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CHAPTER SIX Behavioral Dimensions of the Consumer Market

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1 CHAPTER SIX Behavioral Dimensions of the Consumer Market
For use only with Perreault and McCarthy texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin For use only with Perreault and McCarthy texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

2 When we finish this lecture you should
1. Understand the economic buyer model of buyer behavior. 2. Understand how psychological variables affect an individual’s buying behavior. 3. Understand how social influences affect an individual’s and household’s buying behavior. 4. See why the purchase situation has an effect on consumer behavior. 5. Know how consumers use problem-solving processes. 6. Have some feel for how a consumer handles all the behavioral variables and incoming stimuli. At the end of this presentation, you should: 1. Understand the economic buyer model of buyer behavior. 2. Understand how psychological variables affect an individual’s buying behavior. 3. Understand how social influences affect an individual’s and household’s buying behavior. 4. See why the purchase situation has an effect on consumer behavior. 5. Know how consumers use problem-solving processes. 6. Have some feel for how a consumer handles all the behavioral variables and incoming stimuli. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3 The Behavioral Sciences Help You Understand the Buying Process
This slide relates to material on pp Summary Overview Demographics help marketers to understand the who, what, when and where aspects of consumer buying behavior. However, demographics don’t necessarily explain why consumers behave as they do, so marketers have turned to the social and behavioral sciences in order to consider the full range of buying influences. Key Issues Economic needs affect most buying decisions. Economic buyers: consumers who have all the facts and make logical choices to purchase goods and services that will best fulfill their needs. Economic needs: those needs that are concerned with making the best use of a consumer’s time and money-- from the consumer’s point of view. This ad for Proctor and Gamble is aimed at wholesalers and retailers, and it appeals to more than one economic need. Among the needs cited in this ad are economy of use, convenience, efficiency in use, and improvement of earnings. In business-to-business marketing, economic needs are often the main influences on buying behavior. In explaining the behavior of individual consumers, the economic view is useful, but probably too simplistic. Discussion Question: How does the purchase of a car for an individual’s private use differ from the purchase of a car by a business outfitting its fleet of “company cars”? In which case would economic needs be more important? Why? + © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

4 © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 6-1 This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. How We Will View Consumer Behavior Summary Overview Economics and psychology are often cited as the main sources of marketing thought, but marketing also derives a great deal of knowledge about consumer behavior from sociology, anthropology, and communication theory. The basic model of consumer behavior shown here integrates many of these influences. Key Issues Psychological variables: things that are going on in the mind of the consumer that affect purchase. Examples: attitudes, personality, learning processes, and perceptions. Social influences: have to do with the associations that the buyer might have with other people. Examples: culture, social class, and family influences. Purchase situation factors: reason for the purchase, time pressure involved, and surroundings of the purchase. Discussion Question: How might your purchase of a product be different if you have little time to make your purchase decision as opposed to having unlimited time? Marketing mixes and other stimuli affect this process. All influences have an impact on the problem solving process. Outcome of the process might or might not be a purchase. : : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin : : :

5 Psychological Influences within an Individual
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Needs Needs Wants Wants Summary Overview Marketers who follow the marketing concept are concerned with satisfying the needs of consumers, but what exactly are needs, and what types of needs are there? Key Issues Needs: basic forces that motivate consumers to do something. Wants: learned needs; that is, they are needs expressed as a desire for a particular need-satisfier. Discussion Question: What are some of the possible underlying needs and wants for a.) deodorant; b.) a television; c.) a tax preparation service? Drive: a strong internal stimulus that encourages action to reduce a need. Consumers seek benefits to meet their needs and wants. Drives : Drives : Consumers seek benefits to match needs and wants! : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

6 Several Needs at the Same Time
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Personal Needs Social Needs Summary Overview Many different levels of needs can appeal to or motivate a person. The PSSP pyramid shown here helps apply motivation theory to the particular needs of consumers and marketing managers trying to develop marketing mixes to meet those needs. Key Issues Physiological needs: the most basic needs people experience. Examples: biological needs for food, drink, and rest. Safety needs: concerned with protection and physical well-being. Examples: health, medicine, exercise. Social needs: derived from a person’s interactions with others. Examples: love, friendship, status. Personal needs: concerned with an individual’s need for personal satisfaction, unrelated to what others do. Examples: self-esteem, fun, and freedom. Discussion Question: Can you provide an example of products or services whose marketing mixes attempt to fulfill the four types of needs? NOTE: Some products may try to satisfy only one type of need, while others may attempt to satisfy more than one type. Safety Needs : Physiological Needs : : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

