Final Consumers and Their Buying Behavior

www.mhhe.com/fourpsFor use only with Perreault and McCarthy texts.© 2003 McGraw-Hill Companies, Inc.McGraw-Hill/Irwin

Chapter FiveChapter Five

1. Know how income affects consumer behavior and spending patterns.

2. Understand the economic buyer model of buyer behavior.

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

4. Understand how social influences affect an individual’s and household’s buying behavior.

5. See why the purchase situation has an effect on consumer behavior.

6. Know how consumers use problem-solving processes.

7. Have some feel for how a consumer handles all the behavioral variables and incoming stimuli.

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When we finish this lecture you should

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A Luxury Item

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Income Dimensions of the US MarketExhibit 5-1

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Appealing to Higher Income Consumers

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The Behavioral Sciences Help You Understand the Buying Process

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How We Will View Consumer BehaviorExhibit 5-2

WantsWantsWantsWants

NeedsNeedsNeedsNeeds

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Psychological Influences within an Individual

DrivesDrives

Consumers seek benefits to match Consumers seek benefits to match needs and wants!needs and wants!

Physiological Needs

Several Needs at the Same Time

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Safety Needs

Social Needs

PersonalNeeds

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Interactive Exercise: Needs

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Personal Needs

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Selective Exposure

Selective Exposure

Selective Perception

Selective Perception

Selective Exposure

Selective Exposure

Selective Perception

Selective Perception

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Perception Determines What Consumers See and Feel

Selective Retention

Selective Retention

DriveDriveDriveDrive

CuesCuesCuesCues

ResponseResponseResponseResponse

Learning Determines What Response is Likely

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ReinforcementReinforcement

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Cue

Attitude: a point of viewAttitude: a

point of view

Belief: an opinion

Belief: an opinion

Attitude: a point of viewAttitude: a

point of view

Belief: an opinion

Ethical Issues May Arise

Ethical Issues May Arise

Ethical Issues May Arise

Work With Existing Attitudes

Work With Existing Attitudes

Work With Existing Attitudes

Need to Understand attitudes &

Beliefs

Need to Understand Attitudes &

Beliefs

Need to Understand Attitudes &

Beliefs

Attitudes Relate to Buying

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Meeting Expectations Is Important

Meeting Expectations Is Important

KeyConcepts

KeyConcepts

InterestsInterests

ActivitiesActivitiesActivitiesActivities

InterestsInterests

Personality and Lifestyle Analysis

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Personality: how people see things

Personality: how people see things

OpinionsOpinions

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The Family Life CycleExhibit 5-7

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Empty NestersEmpty NestersEmpty NestersEmpty Nesters

Reallocation for teenagersReallocation for teenagersReallocation for teenagersReallocation for teenagers

Acceptance of new ideas

Acceptance of new ideas

KeyIssuesKey

Issues

Acceptance of new ideas

Acceptance of new ideas

Family Life Cycle Implications

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Senior CitizensSenior Citizens

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Credit Card Use

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Social Influences Affect Consumer Behavior

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Social Class Affects Attitudes, Values, & BuyingExhibit 5-8

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Reference GroupsReference GroupsReference GroupsReference Groups

Opinion LeadersOpinion LeadersOpinion LeadersOpinion Leaders

CultureCulture

Other Social Influences

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High Growth Rate

High Growth Rate

High Growth Rate

High Growth Rate

Ethnic Dimensions of the US Market

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Avoid Stereotypes

Avoid Stereotypes

Buy Differently

Buy Differently

Buy Differently

Buy Differently

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Appealing to Minority Consumers

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Purchase Reason

Purchase Reason

Time Available

Time Available

Purchase Reason

Purchase Reason

Time Available

Time Available

Individuals Are Affected by the Purchase Situation

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Physical Surroundings

Physical Surroundings

Social InfluencesSocial Influences

Marketing Mixes

Psychological Variables

Psychological Variables

Purchase Situation

Purchase Situation

All Other Stimuli

Person Making Decision

Social InfluencesSocial InfluencesPsychological Variables

Psychological Variables

Purchase Situation

Purchase Situation

Consumers Use Problem Solving Processes

Need-want AwarenessNeed-want Awareness

Information SearchInformation Search

Set CriteriaSet Criteria

Decide on SolutionDecide on Solution

Purchase ProductPurchase Product

Routinized ResponseRoutinized Response

Feedback of Information as

Attitudes

Feedback of Information as

Attitudes

Postpurchase Evaluation

Postpurchase Evaluation

Postpone Decision

Postpone Decision

Response

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Grid of Evaluative Criteria HelpsExhibit 5-10

Three Levels of Problem Solving Are Useful

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Routinized Response Behavior

Routinized Response Behavior

Low involvementFrequently purchasedInexpensiveLittle riskLittle information

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

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Limited or Extensive Problem Solving?

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AwarenessAwareness

InterestInterest

AwarenessAwareness

InterestInterest

EvaluationEvaluationEvaluationEvaluation

TrialTrialTrialTrial

DecisionDecision

ConfirmationConfirmation

DecisionDecision

Problem Solving is a Learning Process

Dissonance may set in after the decision!

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Problem Solving

Discretionary income Economic buyers Economic needs Needs Wants Drive Physiological needs Safety needs Social needs Personal needs Perception Selective exposure

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Key TermsKey Terms

Selective perception Selective retention Learning Cues Response Reinforcement Attitude Belief Expectation Psychographics Lifestyle analysis Empty nesters

Social class Reference group Opinion leader Culture Extensive problem

solving Limited problem

solving Routinized response

behavior

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Key TermsKey Terms

Low-involvement purchases

Adoption process Dissonance