1. Chapter 5 Marketing and Consumer Behavior: The Foundations of Advertising
William F. Arens Michael F. Weigold Christian Arens
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter Overview
The relationship between marketing activities and consumer behavior

3. Chapter Objectives
Define marketing & relate consumer needs and product utility
Identify key participants in the marketing process
Explain why consumer behavior is to IMC strategy
Describe motives behind consumer purchases
Discuss interpersonal influences on consumer behavior
Outline the psychological processes in human behavior
Explain nonpersonal influences on consumer behavior

4. Know the Consumer
Consumer behavior — the mental and emotional processes and the physical activities of people who purchase and use goods to satisfy needs and wants

5. Marketing Context of Advertising
Conception
Pricing
Promotion
Distribution
Advertising

6. Q. 1. What are the key concepts in Marketing?

7. Customer Needs / Product Utility
Functional Needs
Psychological Wants
Utility
Need Satisfaction

8. Goal of Marketing & Advertising
Perception
Exchange
Satisfaction

9. Q. 2. Who are the participants in the Marketing process?

10. Marketing Participants: Customers
Total Market
Centers of influence
Prospective customers
Current customers

11. Market Types Consumer Business Transnational or Global Government
Regional or National
Local
Consumer
Business
Government

12. Marketing Participants: Market
Customers
Markets
Marketers

13. Q. 3. What are the steps in the decision making process?

14. Consumer Decision Process

15. Q. 4. What are the three components of the Personal Process in consumer behavior?

16. Consumer Decision Process

17. Q. 5. What are the key elements in the perception process?

18. Consumer Perception Process

19. Persuasion
Persuasion — change in belief, attitude, or behavioral intention is caused by promotion communication

20. Elaboration Likelihood Model

21. Q. 6. Define Learning.

22. Learning
Learning — relatively permanent change in thought process or behavior that occurs as a result of reinforced experience.

23. Q. 8. What are the effects of learning?

24. Results of Learning
Loyalty
Habit
Interest
Attitude

25. Consumer Motivation Process
Motivation: underlying forces driving decisions
Needs, basic & instinctive
Wants, learned during lifetime

26. Q. 9. What are the five stages in Maslow’s hierarchy of needs?

27. Maslow’s Hierarchy of Needs

28. Rossiter & Percy’s Fundamental Motives
Consumer Motivation
Rossiter & Percy’s Fundamental Motives
Negative Motives: problem removal or avoidance
Positive Motives: benefit, bonus, or reward

29. Q. 10. What are the interpersonal influences on consumer behavior?

30. Influences on Consumer Behavior
Interpersonal
Family
Reference Groups & Opinion Leaders
Society

31. Influences on Behavior
U.S. Army ad focused on a Spanish- speaking audience

32. Q. 11. What are the nonpersonal influences on consumer behavior?

33. Influences on Consumer Behavior
Nonpersonal
Time
Place of Sale
Environment

34. Influences on Behavior
Red Cross ad focused on its presence during an earthquake disaster

35. Purchase Decision Evoked Set: Smart Phones iPhone Android Blackberry
Evaluative Criteria
Features
Style
Cost
Service
Cognitive Dissonance
Was it worth the money?
Does the data plan work for me?
Could I have found a better price?