1. Consumer Market and Consumer Buyer Behavior Chapter: 5

2. Personal factors Age and Life- Cycle Stage - goods and services change over life time - young singles, married people - different stages in life cycle Occupation - Blue collar job, white collar job

3. Personal factors Economic Situation - personal income, savings etc. - economic recession ( re-modify the product) - e.g. Rolex only for elite class - e.g. Timex has moderate prices

4. Personal factors Lifestyle A person’s pattern of living as expressed in his or her activities, interests, and opinions - people form the same subculture, social class -AIO Framework Activities (work, hobbies, shopping, sports, social events) Interests (food, fashion, family, recreation) Opinion (about themselves, social issues, business)

5. Personal factors Personality and self-concept The unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment - self-confidence, dominance, aggressiveness Brand Personality The specific mix of human traits that may be attributed to a particular brand

6. Personal factors 5 brand personality traits 1) Sincerity (down to earth, honest, wholesome, and cheerful) e.g. Nestle Cerelac, Dove 2) Excitement (daring, spirited, imaginative and up to date) e.g. Mountain dew, Gold Leaf, Apple 3) Competence (reliable, intelligent and successful) e.g. BMW, CNN 4) Sophistication (upper class and charming) e.g. LV products, Rolex 5) Ruggedness ( tough) e.g. Mortein, Saddel Ranch,

8. Psychological Factors Motivation A need that is sufficiently pressing to direct the person to seek satisfaction of the need - recognition, esteem and belongings - Freud’s theory suggests that a person’s buying decisions are affected by subconscious motives that even the buyer may not fully understand e.g. Olwell milk

10. Maslow’s Hierarchy of Needs Physiological needs Hunger, Thirst Safety needs Security, protection Social needs Sense of belonging, love Esteem Needs Self-Esteem, recognition, status Self actualization Self- development

11. Psychological Factors Perception The process by which people select, organize, and interpret information to form a meaningful picture of the world -People can form different perception of the same situation - People come across different messages in one day

12. Psychological Factors Learning Changes in an individual’s behavior arising from experience -A drive is a strong internal stimulus that calls for action -A drive becomes motive when it is directed towards a particular stimulus -Cues are minor stimuli that determine, when, where, and how a person responds

13. Psychological Factors Belief A descriptive thought that person holds about something Attitude A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea e.g. McDonalds- Family restaurant/ Fast Food Resturant