7 Interactive Exercise: Needs
For complete information and suggestions on using this Interactive Exercise, please refer to the “Notes on the Interactive Exercise” section for this chapter in the Multimedia Lecture Support Package to Accompany Basic Marketing. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

8 © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Personal Needs This slide relates to material on p. 154. Summary Overview This ad for the Boy Scouts of America appeals to personal needs--in this case, an individual’s need for personal satisfaction. Key Issues Discussion Question: What personal needs is this organization seeking to satisfy? Notice also that this ad is encouraging acceptance of the Boy Scouts of America instead of directly focusing on one of its specific programs. The ad uses a familiar person--Jim Lovell, the commander of Apollo 13--to help parents make the mental connection between a successful person and the benefits offered by the Boy Scouts. + © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

9 Perception Determines What Consumers See and Feel
This slide relates to material on p. 155. : Indicates place where slide “builds” to include the corresponding point. Selective Exposure Selective Exposure Summary Overview Perception refers to how people gather and interpret information from the world around them. Marketers are very much interested in the processes people use to handle incoming marketing mix stimuli, because people can’t process all the information to which they are exposed on a daily basis. The volume is too great. Key Issues Selective exposure means that consumers seek out and notice only the information that interests them. Selective perception means that people screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs. Selective retention means that consumers remember only what they really want to remember. Discussion Question: When you read a newspaper, do you: a.) start on page 1 and read every article and ad, in order, until you finish at the last page; or do you: b.) skip around, reading some things and not others? Option b.) is more typical--is that selective exposure, perception, or retention? If you read an advertisement for a product that you have used before, do you: a.) accept the ad at face value; or b.) evaluate it--perhaps even dismiss it--in reference to your past experience? Option b.) is more typical--is that selective exposure, perception, or retention? Do you remember: a.) the details of any product or service you have ever used; or b.) remember some and not others--particularly the ones with which your experiences were really bad or really good? Option b.) is more typical--is that selective exposure, perception, or retention? : Selective Retention Selective Perception Selective Perception : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10 Learning Determines What Response Is Likely
This slide relates to material on p. 156. : Indicates place where slide “builds” to include the corresponding point. Drive Drive Cues Summary Overview Marketers understand that virtually all of consumer behavior is learned, so they are very interested in how they can positively affect the learning process. Key Issues Learning is a change in a person’s thought processes caused by prior experience. As mentioned previously, a drive is a strong internal stimulus that encourages action to reduce a need. Cues are stimuli in the environment that trigger a drive or response. A response is an effort to satisfy a drive. Reinforcement occurs when the response is followed by satisfaction, which reduces the drive. Discussion Question: On major highways, there are often billboards containing nothing more than the name or logo of a restaurant and a statement such as, “Exit 32—10 miles.” What is happening here in terms of cues, drives, response, and reinforcement? Marketers often try to identify positive cues because they help a marketing mix. Many needs are culturally learned. Cues Response : Reinforcement : Response : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11 © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cue Courtesy of Pepsi and Landmark Cinema This trailer (promotion), when watched by someone attending a cinema, can help to illustrate the learning process.  People watching this promotion (a series of cues) in a theater, might satisfy their drive for an entertaining experience by not talking, not smoking, and/or by turning off their cell phone or beeper.  Any or each of these actions would be a response.  Finally, they might satisfy their drive for thirst by purchasing Pepsi (again, a response).   If their experiences are satisfactory, positive reinforcement occurs, and they will be quicker to satisfy their drive in the same way in the future. Video Operation: Click on the video screen to Play or Stop the video. To view the video Full Screen, either right-click on the video screen and choose Full Screen from the menu or type Alt+Enter. To go back to your presentation you can either hit the Escape key, right-click on the video and uncheck Full Screen or type Alt+Enter. You can do this at anytime during the video playback. If you choose Full Screen before you play the video the screen will not change until the video starts playing. The videos will only play in Slide Show View. Macros must be enabled in order to play the videos from within PowerPoint. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

12 Attitudes Relate to Buying
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Belief: An Opinion Belief: An Opinion Need To Understand Attitudes & Beliefs Need To Understand Attitudes & Beliefs Attitude: A Point of View Attitude: A Point of View Key Concepts Summary Overview An attitude is a person’s point of view about something. Attitudes tend to be learned. They shape information processing in the consumer’s mind. Attitudes also relate to buying decisions consumers make. Therefore, marketers do a lot of attitude research. Key Issues Beliefs: opinions people have about something. Marketers should try to understand attitudes and beliefs because they can both affect buying. Discussion Question: Think about the following statements: “I like that LCD computer monitor. It takes up considerably less space on a desktop than a regular monitor.” Which statement is the attitude, and which one is the belief? Most marketers work with existing attitudes. Creating new attitudes is difficult. Attitudes are difficult to change, especially if they are negative. Ethical issues may arise if marketers promote inaccurate or false beliefs. Expectations: outcomes or events that a person anticipates. Understanding and meeting expectations are both important in order to build long-term relationships with customers. : Meeting Expectations Is Important Work with Existing Attitudes Work with Existing Attitudes : : Ethical Issues May Arise Ethical Issues May Arise : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin : :

