process a consumer uses to make a purchase, and how they use and dispose of it
why do we study consumer behavior?
in order to develop marketing strategies
What are two marketing strategies?
Target market and marketing mix
Who are they, how do they shop, and what influences them
a particular group of consumers at which a product is aimed
a combination of factors that can be controlled by a company to influence what consumers by
What uses the four P’s?
the marketing mix
what are the four P’s?
Two ideas from the decision making process
extended or high involvement
routine or limited low Involvement
group influence on consumers from sociology
Stages in the extended decision making process
Imbalance of gap between real and ideal.
Strategy insights- What is the motivation to purchase? Reason? Need?
– Why do people want information before they purchase?
-Strategy Insights: do people seek information before this purchase, and if so, where?
Ads, salesperson, friends, Facebook, family, etc.
-Sources of Information
Internal Search vs. External Search
Active vs. Passive Search
Sources of information
Marketing controlled information sources
Advertising Media Selection
TV, Internet, Billboard, Radio, Mag, Newspaper,…….
Non Marketer controlled sources
Promotion Strategy Implications
What are the Benefits Sought/feature sought vs. competition: Critical to success!
ν Price…can I purchase on a credit card.
ν Social issues.
How is is made? By whom…husband or wife or individually.
Where? When? Who makes it? Who influences them? What is needed to facilitate the decision? Incentives? How do I reduce risks for buyer?
….the most important for marketers to understand!!
Outcomes OF THIS ARE CRITICAL
– If Satisfied ….what happens here?.
Positive WOM and Consumer comes Back
– If Unsatisfied ….what happens here?
WOM..a powerful negative source of information.
They don’t come back and they don’t tell you…So No Retention of customers
Limited or Routine Decision Process: Low involvement
What promotion and distribution decisions are called for here?
Factors effecting decision making
culture and subculture
culture and subculture
value or importance to a culture
becomes target market and reference group
references group (sneeches)
Primary vs. Secondary
Aspiration vs. Non-aspiration
Roles in decisions
Q Scores http://www.qscores.com/Web/index.aspx
Gender Shopping behavior, colors, shapes,
Age , Family Life Cycle
Selective Processes: Exposure, distortion, retention
Maslow’s hierarchy of needs
Maslow’s hierarchy of needs
a method of classifying human needs and motivations into five categories: physiological, safety, social, esteem, and self – actualization
generalization and discrimination
Beliefs and attitude
Maslow’s hierarchy of needs
. Which of the following strategies is a marketing manager most likely to follow to increase the sales of a high-involvement product?
Creating advertisements that give consumers all the necessary information to make the purchase decision
Focusing on the package design of the product so that it will be eye-catching and easily recognized on the store shelf
Linking the product to a lower-involvement issue to create publicity
Offering coupons, cents-off deals, and two-for-one offers on the product
Linda usually does not spend much time selecting gifts while buying them. However, when buying a pen for her husband’s birthday, she visited several stores and spent a lot of time selecting the pen. This scenario is an example of _____.
Which of the following statements is true of the social class system in the United States?
Interest in organized labor is one of the most common attributes among the working class.
The working class spends more on vacation homes, jewelry, vacations and cruises.
The majority of Americans today define themselves as upper class.
Social class includes people belonging to the same age and gender.
In the context of the purchase process of a family, _____ are members who suggest or plant the seed for the purchase process.
_____ is the most complex type of consumer buying decision and is associated with high involvement on the part of the consumer.
Limited decision making
Routine response behavior
Extensive decision making
29. _____ occurs when consumers change information that conflicts with their feelings or beliefs.
Joshua prefers to do his grocery shopping at Fresnas Mart because his mother also prefers to shop there. He also does not shop groceries online because his mother does not prefer shopping groceries online. In this case, Joshua’s shopping behavior is a result of _____.
the socialization process
the decision-making process
. _____ is an example of routine response behavior.
Booking a cruise vacation
Buying an $800 personal computer
Buying an air conditioner for the first time
. In which of the following ways are consumers influenced by reference groups?
Norms of reference groups do not constrain consumer behavior.
Consumers are prohibited from dissociating themselves from reference groups.
Consumers use the same criteria as their reference groups to make their own consumer decisions.
Consumers are influenced only by the reference groups to which they belong.
. _____ is the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.
Which of the following is a psychological factor that impacts consumer buying decisions?
Definition and importance of business markets
Organizations which purchase goods and services for needed for operations or resale.
Most of you will work in a B2B situations. These are the best jobs.
