MKT304 Ch5

Communicability

The degree to which the results of using the innovation can be observed or described to others. Consumers can test-drive electric cars, a positive for the adoption rate. However, current high prices to own and fully experience these new technologies will likely slow adoption.

Family

The family is the most important membership reference group and consumer buying organization in society. 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.

Characteristics affecting consumer behavior

cultural, social, personal, and psychological characteristics

Selective retention

means that the consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands Because of selective attention, distortion, and retention, marketers must work hard just to get their messages through.

adoption process

mental process through which an individual passes from first learning about an innovation to final adoption. Adoption is the decision by an individual to become a regular user of the product

Cues

minor stimuli that determine when, where, and how the person responds Suppose the consumer buys a Nikon camera. If the experience is rewarding, the consumer will probably use the camera more and more, and his or her response will be reinforced.

Psychological Factors

motivation, perception, learning, and beliefs and attitudes

three different perceptual processes

selective attention, selective distortion, and selective retention.

Rate of Adoption Characteristics

1. Relative Advantage 2. Compatibility 3. Complexity 4. Divisibility 5. Communicability Other characteristics influence the rate of adoption, such as initial and ongoing costs, risk and uncertainty, and social approval. The new product marketer must research all these factors when developing the new product and its marketing program. what happens in the product to a group of buyers

Stages in the adoption process

1. awareness 2. interest 3. evaluation 4. trial 5. adoption This model suggests that marketers should think about how to help consumers move through these stages. For example, if a company finds that many consumers are considering its products but are still tentative about buying one, it might offer sales prices or special promotions that help get consumers over the decision hump. what happens in the product to the buyer

five adopter groups

1. innovators 2. early adopters 3. early mainstream 4. late mainstream 5. lagging adopters what happens to a group of buyers

Buyer Decision Process

1. need recognition 2. information search 3. evaluation of alternatives 4. the purchase decision 5. postpurchase behavior. what happens in the buyer

marketing and other stimuli enter the consumer's "black box" and produce certain responses.

1. the buyer's characteristics influence how he or she perceives and reacts to the stimuli. These characteristics include a variety of cultural, social, personal, and psychological factors. 2. the buyer's decision process itself affects his or her behavior. This decision process - from need recognition, information search, and alternative evaluation to the purchase decision and postpurchase behavior - begins long before the actualpurchase decision and continues long after

Role

A person belongs to many groups—family, clubs, organizations, online communities. The person's position in each group can be defined in terms of both role and status. A role consists of the activities people are expected to perform according to the people around them. Each role carries a status reflecting the general esteem given to it by society. People usually choose products appropriate to their roles and status. Consider the various roles a working mother plays. In her company, she may play the role of a brand manager; in her family, she plays the role of wife and mother; at her favorite sporting events, she plays the role of avid fan.

Motive (or drive)

A person has many needs at any given time. Some are biological, arising from states of tension such as hunger, thirst, or discomfort. Others are psychological, arising from the need for recognition, esteem, or belonging. A need becomes a motive when it is aroused to a sufficient level of intensity. a motive is a need that is sufficiently pressing to direct the person to seek satisfaction.

purchase decision

Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. 1. attitudes of others 2. unexpected situational factors

membership groups

Groups that have a direct influence and to which a person belongs

Freud's theory of human motivation

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

Divisibility

The degree to which the innovation may be tried on a limited basis. Consumers can test-drive electric cars, a positive for the adoption rate. However, current high prices to own and fully experience these new technologies will likely slow adoption.

Relative advantage

The degree to which the innovation appears superior to existing products. Ex) all-electric cars vs gas cars All-electric cars require no gas and use clean, less costly energy. This will accelerate their rate of adoption. However, they have limited driving range before recharging and cost more initially, which will slow the adoption rate.

postpurchase behavior

The marketer's job does not end when the product is bought. After purchasing the product, the consumer will either be satisfied or dissatisfied and will engage in postpurchase behavior of interest to the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies in t​he relationship between the consumer's expectations and the product's perceived performance. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The larger the negative gap between expectations and performance, the greater the consumer's dissatisfaction. This suggests that sellers should promise only what their brands can deliver so that buyers are satisfied​.

