What are Consumers? A person who uses a product or service.

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Presentation transcript:

What are Consumers? A person who uses a product or service. If you use products regularly, you are a consumer.

The Buying Decision What are consumers thinking when making purchases? Depends on the product or service TV vs. candy Planned and researched or impulse?

Think / Pair / Share What is the last MAJOR purchase that you had a say in making? Think it over by yourself and, when you are ready, discuss the purchase with the person next to you. What was the process involved in your purchase?

MOTIVATION Need or want Biological – basic, physical needs Emotional – love, joy, fear Rational – thinking part of us Social – peer pressure

Need Motivation? http://youtube.com/watch?v=UfWTQA6QPk4

Needs Vs. Wants What is a need? What is a want? Essential to survival Examples Food Protection Sense of belonging What is a want? Not necessary to survival but add pleasure and comfort to our lives Examples Cable television XBox

Motivational Theory –Maslow’s Hierarchy of Needs Why do consumers make the purchases they do?

Mazlow Continued Physiological Needs The most basic needs that are vital to survival, such as the need for water, air, food, and sleep Security Needs These include needs for safety and security. Examples: steady employment, health insurance, safe neighbourhoods, and shelter from the environment. Social Needs Belonging, love, acceptance and affection. Example: friendships, romantic companionship, involvement in social, community, or religious groups.

Mazlow Continued Esteem Needs The need for things that reflect on self-esteem, personal worth, social recognition, and accomplishment. Self-actualizing Needs These people are self-aware, concerned with personal growth, less concerned with the opinions of others, and interested fulfilling their potential.

Fad A fad is a product, service, or idea that is extremely popular for a very brief period of time, then it becomes unpopular just as quickly Examples include: Movies Books Songs Who Let the Dogs Out?

Fads Furby Tamagotchi Many were sold when it came out After a while no one wanted one Tamagotchi Were very popular A lot of kids had one After a while they declined

What does the Fad graph look like?

Trends A trend is different than a fad in that it has a more lasting effect on the marketplace Example: Based on population forecasts/trends, RBC just announced they plan to open another 1000 branches before 2010 to service an ageing cliental and increasing immigrant group that prefers to do their banking at a branch.

Trends Disco Clothes Leggings and Flats Many people were wearing them Happened in the 70’s Influenced by disco Leggings and Flats Lots of people wearing them People started wearing these all of a sudden They are popular.