Consumers Rule - PowerPoint PPT Presentation

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Consumers Rule

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Consumer Behavior: How and Why People Buy Chapter Objectives Define consumer behavior explain why consumers buy what they buy Explain the prepurchase, purchase, and ... – PowerPoint PPT presentation

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Title: Consumers Rule


1
Consumer Behavior How and Why People Buy
2
Chapter Objectives
  • Define consumer behavior
  • explain why consumers buy what they buy
  • Explain the prepurchase, purchase, and
    postpurchase activities
  • that consumers engage in when making decisions
  • internal factors that influence consumers
    decision-making processes

3
Chapter Objectives
  • How situational factors influence consumer
    behavior
  • at the time and place of purchase
  • How consumers relationships with other people
  • influence their decision-making processes
  • How Internet offers consumers opportunities
  • to participate in consumer-to-consumer marketing

4
Decisions, Decisions
  • Consumer behavior
  • The process we use to select, purchase, use, and
    dispose of goods, services, ideas, or experiences
    to satisfy needs/desires
  • Influences
  • Internal, situational, and social

5
Decision-Making Process
6
Steps in Consumer Decision Process
  • Extended problem-solving vs. habitual
    decision-making
  • Involvement relative importance of perceived
    consequences of the purchase
  • Perceived risk choice of product has potentially
    negative consequences

7
Step 1 Problem Recognition
  • Occurs when consumer sees a significant
    difference between current state and ideal state
  • Marketers can develop ads that stimulate problem
    recognition

8
Step 2 Information Search
  • Consumers need adequate information to make a
    reasonable decision
  • Search memory and the environment for information

9
Step 2 Information Search
  • Internet search engines, portals, or shopping
    robots
  • Behavioral targeting
  • Marketers deliver ads for products consumers look
    for, by watching what they do

10
Internet Options forInformation Search
  • Shopping portals
  • Search engines
  • Shop-bots

11
Step 3 Evaluation of Alternatives
  • Consumers are interested in a small number of
    products, then narrow choices and compare
    pros/cons
  • Evaluative criteria
  • product characteristics consumers use
  • to compare competing alternatives

12
Step 3 Evaluation of Alternatives
  • Marketers point out their brands superiority on
    most important evaluative criteria.

13
Step 4 Product Choice
  • Deciding on one product and acting on choice
  • Heuristic a mental rule of thumb used for a
    speedy decision, such as
  • Price equals quality
  • Brand loyalty
  • Country of origin

14
Step 5 Postpurchase Evaluation
  • Consumer satisfaction/dissatisfaction
  • after purchase of product
  • Expectations of product quality
  • are met/exceeded or not
  • MARKETERS Ads/communications must create
  • accurate expectations of product

15
Part 2 INFLUENCES
  • Internal
  • Social
  • situational

16
Figure 5.4 Influences on Consumer Decision Making
17
Internal Influenceson Consumer Behavior
  • Factors that cause us each to interpret
    information about the outside world differently
  • Perception Motivation
  • Learning Attitudes
  • Personality Age group
  • The family life cycle
  • Lifestyle

18
Perception
  • Process by which we
  • select,
  • organize,
  • interpret information
  • from outside world

19
Perception
  • Necessary for perception to occur
  • Exposure
  • capable of registering a stimulus
  • Attention
  • mental processing activity
  • Interpretation
  • assigning meaning to a stimulus

20
Motivation
  • Internal state that drives us to
  • satisfy needs
  • by activating
  • goal-oriented behavior

21
Figure 5.5 Maslows Hierarchy of Needs and
Related Products
22
Learning
  • A change in behavior
  • caused by
  • information or experience

American Express Video
23
Learning
  • Behavioral learning
  • Classical conditioning
  • Operant conditioning
  • Stimulus generalization
  • Cognitive learning
  • Observational learning

American Express Video
24
Attitudes
  • Lasting evaluations of
  • a person, object, or issue
  • 3 attitude components
  • Affect (feeling)
  • emotional response
  • Cognition (knowing)
  • beliefs or knowledge
  • Behavior (doing)
  • intention to do something

25
Personality
  • The set of unique psychological characteristics
  • that consistently influences
  • the way a person responds
  • to situations in the environment

26
Personality
  • Personality traits
  • Innovativeness,
  • materialism,
  • self-confidence,
  • sociability,
  • need for cognition
  • Self-concept

27
Age Group and Family Life Cycle
  • Goods/services appeal to specific age group
  • Family Life Cycle
  • The stages through which family members pass as
    they grow older

28
Lifestyle
  • Lifestyle
  • A pattern of living
  • determines how we choose to spend
  • time, money, and energy
  • Psychographics
  • grouping consumers re
  • psychological and behavioral similarities

29
Situational Influenceson Consumer Decisions
  • Physical environment dimensions
  • such as décor, smells, and lighting
  • Arousal and pleasure
  • determine consumers reaction to store
    environment
  • Time
  • as a situational factor

30
Social Influenceson Consumer Decisions
  • We are members of many groups that influence our
    buying decisions
  • Culture/subcultures
  • Social class
  • Group memberships
  • Opinion leaders
  • Sex roles

31
Culture
  • The values, beliefs, customs, and tastes
  • produced or practiced ( taught)
  • by a group of people
  • Rituals
  • such as weddings and funerals
  • Cultural values
  • deeply held beliefs
  • about right and wrong ways to live

32
Subcultures
  • A group within a society
  • whose members share
  • a distinctive set of beliefs, characteristics, or
    common experiences
  • Subcultures important to marketers
  • racial and ethnic groups.

