MGT301 Principles of Marketing Lecture-14

Summary of Lecture-13

Marketing Research (cont..) Consumer Market-understanding the consumer

Step-3 Implementing the Research Plan Step-4 Interpretation and Reporting of Findings

Consumer Market-understanding the consumer All individuals and households who buy or acquire goods and services for personal consumption

Model of Consumer Behavior “Stimulus-Response”

Consumer Buying Behavior (cont..) Today’s Topics Consumer Buying Behavior (cont..)

Marketing and Other Stimuli Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Buyer’s Black Box ”what” & “how” Buyer characteristics affecting consumer behavior Buyer’s decision process Buyer’s Response Purchase timing Purchase quantity Product choice Brand choice Dealer choice

Stimulus Response Model Marketing and other stimuli enter the buyer’s “black box” and produce certain choice/purchase responses. Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses.

Model of Buyer Behavior Marketing & other stimuli Marketing Product Price Place Promotion Other Economic Technological Political Cultural Buyer’s Black Box Buyer Characteristics Buyer Decision Process Buyer Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount

Characteristics Affecting Consumer Behavior Culture Sub- culture Social class Cultural Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer

Cultural Social Personal Psychological

1. Cultural

Cultural a. Culture b. Sub-Culture c. Social Class Set of values norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

b. Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.

c. Social Class A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms.

2. Social

Social a. Reference Groups b. Family c. Role & Status

a. Reference Group

Reference Group A group in society that influences an individual’s purchasing behavior.

Implications of Reference Groups

They serve as information sources and influence perceptions They affect an individual’s aspiration levels Their norms either constrain or stimulate consumer behavior

influences the opinion of others. Opinion Leaders An individual who influences the opinion of others.

Purchase Roles in the Family b. Family Purchase Roles in the Family Initiators Influencers Decision-Makers Purchasers Consumers Children Influence Purchase Decisions

c. Roles and Status

Enough for today. . .

Consumer Buying Behavior (cont..) Summary Consumer Buying Behavior (cont..)

Marketing and Other Stimuli Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Buyer’s Black Box ”what” & “how” Buyer characteristics affecting consumer behavior Buyer’s decision process Buyer’s Response Purchase timing Purchase quantity Product choice Brand choice Dealer choice

Characteristics Affecting Consumer Behavior Culture Sub- culture Social class Cultural Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer

Next…. Understanding the consumer behavior (cont..)

MGT301 Principles of Marketing Lecture-14