Marketing Management Consumer Behavior I Paul Dishman, Ph.D. Department of Business Management Marriott School of Management Brigham Young University Lecture 7

“Blackbox” model of CB $ Response Environmental Stimuli Individual Characteristics & Decision Processes $ Response Marketing Stimuli

How do consumers make decisions? Economic Man Theory Hedonistic Man Theory Pavlovian Theory

Purchase Behavior

Stages in Buying Behavior Awareness need recognition Interest information search Evaluation evaluation of alternatives Trial purchase decision Adoption postpurchase behavior

Psychological Factors Perceptions: biases and blind spots Beliefs, attitudes, and learning Positive reinforcement (next class) Motivation

Motivation: Maslow Self-Actualization Esteem Social Safety Physiological

Actualizers Principle Oriented Status Oriented Action Oriented Psychographics: VALS 2 Principle Oriented Status Oriented Action Oriented Achievers Strugglers Strivers Fulfilleds Believers Experiencers Makers Abundant Resources Minimal Resources

Time of Adoption of Innovations Early Majority 34% Laggards 16% Innovators 2.5 % Late Majority 34% Early Adopters 13.5 %

Important Attributes in Buying Convenience (most important attribute to a consumer?) Price Dependability quality of product Investment

Simple Model Buyer Marketing Characteristics Stimuli Buyer Response Buying Decision Other Stimuli

Exercise Take out a piece of paper Please answer the following questions

#1 Are you the person responsible for purchasing laundry detergent in your household? Yes No

#2 If YES to above, list the name of a laundry detergent that you purchase on a regular basis If NO to above, what is the name of the first laundry detergent brand that comes to mind?

#3 If YES to #1, list the reason(s) that you purchase this brand If NO to #1, list the reason(s) that you think the brand you thought of is so popular

#4 What other brands of laundry detergent might you consider purchasing, and why?

#5 In your opinion, what is the most important feature for a laundry detergent?

Exercise: Create Model

Why would this be important to Possible CB Model Price Purchase Decision Why would this be important to ? Availability Evoked Set of Brands Purchase Priority Decision Type Salient Features/ Benefits Family or Surrogate Influence How could they use this information?

Importance of Understanding Buyer Behavior Construct model to help understand your buyers’ decision process Find influences and influencers Determine influential methods leverage costs by maximum effectiveness Determine reinforcement points Evaluate

For next class Read article “From Choices to Checkout...” Bring taste-test materials