Major types of organizations
CHARACTERISTICS Of ORGANIZATIONAL BUYERS (Differences From Consumer
Smaller Number of Buyers – Ray Abner
Larger Volume Purchases …Brandon
Multiple Influence on the Buyer
Professional Buyers (ISM Baton Rouge)
types of purchases or buying situation
The Buying Center
A practice whereby business purchasers choose to buy from customers of their competitors is called reciprocity.
In social media marketing, awareness occurs when action is taken and includes everything from downloading a piece of content (like a white paper) to actually making a purchase.
Derived demand means that an increase or decrease in the price of the product will significantly affect demand for the product.
Providing superior service to a firm’s most valuable customers is likely to result in a maximization of the total business value generated over time.
In a buying center, the decider is the person who actually negotiates a purchase.
Federal, state, and local buying units account for the greatest volume of purchases of any customer category in the United States.
. Items such as forklifts are more commonly sold as consumer goods than as business products.
. A consumer product is also known as an industrial product.
Businesses contract outside providers to perform janitorial, advertising, and legal services as it costs less than hiring an employee to perform the particular task.
Which of the following statements is true of relationship marketing?
For many suppliers, retaining their current customers has become a secondary focus in relationship marketing.
Business suppliers use social networking sites sparingly as these sites discourage businesses from shopping for all their needs.
Loyal customers are less profitable than those who are price sensitive and perceive no difference among brands or suppliers.
Relationship marketing has become more important than before because competition has becoming more intense.
IMPORTANCE OF MARKET SEGMENTATION
Allows specification of the target market in developing a strategy?
The more clear on who the customer is, the better the marketing mix fits:
People’s needs differ, Products can be developed based on particular groups or segments.
Effeciency in communicating to or reaching a segment with media.
Putting the product where your customer shops…which stores, online, etc.
BASES FOR SEGMENTATION
MARKET SEGMENTATION STRATEGIES
Perceptual Positioning Map
a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
the value a consumer experts to obtain from a purchase
a value derived from a product or service that helps the consumers solve problems and accomplish task
a value that acts as an end in itself rather than as a means to an end
recognition of an unfulfilled need and a product that will satisfy it
any unit of input affecting one or more of the five senses
internal informational search
the process of recalling the past information stored in the memory
external information search
the process of seeking information in the outside environment
non-marketing information source
a product information source that is associated with advertising or promotion
Marketing – controlled information source
a product information source that originates with marketers promoting the product
a group of brands resulting from an information search from which a buyer can choose
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
the amount of time and effort a buyer invest in the search, evaluation, and decision processes of consumer behavior
routine response behavior
Limited decision making
buying a tv
extensive decision making
going on vacation, moving
looking in stores for an item, then shopping online for a better deal on the same item
the set of value, norms, attitudes, and other meaningful symbols that shape human behavior
a homogenous group of people who share elements of the overall culture as well as unique elements of their own group
a group of people in a society who are nearly equal in status or community esteem
all the formal and informal groups in society that influence an individuals purchasing behavior
primary membership group
interact face to face, family, friends
secondary membership group
reference group with people associate less consistently and more formally than a primary group
aspirational reference group
a group someone would like to join
a value or attitude deemed acceptable by a group
nonaspirational reference group
a group with which an individual does not want to associate
an individual who influences the opinions of others
how culture values and norms are passed down to children
a perspective whereby a consumer sees himself or herself as distinct and separate from others
a perspective whereby a consumer sees himself or herself as an intergral part of a group
a way of organizing and grouping the consistencies of an individual’s reaction to a situation
how consumers perceive themselves in terms of attitude, perceptions, beliefs, and self-evaluation
real – self image
the way an individual actually perceives himself or herself
the way an individual would like to be perceived
the process by which people select, organize, and interpret stimuli into a meaningful and cohort picture
a process where by a consumer notices certain stimuli and notices others
a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs
a process whereby a consumer remembers only that information that supports his or her personal beliefs
a driving force that causes a person to take action to satisfy specific needs
a process that creates changes in behavior, immediate or expected, through experience and practice
a form of learning that occurs when one response is extended to a second stimulus similar to the first
a learned ability to differentiate among similar products
the marketing of goods and services to individuals and organizations for purpose other than personal consumption
a product used to manufacture other goods or services, to facilitate an organization’s operation or to resell to either customers
a product bought to satisfy an individual’s personal wants or needs
a strategic marketing approach that focuses on creating and distributing content that is valuable, relevant, and consistent