Belief

Through doing and learning, people acquire beliefs and attitudes. descriptive thought that a person holds about something.

new product

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

subliminal advertising

be affected by marketing messages without even knowing it

Cultural factors

buyer's culture, subculture, and social class

Personal Factors

buyer's occupation, age and stage, economic situation, lifestyle, and personality and self-concept

word-of-mouth influence

can have a powerful impact on consumer buying behavior. The personal words and recommendations of trusted friends, family, associates, and other consumers tend to be more credible than those coming from commercial sources, such as advertisements or salespeople.

postpurchase dissonance

certain disadvantages of the purchased carpet brand or hear favorable things about brands not purchased To counter such dissonance, the marketer's after-sale communications should provide evidence and support to help consumers feel good about their brand choices.

variety-seeking buying behavior

characterized by low consumer involvement but significant perceived brand differences In such cases, consumers often do a lot of brand switching. In such product categories, the marketing strategy may differ for the market leader and minor brands. The market leader will try to encourage habitual buying behavior by dominating shelf space, keeping shelves fully stocked, and running frequent reminder advertising. Challenger firms will encourage variety seeking by offering lower prices, special deals, coupons, free samples, and advertising that presents reasons for trying something new.

early mainstream

deliberate-although they rarely are leaders, they adopt new ideas before the average person

Attitude

describes a person's relatively consistent 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. A person's attitudes fit into a pattern; changing one attitude may require difficult adjustments in many others.

Learning

describes changes in an individual's behavior arising from experience. Learning theorists say that most human behavior is learned. Learning occurs through the interplay of drives, stimuli, cues, responses, and reinforcement.

Selective distortion

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

cognitive dissonance

discomfort caused by postpurchase conflict After the purchase, consumers are satisfied with the benefits of the chosen brand and are glad to avoid the drawbacks of the brands not bought However, every purchase involves compromise. So consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased. Thus, consumers feel at least some postpurchase dissonance for every purchase. Most unhappy customers never tell the company about their problems. Therefore, a company should measure customer satisfaction regularly. It should set up systems that encourage customers to complain.

Information search

f the consumer's drive is strong and a satisfying product is near at hand, he or she is likely to buy it then. If not, the consumer may store the need in memory or undertake an information search related to the need. For example, once you've decided you need a new car, at the least, you will probably pay more attention to car ads, cars owned by friends, and car conversations. And you may actively search car brands and buying sites online, talk with friends, and gather information in other ways. Traditionally, consumers have received the most information about a product from commercial sources—those controlled by the marketer. The most effective sources, however, tend to be personal. Commercial sources normally inform the buyer, but personal sources legitimize or evaluate products for the buyer.

Buyer Decision Learning Process

first developing beliefs about the product, then attitudes, and then make a thoughtful purchase choice

subcultures

groups of people with shared value systems based on common life experiences and situations. 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. Examples of three such important subculture groups are Hispanic American, African American, and Asian American consumers.

early adopters

guided by respect-they are opinion leaders in their communities and adopt new ideas early but carefully

complex buying behavior

highly involved in a purchase and perceive significant differences among brands. Consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive. Typically, the consumer has much to learn about the product category. For example, someone buying a new car might not know what models, attributes, and accessories to consider or what prices to expect.

alternative evaluation

how consumers process information to choose among alternative brands In some cases, consumers use careful calculations and logical thinking. At other times, the same consumers do little or no evaluating. Instead, they buy on impulse and rely on intuition. Sometimes consumers make buying decisions on their own; sometimes they turn to friends, online reviews, or salespeople for buying advice.

Maslow's theory of human motivation

human needs are arranged in a hierarchy, from the most pressing at the bottom to the least pressing at the top. They include physiological needs, safety needs social needs, esteem needs, and self-actualization needs. A person tries to satisfy the most important need first. When that need is satisfied, it will stop being a motivator, and the person will then try to satisfy the next most important need. For example, starving people (physiological need) will not take an interest in the latest happenings in the art world (self-actualization needs) or in how they are seen or esteemed by others (social or esteem needs) or even in whether they are breathing clean air (safety needs). But as each important need is satisfied, the next most important need will come into play.

