CH: 5 Marketing

5 brand personality traits

1. Sincerity 2. Excitement 3. Competence 4. Sophistication 5. Ruggedness

Psychological factors: Maslow's Hierarchy of needs - 5

5. Self-actualiztion, 4. esteem, 3. social, 2. safety, 1. physiological

Buyers Black box - 2

Buyers characteristics Buyers decision process

Buyers responses- 3

Buying attitudes and preferences purchase behavior: what the buyer buys, when, where, and how much Brand engagements and relationships

Name the four major factors that influence consumer buyer behavior:

Cultural, social, personal, psychological -> buyer

_____________ is the set of basic values, perceptions, wants, and behaviors learned by member of society from family and other important institutions

Culture

3 inclusions in the Cultural factor influencing consumer behavior:

Culture, subculture, social class

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

Divisibility

_____________ is the stage of the buyer decision process in which the consumer is motivated to search for more information. Sources of information: - - - -

Information search, • Personal sources • Commercial sources • Public sources • Experiential sources

_______________ are venturesome—they try new ideas at some risk.

Innovators 2.5%

________________ are tradition bound—they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself.

Lagging adopters 16%

Psychological factors: ___________ is the change in an individuals behavior arising from experience and occurs through the interplay of: ________,_________,_______,__________,________

Learning: Drives, stimuli, cues, responses, reinforcement

The environment: Marketing Stimuli - 4 Others- 4

Marketing stimuli - Product Price Place Promotion Others: Economic Technological Social Cultural

Social factors: 3 Groups -

Membership groups, aspirational groups, reference groups

4 Psychological factors:

Motivation, perception, learning, beliefs and attitudes

4 inclusions in the psychological factor influencing consumer behavior:

Motivation, perception, learning, beliefs and attitudes

Subcultures include:

Nationalities, religions, racial groups, and geographic regions

______________ is the first stage of the buyer decision process, in which the consumer recognizes a problem or need triggered by: - -

Need recognition • Internal stimuli • External stimuli

The Buyer Decision Process: 5

Need recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior

_________ affects the goods and services bought by consumers

Occupation

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

Perception

_____________ refers to the unique physiological characteristics that distinguish a person or group

Personality

_______________ is the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.

Postpurchase behavior

______________ is the buyer's decision about which brand to purchase.

Purchase decision

________________ is the degree to which the innovation appears superior to existing products.

Relative advantage

5 Influence of Product Characteristics on Rate of Adoption

Relative advantage Compatibility Complexity Divisibility Communicability

________________is the tendency for people to screen out most of the information to which they are exposed.

Selective attention

3 levels of the perception process:

Selective attention, elective distortion, selective retention

_________________ is the tendency for people to interpret information in a way that will support what they already believe.

Selective distortion

________________ is the tendency to remember good points made about a brand they favor and forget good points about competing brands.

Selective retention

Maslow's: Esteem needs

Self esteem, recognition, status

Maslow's: social needs

Sensse of belonging, love

________________ are society relatively permanent and ordered divisions whose members share similar values, interests, and behaviors

Social classes

________________ are groups of people within a culture with shared value systems based on common life experiences and situations

Subcultures

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.

_______________ is deliberate—although they rarely are leaders, they adopt new ideas before the average person.

The early mainstream 34%

3 parts of the model of consumer behavior:

The environment, buyers black box, buyers responses

___________________________ is skeptical—they adopt an innovation only after a majority of people have tried it.

The late mainstream 34%

More Thai social class categorization - 7

Upper Uppers. A lower uppers. B upper middles. B middle class. C working class. C upper lowers. D lower lowers. D

4 major American social classes:

Upper class middle class working class lower class

What determines whether the buyer is satisfied or dissatisfied with a purchase? the answer lies in the relationship between the _______________ and the products ________________

consumers expectations, perceived performance

Social classes factors

credit cards, airline business etc.