13 Personality and Lifestyle Analysis
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Personality: How People See Things Summary Overview Personality and lifestyles are other psychological variables that affect consumer behavior. Key Issues Personality affects how people see things. Marketers have found it difficult to incorporate personality into the marketing mix. Psychographics or lifestyle analysis: Activities: identify what people do--objectively observable. Interests: tend to create stronger drives that may pinpoint market opportunities. Opinions: the ways in which people feel about things. By combining these opinions with interests and activities, marketers can develop a robust view of certain target market segments. Discussion Question: It is often said that lifestyle analysis paints a more “human” picture of the target consumer than does a simple demographic description. Why would this be the case? Activities Activities : Interests Interests Opinions : : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

14 Social Influences Affect Consumer Behavior
This slide relates to material on pp Summary Overview Psychological variables are not the only influences on consumer behavior. Relations with other people--social influences--are also important. For example, relationships within a family may have an impact. Key Issues Who is the real decision maker in family purchases? This ad provides a good example. Although only one family member may go to the store and purchase Pringles, other family members may influence the decision--still others may actually consume the product. The same principle applies to the purchase of other products, such as children’s toys. Family considerations may overwhelm personal ones. Discussion Question: Can you provide an example of how a family consideration may force a family member to subordinate his/her preference for a product in order to achieve a “greater good” for the family as a whole? Marketers who understand the dynamics of family decision making can show that a product or service can satisfy several family members’ needs. + © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

15 Simple Approaches for Measuring Social Class in the U.S.
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Summary Overview Perceived and actual social standing have powerful influences on consumers. It is important to remember when considering these influences that the person chosen or appointed to fill each social influence role is largely determined by the social class to which the consumer belongs. Social Influences Social class: a group of people who have approximately equal social position as viewed by others in the society. What do these classes mean? In the U.S., income is not the main determinant of social class. People with similar incomes can be in different social classes because of their occupation, education, and type or location of housing. Discussion Question: How might differences in social classes translate into: a.) differences in buying behavior and b.) different marketing mix tactics? Occupation Education Type of Housing Location of Housing : : Income Is Not the Main Determinant! © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

16 Other Social Influences
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Reference Groups Reference Groups Opinion Leaders Summary Overview There are other key social influences on buying behavior. Key Issues Reference group: the people to whom an individual looks when forming attitudes about a particular topic. Discussion Question: Can you provide some examples of reference groups to which you belong now or wish to belong in the future? Opinion leaders: people who influence others. Their influence matters because of some characteristic they have. Can provide important word-of-mouth advertising, if marketers reach the opinion leaders who are buyers. Marketers can use opinion leaders as official endorsers for their market offerings. Culture: the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous group of people. Culture varies in international markets. Marketers are placing even more emphasis on marketing research capabilities in the international arena. Opinion Leaders Culture : : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

17 Individuals Are Affected by the Purchase Situation
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Purchase Reason Purchase Reason Time Available Time Available Physical Surroundings Summary Overview The particular situation a consumer is in during or around the time of purchase can also have significant effects on the actual purchase. Key Issues Among the key situational influences are: The purchase reason can vary. Why a consumer makes a purchase can affect buying behavior. Time available for the purchase also affects what happens. Physical surroundings of the purchase affect buying, as do the emotional responses they elicit or encourage. Discussion Question: Have you ever been in a store known for its sophisticated use of surroundings to enhance sales, such The Disney Store or Victoria’s Secret? How do they manipulate the surroundings, or “atmospherics,” as a key part of their overall marketing strategy? : : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

