1. Chapter 2
Consumer Behavior

2. ADVERTISING AND SALES PROMOTION
4/25/2017
CHAPTER 2
Consumer Behavior
2.1 The Consumer Is in Charge
2.2 Consumer Purchase Classifications
2.3 Influences on Consumer Behavior
CHAPTER 2

3. 2.1 The Consumer Is in Charge
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2.1 The Consumer Is in Charge
Goals
Recognize the importance of understanding the customer’s wants and needs.
Identify the five-step consumer decision-making process

4. CHAPTER 2
Terms
consumer behavior – the way consumers make buying decisions, choose among alternative and used products
Need – anything you require for survival
Want – something you desire but could live without

5. CHAPTER 2
Terms
routine decision making – the consumer decision-making process for frequently purchased, low-cost products that require little thought
limited decision making – the consumer decision-making process in which a moderate amount of time is pent collecting and comparing information about an unfamiliar product or brand.
extensive decision making – the methodical consumer decision-making process used to buy an infrequently purchased product

6. Understanding the Customer
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Understanding the Customer
Identifying consumer needs and wants
Scarcity – limited product and services

7. Maslow’s Hierarchy of Needs Pyramid
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Maslow’s Hierarchy of Needs Pyramid
Self-Actualization
(to realize your potential)
Esteem
(respect and recognition)
Social
(friends, love, belonging
Security
(physical safety and economic security)
Physiological
(food, sleep, water, shelter, air)

8. So Many Different Decisions
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So Many Different Decisions
Consumer decision-making process
Recognize the problem – 1st step occurs when the consumer recognizes a need, desire or problem
Search for information – gathers information about alternative solutions.
Evaluate alternatives – summarizing, comparing and ranking the alternatives.
Make the purchase – make a purchase when an appropriate option has been identified.
Evaluate the purchase – decides whether the purchase met their expectations and satisfied the need.
Types of consumer decision making
Routine decision making
Limited decision making
Extensive decision making

9. Check Point What is the difference between a need and a want?
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Check Point
What is the difference between a need and a want?
Why should marketers be concerned about the consumer decision-making process?
Do you think advertising influences consumer needs and wants? Explain your answer?
Write a post-purchase evaluation for a recent purchase. Evaluation should describe your product expectations and your satisfaction or dissatisfaction with the purchase.
Describe an advertisement that focuses on a want and an advertisement that focuses on a need.

10. 2.2 Consumer Purchase Classifications
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2.2 Consumer Purchase Classifications
Goals
Distinguish between types of consumer purchases and recognize the level of consumer involvement in buying decisions.
Describe different types of consumer products.

11. CHAPTER 2
Term
convenience products – types of products that are purchased regularly without much planning.
shopping products – types of products that consumers want to own after they meet personal needs.
specialty products – types of products that have a strong brand loyalty
unsought products – types of products that are not actively sought out by consumers

12. The Buying Decision New purchase – buying a product for the first time
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The Buying Decision
New purchase – buying a product for the first time
Modified purchase – consumer realize that the product they purchased in the past did not totally meet their current needs. The consumer identify the product changes or improvements needed and will purchase to meet their new specifications.
Repeat purchase – purchasing the same products and services over and over again.

13. The Buying Decision Consumer involvement in buying decisions
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The Buying Decision
Consumer involvement in buying decisions
Past experience – low level of involvement in making the buying decision
Interests – increase the level of involvement in buying decision. (spend more time shopping)
Perceived risk – become more involved in the buying process. (example: high priced item can result in financial risk)
Circumstances – consumer involved in the buying process. (example: special occasions)
Self-image – consumer wants to make a statement or reinforce their image by purchasing a certain product, the buying decision becomes more relevant (example: designer clothing, luxury cars.)

14. Types of Products Convenience products Shopping products
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Types of Products
Convenience products
Staple products
Impulse products
Emergency products
Shopping products
Specialty products
Unsought products

15. Check Point What are some reasons for a modified purchase?
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Check Point
What are some reasons for a modified purchase?
What is an effective strategy for selling shopping products? (give an example of an Ad)

16. 2.3 Influences on Consumer Behavior
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2.3 Influences on Consumer Behavior
Goals
Discuss consumer buying motives.
Describe individual, social, and marketing influences on consumer behavior.

17. CHAPTER 2
Terms
buying motives – the driving forces that cause consumers to buy products and services
emotional motives – reasons to make a purchase based on feelings, beliefs, or attitudes.
rational motives – reasons to make a purchase based on facts or logic.
patronage motives – reasons to make a purchase based on loyalty.
Culture – the shared attitudes and behaviors of a specific social group.
reference group – an organization or group of people that an individual identifies with and admires.
advertising campaign – a series of related advertisements with a common Theme or idea that focuses on a specific product, service, brand or message.

18. Buying Motives Emotional motives – buying things that they know
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Buying Motives
Emotional motives – buying things that they know
Rational motives – buying based on facts
Patronage motives – buying based on loyalty

19. Factors Influencing Consumer Buying Decisions
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Factors Influencing Consumer Buying Decisions
Individual influences
Personality – set of emotions, traits, and behaviors that define an individual
Gender – man or woman
Age
Culture – shared attitudes and behaviors
Ethnicity – shared identity

20. Factors Influencing Consumer Buying Decisions
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Factors Influencing Consumer Buying Decisions
Social influences
Marketing influences
Advertising influences – series of related advertisements with a common theme or idea
Promotional influences – create a favorable image of its products or services

21. Check Point How do buying motives affect consumer purchases?
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Check Point
How do buying motives affect consumer purchases?
What personal characteristics might influence a consumer’s buying decision?
Describe a cultural influence that impacts your buying decisions?