marketing dynamics understanding consumer behavior

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Marketing Dynamics Understanding Consumer Behavior

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Marketing Dynamics

Understanding Consumer Behavior

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

Types of Buying Motives

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?

Culture

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?

How do your friends influence what you buy?

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

How much thought do you put into deciding which product to buy?

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

Workout

Consumer Behavior Worksheet.

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.

Back

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.

Back

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.

Back

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.

Back

Glossary

word-of-mouth publicity. Informal conversation people have about their experience with a business and its products.

Back