1. Final Consumers and Their Buying Behavior
Chapter Six
Final Consumers and Their Buying Behavior
Chapter 6
Final Consumers and Their Buying Behavior
For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © McGraw-Hill Companies, Inc. McGraw-Hill/Irwin 1

2. At the end of this presentation, you should be able to:
This slide refers to material on pp. 146.
Describe how economic needs influence the buyer decision process.
Understand how psychological variables affect an individual’s buying behavior.
Understand how social influences affect an individual’s buying behavior.
Explain how characteristics of the purchase situation influence consumer behavior.
Explain the process by which consumers make buying decisions.
Understand important new terms. 2

3. Simplified Buyer Behavior Model

4. Person does or does not purchase (response)
A Model of Influences on Consumer Behavior (Economic—time and money; Psychological—things in mind of consumer affect purchase; Social—associations with people)
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Marketing mixes All other stimuli
Person making decision
Economic needs
Economy of
purchase
Convenience
Efficiency in use
Dependability
Psychological
variables
Motivation
Perception
Learning
Attitude
Trust
Lifestyle
Social influence
Family
Social class
Reference groups
Culture
Purchase
situation
Purchase reason
Time
Surroundings
Consumer decision process
Person does or does not purchase (response) 5

5. Examples of Economic Needs
Economy of purchase or use
Convenience
Efficiency in operation or use
Dependability in use
Improvement in earnings

6. Economic Needs Affect Many Buying Decisions—But They’re Not the Whole Story
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7. Psychological Influences within an Individual
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Needs—basic forces that
Motivate consumers to do
something
Wants—learned needs
Drives—strong internal
Stimulus that encourage
action to reduce a need
Consumers seek benefits to match needs and wants!

8. Possible Needs Motivating a Person to Some Action
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9. The PSSP Hierarchy of Needs
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Personal
Needs
Social Needs
Safety Needs
Physiological Needs 8

10. Checking Your Knowledge
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Ads for Haynes Jeep-Chrysler feature the slogan, “Come to Haynes, where the fun begins.” This is an appeal to the consumer’s:
physiological need.
safety need.
personal need.
social need.
information need.
Answer: C 9

11. © 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A New Role for Yogurt
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Courtesy of Dannon
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 15

12. Interactive Exercise: Needs
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13. (remember only what they really want to remember)
Perception Determines What Consumers See and Feel (how people gather and interpret information from the world)
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Selective Exposure
(seek out and notice only the information that interests them)
Selective Perception
(screen information that conflict with previously learned attitudes and beliefs)
Selective Retention
(remember only what they really want to remember)

14. Checking Your Knowledge
This slide relates to material on pp. 152.
Pat purchased a Ford Taurus, but traded it for another brand before it was out of warranty because it constantly needed repairs. Now, every time Pat sees an ad that mentions the quality of Ford’s new vehicles all she can think about is the problems she had with her Taurus. This an example of:
need-based thinking.
selective retention.
selective exposure.
selective perception.
psychographics.
Answer: D 12

15. The Learning Process (change in a person’s thought processes caused by prior experience)
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Drive (take action)
Cues (trigger drive
or response)
Reinforcement (response followed by satisfaction—reduces drive)
Response (effort to
Satisfy a drive) 13

16. Attitudes Relate to Buying
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Belief: An Opinion about something; way one feels about things
Attitude: A Point of View about something—tend to be learned through experience
“Green” attitudes and beliefs
Key Issues
Building Consumer Trust builds sales
Changing Negative Attitudes very difficult
Meeting Expectations Is Important—outcomes or events anticipated
Ethical Issues May Arise if promote inaccurate or false beliefs 14

17. Core Values--the belief systems that underlie attitudes and behaviors
Attitudes—a person’s enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward some object or idea (e.g., Mistrustful; Pessimistic)
Attitude towards a friend:
Cognitive --I think my friend is kind, charming, and humorous
Affective--I feel good when I am around my friend
Behavioral--I try to hang out with my friend whenever I get the chance
Belief—a descriptive thought that a person hold about something
You will have bad luck for 7 years if you break a mirror
Don't let a black cat cross your path, it will bring you bad luck
Opening an umbrella indoors will bring you bad luck
Find a penny, pick it up, all day long you'll have good luck
Rain on your wedding day is a good omen 17

18. Psychographics Focus on Activities, Interests, and Opinions
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Activities—what people do
Interests—generate strong drives identify market opportunities
Opinions—ways people feel about things 16

