marketing dynamics understanding consumer behavior
TRANSCRIPT
Objectives
List the three categories of influences on consumers.
Explain how a need leads to an action. List Maslow’s hierarchy of needs in
order. Explain how marketers use needs to
develop products and promotions.
Objectives
List six buying motives and the basis for each one.
Describe the consumer decision process.
List and explain the four levels of consumer buying decisions.
Key Marketing Terms
psychological influences
motive motivate buying motive social influences word-of-mouth publicity reference group
peer pressure situational influences impulse purchase routine buying
decision limited decision
making extensive decision
making
UnderstandingConsumer Behavior
Influences on consumer buying behavior psychological social situational
What might influence these peopleto buy the products they see?
Psychological Influences
Psychological influences influence from within the person
– needs– such as hunger and thirst
– wants– such as a hamburger or coffee
Describe a situation in which a psychological factor influenced what you purchased.
Psychological Influences
Need a lack within a person that must be filled examples
– lack of food, water, or shelter
If the need is not satisfied it leads to a drive
A drive is an internal force thatleads to action the purpose of the action is to fulfill the need
Hierarchy of Needs
Motive an internal drive that causes people to act
– based on needs Motivate
to prompt a person to take action– something marketers try to do
Maslow’s hierarchy of needs states that basic physical needs must be
satisfied first
Needs into Wants
The human mind usually turns needs into wants
Marketers try to turn those wants into buying motives
Buying motive the reason that a customer seeks a
product
Wants intoBuying Motives
Salespeople try to understand customers’ buying motives so that they can
do a better job of encouraging the customer to buy the product
Wants intoBuying Motives
Many times, salespeople organize buying motives into pairs Physical (Hungry) vs. psychological (We are
talking here not about just physical needs being serviced but the need for nutritious food) Campbell’s Soup: “Mmm, Mmm, good”
Rational (I need to get from point A to point B) vs. emotional (I sure do look good in that Mustang)
Product (A sweatshirt) vs. patronage (A sweater from your favorite store)
Think of a recent purchase.What were your buying motives?
Social Influences
Social influences influences from the people around you
– rather than from within yourself
Three categories culture family friends and coworkers
Culture
Culture affects every aspect of a person’s life Culture Includes:
– the material objects of a society (footballs, autos, religious texts, etc.)
– ideas and values (belief in freedom, etc.)– institutions (legal, political, business, etc.)– symbols (McDonald’s hamburgers, French champagne, etc.)– the ways we dress, think, eat, and spend our leisure time.
How does your cultureinfluence what you buy?
Family
Family can influence buying behavior Children often buy the same brands as their
parents
Traditional Family Life Cycle
– Stage I: Bachelorhood– Stage II: Honeymooners– Stage III: Parenthood– Stage IV: Post-parenthood
(empty-nesters)– Stage V: Dissolution (Retired)
Do you buy the same brands as your parents?
Friends and Coworkers
If you buy a product that your friends admire you might feel more self-
confident your self-esteem might increase
To have the same things as others have satisfies the human need for
belonging and acceptance
Friends and Coworkers
Word-of-mouth publicity informal
conversation people have about their experience with a business or product
Describe a purchase you madebased on word-of-mouth publicity.
My Tire Story (Word-of-Mouth)
» Sam’s Club MICHELIN Hydro-Edge $125 a tire ($500)
» Wait varies (could get it done now might have to come back?)
» Same tire $70 a tire ($280)
» Wait (be there by 7:30am Sat)
» No more customers after 1:30pm week days
Friends and Coworkers
Reference group group of people who
influence a consumer’s buying decisions
Examples older students, celebrities,
models, and people on TV shows
Friends and Coworkers
Peer pressure social influence from the people your age
– with whom you interact daily can influence buying decisions
– because most people have a strong need to fit in and be accepted by their peer group
Give examples of good and badpeer pressure.
Situational Influences
Situational influences influences from the environment
– Weather (I don’t feel like shopping it’s cold outside) or (winter is here get a fireplace)
– store location (close or far away)
– Advertising
Buyer’s mood, physical condition, and financial condition can also be considered situational
The ConsumerDecision Process
How does a consumer make the decision to buy? marketers think
that many consumers use a six-step decision process
The ConsumerDecision Process
1. Awareness of need or problem
2. Information search
3. Evaluation of options
4. Decision to buy
5. Purchase
6. Post-purchase evaluation
Do you think consumersuse all six steps for every purchase?
Workout
Your Consumer Decision Process Use the worksheet to consider an order
you went through when making a purchase.
THIS IS ON THE CLASS WEBSITE
The ConsumerDecision Process
Four levels of consumer purchase decisions Impulse
– (Point of Purchase) waiting in line at woodman's Oh! Heck I’ll grab that soda
Routine– Toothpaste, household cleaning supplies, a particular
brand you always buy, (Arrow dress shirts)
Limited– Usually products you never purchased before. E.g.
coffeemaker (you research then buy) Extensive
– Your first new car. You consider what you can afford, your needs, style etc….
Impulse Decision
Impulse purchase made with no planning or
research
To encourage impulse purchases marketers display products
near checkout counters
Describe an impulse purchase.
Routine Decision
Routine buying decision made quickly without much thought
Consumers make routine buying decisions when they have previous experience with the product brand loyalty
What products do you buy routinely?
Limited Decision
Limited decision making involves some
research and planning
usually for a more expensive or complex product
Extensive Decision
Extensive decision making involves a great
deal of research and planning
used for purchases that will greatly impact your life, safety, and finances
Extensive Decision
Example: steps in buying a car researching cars on the Internet test-driving at several dealerships analyzing your finances arranging for financing getting the license plate(s) and insurance buying the car
Review
List the three categories of influences on consumers and give an example of each.
Describe Maslow’s hierarchy of needs. Why are salespeople interested in
buying motives? List the four levels of purchase
decisions and describe when you would use each.
Glossary
buying motive. Reason that a consumer seeks a product.
extensive decision making. Consumer buying decision that involves a great deal of research and planning.
impulse purchase. Consumer buying decision made with no planning or research.
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Glossary
limited decision making. Consumer buying decision that is made with some research and planning.
motivate. To provide the internal push that results in action.
motive. Internal push, based on needs, that causes a person to act.
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Glossary
peer pressure. Social influence that comes from the people your age with whom you interact daily.
psychological influences. Influences that come from within a person.
reference group. Group of people who influence a consumer’s buying decisions.
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Glossary
routine buying decision. Consumer buying decision that is made quickly and without much thought.
situational influences. Influences that come from the environment.
social influences. Influences that come from the society in which you live.
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