Marketing Chpt 5

Sources of information searching

-Personal sources—family and friends Commercial sources—advertising, Internet Public sources—mass media, consumer organizations Experiential sources—handling, examining, using the product

Social factors

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Belief

A descriptive thought that a person holds about something. -Marketers are interested in the beliefs that people formulate about specific products and services because these beliefs make up product and brand images that affect buying behavior.

New product

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

Subculture

A group of people with shared value systems based on common life experiences and situations. -Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important market segments, and marketers often design products and marketing programs tailored to their needs

Motive (drive)

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

Opinion leader

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

steps in the adoption process

Awareness Interest Evaluation Trial Adoption

Complex buying behavior

Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.

Variety-seeking buying behavior

Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences.

Habitual buying behavior

Consumer buying behavior in situations characterized by low-consumer involvement and few significantly perceived brand differences.

Buyer decision process

Need recognition->Information search->Evaluation of alternatives->Purchase decision->Post purchase behavior

Online social networks

Online social communities—blogs, social networking Web sites, or even virtual worlds—where people socialize or exchange information and opinions.

Roles and status

are the groups, family, clubs, and organizations that a person belongs to that can define role and social status

Group

Two or more people who interact to accomplish individual or mutual goals. -The importance of group influence varies across products and brands. It tends to be strongest when the product is visible to others whom the buyer respects.

Selective distortion

describes the tendency of people to interpret information in a way that will support what they already believe. People also will forget much of what they learn. They tend to retain information that supports their attitudes and beliefs.

need recognition

the buyer recognizes a problem or need. The need can be triggered by internal stimuli when one of the person's normal needs—for ex- ample, hunger or thirst—rises to a level high enough to become a drive. A need can also be triggered by external stimuli.

the envirnment

Marketing stimuli Product Price Place Promotion Other Economic, Technological, Social, Cultural

Personal factors

A buyer's decisions also are influenced by personal characteristics such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept.

Psychological factors

A person's buying choices are further influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes.

Attitude

A person's 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. -a company should usually try to fit its products into existing attitudes rather than attempt to change attitudes.

economic situation

A person's economic situation will affect his or her store and product choices. Marketers watch trends in personal income, savings, and interest rates.

occupation

A person's occupation affects the goods and services bought. Blue-collar workers tend to buy more rugged work clothes, whereas executives buy more business suits.. A company can even specialize in making products needed by a given occupational group.

Cognitive dissonance

Buyer discomfort caused by postpurchase conflict.

buyers black box

Buyer's characteristics Buyer's decision process

buyers responses

Buying attitudes and preferences Purchase behavior: what the buyer buys, when, where, and how much Brand and company relationship behavior

Learning

Changes in an individual's behaviour arising from experience. -Learning occurs through the interplay of drives, stimuli, cues, responses, and reinforcement.

Family

Family members can strongly influence buyer behavior. The family is the most important consumer buying organization in society, and it has been researched extensively. Marketers are interested in the roles and influence of the husband, wife, and children on the purchase of different products and services.

consumer market

Individuals and households who buy goods and services for personal consumption

Age and lifecycle stages

Marketers often define their target markets in terms of life-cycle stage and develop appropriate products and marketing plans for each stage.

Social class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors. - Social classes show distinct product and brand preferences in areas such as clothing, home furnishings, leisure activity, and automobiles.

awareness

The consumer becomes aware of the new product but lacks information about it.

evaluation

The consumer considers whether trying the new product makes sense.

adoption

The consumer decides to make full and regular use of the new product.

interest

The consumer seeks information about the new product.

trial

The consumer tries the new product on a small scale to improve his or her estimate of its value.

Relative advantage

The degree to which the innovation appears superior to existing products. HDTV offers substantially improved picture quality. This speeded up its rate of adoption.

Compatibility

The degree to which the innovation fits the values and experiences of potential consumers

Complexity

The degree to which the innovation is difficult to understand or use.

Divisibility

The degree to which the innovation may be tried on a limited basis.

Communicability

The degree to which the results of using the innovation can be observed or described to others.

Model of consumer behaviour

The environment->Buyer's black box->Buyer responses

Adoption process

The mental process through which an individual passes from first hearing about an innovation to final adoption.

Perception

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

Culture

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

Post purchase behavior

The stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction with a purchase. -Relationship between:Consumer's expectations & Product's perceived performance

Information search

The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into an active information search.

Alternative evaluation

The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.

Personality

The unique psychological characteristics that distinguish a person or group. -Personality is usually described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Personality can be useful in analyzing consumer behavior for certain product or brand choices.

Buzz marketing

involves enlisting or even creating opinion leaders to serve as "brand am- bassadors" who spread the word about a company's products.

Lifestyle

is a person's pattern of living as expressed in his or her psycho- graphics. It involves measuring consumers' major AIO dimensions—activities (work, hobbies, shopping, sports, social events), interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products).

Selective retention

means that consumers are likely to remember good points made about a brand they favour and forget good points made about competing brands.

Dissonance

reducing buying behavior Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands.

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

purchase decision

will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision -affected by: Attitudes of others & Unexpected situational factors