1. Person making decisions Person does or does not purchase
Simplified Buyer Behavior Model
Marketing Mixes
All other stimuli
Stimulus
Person making decisions
Black Box
Response
Person does or does not purchase

2. Problem-solving process Person does or does not purchase (response)
A Model of Buyer Behavior
Marketing Mixes
All other stimuli
Psychological variables
Motivation
Perception
Learning
Attitude
Personality/lifestyle
Social Influences
Family
Social class
Reference groups
Culture
Purchase Selection
Purchase reason
Time
Surroundings
Summary Overview (P; Exhibit 6-1)
Production and marketing work together to create utility: the power to satisfy human needs. There are five kinds of economic utility.
Key Issues
Form utility: provided when someone produces something tangible.
Task utility: provided when someone performs a task for someone else.
Time utility: having the product available when the customer wants it.
Place utility: having the product available where the customer wants it.
Discussion Question: Can you think of examples of businesses that excel in providing time and place utility?
Possession utility: obtaining a good or service and the right to use or consume it.
Person making decision
Problem-solving process
Person does or does not purchase (response)

3. An Expanded Model of the Consumer Problem-Solving Process
Marketing Mixes
All other stimuli
Psychological variables
Motivation
Perception
Learning
Attitude
Personality/lifestyle
Social influences
Family
Social class
Reference groups
Culture
Purchase situation
Purchase reason
Time
Surroundings
Person making
decisions
Need-want awareness
Routinized response
Search for information
Feedback of
information
as attitudes
Summary Overview(Exhibit 6-7; of P;)
Production and marketing work together to create utility: the power to satisfy human needs. There are five kinds of economic utility.
Key Issues
Form utility: provided when someone produces something tangible.
Task utility: provided when someone performs a task for someone else.
Time utility: having the product available when the customer wants it.
Place utility: having the product available where the customer wants it.
Discussion Question: Can you think of examples of businesses that excel in providing time and place utility?
Possession utility: obtaining a good or service and the right to use or consume it.
Set criteria and evaluate
alternative solutions
Decide on solution
Postpone
decision
Purchase product
Postpurchase
evaluation
Response

4. Pricing Change Model Environmental Conditions: Foreign competition
Legal environment
change
- Technology change
More informed
consumers
Pricing
Profitability
Elasticity
Degree of
change in
price
Sales
Ch11 of B;
Successfulness

5. The Learning Process Drive Cues Response Reinforcement
Summary Overview (Exhibit 6-4)
Production and marketing work together to create utility: the power to satisfy human needs. There are five kinds of economic utility.
Key Issues
Form utility: provided when someone produces something tangible.
Task utility: provided when someone performs a task for someone else.
Time utility: having the product available when the customer wants it.
Place utility: having the product available where the customer wants it.
Discussion Question: Can you think of examples of businesses that excel in providing time and place utility?
Possession utility: obtaining a good or service and the right to use or consume it.
Reinforcement
Response

6. Model of a Market-Directed Economy
CONSUMERS
Goods and Services
PRODUCT-
MARKET
Information
Information
Money (expenditures)
Information
Money (income)
Information
GOVERNMENT
Production resources
Money (income)
Information
Summary Overview
Every society needs an economic system: the way an economy organizes to use scarce resources in production and consumption. Depending upon the type of economic system, decisions about resource allocation are made differently.
Key Issues
Planned economic system:
government planners make decisions about production and distribution;
can work well in simple economies or under adverse conditions.
Market-directed economic system: individuals govern resource allocation, production and consumption
Characteristics of market-directed systems include:
Adjusts itself.
Price is a measure of value:
consumers pay what they think things are worth;
producers try to meet those price expectations.
Greatest freedom of choice:
less intervention from government planners;
more choices are available to producers and consumers.
Conflicts can arise when choices are at odds with each other or with society; this phenomenon is called the macro-micro dilemma.
The role of government is to ensure fairness and the common good.
Discussion Question: What are examples of things government planners compel consumers to buy, even in a largely market-directed economic system?
RESOURCE
MARKET
Money (expenditures)
PRODUCERS
Information
Information
Primary direction
Secondary direction of feedback

7. Model of a Market-Directed Macro-Marketing System
Many Individual Producers
(heterogeneous supply)
Middlemen
intermediaries
Facilitators
Perform universal marketing functions
To overcome discrepancies and
separation of production and consumers
Monitoring by government(s)
and public interest group
Monitoring by government(s)
and public interest groups
Summary Overview(P; Exhibit 1-4, p.23)
As the families in a market trade with each other, many transactions are needed to satisfy their needs. As a result, a central market eventually emerges where families can go to trade more conveniently.
Key Issues
A money system simplifies trading, and:
expands services;
creates inventories,;
provides greater choice in the central market.
Middlemen (intermediaries) may help, by
bringing buyers and sellers together more efficiently,
contributing time and place utility.
Discussion Question: What is the incentive for middlemen to provide time and place utility
To create utility and direct flow of
need-satisfying goods and services
Many Individual Consumers
(heterogeneous demand)

8. An Expanded Model of the Consumer Problem-Solving Process
This slide relates to material on pp. 5-6.
: Indicates place where slide “builds” to include the corresponding point.
Summary Overview(Exhibit 6-7; of P;)
Production and marketing work together to create utility: the power to satisfy human needs. There are five kinds of economic utility.
Key Issues
Form utility: provided when someone produces something tangible.
Task utility: provided when someone performs a task for someone else.
Time utility: having the product available when the customer wants it.
Place utility: having the product available where the customer wants it.
Discussion Question: Can you think of examples of businesses that excel in providing time and place utility?
Possession utility: obtaining a good or service and the right to use or consume it. : : : : :
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Basic Marketing