

it is directed toward a particular Stimulus Object.

Marketers try to identify the ____________ _________ of their target markets.

reference groups

If an experience is rewarding, a consumer will probably buy more and more, a.k.a. their response is:

reinforced.

Almost every society has some form of ________ _________ structure.

social class

Generally, the consumer's Purchase Decision will be...

to buy the most preferred brand.