33
Social Class
  • The overall rank or social standing
  • of groups of people within a society,
  • Re factors
  • family background,
  • education,
  • occupation,
  • income.

34
Social Class
  • Status symbols
  • such as luxury products
  • provide a way for people to
  • flaunt their membership
  • in higher social classes.

35
Group Memberships
  • Reference group
  • a set of people a consumer wants to please or
    imitate
  • this impacts an individuals
  • evaluations,
  • aspirations, or
  • behavior

36
Group Memberships
  • Conformity
  • changing behavior
  • due to group pressure.

37
Opinion Leaders
  • People who influence
  • others attitudes or behaviors
  • because others perceive them
  • as possessing expertise about the product

38
Opinion Leaders
  • Have high interest in product category
  • Update knowledge by
  • reading, talking with salespeople, etc.
  • Impart positive negative product information
  • among first to buy new products

39
Gender Roles
  • Societys expectations
  • regarding appropriate
  • attitudes, behaviors, and appearance
  • for men and women
  • Consumers often associate sex-typed products
    with one gender or the other.
  • Blue boys, Pink girls
  • Baby Boy diapers, baby girl diapers

40
Consumer-to-ConsumerE-Commerce
  • Online communications and purchases
  • that occur among individuals
  • without directly involving
  • the manufacturer or retailer

41
Consumer-to-ConsumerE-Commerce
  • Popular online C2C formats
  • Gaming
  • Chat rooms, rings, and lists
  • Boards
  • Blogs

42
stop
43
Discussion
  • The Internet provides a unique opportunity for
    consumers to communicate and make purchases from
    each other.
  • What do you think the future of C2C e-commerce
    is?
  • How do you think it will affect traditional
    marketing firms?

44
Real People, Real Choices
  • Wild Planet (Daniel Grossman)
  • Daniel chose option 3 reposition the line toward
    either boys or girls
  • The firm renamed the line Girls Livin in Style
    (GLS), which has had moderate success.

45
Marketing Plan Exercise
  • Marketers must understand consumers and how they
    select products. Pick a good or service you like
    and have purchased in the past. As part of
    developing a marketing plan for this product
  • List what you need to know about consumers of
    your product and how they make product decisions.
  • How might you gather that information?
  • How could you use that information in developing
    successful marketing strategies?

46
Marketing in Action CaseYou Make the Call
  1. What decision must Facebook.com make?
  2. What factors are important in understanding this
    decision situation?
  3. What are the alternatives?
  4. What decision(s) do you recommend?
  5. What are some ways to implement your
    recommendation?

47
Keeping It Real Fast Forward to Next Class
Decision Time at PPG Industries
  • Meet Vicki Holt, Senior VP, Glass Fiber Glass
    for PPG Industries, Inc.
  • PPGs Insulating Glazing Unit, or IGU, has an
    aggressive competitor marketing a complete IGU
    unit.
  • The decision How to react to the competition.

48
Real People, Real Choices
  • Meet Daniel Grossman at Wild Planet
  • Creating brands/products that parents endorse and
    kids find cool
  • Future direction of Room Gear product line
  • Option 1 acknowledge that Wild Planet missed the
    mark and drop the line
  • Option 2 retain line concept and develop
    products similar to those already selling
  • Option 3 reposition the line toward either boys
    or girls

49
Group Activity
  • Marketing activities can create problem
    recognition, by showing consumers benefits of a
    new product or pointing out problems with
    products they already own
  • For the following, suggest a creative way to
    stimulate problem recognition through marketing
  • Videogames An airline
  • A hamburger Furniture

50
Discussion
  • Do you agree that having too many choices is a
    bigger problem than not having enough choices?
  • Is it possible to have too much of a good thing?

51
Discussion
  • How important is it to be able to voice your
    satisfaction with a product? How about
    dissatisfaction?
  • What are the effects of such voicing?

52
Discussion
  • Most researchers believe subliminal techniques
    are not much use in marketing.
  • Assuming some forms of subliminal persuasion may
    influence consumers, do you think their use is
    ethical? Why or why not?

53
Discussion
  • Some fans were upset when the Rolling Stones sold
    Microsoft rights to Start Me Up for 4 million,
    to promote its Windows 95 launch. Other rock
    legends refuse to play the commercial game.
    Whats your take on this issue?
  • How do you react when one of your favorite songs
    turns up in a commercial?
  • Is this use of nostalgia an effective way to
    market a product? Why or why not?

54
Discussion/Group Activity
  • Brands and stores are thought to have their own
    particular personalities
  • Pick a brand or store of interest and come up
    with a description of its personality

55
Group Activity/Discussion
  • Break into groups. Each group should select a
    familiar store and brainstorm 10-15 elements of
    the stores physical environment
  • Read your list aloud to the class (and write it
    on the board) without naming the store
  • After all lists are on the board, everyone writes
    down the name of each brand/store
  • Tally correct answers and discuss
    implications/insights of results

56
Individual Activity
  • Think about a friend, associate, family member,
    or celebrity who is an opinion leader
  • List and briefly explain the characteristics that
    relate to this persons opinion leadership.
  • For what products is this person an opinion
    leader?
  • What are some ways a business might use this
    person to help sell its products?

57
Group Activity
  • Assume youre an advertising account executive,
    and your current client is an auto maker. You
    know automobile purchases are often influenced by
    a variety of social or other people factors.
  • List these social influences, explain why each is
    important, and outline how you might use them in
    developing an advertising campaign.
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