chapter 3: consumer behavior—how people make buying decisions

by Jeff Tanner and Mary Anne Raymondby Jeff Tanner and Mary Anne Raymond

Principles of Marketing

Chapter 3Chapter 3Consumer Behavior—Consumer Behavior—

How People Make Buying How People Make Buying Decisions Decisions

©2010 Flat World Knowledge, Inc.


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Marketing needs

answers to these

questions !

Companies spend billions studying consumer behaviors!

Provided by : www.themegallery.com

Getting the AnswersGetting the Answers

4©2010 Flat World Knowledge, Inc.


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1.Understand the six buying process stages

2.Distinguish between low and high involvement buying decisions

Learning ObjectivesLearning Objectives


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Consumer Decision Making Consumer Decision Making ProcessProcess


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Consumer Decision Making Process, Consumer Decision Making Process, cont’dcont’d


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Buying Decision TypesBuying Decision Types


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Distinct consumer buying phases1.Realize a need2.Search for information3.Evaluate alternatives4.Select a product and purchase5.Assessing product performance6.Disposing of the product

Consumer level of involvement1.Low involvement inexpensive, low risk2.High involvement expensive, failure risk

Key TakeawaysKey Takeaways


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Learning Objectives• Describe situational factors affecting what and when consumers buy.• Explain how marketing can make situational factors work to their advantage.

Factors Affecting Consumer Buying Factors Affecting Consumer Buying BehaviorBehavior


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Consumer Situational FactorsConsumer Situational Factors


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ATMOSPHERICS

Store design and layout

Store locations

Ambiance

UNCONTROLLED

Weather

Crowding

Some physical factors can be controlled by design, others must be accommodated.

Physical SituationPhysical Situation


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Circumstances in which consumers may find themselves.

Consumer Social SituationConsumer Social Situation


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Pressed for time?

Consumer Time SituationConsumer Time Situation


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Why is this purchase being made?

• is it a gift?

• is it an emergency?

• is time a factor?

Reason for Consumer’s PurchaseReason for Consumer’s Purchase


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What Is the Consumer’s Mood?What Is the Consumer’s Mood?


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Situational influences have temporary effects on buyer behavior.• Store layouts• Store locations• Music• Aromas

Companies make physical factors favorable, anduse incentives such as discounts to encourage buyers.

Consumer’s situations for social and time factors as well as their reason for buying affect their buying behavior.



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Learning Objectives

1. Explain how self-concept and ideal self affect purchasing decisions.

2. Describe how companies market products based on consumers’ -- gender -- life stage -- age

3. Explain lifestyles of consumers (VALS).

Personal Factors that Affect Buying Personal Factors that Affect Buying BehaviorBehavior


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The link between personalities and buying behavior is unclear!

Consumer Personality TraitsConsumer Personality Traits


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A better link to buying behavior is how you see yourself.Your ideal self is how you would like to see yourself.

PEOPLE BUY PRODUCTS TO ENHANCE HOW THEY FEEL ABOUT THEMSELVES

Consumer Self ConfidenceConsumer Self Confidence


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Genders differ in buying behavior

Consumer GenderConsumer Gender


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Types of purchases by and for consumers change with age:• chronological age• cognitive age

Chronological age

Consumer’s Age and Life StagesConsumer’s Age and Life Stages


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Consumer lifestyles vary drastically!

Companies are researching lifestyles:• using questionnaires• what products do they like• where do they live• how they spend their time• where do they go after work• what are their priorities• what are their values

Consumer Life StylesConsumer Life Styles


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• personality describes disposition• people buy products that improve self image• gender affects what and how you buy• younger men and women shopping more alike• cognitive age is how old you feel• lifestyles are being watched more closely



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Learning Objectives

• Explain Maslow’s hierarchy of needs

• Outline the psychological factors that affect consumer buying behavior

Psychological Factors Affect Buying Psychological Factors Affect Buying BehaviorBehavior


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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs


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This is how we interpret the world around us.

PerceptionPerception


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Selective perception—filters out irrelevant information

Selective retention—forgetting information that contradicts beliefs

Subliminal advertising—stealthily embedded messages in media

Shock advertising—surprising stimuli that can increase retention

Learning—changing behavior after receiving more information or using a product

Attitudes—enduring feelings about products and their providers

Perception and Retention FactorsPerception and Retention Factors


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Maslow’s needs—lower level needs must be met before higher level needs

Perception—interpreting the world through using your brain and senses

Advertising—efforts to increase retention includes using shock and subliminal techniquesConsumer attitudes—mental positions tend to be enduring and difficult to change



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Learning Objectives

• Explain impact of culture and social class on buying behavior

• Describe reference groups and opinion leaders

Societal Factors Affecting Buying Societal Factors Affecting Buying BehaviorBehavior


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Cultures are:• shared beliefs • customs• behaviors• attitudes• a life style

An Important Marketing Note: Cultures that share the same valuesmay not be consistent in purchasing behavioracross national borders.

SUBCULTURES—groups that share someinterests , but can differ in important waysfrom a marketing perspective.

Consumer CulturesConsumer Cultures


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Reference Groups and Opinion Reference Groups and Opinion LeadersLeaders


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Family Influence on Buying Family Influence on Buying BehaviorBehavior