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”

Today’s Topics

Consumer Buying Behavior (cont..)

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

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

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 Culture Sub- culture Social class Culture Sub- culture Social class Cultural

1. Cultural 2. Social 3. Personal 4. Psychological

1. Cultural

Cultural a. Culture b. Sub-Culture c. Social Class

a. Culture 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

Opinion Leaders An individual who influences the opinion of others.

b. Family

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

c. Roles and Status

Enough for today...

Summary

Consumer Buying Behavior (cont..)

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

Characteristics Affecting Consumer Behavior

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 Culture Sub- culture Social class Culture Sub- culture Social class Cultural

Next….

Understanding the consumer behavior (cont..)

Principles of Marketing Lecture-14