What are Consumers?What are Consumers?

• A person who uses a product or service.

• If you use products regularly, you are a consumer.

The Buying DecisionThe Buying Decision• What are consumers

thinking when making purchases?

• Depends on the product or service– TV vs. candy

• Planned and researched or impulse?

Think / Pair / ShareThink / Pair / Share• What is the last MAJOR purchase that you

had a say in making?

• Think it over by yourself and, when you are ready, discuss the purchase with the person next to you.

• What was the process involved in your purchase?

MOTIVATIONMOTIVATION

• Need or want

• Biological – basic, physical needs

• Emotional – love, joy, fear

• Rational – thinking part of us

• Social – peer pressure

Need Motivation?Need Motivation?

http://youtube.com/watch?v=UfWTQA6QPk4http://youtube.com/watch?v=UfWTQA6QPk4

Needs Vs. WantsNeeds Vs. Wants• What is a need?

– Essential to survival– Examples

• Food• Protection• Sense of belonging

• What is a want?– Not necessary to

survival but add pleasure and comfort to our lives

– Examples• Cable television• XBox

Motivational Theory –Maslow’s Hierarchy of NeedsMotivational Theory –Maslow’s Hierarchy of Needs

• Why do consumers make the purchases they do?

Mazlow ContinuedMazlow Continued• Physiological Needs

The most basic needs that are vital to survival, such as the need for water, air, food, and sleep

• Security NeedsThese include needs for safety and security. Examples: steady employment, health insurance, safe neighbourhoods, and shelter from the environment.

• Social NeedsBelonging, love, acceptance and affection. Example: friendships, romantic companionship, involvement in social, community, or religious groups.

Mazlow ContinuedMazlow Continued

• Esteem NeedsThe need for things that reflect on self-esteem, personal worth, social recognition, and accomplishment.

• Self-actualizing NeedsThese people are self-aware, concerned with personal growth, less concerned with the opinions of others, and interested fulfilling their potential.

Fad Fad A fad is a product, service, or idea that is extremely popular for a very brief period of time, then it becomes unpopular just as quickly

Examples include: • Movies• Books• Songs

Who Let the Dogs Out?

FadsFads

• Many were sold when it came out

• After a while no one wanted one

•Were very popular•A lot of kids had one•After a while they declined

Furby

Tamagotchi

What does the Fad graph look What does the Fad graph look like?like?

TrendsTrends

• A trend is different than a fad in that it has a more lasting effect on the marketplace

Example:

Based on population forecasts/trends, RBC just announced they plan to open another 1000 branches before 2010 to service an ageing cliental and increasing immigrant group that prefers to do their banking at a branch.

TrendsTrends

• Many people were wearing them

• Happened in the 70’s• Influenced by disco

•Lots of people wearing them•People started wearing these all of a sudden •They are popular.

Disco Clothes

Leggings and Flats