Understanding Consumer Behavior How do Certain Brands Become Successful?

Consumer Behavior Consumer behavior is the study of consumers and how they make decisions If a marketer can identify consumer buyer behavior, he or she will be in a better position to target products and services toward them Marketing is about satisfying customer wants and needs; a want is an unfulfilled desire and a need is anything you require to live https://www.youtube.com/watch?v=th8wWy1I2p4

Maslow’s Theory of Motivation Self Actualization Realize Potential Respect & recognition Esteem Social Friends, love belonging Security Physical safety & economic security Food, water, air, shelter, sleep Physiological

Maslow Example (Housing) Physiological – home that provides protection from the weather Security – house in safe neighborhood possibly have a security system Social – neighborhood with other families possibly with children/good schools, etc. Esteem – well maintained home (nice landscaping, etc.) Self-Actualization – home that is designed and built by owner

Three (3) Buying Motives Buying motives - Customer’s MOTIVATION to satisfying NEEDS and WANTS Emotional motives – reasons for purchase are based on feelings, beliefs, or attitudes. Forces of love, affection, guilt, fear, or passion often compel the customer to buy Rational motives – reasons to buy are based on factors of logic. These include factors such as saving money, durability, and saving time Patronage motives – reasons to buy are based on loyalty. They encourage customer to purchase at a particular business or to buy a particular brand

Buying Motive Examples Purchase a vehicle because it has the best gas mileage rational motive Purchase a type of running shoe because you like that brand patronage motive Buying an item because you want your baby to have the very best emotional motive

Five (5) Buying Behaviors Five (5) Steps of Buying Behaviors Problem Recognition – Consumer must first recognize a need, desire, or problem (you want to learn how to play the piano – need to find a good piano player) Information search – Consumer gathers information about alternative solutions (you talk to your parents, teachers, friends about piano teachers)

Five (5) Buying Behaviors (continued) Evaluation of alternatives – After gathering info, consumer evaluates alternatives to determine which is best (Determine which piano player you can afford, what hours they are available, how will you get there, their reputation) Purchase – If suitable choice is available, consumer selects the product or service from the alternatives and makes the purchase (Take lessons with your chosen piano teacher) Post-purchase Evaluation – Consumer judges the satisfaction or dissatisfaction with the product or service (Taken a few lesson, play some songs and decide if you want to continue)

INFLUENCES on Consumer Decision Making Process Personality – Buying decisions based on individual preferences Social Class – Refers to the lifestyle, values, and beliefs that are common to a group of people Cultural Environment – Set of beliefs or attitudes that are passed on from generation to generation Reference Group – Groups or organizations from which a consumer takes their values or attitudes

3 TYPES of Decision-Making Routine Decision-Making – Purchases that are made frequently and do not require much thought (chewing gum, regular food purchases) Limited Decision-Making – Takes more time than routine. Used with more expensive or less frequently purchased items Extensive Decision-Making – When consumer goes through all 5 steps of Decision Making Process. Consumers do not make decision lightly and spend time and effort evaluating alternatives and arriving at decision

Consumer Decision Making Process Programmed Decision Complex Decision Limited Problem Solving Routine Decision Making Extensive Problem Solving

Decision Making Examples You buy a pair of jeans after shopping at 2 different stores and trying on 6 pairs Limited Decision Making You are a runner and you need new shoes so you buy the New Balance style that you purchased last time Routine Decision Making You buy a laptop for college. You have never had a laptop before so you spend time researching different brands on the Internet and try out a Mac and PC before deciding on a Mac Extensive Decision Making