bmgt 411 chapter_5
DESCRIPTION
bmgt 411 marketing management fall 2014 chris lovettTRANSCRIPT
![Page 1: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/1.jpg)
BMGT 411: Chapter 5
Analyzing Consumer Markets
![Page 2: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/2.jpg)
Chapter Questions
• How do consumer characteristics influence buying behavior?
• What major psychological processes influence consumer responses to marketing?
• How do marketers analyze consumer decision making?
![Page 3: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/3.jpg)
What Influences Consumer Behavior?• Consumer behavior—the study of how individuals, groups, and organizations
select, buy, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.
• Influences:
• Cultural factors
• Social factors
• Personal factors
![Page 4: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/4.jpg)
Cultural Factors
• Culture is the most fundamental determinant of a person’s wants and behavior.
• Consists of subcultures that provide more specific identification and socialization for their members.
• Social class—relatively homogeneous and enduring divisions in a society.
![Page 5: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/5.jpg)
Social Classes• Upper uppers
• Lower uppers
• Upper middles
• Middle class
• Working class
• Upper lowers
• Lower lowers
![Page 6: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/6.jpg)
Income Gap in the US
![Page 9: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/9.jpg)
Citi Hourglass Theory
![Page 10: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/10.jpg)
P&G High/Low
![Page 11: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/11.jpg)
New Business Models
![Page 12: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/12.jpg)
Other Examples
• What other examples do you have of macroeconomic changes in the US influencing product/service changes?
![Page 13: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/13.jpg)
Social Factors
• Reference groups—consist of all of the groups that have a direct or indirect influence on a person’s attitudes or behavior.
• Membership groups (primary and secondary)—groups having direct influence: family, friends, co-workers, neighbors
• Aspirational groups—those a person hopes to join
• Dissociative groups—those whose values or behavior an individual rejects
• Opinion leader—the person who offers informal advice or information about a specific product or product category.
![Page 14: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/14.jpg)
Social Media Opinion Leaders
![Page 15: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/15.jpg)
Personal Factors
• Age
• Life cycle stage
• Occupation
• Economic circumstances
• Personality
• Self-concept
• Lifestyles
• Values
![Page 16: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/16.jpg)
Examples of Values Driving Changing Products
![Page 17: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/17.jpg)
Other Examples?
• What are your top values?
• Do your favorite brands reflect those values?
• Does this make you a longer term customer? Remember CLTV?
![Page 18: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/18.jpg)
Key Psychological Processes
• Motivation
• Perception
• Learning
• Memory
![Page 19: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/19.jpg)
Key Psychological Processes
• Freud’s Theory
• Behavior is guided by subconscious motivations.
• Maslow’s Hierarchy of Needs Theory
• Human needs are arranged in a hierarchy from most to least pressing—physiological, safety, social, esteem, and self-actualization.
• Behavior is driven by lowest unmet need.
• Herzberg’s Two-Factor Theory
• The absence of dis-satisfiers is not enough to motivate a purchase;satisfiers must be present.
![Page 20: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/20.jpg)
Figure 5.1 Model of Consumer Behavior
![Page 21: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/21.jpg)
Perception
• Perception—the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world.
• Selective attention: Consumers can only absorb so much information, that is why targeted marketing is so key for ROI
• Selective distortion: Customers may interpret information that fits preconceptions
![Page 22: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/22.jpg)
Learning
• Learning induces changes in our behavior arising from experience
• A first positive experience with a brand is key to companies
• Drive—a strong internal stimulus that impels action.
• Cues—minor stimuli that determine when, where, and how a person responds.
![Page 23: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/23.jpg)
Five Stage Model of Consumer Buying Book Example
![Page 24: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/24.jpg)
Five Stage Model of Consumer Buying Chapter 2 Notes
![Page 25: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/25.jpg)
The Product Decision Process
!
!
• Use the above matrix to make a buying decision for the following items:
• Gas
• A new PC
• Graduate School
• A New Car
![Page 26: Bmgt 411 chapter_5](https://reader034.vdocuments.net/reader034/viewer/2022050804/545c0dfeb1af9f280a8b462a/html5/thumbnails/26.jpg)
Basic Concepts Underlying the Consumer Evaluation Process• Consumer is trying to satisfy a need.
• Consumer is looking for certain benefits.
• Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits to satisfy this need.
• Belief—a descriptive thought a person holds about something.
• Attitude—enduring favorable or unfavorable evaluations, feelings, and action tendencies toward some object or idea.
• Expectancy-value model—consumers evaluate products and services by combining their brand beliefs according to importance.