chapter 5: final consumers and their buying behavior
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Chapter 5: Final Consumers and their Buying Behavior. 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. - PowerPoint PPT PresentationTRANSCRIPT
For use only with Perreault and McCarthy texts.© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Chapter 5: Final Consumers and their Buying Behavior
For use only with Perreault and McCarthy texts.© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
When you finish this chapter, you should
5-1
Chapter 5 Objectives
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.
8. Understand the important new terms.
For use only with Perreault and McCarthy texts.© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
1960 1980 1996
$26K
$34K
$44K
Med
ian
inco
me
Long term income trends are important to marketing managers because strategy planning must take into account realistic growth potential. A narrow focus on a high growth period that extends a temporary rate too far into the future can ruin chances for long term success
5-2
Median Family Income, 1960-1996
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Income Distribution
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Perc
ent o
f Tot
al In
com
e
Middle 20%Income Group
Lowest 20%Income Group
Top 20%Income Group
46.8%
10
20
30
40
50
4.2% 10.0%15.8%
23.1%
Percent of Total Income Going to Different Income Groups in 1996
$0 19,680 34,315 51,086 75,316
Exhibit 5-1
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KeyTerms and
IssuesExpenditure
Data
FamilyLife Cycle
DiscretionaryIncome
Consumer Spending Patterns
5-4
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A Model of Buyer Behavior
5-5
Purchase ReasonTimeSurroundings
PurchaseSituation
MotivationPerceptionLearningAttitudePersonality/Lifestyle
PsychologicalVariables
FamilySocial ClassReference GroupsCulture
SocialInfluence
Problem-Solving Process
Person Does or Does Not Purchase (Response)
Marketing Mixes All Other Stimuli
PersonMakingDecision
Exhibit 5-2
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The PSSP Hierarchy of Needs
Physiological Needs
Safety Needs
Social Needs
PersonalNeeds
Exhibit 5-4
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Drive
Cues
Response
Reinforcement
The Learning Process
Exhibit 5-5
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Lifestyle Dimensions
Opinions
Interests
Activities??????????????????????????????????????????????????????????????????????
5-8
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Family Life Cycle
Middle-ageddivorced w/outdep. children
Middle-ageddivorced with
children
Youngdivorced with
children
Middle-agedmarried w/outdep. children*
Middle-agedmarried with
children*
Youngmarried with
children*
Middle-agedmarried w/out
children
Middle-ageddivorced w/out
children
Youngmarriedx-child.*
Youngdivorced
w/outchildren
Youngsingle*
Oldermarried*
Olderun-
married*
Exhibit 5-75-9
Usual flow Recycled flow *Traditional family flow
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Exhibit 5-85-10
Social Class Dimensions
1.5%
32%
12.5%
38%
15%
Lower-middle class
Upper-middle class
Upper-class
Lower-lower class
Upper-lower (“working”) class
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BuyingBehavior
MedianIncomeGrowth
AccurateTarget
GrowthRate
5-11
Ethnic Dimensions of the US Market
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Purchase Situation Influences
Surroundings
Time
Purchase Reason??????????????????????????????????????????????????????????????????????
5-12
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Purchase SituationSocial InfluencesPsychological
Variables
Need-want Awareness
Information Search
Set Criteria
Decide on Solution
Purchase Product
Routinized Response
Postpone Decision Postpurchase
EvaluationResponse
Feedback ofinformationas attitudes
Person making decision
Marketing mixes All other stimuli
Exhibit 5-95-13
The Consumer Problem Solving Process
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Exhibit 5-115-14
Levels of Problem Solving
Extensive Problem Solving
Limited Problem Solving
Routinized Response Behavior
Involvement Continuum
Low Involvement High Involvement
Low involvementFrequently purchasedInexpensiveLittle riskLittle information needed
High involvementInfrequently purchased
ExpensiveHigh risk
Much information desired
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The Adoption Process
Awareness
Interest
Evaluation
Trial
Decision
Confirmation5-15
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Relating the Processes
Problem-solving steps1. Becoming aware of
or interested in the problem
2. Gathering information about possible solutions
3. Evaluating alterative solutions
4. Deciding on the appropriate solution
5. Evaluating the decision
Adoption process stepsAwareness and interest
Interest and evaluation
Evaluation, maybe trial
Decision
Confirmation
Learning steps
Drive
Cues
Response
Reinforcement
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LearningCues ResponseReinforcementAttitudeBeliefExpectationPsychographicsLifestyle AnalysisEmpty NestersSocial ClassReference GroupOpinion LeaderCulture
Discretionary incomeEconomic BuyersEconomic NeedsNeedsWantsDrivePhysiological NeedsSafety NeedsSocial NeedsPersonal NeedsPerceptionSelective ExposureSelective PerceptionSelective Retention
Extensive Problem Solving
Limited Problem Solving
Routinized ResponseBehavior
Low-involvementPurchases
Adoption ProcessDissonance
Key Terms
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