Consumer Markets and Buying Behavior Chapter 4 Chapter One Marketing’s Role in the Global Economy Consumer Markets and Buying Behavior For use only with Perreault and McCarthy texts. © 2002 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

Marketing’s Role in the Global Economy Chapter Goals Chapter One Marketing’s Role in the Global Economy Factors used to explain consumer behavior Consumer demographic changes Consumers decision-making Influences affecting consumers’ decisions For use only with Perreault and McCarthy texts. © 2002 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

for their own personal or The Consumer Market ULTIMATE CONSUMERS Buy goods and services for their own personal or household use

Geographic Distribution

Geographic Distribution Rural 25% of the Population Growing Deconcentration Urban 75% of the Population Metropolitan Areas: MSA PMSA CMSA Real Growth Economic, Racial, Ethnic Implications Suburban Population

Consumer Demographics Age Much Income and financial assets held by older group Family form over time is a major determinant of consumer behavior Family Life Cycle Education, Income Majority are well-educated and prosperous while 12% live below poverty Race, Ethnicity African Americans, Hispanics, Asians

Family Life Cycle Stages Nine stages with different buying behavior Bachelor Young Married Full Nest I Single Parents Divorced and Alone Middle-aged Married Full Nest II Empty Nest Older Single

Consumer Buying-Decision Process

Consumer Buying-Decision Process Loyalty Involvement Impulse Buying

Consumer Buying-Decision Process Need recognition Identification of alternatives Evaluation of Purchase and related decisions Postpurchase behavior

Information and Purchase Decisions Commercial sources Social sources

Social Influences Culture Subcultures Social class Reference groups Families and Households

Psychological Influences Motivation Perception Learning Personality Attitude

Maslow’s Hierarchy of Needs

Perception Selective Perception Selective Attention Selective Process of receiving, organizing, and assigning meaning to information or stimuli detected by our five senses Selective Perception Selective Attention Selective Distortion Selective Retention

An individual’s pattern of traits that influence Personality An individual’s pattern of traits that influence behavioral responses Psychoanalytic Theory Hidden buying motives Dreams, hopes, fantasies, fears Self-concept Actual Ideal

Attitudes Characteristics Learned predisposition to respond to an object in a consistently favorable or unfavorable way Characteristics Learned Object Direction Intensity Stable Generalizable

Situational Factors When consumers buy Where consumers buy Why consumers buy Conditions under which consumers buy

Situational Influences Surroundings Time Consumer Moods and Motives Terms

Marketing’s Role in the Global Economy Key Terms and Concepts Chapter One Marketing’s Role in the Global Economy Ultimate consumer Metropolitan Statistical Area (MSA) Primary Metropolitan Statistical Area (PMSA) Consolidated Metropolitan Statistical Area (CMSA) Demographics Family life-cycle stage Consumer buying decision process Level of Involvement Loyalty Impulse buying Patronage buying motives Postpurchase cognitive dissonance Commercial information environment Social information environment Culture Subculture Social class Reference groups For use only with Perreault and McCarthy texts. © 2002 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

Marketing’s Role in the Global Economy Key Terms and Concepts Chapter One Marketing’s Role in the Global Economy Family Household Motive Maslow’s need hierarchy Perception Selective perception Learning Stimulus-response theory Personality Psychoanalytic theory Self-concept Attitude Situational influence For use only with Perreault and McCarthy texts. © 2002 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin