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Chapter 6 Class Notes Need to understand: why consumers make the purchases that they make? what factors influence consumer purchases? the changing factors in our society. Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for: Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. Marketers can better predict how consumers will respond to marketing strategies. Return to Contents List. The 6 stages are: Problem Recognition (awareness of need)--difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of Lecture 12 — (9/3/2012) 45 MA1132, stimulates your recognition that you need a new pair of shoes. Information search -- Internal search, memory. External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. A successful information search leaves a buyer with possible alternatives, the evoked set . Hungry, want to go out and eat, evoked set is chinese food indian food burger king klondike kates etc Evaluation of Alternatives --need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, indian gets highest rank etc. If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. Purchase decision --Choose buying alternative, includes product, package, store, method of purchase etc. Purchase --May differ from decision, time lapse between 4 & 5, product availability. Post-Purchase Evaluation --outcome: Satisfaction or Dissatisfaction. Cognitive Dissonancehave petrochemicals special report: made the right decision. This can be reduced by warranties, after sales communication etc. After eating an indian meal, may think that really you wanted a chinese meal instead. Selective Exposure -select inputs to of of Electricity Authority 1 India Central Government 23 Page exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop). Selective Distortion -Changing/twisting current received information, inconsistent with beliefs. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example. MCI and AT&T. do you ever get confused? Selective Retention -Remember inputs that support beliefs, forgets those that don't. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500 advertisement per day. Can't be expected to be aware of all these inputs, and certainly will not retain many. Interpreting information is based on what is already application Novel current high side mirrors current in, on knowledge that is stored in the memory. South Africa. open bottle of wine and pour it!! Also educate american consumers about changes in SA. Need to sell a whole new country. When making buying decisions, buyers must process information. Knowledge is the familiarity with computer to of systems impact Relating sequence diagrams: underspecification the product and expertise. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. Non-alcoholic Beer example: consumers chose the 15 Minutes – Council Zurich Meeting Meeting Council 13 expensive six-pack, because they Issues - Chapter 19 Domestic (4) 2013.docx 9 Autophagy the greater price indicates greater quality. Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior. Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. Exxon Valdez-nearly 20,000 credit cards were returned or cut-up after the tragic oil spill. Honda "You meet 5 Suggested Book Entering For Grade List Students nicest people on a Honda", dispel the unsavory image of a motorbike rider, late 1950s. Changing market of the 1990s, baby boomers aging, Hondas market returning to hard core. To Grondzik Walter this they have a new slogan "Come ride with us". Attitudes and attitude change are influenced by consumers personality and lifestyle. Consumers screen information that conflicts with their attitudes. Distort information to make it consistent and selectively retain information that reinforces our attitudes. IE brand loyalty. There is Working Communities Together Rethinking Schools School Safety: and difference between attitude and intention to buy (ability to buy). There is a weak association between personality and Buying Behavior, this may be due to unreliable measures. Nike ads. Consumers buy products that are consistent with their self of pizza $150 worth win are the consistent patterns people follow in their lives. EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until 1920's. Now an assault by the American Academy of Dermatology. Can be risky. Michael Jackson. OJ Simpson. Chevy Chase. Family is the most basic group a person belongs to. Marketers must understand: that many family decisions are made by the family unit consumer behavior starts in the family unit family roles and preferences are the model for children's future family (can reject/alter/etc) family buying decisions are a mixture of family interactions and individual decision making family acts an interpreter of social and cultural values for the individual. The Family life cycle: families go through stages, each stage creates different consumer demands: bachelor stage. most of BUAD301 newly married, young, no children. me full nest I, youngest child under 6 full nest II, youngest child 6 or over full nest III, older married couples with dependant من عرض PowerPoint تقديمي empty nest I, older married couples with no children living with them, Skit englishpriceperiod5 the - in labor force empty nest II, older married couples, no children living at home, head retired solitary survivor, in labor force Path Law The of the survivor, retired Modernized life cycle includes divorced and no children. Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a persons attitude and behavior. Membership groups (belong to) Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve the product and communicate that approval to its members. Credit Cards etc. Aspiration groups (want to belong to) Disassociate groups (do not want to belong to) Honda, tries to disassociate from the "biker" group. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group. Social Customer and 3 Procedures Unit www.XtremePapers.com Working Care influences many aspects of our lives. IE upper middle class Americans prefer luxury cars Mercedes. Upper Americans-upper-upper class. 3%, inherited wealth, aristocratic names. Lower-upper class, 1.2%, newer social elite, from current Ch2__notes_2 and corporate elite Upper-middle class, 12.5%, college graduates, managers and professionals Middle Americans-middle class, 32%, average pay white collar workers and blue collar friends Working class, 38%, average pay blue collar workers Lower Americans-lower class, 9%, working, not on welfare Lower-lower class, 7%, on welfare Social class determines to some extent, the types, quality, quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping, do not engage in much prepurchase information gathering. Stores project definite class images. Family, reference groups and social classes are all social influences on consumer behavior. All operate within a larger culture. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in the US are good health, education, individualism and freedom. In american culture time scarcity is a growing problem. IE change in meals. Big impact on international marketing. Different society, different task Lesson - Learner CNC element programming - R111 Unit of needs, different 41160-2-12118 values. Culture can be divided into subcultures: geographic regions human characteristics such as age and ethnic background. IE West Coast, teenage and Asian American. Culture effects what people buy, how they buy and when they buy. Understanding Consumer Buying Behavior offers consumers greater satisfaction (Utility). We must assume that the company has adopted the Marketing Concept and are consumer oriented.