18 Consumers Use Problem Solving Processes
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Social Influences Psychological Variables Purchase Situation Need-want Awareness Need-want Awareness Information Search Information Search Summary Overview It is often useful to view the purchase itself as the culmination of several steps that solve a problem for the consumer. These steps are affected by the psychological, social, and situational influences already discussed. Key Issues 1. Awareness: In this stage, consumers become aware of--or interested in--a problem or a need, and in ways to satisfy the need. 2. Gathering Information: In order to recall and gather information about possible solutions, consumers first search internal sources, such as their memory and past experiences. They may also investigate external sources, such as friends, publications, or demonstrations. 3. Evaluating Alternatives: After gathering information, consumers decide which different product choices might be capable of solving their problem--evaluating them and perhaps trying out some of them. 4. Choosing a Solution: Then, consumers decide on the appropriate solution, by selecting one of the alternatives as the best. This decision entails purchasing a product, or perhaps, deciding to forgo a purchase. 5. Evaluating the Decision: After purchasing a product, the consumer assesses the outcome of his or her decision. Discussion Question: Can you provide an example of a recent purchase you made and what happened at each step of the purchase process? : Set Criteria Set Criteria : Decide on Solution Decide on Solution : Purchase Product : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin :

19 © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 6-7 This slide relates to material on pp Grid of Evaluative Criteria Helps Summary Overview Based on studies of how consumers seek out and evaluate product information, researchers suggest that marketing managers use evaluative grids showing features common to different products, or marketing mixes. This exhibit shows an example of a grid that compares three car brands. Key Issues It’s important for marketers to get their products into the consumer’s consideration set—the list of potential choices that a consumer will actually consider buying. Otherwise, the marketer’s product is not likely to get serious attention. Grids encourage managers to view each product as a bundle of features or attributes. Some consumers will reject a product if they see one feature as substandard. In other cases, a consumer’s overall attitude toward a product could be positive enough to make up for some of the product’s shortcomings. The grid can help marketing managers to visualize the important purchase criteria and how consumers combine criteria to evaluate alternatives. Discussion Question: Looking at Exhibit 6-7, what other criteria might be added to the grid? © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

20 Three Levels of Problem Solving Are Useful
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Summary Overview The time, effort, and source of information used in making a purchase can be influenced by the relative level of involvement the consumer experiences. Key Issues In extensive problem solving, a consumer attempts to satisfy a completely new or important need. Much information is needed. The consumer has no experience. The decision -- and risk of making a wrong decision -- are important. These purchases are often referred to as high involvement purchases. In limited problem solving, the consumer is willing to put forth some effort, perhaps to update or add to previous experience or because the problem is moderately important. In routinized response behavior, a consumer resorts to habit to solve a problem. These purchases are often referred to low-involvement purchases that have little importance or relevance to the consumer. Discussion Question: Think about three purchases you have made--involving extensive problem solving, limited problem solving, and routinized response behavior, respectively. How did the purchase process differ across the three purchases? Limited Problem Solving : Low involvement High involvement : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

21 Limited or Extensive Problem Solving?
This slide relates to material on p. 169. Summary Overview To meet the needs of its target market, Novartis developed a line of Triaminic children's cough medicines that allows a parent to choose exactly the formula a child needs without having to worry about side effects from unnecessary ingredients. Key Issues Discussion Question: Is this ad aimed at limited or extensive problem solving consumers? It would depend on: the effort the consumer would be willing to expend; and how much previous experience he/she has with children having a cold. The classification of a purchase decision as extensive problem solving, limited problem solving, or routinized response behavior is something that takes place in the mind of the consumer--not in the mind of the marketer. + © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

22 Problem Solving Is a Learning Process
This slide relates to material on pp : Indicates place where slide “builds” to include the corresponding point. Interest Awareness Awareness Interest Evaluation Evaluation Trial Summary Overview Many new product concepts require an adoption process. In these extensive problem-solving situations, consumers may pass through a series of steps used to investigate and evaluate, and ultimately accept or reject, an idea or product as a solution to their problem. Key Issues 1. In the awareness stage, the potential customer first learns about the existence of a product but may lack more details. 2. If the interest stage is reached, the consumer will gather general information and facts about the product. Discussion Question: Would selective processes (described earlier) have an impact on whether or not the consumer reaches the interest stage? Explain. 3. In evaluation, the consumer gives the product a mental trial, applying it to his or her own personal situation. 4. In trial, the consumer may buy the product to experiment with it in use. 5. The consumer ultimately makes a decision--on either adoption and continued use, or rejection of the product from further consideration. 6. After the decision, there is confirmation. Here the adopter continues to rethink the decision and searches for further support that it was correct. Dissonance may set in after the decision--tension caused by uncertainty about the rightness of a decision. Dissonance may set in after the decision! Trial Decision : Confirmation Decision : : : © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin : : :

