1. Marketing 333 Chapter 5 Final Consumers and their Buying Behavior

2. What is Consumer Behavior? Activities people engage in when selecting, purchasing, and using products so as to satisfy needs and desires.

3. A Model of Buyer Behavior 5-5 Purchase Reason Time Surroundings Purchase Situation Motivation Perception Learning Attitude Personality/Lifestyle Psychological Variables Family Social Class Reference Groups Culture Social Influence Problem-Solving Process Person Does or Does Not Purchase (Response) Marketing MixesAll Other Stimuli Person Making Decision Exhibit 5-2

4. Individual Factors Affecting Decision- Making Motivation Perception Learning Attitudes Personality Motivation Perception Learning Attitudes Personality

5. Maslow’s Hierarchy of Needs Physiological Safety Social Esteem Self-Actualization

6. Individual Factors: Perception Perception: Processing of interpreting sensations and giving meaning to stimuli. Selective exposure Selective perception Selective retention Perception: Processing of interpreting sensations and giving meaning to stimuli. Selective exposure Selective perception Selective retention

7. Individual Factors: Learning Learning: Any change in behavior or cognition that results from experience or an interpretation of experience. Learning Theories: Operant Conditioning – Reinforcement Learning: Any change in behavior or cognition that results from experience or an interpretation of experience. Learning Theories: Operant Conditioning – Reinforcement

8. Individual Factors: Attitudes Attitude: An individual’s general affective, cognitive, and intentional responses toward a given object, issue, or person. ffective ehavioral ognitive

9. Individual Factors: Personality Personality: Fundamental disposition of an individual; distinctive patterns of thought, emotion, and behavior that characterize an individual’s response to the situations of his or her life.

10. Psychographics AIOs Lifestyles

11. Interpersonal Factors: Family Family: A group of two or more persons related by birth, marriage, or adoption and residing together.

12. Interpersonal Factors: Social Class Social Class: Group of people with similar levels of prestige, power, and wealth who also share a set of related beliefs, attitudes, and values.

13. Exhibit 5-8 5-10 Social Class Dimensions 1.5% 32% 12.5% 38% 15% Lower-middle class Upper-middle class Upper-class Lower-lower class Upper-lower (“working”) class

14. Interpersonal Factors: Reference Groups Reference group: Group that influences an individual because that individual is a member or aspires to be a member of that group.

15. Interpersonal Factors: Reference Groups Types of reference groups: Membership group Voluntary membership group Aspirational group Types of reference groups: Membership group Voluntary membership group Aspirational group

16. Interpersonal Factors: Culture Culture: Values, beliefs, and customary behaviors learned and shared by members of a society.

17. Interpersonal Factors: Subculture Subculture: A culture within a culture Ethnicity Age Regions Subculture: A culture within a culture Ethnicity Age Regions

18. Purchase Situation Influences Surroundings Time Purchase Reason 5-12

19. Decision-Making Process Step 1: ProblemRecognition Step 2: InformationSearch Step 3: Evaluation of Alternatives Step 4: PurchaseDecision Step 5: Post-purchaseEvaluation

20. Decision-Making Process Problem Recognition Awareness that there is a discrepancy between an actual and a desired condition. Problem Recognition Awareness that there is a discrepancy between an actual and a desired condition. My car has died!

21. Decision-Making Process Information Search. Internal and external search for information to make a decision. Information Search. Internal and external search for information to make a decision.

22. Decision-Making Process: Information Search Perceived risk: Consumer’s uncertainty about the consequences of future actions. Types of risk: – Performance risk – Financial risk – Physical risk – Social risk Perceived risk: Consumer’s uncertainty about the consequences of future actions. Types of risk: – Performance risk – Financial risk – Physical risk – Social risk

23. Decision-Making Process: Information Search Internal Search: Scan memory Internal Search: Scan memory External Search: Shopping Personal sources Public media Advertisements External Search: Shopping Personal sources Public media Advertisements

24. Decision-Making Process Evaluation of Alternatives. Determine choice criteria to evaluate product alternatives. Evaluation of Alternatives. Determine choice criteria to evaluate product alternatives. Performance Lots of storage Variety of colors Safety

25. Decision-Making Process Purchase Decision Choose which brand to buy or not to buy Purchase Decision Choose which brand to buy or not to buy I’ll take that one.

26. Decision-Making Process Post-purchase Evaluation Purchase satisfaction Cognitive dissonance Post-purchase Evaluation Purchase satisfaction Cognitive dissonance Why did I buy such an expensive car?

27. Situations Surrounding the Decision Process Routinized Problem Solving Limited Problem Solving Extensive Problem Solving

28. Decision-Making Process: High Involvement Products ProblemRecognitionProblemRecognition Extensive information search Extensive weighing of alternativesExtensive alternativesPurchasedecisionPurchasedecision Don’tBuyDon’tBuy BuyBuy Problemstillfaced Post-purchaseevaluation

29. Decision-Making Process: Low Involvement Products ProblemRecognitionProblemRecognitionMinimal information search Minimal PurchasedecisionPurchasedecision Postpurchaseconsumption;minimalevaluation