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MARKETING Real People, Real Choices CHAPTER 5 Consumer Behavior: How & Why People Buy Chapter Objectives • Define consumer behavior & explain reasons why and what they buy • Explain the prepurchase, purchase, & postpurchase activities of consumers • Describe how internal factors influence consumers’ decision-making processes 5-2 Chapter Objectives • Understand how situational factors may influence consumer behavior • Describe how consumers’ relationships with other people influence their decision-making process • Understand how the Internet offers opportunities for marketing 5-3 Consumer Behavior The process individuals & groups go through to select, purchase, or use goods, services, ideas, or experiences to satisfy their needs & desires 5-4 Consumer Decision-Making Process • • • • • Problem recognition Information search Evaluation of alternatives Product choice Post-purchase evaluation 5-5 Problem Recognition • Occurs whenever a consumer recognizes a difference between the current state & the ideal or desired state • Internal cues - consumers recognize state of discomfort • External cues - marketers may stimulate consumers to recognize problem 5-6 Information Search • Consumer checks memory & surveys environment to identify what options are available • Sources might include personal experience & knowledge, friends, advertising, websites, & magazines 5-7 Evaluation of Alternatives • Identify consideration set • Narrow list: compare pros & cons • Use evaluative criteria to decide among remaining choices 5-8 Product Choice • People may ultimately make the choice based on heuristics • Heuristics represent rules of thumb – brand loyalty – country of origin – liking 5-9 Postpurchase Evaluation • How good a choice was it? • Customer satisfaction/dissatisfaction – regret • Ultimately affects future decisions & word-of-mouth communication 5-10 Internal Influences • • • • • Perception Motivation Personality Age Lifestyle 5-11 Perception • Process by which people select, organize, & interpret information – Exposure: stimulus must be within sensory receptors to be noticed – Attention: consumers will pay attention to some stimuli and not to others – Interpretation: consumers assign meaning to stimuli 5-12 Motivation • Motivation is an internal state that drives us to satisfy needs • Once we activate a need, a state of tension exists that drives the consumer to some goal that will reduce this tension and eliminate the need • Consequently, only unmet needs motivate 5-13 Attitudes • Attitude is a lasting evaluation of a person, object or issue. • Three components to attitudes: – Cognitions, Affect, & Behaviors – Think, Feel, Do • Each of these three components will be the dominant influence in creating an attitude toward the product 5-14 Personality • Personality: set of unique psychological characteristics that influences the way a person responds to situations in the environment – Innovativeness – Self-confidence – Sociability – Materialism – Need for cognition 5-15 Age Group • Products and services often appeal to a specific age group (demographics) – Children – Teens – Young Adults – Middle-aged – Elderly 5-16 Lifestyles • A pattern of living that determines how people choose to spend their time, money, & energy – reflects values, tastes, & preferences • Expressed through preferences for sports, music, & politics – Psychographics 5-17 Situational Influences • Physical Environment – arousal – pleasure • Time – time poverty 5-18 Social Influences • Culture & Subcultures • Social Class • Reference Groups • Opinion Leaders & Market Mavens 5-19 Cultures and Subcultures • Culture is the values, beliefs, customs, and tastes produced & valued by a group of people • A subculture is a group coexisting with other groups in a larger culture whose members share a distinctive set of beliefs or characteristics – Harley Davidson subculture 5-20 Social Class • Social class is the overall rank of people in a society • People in the same class tend to have similar occupations, similar income levels, share common tastes in clothes, decorating styles, & leisure activities 5-21 Group Memberships • A reference group is a set of people a consumer wants to please or imitate • The “group” can be composed of one person, a few people, or many people. They may be people you know or don’t know. – Conformity is at work when people change as a reaction to real or imagined group pressure 5-22 Opinion Leaders • An opinion leader is a person who influences others’ attitudes or behaviors because they are perceived as possessing expertise about the product • Market maven: person who shares general market knowledge and influences others’ behavior – The Tipping Point 5-23 Issues for Discussion • What are some cultural or demographic trends that may affect marketing for the following products? – Housing – Magazines – Education – Telecommunications – Travel & tourism – Automobiles 5-24 Issues for Discussion • What subcultures are you a member of? What distinctive beliefs, characteristics, or experiences are a part of the subcultures? • Does conformity from reference groups exert a positive or negative influence on consumers? With what types of products is conformity more likely to occur? 5-25