CONSUMER BUYING BEHAVIOR

Good Afternoon!! 9/9/13  Today’s Agenda: Learning about Consumer Buying Behavior through:  Consumer Vocabulary  Consumer Buying Process Notes  This week:  Consumer rights and responsibilities  Comparison Shopping – what are YOU going to shop for?

Consumer Market Consists of all the individuals and households who buy or acquire goods and services for personal consumption.

Consumer Buying Decision Process Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Evaluation

Types of Buying Behavior  Routine Response  Limited Decision  Extensive Decision  Impulse Buying

Factors Influencing Consumer Behavior  Personal  Psychological  Social  Cultural

Personal Factors  Age  Life-Cycle Stage

Stages in Family Life-Cycle 1. Single 2. Newly Married Couples 3. Full Nest I 4. Full Nest II 5. Full Nest III 6. Empty Nest I 7. Empty Nest II 8. Solitary Survivor 9. Solitary Survivor, Retired

Personal Factors  Age  Life-Cycle Stage  Occupation  Economic Circumstances  Life Style

Buying Motives  Psychological  WANTS  Motivations  Perceptions  Learned experiences  Functional  Satisfies a NEED

Psychological Factors  “Wants”  Based on a want or desire to have something. Not a necessity.

Psychological Factors Motivation:  Freud Id Ego Super Ego  Maslow Hierarchy of Needs

Psychological Factors  Motivation  Perception  The process by which an individual selects, organizes, and interprets inputs to create a meaningful picture of the world. Selective Exposure Selective Distortion Selective Retention

Psychological Factors  Motivation  Perception  Learning  Changes in an individual’s behavior arising from experience

Psychological Factors  Motivation  Perception  Learning  Beliefs  Descriptive thoughts that a person holds about something

Psychological Factors  Motivation  Perception  Learning  Beliefs  Attitudes  Enduring favorable or unfavorable cognitive evaluations emotional feelings and action tendencies

Functional Factors  “Needs”  Need over wants. Delivers to a real “need” to have something.

Social Class Relatively homogenous, enduring divisions in a society, hierarchically ordered with members sharing similar values, interests, and behaviors.

American Social Classes  Upper Upper 1%  Lower Upper 2%  Upper Middle 12%  Middle32%  Working 38%  Upper Lower 9%  Lower Lower 7%

Family Influence on Buying Behavior  Husband-Dominant  Wife-Dominant  Equal

Culture & Subcultures  Cultures  The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment  Subcultures  Groups of individuals who have similar value and behavior patterns within the group but differ from those in other groups.

Adoption Process 1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Decision 6. Confirmation

Examples of Buying Motives: Psychological or Functional?  A senior wants to impress his date at the prom. His primary motive is …? Psychological

Examples of Buying Motives: Psychological or Functional?  A girl wants to remember her grandmother on her birthday. Her primary motive is…? Psychological

Examples of Buying Motives: Psychological or Functional?  A homemaker needs a new washing machine and has had good experiences with Sears. Her primary motive is …? Functional

Examples of Buying Motives: Psychological or Functional?  A teacher wants to buy a practical car to be used for family transportation. Her/His primary motive is …? Functional

Examples of Buying Motives: Psychological or Functional?  A career woman always buys Liz Claiborne clothes. Her primary motive is…? Psychological

Examples of Buying Motives: Psychological or Functional?  An overweight 40 year old man wants to loose weight so that he can reduce his blood pressure. His primary motive is…? Functional

Examples of Buying Motives: Psychological or Functional?  A homeowner needs to mow their lawn. Their primary motive is…? Functional

Consumer Buying Behavior Competency Functional Motive Psychological Motive The price is 40 cents off the regular price. It never needs ironing. Diamonds are forever. Serving you since Ninety-day warranty.

Consumer Buying Behavior Competency Functional Motive Psychological Motive Running shoe with built-in arch. It’s all the rage— colored action wear and style. Wheaties—the breakfast of champions! Steel-belted radial tires warranted for 40,000 miles A watch—a gift she will treasure always.

Consumer Buying Decision Process Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Evaluation