19. Lifestyle Dimensions (and some related demographic dimensions)
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20. Social (intra-personal) Influences on Consumers
Family
Reference groups
Social class
Culture and subculture

21. Social Influences Affect Consumer Behavior
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Summary Overview
Psychological variables are not the only influences on consumer behavior. Relations with other people--social influences--are also important. For example, relationships within a family and/or peers may have an impact.
Key Issues
Some parents (and school systems) worry that kids are too concerned about what clothing is in fashion and about the social influence of peer pressure (that is, how other kids will react to what they wear).
To avoid this type of peer pressure, many schools now specify a simple "uniform" that all students must wear.
French Toast is taking advantage of this growth opportunity.
It believes in dressing kids for success.
Discussion Question: Can you provide an example of how a family consideration may influence one family member to subordinate his/her preferences in a purchase and instead buy a product that seems to better satisfy the family as a whole? 17

22. Income Is Not the Main Determinant!
Simple Approaches for Measuring Social Class in the U.S--group of people who have approximately equal social position as viewed by others in the society.
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Occupation
Education
Type of Housing
Location of Housing
Income Is Not the Main Determinant! 18

23. Other Social Influences
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Reference Groups
(people to whom an individual looks when
forming attitudes about a particular topic)
Opinion Leader
(people who influence others)
Culture
(whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous group of people) 19

24. Checking Your Knowledge
This slide relates to material on pp. 158.
Anime, the cartoon-like Japanese art form, has generated significant interest among Generation Y consumers in the U.S. Anime conventions occur frequently and the largest ones draw more than 20,000 attendees. Anime fans, many in costume, come to these conventions to shop, participate in anime workshops, and to simply hang out with people with similar interests. Promotion of these conventions capitalizes mainly on:
learning.
psychological needs.
selective processes.
reference group influences.
culture.
Answer: D 20

25. Individuals Are Affected by the Purchase Situation
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Purchase Reason
(vary—affect buying behavior)
Time Available
(affects what happens)
Physical Surroundings
(affect buying) 21

26. An Expanded Model of Consumer Behavior
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Marketing mixes All other stimuli
Economic needs
Psychological
variables
Social influences
Purchase
situation
Consumer decision process
Need
awareness
Purchase
decision
Routinized response
Experience
after the
purchase
Problem solving
Information search
Identify alternatives
Set criteria
Evaluate alternatives
Postpone decision
Feedback based on experience 22

27. Problem Solving Continuum
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Routinized Response Behavior
Low involvement
Frequently purchased
Inexpensive
Little risk
Little information needed
Extensive Problem Solving
High involvement
Infrequently purchased
Expensive
High risk
Much information desired
Limited Problem Solving
Low involvement
High involvement 23

28. Limited or Extensive Problem Solving?
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29. Adoption Process Steps
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Awareness—existence of product
Interest—gather information
Evaluation—mental trail
Dissonance may set in after the decision!
Trial—buy product
Decision—adoption or rejection
Confirmation—rethink decision 25

30. © 2011 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Problem Solving
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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 26

31. Study Question 1 Which of the following is NOT an economic need?
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Which of the following is NOT an economic need?
  A. Dependability in use B. Hunger C. Economy of use D. Convenience E. Efficiency in use
Answer: B

32. Study Question 2
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According to the "hierarchy of needs" model, the first needs most people try to satisfy are their ______________ needs.
  A. safety B. personal C. physiological D. social E. any of the above
Answer: C

33. Study Question 3
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Which of the following is an example of using a cue to attract consumers? 
A. using a label with red, white, and blue colors to stir patriotic feelings. B. adding lemon scent to a soap. C. using a package that looks like the one for a popular brand. D. adding pine scent to a cleansing fluid. E. All of the above are examples.
Answer: E

34. Study Question 4
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Peter noticed during a weekly grocery shopping trip that 7-Up was on sale. Even though he could have saved money with the 7-Up, Peter bought Mountain Dew because that's the brand his children prefer. Peter was responding to: 
A. selective exposure. B. dissonance. C. marketing influence. D. social influence. E. a drive.
Answer: D

35. Study Question 5
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Extensive problem solving probably would NOT be required by young newly-marrieds in the purchase of: 
A. a stereo system. B. soft drinks. C. a home. D. a DVD player. E. a car.
Answer: B