1. Consumer Markets and Consumer Buyer Behavior Copyright ©2014 by Pearson Education, Inc. All rights reserved

2.  Model of Consumer Behavior  Characteristics Affecting Consumer Behavior  Types of Buying Decision Behavior  The Buyer Decision Process  The Buyer Decision Process for New Products Objectives Copyright ©2014 by Pearson Education, Inc. All rights reserved

3.  http://www.youtube.com/watch?v=y9vec4Yr Aqg http://www.youtube.com/watch?v=y9vec4Yr Aqg

4.  http://business.time.com/2013/10/07/what- fruit-of-the-looms-strange-new-ads-actually- get-right/ http://business.time.com/2013/10/07/what- fruit-of-the-looms-strange-new-ads-actually- get-right/  audience?  Demographics  Psychographics

5.  Even though you may have determined your demographic group, people within that group still have very different perceptions about the benefits or value of your product and will be motivated for different reasons

6.  These differences are known as psychographics. To further target your efforts, you've got to determine not only who buys (or will buy) your product, but what makes them want to buy it. psychographics  What are their spending patterns?  Are they brand conscious when it comes to your product type?  What influences their buying behavior?  What promotional efforts they respond to most often?

7. Consumer buyer behavior : the buying behavior of final consumers, individuals and households, who buy goods and services for personal consumption Consumer market : all of the personal consumption of final consumers Copyright ©2014 by Pearson Education, Inc. All rights reserved

8. Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors  Measured by a combination of occupation, income, education, wealth, and other variables Copyright ©2014 by Pearson Education, Inc. All rights reserved

9. Chapter 5- slide 9 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall  What 2 questions could you ask to determine what social classes there are in this room? 9

10. Membership Groups Groups with direct influence and to which a person belongs Aspirational Groups Groups an individual wishes to belong to Reference Groups Groups that form a comparison or reference in forming attitudes or behavior Groups and Social Networks Copyright ©2014 by Pearson Education, Inc. All rights reserved

11.  Word-of-mouth influence and buzz marketing  Opinion leaders are people within a reference group who exert social influence on others  Also called influentials or leading adopters  Marketers identify them to use as brand ambassadors Groups and Social Networks Copyright ©2014 by Pearson Education, Inc. All rights reserved

12.  Family is the most important consumer-buying organization in society  Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status Social Factors Copyright ©2014 by Pearson Education, Inc. All rights reserved

13. Lifestyle is a person’s pattern of living as expressed in his or her psychographics  Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment Personal Factors Copyright ©2014 by Pearson Education, Inc. All rights reserved

14.  Personality: the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment Personal Factors Copyright ©2014 by Pearson Education, Inc. All rights reserved

15.  Personality makes us who we are. It influences nearly every aspect of our lives, from what we choose to do for a living to how we interact with our families to our choices of friends and romantic partners. But what factors influence our personality? Can we change our personalities, or do our overall traits remain constant throughout life? Personality

16. A motive is a need that is sufficiently pressing to direct the person to seek satisfaction Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations Psychological Factors Motivation Copyright ©2014 by Pearson Education, Inc. All rights reserved

17. Maslow’s Hierarchy of Needs Copyright ©2014 by Pearson Education, Inc. All rights reserved

18. Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes  Selective attention  Selective distortion  Selective retention Psychological Factors Copyright ©2014 by Pearson Education, Inc. All rights reserved

19. Selective attention is the tendency for people to screen out most of the information to which they are exposed Psychological Factors Copyright ©2014 by Pearson Education, Inc. All rights reserved

20. Selective distortion is the tendency for people to interpret information in a way that will support what they already believe Psychological Factors Copyright ©2014 by Pearson Education, Inc. All rights reserved

21. Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands Psychological Factors Copyright ©2014 by Pearson Education, Inc. All rights reserved

22. Buyer Decision Making Process Copyright ©2014 by Pearson Education, Inc. All rights reserved

23. About a purchase… Copyright ©2014 by Pearson Education, Inc. All rights reserved

24. Chapter 5- slide 24 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall  http://www.youtube.com/watch?v=eqpLcwQ H55c http://www.youtube.com/watch?v=eqpLcwQ H55c 24

25.  Occurs when the buyer recognizes a problem or need triggered by:  Internal stimuli  External stimuli Need Recognition Copyright ©2014 by Pearson Education, Inc. All rights reserved

26.  Personal sources—family and friends  Commercial sources—advertising, Internet  Public sources—mass media, consumer organizations  Experiential sources—handling, examining, using the product Information Search Sources of Information Copyright ©2014 by Pearson Education, Inc. All rights reserved

27.  How the consumer processes information to arrive at brand choices Evaluation of Alternatives Copyright ©2014 by Pearson Education, Inc. All rights reserved

28.  The act by the consumer to buy the most preferred brand  The purchase decision can be affected by:  Attitudes of others  Unexpected situational factors Purchase Decision Copyright ©2014 by Pearson Education, Inc. All rights reserved

29.  The satisfaction or dissatisfaction that the consumer feels about the purchase  Relationship between:  Consumer’s expectations  Product’s perceived performance  The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction  Cognitive dissonance is the discomfort caused by a post-purchase conflict Post-Purchase Decision Copyright ©2014 by Pearson Education, Inc. All rights reserved

30. Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value Post-Purchase Decision Copyright ©2014 by Pearson Education, Inc. All rights reserved

31.  For each of the following tell me what you would do to insure ‘post purchase happy’  Coffee shop  Car dealer  Lawn Care service  EOU degree  Carpet One

32. Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use.  Stages in the process include: Awareness Interest Evaluation Trial Adoption Copyright ©2014 by Pearson Education, Inc. All rights reserved

33.  Model of Consumer Behavior  Characteristics Affecting Consumer Behavior  Types of Buying Decision Behavior  The Buyer Decision Process  The Buyer Decision Process for New Products Objectives Copyright ©2014 by Pearson Education, Inc. All rights reserved