chapter 3: consumer behavior—how people make buying decisions
DESCRIPTION
TRANSCRIPT
![Page 1: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/1.jpg)
by Jeff Tanner and Mary Anne Raymondby Jeff Tanner and Mary Anne Raymond
Principles of Marketing
![Page 2: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/2.jpg)
Chapter 3Chapter 3Consumer Behavior—Consumer Behavior—
How People Make Buying How People Make Buying Decisions Decisions
©2010 Flat World Knowledge, Inc.
![Page 3: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/3.jpg)
©2010 Flat World Knowledge, Inc.
3
Marketing needs
answers to these
questions !
![Page 4: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/4.jpg)
Companies spend billions studying consumer behaviors!
Provided by : www.themegallery.com
Getting the AnswersGetting the Answers
4©2010 Flat World Knowledge, Inc.
![Page 5: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/5.jpg)
©2010 Flat World Knowledge, Inc.
5
1.Understand the six buying process stages
2.Distinguish between low and high involvement buying decisions
Learning ObjectivesLearning Objectives
![Page 6: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/6.jpg)
©2010 Flat World Knowledge, Inc.
6
Consumer Decision Making Consumer Decision Making ProcessProcess
![Page 7: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/7.jpg)
©2010 Flat World Knowledge, Inc.
7
Consumer Decision Making Process, Consumer Decision Making Process, cont’dcont’d
![Page 8: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/8.jpg)
©2010 Flat World Knowledge, Inc.
8
Buying Decision TypesBuying Decision Types
![Page 9: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/9.jpg)
©2010 Flat World Knowledge, Inc.
9
Distinct consumer buying phases1.Realize a need2.Search for information3.Evaluate alternatives4.Select a product and purchase5.Assessing product performance6.Disposing of the product
Consumer level of involvement1.Low involvement inexpensive, low risk2.High involvement expensive, failure risk
Key TakeawaysKey Takeaways
![Page 10: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/10.jpg)
©2010 Flat World Knowledge, Inc.
10
Learning Objectives• Describe situational factors affecting what and when consumers buy.• Explain how marketing can make situational factors work to their advantage.
Factors Affecting Consumer Buying Factors Affecting Consumer Buying BehaviorBehavior
![Page 11: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/11.jpg)
©2010 Flat World Knowledge, Inc.
11
Consumer Situational FactorsConsumer Situational Factors
![Page 12: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/12.jpg)
©2010 Flat World Knowledge, Inc.
12
ATMOSPHERICS
Store design and layout
Store locations
Ambiance
UNCONTROLLED
Weather
Crowding
Some physical factors can be controlled by design, others must be accommodated.
Physical SituationPhysical Situation
![Page 13: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/13.jpg)
©2010 Flat World Knowledge, Inc.
13
Circumstances in which consumers may find themselves.
Consumer Social SituationConsumer Social Situation
![Page 14: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/14.jpg)
©2010 Flat World Knowledge, Inc.
14
Pressed for time?
Consumer Time SituationConsumer Time Situation
![Page 15: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/15.jpg)
©2010 Flat World Knowledge, Inc.
15
Why is this purchase being made?
• is it a gift?
• is it an emergency?
• is time a factor?
Reason for Consumer’s PurchaseReason for Consumer’s Purchase
![Page 16: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/16.jpg)
©2010 Flat World Knowledge, Inc.
16
Reta
ilers
em
ploy
diff
eren
t m
easu
res t
o lu
re sh
oppe
rs
What Is the Consumer’s Mood?What Is the Consumer’s Mood?
![Page 17: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/17.jpg)
©2010 Flat World Knowledge, Inc.
17
Situational influences have temporary effects on buyer behavior.• Store layouts• Store locations• Music• Aromas
Companies make physical factors favorable, anduse incentives such as discounts to encourage buyers.
Consumer’s situations for social and time factors as well as their reason for buying affect their buying behavior.
Key TakeawaysKey Takeaways
![Page 18: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/18.jpg)
©2010 Flat World Knowledge, Inc.
18
Learning Objectives
1. Explain how self-concept and ideal self affect purchasing decisions.
2. Describe how companies market products based on consumers’ -- gender -- life stage -- age
3. Explain lifestyles of consumers (VALS).
Personal Factors that Affect Buying Personal Factors that Affect Buying BehaviorBehavior
![Page 19: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/19.jpg)
©2010 Flat World Knowledge, Inc.