23 © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Problem Solving Courtesy of St. Elizabeth Hospital As consumers approach the problem-solving process, they bring attitudes formed by previous experiences and social training, unless of course, they face an extensive problem-solving situation. This commercial for St. Elizabeth Hospital is of the type that might be used to influence a consumer who is engaged in extensive problem-solving. Video Operation: Click on the video screen to Play or Stop the video. To view the video Full Screen, either right-click on the video screen and choose Full Screen from the menu or type Alt+Enter. To go back to your presentation you can either hit the Escape key, right-click on the video and uncheck Full Screen or type Alt+Enter. You can do this at anytime during the video playback. If you choose Full Screen before you play the video the screen will not change until the video starts playing. The videos will only play in Slide Show View. Macros must be enabled in order to play the videos from within PowerPoint. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

24 © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 6-9 This slide relates to material on pp Several Processes Are Relevant to Strategy Planning Summary Overview It is important to see the interrelation of the problem-solving process, the adoption process, and learning. Knowing how target markets handle these processes helps companies with their marketing strategy planning. Key Issues Marketers can affect the interrelation; promotion, for example, can modify or accelerate the interrelation. Problem solving behavior also affects distribution--consumers expect to have easier access to products and services that involve routinized response behavior. Customer attitudes affect price sensitivity, which in turn, influences the prices that marketers charge. Discussion Question: How is dissonance related to reinforcement? How can marketers influence dissonance and reinforcement? There is a tremendous temptation for marketers to substitute their own personal knowledge and experiences--derived from their own purchases--for an understanding of the target market as a whole. Such thinking is particularly problematic the farther the target customers are from the marketer, or the more differences there are between the marketer and the target audience. In the international market, all the influences on buying behavior--psychological, social, and situational--interact, often in subtle ways. Therefore, marketers should base their decision making on sound marketing research and not on their own limited experiences. + © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

25 Key Terms Economic buyers Economic needs Needs Wants Drive
This slide refers to boldfaced terms appearing in Chapter 6. Economic buyers Economic needs Needs Wants Drive Physiological needs Safety needs Social needs Personal needs Perception Selective exposure Selective perception Selective retention Learning Cues Response Reinforcement Attitude Belief Expectation Psychographics Lifestyle analysis Summary Overview These are key terms you should be familiar with based upon the material in this presentation. Key Issues Economic buyers: people who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money. Economic needs: needs concerned with making the best use of a consumer's time and money--as the consumer judges it. Needs: the basic forces that motivate a person to do something. Wants: needs that are learned during a person's life. Drive: a strong stimulus that encourages action to reduce a need. Physiological needs: biological needs such as the need for food, drink, rest, and sex. Safety needs: needs concerned with protection and physical well-being. Social needs: needs concerned with love, friendship, status, and esteem--things that involve a person's interaction with others. Personal needs: an individual's need for personal satisfaction unrelated to what others think or do. Perception: how we gather and interpret information from the world around us. Selective exposure: our eyes and minds seek out and notice only information that interests us. Selective perception: people screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs. Selective retention: people remember only what they want to remember. Learning: a change in a person's thought processes caused by prior experience. Cues: products, signs, ads, and other stimuli in the environment. Response: an effort to satisfy a drive. Reinforcement: occurs in the learning process when the consumer's response is followed by satisfaction--that is, reduction in the drive. Attitude: a person's point of view toward something. Belief: a person's opinion about something. Expectation: an outcome or event that a person anticipates or looks forward to. Psychographics: the analysis of a person's day-to-day pattern of living as expressed in that person's Activities, Interests, and Opinions--sometimes referred to as AIOs or lifestyle analysis. Lifestyle analysis: the analysis of a person's day-to-day pattern of living as expressed in that person's Activities, Interests, and Opinions--sometimes referred to as AIOs or psychographics. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

26 Key Terms Social class Reference group Opinion leader Culture
This slide refers to boldfaced terms appearing in Chapter 6. Social class Reference group Opinion leader Culture Consideration set Extensive problem solving Limited problem solving Routinized response behavior Low-involvement purchases Adoption process Dissonance Summary Overview These are additional key terms. Key Issues Social class: a group of people who have approximately equal social position as viewed by others in the society. Reference group: the people to whom an individual looks when forming attitudes about a particular topic. Opinion leader: a person who influences others. Culture: the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people. Consideration set: the list of potential choices that a consumer will actually consider buying. Extensive problem solving: the type of problem solving consumers use for a completely new or important need--when they put much effort into deciding how to satisfy it. Limited problem solving: when a consumer is willing to put some effort into deciding the best way to satisfy a need. Routinized response behavior: when consumers regularly select a particular way of satisfying a need when it occurs. Low-involvement purchases: purchases that have little importance or relevance for the customer. Adoption process: the steps individuals go through on the way to accepting or rejecting a new idea. Dissonance: tension caused by uncertainty about the rightness of a decision. © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


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