1. CHAPTER FIVE Final Consumers and Their Buying Behavior

2. Total Income Total Income Different Types of Spending © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Total Income Total Income Taxes Necessities Discretionary Income Discretionary Income less

3. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Changing US Income Patterns +

4. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Income Dimensions of the US Market Exhibit 5-1

5. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin How We Will View Consumer Behavior Exhibit 5-2

6. Wants Needs © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Psychological Influences within an Individual Drives Consumers seek benefits to match needs and wants! Drives

7. Physiological Needs Several Needs at the Same Time © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Safety Needs Social Needs Personal Needs

8. Interests Activities Interests Personality and Lifestyle Analysis © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Personality: How People See Things Opinions

9. Selective Exposure Selective Perception Selective Exposure Selective Perception © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Perception Determines What Consumers See and Feel Selective Retention

10. Drive Cues Response Operant Conditioning (Learning) © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Reinforcement

11. Unconditioned Stimulus Unconditioned Response Classical Conditioning (Learning) © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Conditioned Stimuluse Conditioned Response

12. Work with Existing Attitudes Need To Understand Attitudes & Beliefs Belief: An Opinion Attitude: A Point of View Attitude: A Point of View Attitude: A Point of View Attitude: A Point of View Attitudes Relate to Buying © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Ethical Issues May Arise Meeting Expectations Is Important Key Concepts Key Concepts

13. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Grid of Evaluative Criteria Helps Exhibit 5-9

14. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Family Life Cycle Exhibit 5-7 +

15. Simple Approaches for Measuring Social Class in the U.S. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Income Is Not the Main Determinant! Occupation Education Type of Housing Location of Housing

16. Reference Groups Opinion Leaders Other Social Influences © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

17. Purchase Reason Time Available Purchase Reason Time Available Individuals Are Affected by the Purchase Situation © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Physical Surroundings

18. Need-want Awareness Information Search Set Criteria Decide on Solution Purchase Product Need-want Awareness Information Search Set Criteria Decide on Solution Social Influences Psychological Variables Purchase Situation Consumers Use Problem Solving Processes © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

19. Three Levels of Problem Solving Are Useful © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvementHigh involvement

20. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Limited or Extensive Problem Solving? +

21. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Several Processes Are Relevant to Strategy Planning +

22. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Discretionary income Needs Wants Drive Perception © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Key Terms Selective exposure Selective perception Selective retention Learning Cues Response Reinforcement Attitude Belief Expectation Psychographics

23. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Social class Reference group Opinion leader Consideration set Extensive problem solving Limited problem solving © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Key Terms Routinized response behavior Low-involvement purchases Adoption process Dissonance