Title: CHAPTER 5 Consumer Behavior: How and Why People Buy
1CHAPTER 5Consumer Behavior How and Why People
Buy
M A R K E T I N G
Real People, Real Choices Fourth Edition
Michael R. Solomon Greg W. Marshall
Elnora W. Stuart
2Chapter Objectives_1
- Define consumer behavior and explain the reasons
why consumers buy what they buy - Explain the prepurchase, purchase, and
postpurchase activities consumers engage in when
making decisions - Describe how internal factors influence
consumers decision-making processes
3Chapter Objectives _2
- Understand how situational factors at the time
and place of purchase may influence consumer
behavior - Describe how consumers relationships with other
people influence their decision-making process - Understand how the Internet offers consumers
opportunities for consumer-to-consumer marketing
4Consumer Behavior
The process individuals and groups go through to
select, purchase, or use goods, services, ideas,
or experiences to satisfy their needs and desires
5Figure 5.1 The Consumer Decision-Making Process
Problem Recognition
Information Search
Evaluation of Alternatives
Product Choice
Postpurchase Evaluation
6Figure 5.2 EPS versus HDM
7Minolta Copier
This ad seeks to ease perceived risk
8Problem Recognition
- Occurs whenever a consumer recognizes a
difference between the current state and the
ideal or desired state - Internal cues
- External cues
9Information Search
Knowledge
Friends
Personal Experience
Advertising
Web sites
10(No Transcript)
11Evaluation of Alternatives
- Identify consideration set
- Narrow list and compare pros and cons
- Use evaluative criteria to decide among remaining
choices
12Epinions.com
Web sites like this one help consumers in the
evaluation of alternatives stage
13GM
- GM attempts to persuade consumers that making the
decision to buy a GM-certified used vehicle is a
good decision
14Product Choice
- People may ultimately make the choice based on
heuristics - Heuristics represent rules of thumb
- brand loyalty
- country of origin
- liking
15Postpurchase Evaluation
- How good a choice was it?
- Customer satisfaction/dissatisfaction
- Ultimately affects future decisions and
word-of-mouth communication
16Figure 5.4 Influences on Decision Making
17Internal Influences
Motivation
Learning
Perception
Attitudes
Lifestyle
Age
Personality
18Perception
- Process by which people select, organize, and
interpret information
Exposure
Attention
Interpretation
19Pepsi
This ad embeds images in the ad to affect
perception
20Motivation
- 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
21Figure 5.5 Maslows Hierarchy of Needs
22Learning
- Learning is a change in behavior caused by
information or experience
Behavior Learning
Cognitive Learning
23Observation Learning
Companies desire observational learning when
they use endorsers
24Attitudes
- An attitude is a lasting evaluation of a person,
object, or issue - 3 components of attitudes
Affect
Behavior
Cognition
25Personality
Innovativeness
Self-confidence
Sociability
Materialism
Need for Cognition
26Allen Edmonds
Some marketers believe we choose products that
express our personalities
27Are you what you buy? Does your personality match
the personality of the brands you purchase?
28Age Groups
Children
Teens
Young Adults
Middle-aged
Elderly
29Holland America
Products like luxury cruises to exotic locales
often target older consumers who are retired and
have the time and money for expensive travel
30Family Life Cycle
- Related to age groups, our purchases also depend
on our current position in the family life cycle - stages through which family members pass as they
grow older
31Lifestyles
- A lifestyle is a pattern of living that
determines how people choose to spend their time,
money, and energy and reflects their values,
tastes, and preferences - Expressed through preferences for sports
activities, music interests, and political
opinions - Psychographics is the segmentation tool used to
group consumers according to AIOs
32SRIs VALS Descriptions
33Situational Influences
Physical Environment
Time
34Place-based Media
Place-based media offers a way to reach consumers
when they are a captive audience
35Social Influences
- Culture and Subcultures
- Social Class
- Group Behavior and Reference Groups
- Opinion Leaders
36Cultures and Subcultures
- Culture is the values, beliefs, customs, and
tastes produced and 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
37Table 5.1 Ideas of Success
- Baby Boomer Women (born 1946-1964)
- Home life and being with friends and family are
of utmost importance. Work is just a monetary
thing. - Im starting to demand a certain quality of
relationships. - Generation X Men (born 1965-1976)
- The main goal is being at peace with myself.
- I want to make sure that I have a job I enjoy, a
personal life, and the opportunity to enjoy
things outside of work.
38Sprite targets a specific subculture
39Enrique Inglesias
Music crossovers give mainstream music Hispanic
flavor
Video How Reebok reaches the youth culture
through Hip Hop music
40Social 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, and leisure
activities. They may share political and
religious beliefs.
41Group 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 dont know. - Conformity is at work when people change as a
reaction to real or imagined group pressure
42Sex Roles
Cool Shoppin Barbie reinforces sex roles
43Challenging Sex Roles
This German ad for Schick razors challenges sex
role expectations They are men!
44Opinion Leaders
- An opinion leader is a person who influences
others attitudes or behaviors because they are
perceived as possessing expertise about the
product
45Consumer-to-Consumer E-Commerce
- Communications and purchases that occur among
individuals without directly involving the
manufacturer or retailer - Virtual Communities
- Multi-User Dungeons (MUDs)
- Rooms, Rings, Lists
- Boards
- Auction sites
- Product Rating sites
- Protest sites
46Online Communities
47Disgruntled BK Employee
A former Burger King employee created this
protest site
48Issues for Discussion_1
- What are some big cultural or demographic trends
that may affect marketing for the following
products? - Housing
- Magazines
- Education
- Telecommunications
- Travel and tourism
- Automobiles
49Issues for Discussion_2
- What are the core values of your culture? 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?
50Issues for Discussion_3
- What do you think the future of C2C e-commerce
is? How will it affect traditional marketing
firms? - How would you describe the decision process for
impulse products placed near a stores checkout
area? - What are some ways you think sex roles differ in
different countries? What are the implications
for marketers?