BMM Ch. 5

The environment

Marketing stimuli Product Price Place Promotion Other Economic Technological Social Cultural

Psychological

Motivation, Perception, Learning, Beliefs and attitudes

Buyer's responses

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

Types of Buying Decision Behavior

Buying behavior differs greatly for a tube of toothpaste, an iPhone, financial services, and a new car. More complex decisions usually involve more buying participants and more buyer deliberation.

Opinion leaders

Opinion leaders are people within a reference group who exert social influence on others. In looking at groups, the focus is on how many people influence the individual. Here the opinion leader is an individual who may influence many other people.

The Buyer Decision Process

The buyer decision process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior.

Purchase decision

The buyer's decision about which brand to purchase.

Need recognition

The first stage of the buyer decision process, in which the consumer recognizes a problem or need.

Model of Consumer behavior

Environment-->Buyer's black box-->Buyer's responses

Personal

Age and life cycle stage, Occupation, Economic situation, Lifestyle, Personality, and self-concept

Buyer's black box

Buyer's characteristics Buyer's decision process

Complex buying behavior

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

Dissonance-reducing buying behavior

Consumer buying behavior in situations characterized by high involvement but few 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.

Influences on Consumer Behavior

Consumer purchases are influenced strongly by cultural, social, personal, and psychological characteristics

Cultural

Culture, Subculture, social

Successful Adoption

Five characteristics are important in influencing an innovation's rate of adoption. Relative advantage: the degree to which the innovation is superior to existing products 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: Observability of the innovation

Lifestyle/AIOs

Lifestyle is a person's pattern of living as expressed in his or her AIO dimensions. AIO stands for activities (work, hobbies, shopping, sports, social events), interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products).

Social

Reference groups, Family, Roles and status

Adoption process

The mental process through which an individual passes from first hearing about an innovation to final adoption. Awareness: The consumer becomes aware of the new product but lacks information about it. Interest: The consumer seeks information about the new product. Evaluation: The consumer considers whether trying the new product makes sense. Trial: The consumer tries the new product on a small scale to improve his or her estimate of its value. Adoption: The consumer decides to make full and regular use of the new product.

Postpurchase 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.

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.

Evaluation of alternatives

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