CH 5

Chapter 5Final Consumers and Their Buying Behavior

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

At the end of this presentation, you should be able to:

1. Describe how economic needs influence the buyer decision process.

2. Understand how psychological variables affect an individual’s buying behavior.

3. Understand how social influences affect an individual’s buying behavior.

4. Explain how characteristics of the purchase situation influence consumer behavior.

5. Explain the process by which consumers make buying decisions.

6. Understand important new terms.

5–2

Consumer Behavior for Marketing Strategy Planning (Exhibit 5-1)

5–3

Consumer Behavior and Marketing Strategy Planning (Exhibit 5-1)

CH 5: Final Consumers and

Their BuyingBehavior

Economic needs Psychological variables

Social influencesPurchaseSituation

Marketing mixes All other stimuliMarketing mixes All other stimuli

Consumer decision process

Person making decisions

Person does or does not purchase (response)

CH 6: Business and Organizational

Customers and TheirBuying Behavior

Final Consumers

5–4

A Model of Influences on Consumer Behavior (Exhibit 5-2)

Person making decision

Economic needs• Economy of purchase• Convenience• Efficiency in use• Dependability• Income

Psychological variables• Motivation• Perception• Learning• Attitude• Trust• Lifestyle

Social influence• Family• Social class•Reference groups• Culture• Ethnic groups

Purchasesituation• Purchase reason• Time• Surroundings

Consumer decision process

Person does or does not purchase (response)

Marketing mixes All other stimuli

5–5

Economic Needs Affect Many Buying Decisions—But They’re Not the Whole Story

Courtesy of The Procter & Gamble Company. 5–6

Psychological Influences within an Individual

WantsWants

NeedsNeeds

DrivesDrives

Consumers seek benefits to match needs and wants!

5–7

Possible Needs Motivating a Person to Some Action (Exhibit 5-3)

5–8

The PSSP Hierarchy of Needs (Exhibit 5-4)

Physiological Needs

Safety Needs

Social Needs

PersonalNeeds

5–9

Checking Your Knowledge

Ads for Haynes Jeep-Chrysler feature the slogan, “Come to Haynes, where the fun begins.” This is an appeal to the consumer’s:

A. physiological need.

B. safety need.

C. personal need.

D. social need.

E. information need.

5–10

A New Role for Yogurt

5–11

Interactive Exercise: Needs

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Perception Determines What Consumers See and Feel

Selective ExposureSelective Exposure

Selective PerceptionSelective

PerceptionSelective RetentionSelective Retention

5–13

Checking Your Knowledge

Pat purchased a Ford Taurus, but traded it for another brand before it was out of warranty because it constantly needed repairs. Now, every time Pat sees an ad that mentions the quality of Ford’s new vehicles all she can think about is the problems she had with her Taurus. This an example of:

A. need-based thinking.

B. selective retention.

C. selective exposure.

D. selective perception.

E. psychographics.5–14

The Learning Process (Exhibit 5-5)

DriveDrive

CuesCues

ResponseResponse

Reinforcement

5–15

Attitudes Relate to Buying

Attitude: A Point of View

Belief: An Opinion

Changing Negative Attitudes

Key IssuesKey IssuesBuilding

Consumer Trust

Meeting Expectations Is Important

“Green” attitudes and

beliefs

Ethical Issues May Arise

5–16

Psychographics Focuson Activities, Interests, and Opinions

InterestsInterests

ActivitiesActivities

OpinionsOpinions

5–17

Lifestyle Dimensions (and some related demographic dimensions) (Exhibit 5-6)

5–18

Family Life Cycle Influences Needs(Exhibit 5-7)

5–19

Family Life Cycle5-20

5–20

Interactive Exercise: Family Life Cycle5-21

5–21

Social Influences Affect Consumer Behavior

Courtesy of The Procter & Gamble Company. 5–22

Simple Approaches for Measuring Social Class in the U.S

OccupationOccupation EducationEducation Type of HousingType of Housing

Location of Housing

Location of Housing

Income Is Not the Main Determinant!5–23

Other Social Influences

Reference GroupsReference Groups

Opinion LeadersOpinion Leaders

CultureCulture

5–24

Checking Your Knowledge

Anime, the cartoon-like Japanese art form, has generated significant interest among Generation Y consumers in the U.S. Anime conventions occur frequently and the largest ones draw more than 20,000 attendees. Anime fans, many in costume, come to these conventions to shop, participate in anime workshops, and to simply hang out with people with similar interests. Promotion of these conventions capitalizes mainly on:A. learning.B. psychological needs.C. selective processes.D. reference group influences.E. culture. 5–25

Individuals Are Affected by the Purchase Situation

Purchase Reason

Purchase Reason

Time Available

Time Available

Physical Surroundings

Physical Surroundings

5–26

An Expanded Model of Consumer Behavior (Exhibit 5-8)

Economic needsEconomic needsPsychological

variablesSocial influences

Purchasesituation

Consumer decision process

Needawareness

Problem solving• Information search• Identify alternatives • Set criteria• Evaluate alternatives

Experienceafter thepurchase

Postpone decision

Purchasedecision

Routinized response

Marketing mixes All other stimuli

Feedback based on experience

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Problem Solving Continuum (Exhibit 5-10)

Routinized Response Behavior

Routinized Response Behavior

Low involvementFrequently purchasedInexpensiveLittle riskLittle information needed

Limited Problem Solving

Limited Problem Solving

Extensive Problem Solving

Extensive Problem Solving

High involvementInfrequently purchased

Expensive High risk

Much information desired

Low involvement High involvement

5–28

Limited or Extensive Problem Solving?

Courtesy of The Procter & Gamble Company. 5–29

Adoption Process Steps

AwarenessAwareness

InterestInterest

EvaluationEvaluation

TrialTrial

DecisionDecision

ConfirmationConfirmation

Dissonance may set in after the decision!

Dissonance may set in after the decision!

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Problem Solving

5–31

Checking Your Knowledge

Alice was a bit unsure about her decision after buying a new car. Her uneasiness was diminished after receiving a congratulatory note from the owner of the dealership. The note contained a coupon stating that her first scheduled maintenance on the vehicle would be free. These tactics are part of the dealer’s strategy to reduce:

A. dissonance.

B. low involvement purchasing.

C. routinized response behavior.

D. social influences.

E. information search.5–32

You should now be able to:

1. Describe how economic needs influence the buyer decision process.

2. Understand how psychological variables affect an individual’s buying behavior.

3. Understand how social influences affect an individual’s buying behavior.

4. Explain how characteristics of the purchase situation influence consumer behavior.

5. Explain the process by which consumers make buying decisions.

6. Understand important new terms.

5–33

Key Terms

Economic buyers

Economic needs

Discretionary income

Needs

Wants

Drive

Physiological needs

Safety needs

Social needs

Personal needs

Perception

Selective exposure

Selective perception

Selective retention

Learning

Cues

Response

Reinforcement

Attitude

Belief

5–34

Key Terms

Expectation

Trust

Psychographics

Lifestyle analysis

Empty nesters

Social class

Reference group

Opinion leader

Culture

Extensive problem solving

Limited problem solving

Routinized response behavior

Low-involvement purchases

Dissonance

Adoption process

5–35