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Presentation transcript:

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.

Chapter Overview The relationship between marketing activities and consumer behavior

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

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

Marketing Context of Advertising Conception Pricing Promotion Distribution Advertising

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

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

Goal of Marketing & Advertising Perception Exchange Satisfaction

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

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

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

Marketing Participants: Market Customers Markets Marketers

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

Consumer Decision Process

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

Consumer Decision Process

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

Consumer Perception Process

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

Elaboration Likelihood Model

Q. 6. Define Learning.

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

Q. 8. What are the effects of learning?

Results of Learning Loyalty Habit Interest Attitude

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

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

Maslow’s Hierarchy of Needs

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

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

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

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

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

Influences on Consumer Behavior Nonpersonal Time Place of Sale Environment

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

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?