Influencer marketing

involves enlisting established influencers or creating new influencers to spread the word about a company's brands.

Cultural shifts

new products that might be wanted in a society

Habitual buying behavior

occurs under conditions of low-consumer involvement and little significant brand difference. ex) table salt Because they are not highly involved with the product, consumers may not evaluate the choice, even after purchase. Thus, the buying process involves brand beliefs formed by passive learning, followed by purchase behavior, which may or may not be followed by evaluation.

Dissonance-reducing buying behavior

occurs when consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands For example, consumers buying carpeting may face a high-involvement decision because carpeting is expensive and self-expressive. Yet buyers may consider most carpet brands in a given price range to be the same. In this case, because perceived brand differences are not large, buyers may shop around to learn what is available but buy relatively quickly. They may respond primarily to a good price or purchase convenience.

online social networks

online communities where people socialize or exchange information and opinions Marketers are working to harness the power of these social networks to promote their products and build closer customer relationships. They hope to use digital, mobile, and social media to become an interactive part of consumers' conversations and lives. The goal is to get customers involved with brands, turn them into brand advocates, and help them share their brand passions and experiences with others in both their real and digital worlds.

opinion leaders

people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others

Lifestyle

person's pattern of living as expressed in his or her psychographics. 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). Lifestyle captures something more than the person's social class or personality. It profiles a person's whole pattern of acting and interacting in the world.​ When used carefully, the lifestyle concept can help marketers understand changing consumer values and how they affect buyer behavior. Consumers don't just buy products; they buy the values and lifestyles those products represent. For example, buying a Tesla fits with a lifestyle of high-tech, eco-friendly luxury.

reference gorups

serve as direct (face-to-face interactions) or indirect points of comparison or reference in forming a person's attitudes or behavior Reference groups expose a person to new behaviors and lifestyles, influence the person's attitudes and self-concept, and create pressures to conform that may affect the person's product and brand choices. 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.

Social class

society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Social scientists have identified seven American social classes: upper-upper class, lower-upper class, upper-middle class, middle class, working class, upper-lower class, and lower-lower class. Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables. Marketers are 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.

drive

strong internal stimulus that calls for action. A drive becomes a motive when it is directed toward a particular stimulus object

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 example, hunger or thirst-rises to a level high enough to become a drive. A need can also be trigg​ered by external stimuli. For example, a​n advertisement or a chat with a friend might get you thinking about buying a new car. At this stage, the marketer should research consumers to find out what kinds of needs or problems arise, what brought them about, and how they led the consumer to this particular product.

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

Social Factors

the consumer's groups and social networks, family, and social roles and status

Compatability

the degree to which the innovation fits the values and experiences of potential consumers However, they are not compatible with the nation's current refueling network. Plug-in electric charging stations are few and far between. Increased adoption will depend on the development of a national network of recharging stations, which may take considerable time.

Complexity

the degree to which the innovation is difficult to understand or use Electric cars are not different or complex to drive, which will help to speed up adoption. However, the "conceptual complexity" of the new technologies and concerns about how well they will likely work slow the adoption rate.

Culture

the most basic cause of a person's wants and behavior. Growing up in a society, a child learns basic values, perceptions, wants, and behaviors from his or her family and other important institutions. A child in the United States normally is exposed to the following values: equality, individualism, directness, informality, achievement and success, activity and involvement, time and its importance, material comfort, and health and fitness. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from both county to county and country to country.

Perception

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

customer journey

the sum of the ongoing experiences consumers have with a brand the marketer's goal is to deeply understand the ongoing customer journey, mapping customer touch points and experiences in detail. By understanding the customer journey, marketers can work to create brand experiences that will result in positive purchase behavior, engagement, and brand advocacy over time.

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

innovators

venturesome-they try new ideas at some risk