Marketing Ch.5

perception- SELECTIVE RETENTION

"when your ex tries to bring up all the good times you all had" "I don' recall" - remembering info that supports personal feelings and beliefs and forgetting inputs that do not.

learning- UNDERSTAND THE INTERPLAY OF DRIVES, STIMULI, CUES, RESPONSES, AND REINFORCEMENT

A drive is a strong internal stimulus that calls for action, and it becomes a motive when it is directed toward a particular stimulus object. Cues are minor stimuli that determine when, where, and how a person responds. If a consumption experience is rewarding, this behavior is likely to be reinforced.

motivation

A motive (or drive) is a need (biological or psychological) that is sufficiently pressing to direct a person to seek satisfaction.

consumer market

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

perception- SELECTIVE DISTORTION

Coke vs. Pepsi- an individuals changing or twisting of info when it is inconsistent with personal feelings or beliefs.

perception

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

Culture

Set of basic values, perceptions, wants, and behaviors learned by an individual from family and other important institutions. It is important for marketers to monitor cultural shifts.

How do psychological factors such as motivation, perception, learning, and beliefs, and attitudes impact consumer behavior?

Two popular theories of motivation are from Freud and Maslow. Freud assumed people are largely unconscious of the true psychological forces shaping behavior. A belief is a descriptive thought that a person holds about something. Based on knowledge, opinion, or faith. Attitudes are a person's relatively consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea. Attitudes put people into a frame of mind of liking or disliking things, of moving toward or away from them. Attitudes are difficult to change.

Understand how personal factors such as occupation, age/life stage, lifestyle, and personality and self-concept influence consumer behavior

A person's occupation affects the goods and services bought. Marketers try to identify the occupational groups that have an above-average interest in their products and services. A company can specialize in making products needed by a given occupational group. Tastes in food, clothes, furniture, and recreation are often age related, and may be shaped by the stage of the family life cycle - the stages through which a family might pass as they mature over time. The Neilson PRIZM Lifestage Group is one of the leading life-stage segmentation systems (includes 66 distinct segments). Lifestyle is a person's pattern of living as expressed in his or her psychographics. It involves measuring consumers' major AIO dimensions - activities, interests, and opinions. The lifestyle concept can help marketers understand changing consumer values and how they affect buyer behavior. Personality refers to the unique psychological characteristics that distinguish a person or group (e.g., dominance, agreeableness, sociability, etc.). A person's self-concept (also called self-image) is also made use of by marketers. The idea is that people's possessions contribute to and reflect their identities. "We are what we consume."

consumer buyer behavior

Buying behavior of final consumers.

Subculture

Group of people with shared value systems based on common life experiences and situations. Can include nationalities, religions, racial groups, and geographic regions.

How do social factors such as groups(membership, reference, and aspirational), social networks, family, and social roles and status impact consumer behavior?

Groups that have a direct influence and to which a person belongs are called membership groups. Reference groups serve as direct or indirect points of comparison or reference in forming a person's attitudes or behavior. An aspirational group is one to which the individual wishes to belong. Word-of-mouth influence refers to the impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behavior. An opinion leader is a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others (also referred to as influentials or leading adopters). Buzz marketing involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company's products. Online social networks are online communities where people socialize or exchange information and opinions. Family members can strongly influence buyer behavior. Marketers are interested in the roles and influence of the husband, wife, and children on the purchase of different products and services. A person's position in each group can be defined in terms of both role and status, and these typically influence the products people choose.

total market strategy

Integrates ethnic themes and cross-cultural perspectives within a brand's mainstream marketing.

learning

Learning describes changes in an individual's behavior arising from experience; most human behavior is learned.

Personality

Personality refers to the unique psychological characteristics that distinguish a person or group (e.g., dominance, agreeableness, sociability, etc.).

Social class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors. It is measured as a combination of occupation, income, education, wealth, and other variables.

What are the stages in the adoption of a new product? (awareness, interest, evaluation, trial, adoption)

1. Awareness: The consumer becomes aware of the new product but lacks information about it. 2. Interest: The consumer seeks information about the new product. 3. Evaluation: The consumer considers whether trying the new product makes sense. 4. Trial: The consumer tries the new product on a small scale to improve his or her estimate of its value. 5. Adoption: The consumer decides to make full and regular use of the new product.

What are the main factors that influence consumer behavior?

1. Cultural- Culture, Subculture, social class 2. Social- Groups and social networks, Family, Roles and status 3. Personal- Age & lifecycle stage, Occupation, Economic situation, Lifestyle, Personality and self-concept 4. Psychological- Motivation, Perception, Learning, Beliefs and attitudes, Buyer

Stages in buyer decision process

1. Need recognition (Can be triggered by internal or external stimuli.) 2. Information Search (Can be through personal, commercial, public, or experiential sources.) 3. Evaluation of alternatives (Can be extensive or minimal and involves weighing of attributes) 4. Purchase decision (There is a difference between intention and decision: can be influenced by the attitudes of others and situational factors.) 5. Post-purchase behavior- Satisfaction is based on expectations and perceived performance. Can result in cognitive dissonance

Maslow's Hierarchy of Needs

1. Physiological needs(hunger, thirst) 2. Safety needs(security, protection) 3. Social needs(sense of belonging,love) 4. Esteem needs(self-esteem, recognition, status) 5. Self-Actualization Needs(Self-development and realization)

What are the factors that influence an innovation's rate of adoption? (relative advantage, compatibility, complexity, divisibility, communicability)

1. Relative advantage: does the innovation appear superior to existing products? 2. Compatibility: does the innovation fit the values and experiences of potential consumers? 3. Complexity: is the innovation difficult to understand or use. 4. Divisibility: may the innovation be tried on a limited basis? 5. Communicability: can the results of using the innovation be observed or described to others? Other characteristics include initial and ongoing costs, risk and uncertainty, and social approval.

Model of Buyer Behavior

1. the environment (Marketing stimuli: product, price, place, promotion Other: economic, technological, social, cultural) TO 2. Buyer's black box (- Buyer's characteristics - Buyer's decision process) TO 3. Buyer responses (- Buying attitudes and preferences - Purchase behavior: what the buyer buys, when, where, and how much - Brand engagements and relationships)

Self-concept

A person's self-concept (also called self-image) is also made use of by marketers. The idea is that people's possessions contribute to and reflect their identities. "We are what we consume."

cognitive dissonance

it occurs when someone holds two or more conflicting attitudes or beliefs about one product or service.

perception- SELECTIVE ATTENTION

listening to what you want to hear.

How do cultural factors influence consumer behavior?

subculture and social class