behaviour. Marketers use an understanding of consumer behaviour in their efforts to satisfy the needs and wants of customers and in their efforts to communicate with customers. 1 2 50% 50% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 1. True 2. False
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Why marketing managers should understand consumer behaviour. Marketers use an understanding of consumer behaviour in their efforts to satisfy the needs.
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Why marketing managers should understand consumer behaviour.
Marketers use an understanding of consumer behaviour in their efforts to satisfy the needs and wants of customers and in their efforts to communicate with customers.
Individual factors that affect consumer buying decisions.
There are many personal characteristics which influence buying behaviour such as personality, self-concept, lifestyles, gender and others. Marketers can rely on these characteristics to understand consumer behaviour because they are generally stable and if they do change, they change gradually.
Psychological factors that affect consumer buying decisions.
Perception is an important influence on consumer buying decisions that marketers must understand in order to design effective promotional strategies. In particular marketers need to be aware that perception can be affected by the concepts of: selective exposure, selective extortion, and selective retention.
1. the internet allows consumers to communicate with each other better than ever.
2. consumers' product and service preferences are constantly changing.
3. there are more consumer groups today than ever before.
4. government legislation requires consumer studies prior to regulatory approvals.
5. their competitors are continually launching new products.
Consumer Decision-Making Process
5 Steps
Postpurchase behaviour
Postpurchase behaviour
PurchasePurchase
Evaluation of Alternatives
Evaluation of Alternatives
Information SearchInformation Search
Need RecognitionNeed Recognition
Cultural, Social, Individual and Psychological factors affect
all steps
Cultural, Social, Individual and Psychological factors affect
all steps
Marketers recognize that consumers have certain expectations when they make product purchases. Consumers may experience an internal tension after they make a purchase because they have doubts about their decision. This phenomenon is known as:
• Low levels of involvement (emotional ads work well)
• Low to moderate cost goods
• Evaluation of a few alternative brands
• Short to moderate time to decide
Extensive Decision Making
• High levels of involvement
• High cost goods(image ads help mold buyers)
• Evaluation of many brands
• Long time to decide
• May experience cognitive dissonance
Level of Involvement
SituationSituationSocial
VisibilitySocial
Visibility
InterestInterest
Perceived Risk of Negative
Consequences
Perceived Risk of Negative
Consequences
Previous ExperiencePrevious
Experience
Factors Factors determining determining
level of level of Involvement Involvement
Factors Factors determining determining
level of level of Involvement Involvement
Marketing Implications of Involvement
High-involvement purchases require:
Extensive and informative promotion
to target market
Low-involvement purchases require:
In-store promotion, eye-catching package design,
and good displays
Factors Influencing Buying Decisions
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors
BUY –
DON’T BUY
CONSUMERDECISION-MAKINGPROCESS
Global Language Blunders
• Chevrolet’s “Nova” translated to “No Go”• Coors “Turn it Loose” became “Suffer
from Diarrhea”• Toyota’s MR2 sounded like a
swearword in French• Coca-Cola in Chinese means “bite the
wax tadpole”
Multicultural Canada
• Visible-minority groups– Chinese (23%), Blacks (19%), South Asians
(Pakistani and Indian) (19%), Arabs and West Asians (13%), Filipinos and Other Pacific Islanders (8%), Latin Americans (6%), Southeast Asians (5%), and others (7%).
Opinion leadership is one type of important social influence on consumer buying behaviour. Marketers who want to try and manage the impact of opinion leadership need to be aware that:
1. opinion leaders are most influential for established products.
2. opinion leaders need to be different from the group whose opinion they are leading.
3. opinion leaders are usually very wealthy.
4. teenagers are fickle which makes them unsuitable as opinion leaders.
5. locating opinion leaders can be a challenge.
Consumer lifestyles are of particular interest to marketers for understanding consumer behaviour. Psychographics is an analytical technique that is used to examine consumer lifestyles. Marketers undertake lifestyle analysis by examining which of the following:
4. vacations, club membership, and political affiliation.
5. activities, interests, and opinions.
There are a number of important psychological influences on consumer buying decisions including: beliefs and attitudes, perception, motivation, and learning. Marketers need to be keenly aware of all of these influences. The distribution of product samples in consumer mail boxes would most likely be designed to affect which of the following psychological influences: