Chapter 5Marketing and Consumer

Behavior: The Foundations of Advertising

William F. Arens Michael F. Weigold Christian ArensMcGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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Chapter Overview

The relationship between marketing activities and consumer behavior

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Chapter Objectives

Define marketing & relate consumer needs and product utility

Discuss interpersonal influenceson consumer behavior

Explain why consumer behavior is to IMC strategy

Describe motives behind consumer purchases

Identify key participants in the marketing process

Outline the psychological processes in human behavior

Explain nonpersonal influences on consumer behavior

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Know the Consumer

Consumer behavior — the mental and emotional processes and the physical activities of people who purchase and use goods to satisfy needs and wants

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Marketing Context of Advertising

Marketing

Conception Pricing Promotion Distribution

Advertising

Q. 1. What are the key concepts in Marketing?

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Customer Needs / Product Utility

Functional Needs

Psychological Wants

Utility

Need Satisfaction

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Goal of Marketing & Advertising

Perception

ExchangeSatisfaction

Q. 2. Who are the participants in the Marketing process?

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Marketing Participants: Customers

TotalMarket

Centers ofinfluence

Prospectivecustomers

Currentcustomers

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Market Types

Transnational or Global

Regional or National

Local

Business

Consumer

Government

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Marketing Participants: Market

Markets

Customers

Marketers

Q. 3. What are the steps in the decision making process?

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Consumer Decision Process

Q. 4. What are the three components of the Personal

Process in consumer behavior?

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Consumer Decision Process

Q. 5. What are the key elements in the perception process?

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Consumer Perception Process

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Persuasion

Persuasion — change in belief, attitude, or behavioral intention is caused by promotion communication

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Elaboration Likelihood Model

Q. 6. Define Learning.

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Learning

Learning — relatively permanent change in thought process or behavior that occurs as a result of reinforced experience.

Q. 8. What are the effects of learning?

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Results of Learning

Attitude

Habit

Interest

Loyalty

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Consumer Motivation Process

Needs, basic & instinctive

Wants, learned during lifetime

Motivation: underlying forces driving decisions

Q. 9. What are the five stages in Maslow’s hierarchy of needs?

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Maslow’s Hierarchy of Needs

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Consumer Motivation

Rossiter & Percy’s Fundamental

Motives

Negative Motives: problem removal or avoidance

Positive Motives: benefit, bonus, or reward

Q. 10. What are the interpersonal influences on consumer behavior?

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Influences on Consumer Behavior

Interpersonal

Family

Society

Reference Groups & Opinion Leaders

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Influences on Behavior

U.S. Army ad focused on a

Spanish- speaking audience

Q. 11. What are the nonpersonal influences on consumer behavior?

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Influences on Consumer Behavior

Nonpersonal

Time

Place of Sale

Environment

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Influences on Behavior

Red Cross ad focused on its

presence during an

earthquake disaster

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Purchase Decision

Evoked Set:

Smart Phones• iPhone• Android• Blackberry

Evaluative Criteria

• Features• Style• Cost• Service

Cognitive Dissonance• Was it worth the money?• Does the data plan work for me?• Could I have found a better price?