Personality trait: excitement

daring, spirited, imaginative, and up-to-date

Personality trait: sincerity

down-to earth, honest, wholesome, and cheerful

A __________ is a strong internal stimulus that calls for action. A drive becomes a motive when it is directed toward a particular __________ − a person's drive for self‐actualization might motivate him or her to look into buying a camera.

drive, stimulus object

__________ is the most important consumer-buying organization in society

family

Cultural factors:

food, organic food, exercise,

According to Maslow, ___________ are arranged in a hierarchy. Starving people will take little interest in the latest happenings in the ________

human needs, art world

The purchase ___________ may not be the purchase decision due to: - -

intention - Attitudes of others • Unexpected situational factors

____________ is a persons pattern of living as expressed in his or her psychographics

lifestyle EX. KitchenAid "Kitchenthusiasts"

_____________ refers to qualitative research designed to probe consumers hidden subconscious motivations

motivation research

A ____________ (or ______) is a need that is sufficiently pressing to direct the person to seek satisfaction of the need

motive, drive

Within the Hispanic market, there exist many distinct subsegments based on _________________________________ . A company's product or message may be more relevant to one nationality over another, such as Mexicans, Costa Ricans, Argentineans, or Cubans. Companies must also vary their pitches across different Hispanic economic segments.

nationality, age, income, and other factors

A _________________ is a good, service, or idea that is perceived by some potential customers as new. It may have been around for a while, but our interest is in how consumers learn about products for the first time and make decisions on whether to adopt them.

new product

Social class is measured as a combination of _______,_______,_______,______, and other variables

occupation, income, education, wealth

Personality trait: Ruggedness

outdoorsy and tough

The idea is that brands also have ______________, and consumers are likely to choose brands with personalities that ________________.

personalities, match their own

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 _____________. Then the next time he or she shops for a camera, or for binoculars or some similar product, the probability is greater that he or she will buy a Nikon product.

reinforced

Thus, consumers feel at least some postpurchase dissonance for every purchase and marketers should work to alleviate the discomfort by _____________________

reinforcing the benefits of the chosen brand.

Personality trait: competence

reliable. intelligent, and successful

_______________ can be defined by a persons position in a group

role and status

Maslow's: Safety needs

security, protection

Maslow's: Self-actualization needs

self development and realization

Economic situations include trends in:

spending, personal income, savings, interest rates

Personality trait: sophistication

upper class and charming

5 Individual Differences in Innovativeness

• Innovators • Early Adopters • Early Mainstream • Late Mainstream • Lagging Adopters

5 inclusions in the personal consumer behavior factor:

Age and life-cylse stage, occupation, economic situation, lifestyle, personality and self concept

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

Alternative evaluation

5 Stages in the adoption process include:

Awareness Interest Evaluation Trial Adoption

________________ is buyer discomfort caused by post purchase conflict.

Cognitive dissonance

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

Communicability

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

Compatibility

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

Complexity

_______________ is the buying behavior of final consumers-individuals and households that buy goods and services for personal consumption.

Consumer buyer behavior

_____________________ are made up of all the individuals and households that buy and acquire goods and services for personal consumption

Consumer markets

___________ are minor stimuli that determine when, where, and how the person responds. For example, the person might spot several camera brands in a shop window, hear of a special sale price, or discuss cameras with a friend. These are all cues that might influence a consumer's __________ to his or her interest in buying the product.

Cues, response

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

Early adopters 13.5%

Aspirational Groups - Social factors

Groups an individual wishes to belong to

3 inclusions in the social factor influencing consumer behavior:

Groups and social networks, family roles and status

Reference groups - social factors

Groups that form a comparison or reference in forming attitudes or behavior

Meberships groups - social factors

Groups with direct influence and to which a person belongs

Maslow's: physiological needs

Hunger, thirst

The Buyer Decision Process for New Products: The _______________ is the mental process an individual goes through from first learning about an innovation to final regular use.

adoption process

An ___________ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

attitude

A __________ is a descriptive thought that a person has about something based on: - - -

belief, • knowledge • opinion • faith

Almost all major purchases, however, result in ______________, or 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. So consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased.

cognitive dissonance

Traditionally, consumers have received the most information about a product from ______________—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.

commercial sources