Consumer Economics Copyright©2009 Taylor & Francis Group, an informa business Chapter 6 Brands, Buying Process, and Product Development

Learning Objectives Explain types of brands and brand developmentList the six steps in the buyer decision processDiscuss the four stages in product developmentIdentify the four stages in the household life cycleExplain population trends

Introduction Consumer behavior includes all aspects of how the consumer acts in the marketplace Consumers seek valueConsumer behavior is complex

The Buyer Decision Process Prepurchase 1.Assessing need 2.Searching for information 3.Evaluating alternatives 4.Selecting a product or service Purchase 5.Buying Postpurchase 6.Evaluating after purchase through use and comparison

Motivations of Marketers Notice their brands, goods, and services Try their products and repeat purchase Be loyal to their brands Be satisfied with the exchange

Companies Compete in Many Ways Reduce prices Increase advertising or change ad placement Introduce new products Buy or merge with the competition Develop new strategic plans Improve customer service Improve product quality

Customers and Brand Loyalty A brand is a distinctive name identifying a product or a manufacturer Companies position their products in the marketplace by giving brands specific and unique images

Stages in Product Development Introduction Growth Maturity Dormancy/Decline –maybe revitalization

Important Brand Issues Brand Perception Brand Image Counterfeiting and Pirating

Socio-Demographic, Psychographic and Population Trends U.S. population trends World population trends Changing families and households Changes in life stages

Groups and Market Segmentation Reference groups Socio-economic groups Hispanic/Latinos Blacks/African Americans Asian Americans Gays and Lesbians Copyright©2009 Taylor & Francis Group, an informa business

Chapter Summary Consumer BehaviorCompetition and BrandsProduct DevelopmentThe Changing Nature of Consumers