19
The link between personalities and buying behavior is unclear!
Consumer Personality TraitsConsumer Personality Traits
![Page 20: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/20.jpg)
©2010 Flat World Knowledge, Inc.
20
A better link to buying behavior is how you see yourself.Your ideal self is how you would like to see yourself.
PEOPLE BUY PRODUCTS TO ENHANCE HOW THEY FEEL ABOUT THEMSELVES
Consumer Self ConfidenceConsumer Self Confidence
![Page 21: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/21.jpg)
©2010 Flat World Knowledge, Inc.
21
Genders differ in buying behavior
Consumer GenderConsumer Gender
![Page 22: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/22.jpg)
©2010 Flat World Knowledge, Inc.
22
Types of purchases by and for consumers change with age:• chronological age• cognitive age
Chronological age
Consumer’s Age and Life StagesConsumer’s Age and Life Stages
![Page 23: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/23.jpg)
©2010 Flat World Knowledge, Inc.
23
Consumer lifestyles vary drastically!
Companies are researching lifestyles:• using questionnaires• what products do they like• where do they live• how they spend their time• where do they go after work• what are their priorities• what are their values
Consumer Life StylesConsumer Life Styles
![Page 24: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/24.jpg)
©2010 Flat World Knowledge, Inc.
24
• personality describes disposition• people buy products that improve self image• gender affects what and how you buy• younger men and women shopping more alike• cognitive age is how old you feel• lifestyles are being watched more closely
Key TakeawaysKey Takeaways
![Page 25: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/25.jpg)
©2010 Flat World Knowledge, Inc.
25
Learning Objectives
• Explain Maslow’s hierarchy of needs
• Outline the psychological factors that affect consumer buying behavior
Psychological Factors Affect Buying Psychological Factors Affect Buying BehaviorBehavior
![Page 26: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/26.jpg)
©2010 Flat World Knowledge, Inc.
26
Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
![Page 27: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/27.jpg)
©2010 Flat World Knowledge, Inc.
27
This is how we interpret the world around us.
PerceptionPerception
![Page 28: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/28.jpg)
©2010 Flat World Knowledge, Inc.
28
Selective perception—filters out irrelevant information
Selective retention—forgetting information that contradicts beliefs
Subliminal advertising—stealthily embedded messages in media
Shock advertising—surprising stimuli that can increase retention
Learning—changing behavior after receiving more information or using a product
Attitudes—enduring feelings about products and their providers
Perception and Retention FactorsPerception and Retention Factors
![Page 29: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/29.jpg)
©2010 Flat World Knowledge, Inc.
29
Maslow’s needs—lower level needs must be met before higher level needs
Perception—interpreting the world through using your brain and senses
Advertising—efforts to increase retention includes using shock and subliminal techniquesConsumer attitudes—mental positions tend to be enduring and difficult to change
Key TakeawaysKey Takeaways
![Page 30: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/30.jpg)
©2010 Flat World Knowledge, Inc.
30
Learning Objectives
• Explain impact of culture and social class on buying behavior
• Describe reference groups and opinion leaders
Societal Factors Affecting Buying Societal Factors Affecting Buying BehaviorBehavior
![Page 31: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/31.jpg)
©2010 Flat World Knowledge, Inc.
31
Cultures are:• shared beliefs • customs• behaviors• attitudes• a life style
An Important Marketing Note: Cultures that share the same valuesmay not be consistent in purchasing behavioracross national borders.
SUBCULTURES—groups that share someinterests , but can differ in important waysfrom a marketing perspective.
Consumer CulturesConsumer Cultures
![Page 32: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/32.jpg)
©2010 Flat World Knowledge, Inc.
32
Reference Groups and Opinion Reference Groups and Opinion LeadersLeaders
![Page 33: Chapter 3: Consumer Behavior—How People Make Buying Decisions](https://reader033.vdocuments.mx/reader033/viewer/2022061115/54635e8eb1af9f7d228b546f/html5/thumbnails/33.jpg)
©2010 Flat World Knowledge, Inc.
33
Family Influence on Buying Family Influence on Buying BehaviorBehavior