1. Principles of Marketing Lecture-14

2. Summary of Lecture-13

3. Marketing Research (cont..) Consumer Market- understanding the consumer

4. Step-3 Implementing the Research Plan

5. Step-4 Interpretation and Reporting of Findings

6. Consumer Market- understanding the consumer

7. All individuals and households who buy or acquire goods and services for personal consumption

8. Model of Consumer Behavior “Stimulus-Response”

9. Today’s Topics

10. Consumer Buying Behavior (cont..)

11. Marketing and Other Stimuli Marketing and Other Stimuli Buyer’s Black Box ”what” & “how” Buyer’s Black Box ”what” & “how” Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Buyer characteristics affecting consumer behavior Buyer’s decision process Product choice Brand choice Dealer choice Purchase timing Purchase quantity

12. Stimulus Response Model – Marketing and other stimuli enter the buyer’s “black box” and produce certain choice/purchase responses. – Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses.

13. Model of Buyer Behavior Marketing & other stimuli Marketing Product Price Place Promotion Other Economic Technological Political Cultural Buyer’s Black Box Buyer Characteristics Buyer Decision Process Buyer Responses Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount

14. Characteristics Affecting Consumer Behavior

15. Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer Culture Sub- culture Social class Culture Sub- culture Social class Cultural

16. 1. Cultural 2. Social 3. Personal 4. Psychological

17. 1. Cultural

18. Cultural a. Culture b. Sub-Culture c. Social Class

19. a. Culture Set of values norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

20. b. Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.

21. c. Social Class A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms.

22. 2. Social

23. Social a.Reference Groups b.Family c.Role & Status

24. a. Reference Group

25. Reference Group A group in society that influences an individual’s purchasing behavior.

26. Implications of Reference Groups

27. They serve as information sources and influence perceptions They affect an individual’s aspiration levels Their norms either constrain or stimulate consumer behavior

28. Opinion Leaders An individual who influences the opinion of others.

29. b. Family

30. Purchase Roles in the Family Initiators Influencers Decision- Makers Purchasers Consumers Children Influence Purchase Decisions

31. c. Roles and Status

32. Enough for today...

33. Summary

34. Consumer Buying Behavior (cont..)

35. Marketing and Other Stimuli Marketing and Other Stimuli Buyer’s Black Box ”what” & “how” Buyer’s Black Box ”what” & “how” Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Buyer characteristics affecting consumer behavior Buyer’s decision process Product choice Brand choice Dealer choice Purchase timing Purchase quantity

36. Characteristics Affecting Consumer Behavior

37. Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer Culture Sub- culture Social class Culture Sub- culture Social class Cultural

38. Next….

39. Understanding the consumer behavior (cont..)

40. Principles of Marketing Lecture-14