CHAPTER 5 Consumer Behavior: How and Why People Buy M A R K E T I N G

5-2 Consumer Behavior The process individuals and groups go through to select, purchase, or use goods, services, ideas, or experiences to satisfy their needs and desires

5-3 Figure 5.1: The Consumer Decision- Making Process Problem Recognition Information Search Evaluation of Alternatives Product Choice Postpurchase Evaluation

5-4 Figure 5.2: EPS versus HDM

5-5 Epinions.com Web sites like this one help consumers in the evaluation of alternatives stage

5-6 Product Choice People may ultimately make the choice based on heuristics Heuristics represent rules of thumb –brand loyalty –country of origin –liking

5-7 Postpurchase Evaluation How good a choice was it? Customer satisfaction/dissatisfaction Ultimately affects future decisions and word-of-mouth communication

5-8 Consumer Behavior Psychological Factors –Motivation –Perception –Learning –Attitudes –Information processing Social Factors –Culture –Subculture –Social class –Reference groups –Family

5-9 Perception Process by which people select, organize, and interpret information ExposureAttentionInterpretation

5-10 Subliminal

5-11 Pepsi This ad embeds images in the ad to affect perception

5-12 Motivation - Maslow’s Hierarchy of Needs

5-13 Learning Learning is a change in behavior caused by information or experience Behavior Learning Cognitive Learning

5-14 Attitude - Personality Innovativeness Self-confidence Sociability Materialism Need for Cognition

5-15 Are you what you buy? Does your personality match the personality of the brands you purchase ?

5-16 Age Groups – Family Life Cycle - Lifestyle Children – Teen – Young adults – Middle aged – Elderly Single, new couple, full nest empty nest, sole survivors How people choose to spend their time, money, and energy and reflects their values, tastes, and preferences

5-17 Situational Influences Physical Environment Time

5-18 Place-based Media Place-based media offers a way to reach consumers when they are a captive audience

5-19 Social Factors Influencing Consumer Behavior CultureSubcultureSocial ClassReference GroupsFamily

5-20 Sex Roles ‘Cool Shoppin’ Barbie reinforces sex roles

5-21 Opinion Leaders An opinion leader is a person who influences others’ attitudes or behaviors because they are perceived as possessing expertise about the product

5-22 Consumer-to-Consumer E-Commerce Communications and purchases that occur among individuals without directly involving the manufacturer or retailer Virtual Communities –Multi-User Dungeons (MUDs) –Rooms, Rings, Lists –Boards –Product Rating sites –Protest sites

5-23 Disgruntled BK Employee A former Burger King employee created this protest site

5-24 Does conformity from reference groups exert a positive or negative influence on consumers? With what types of products is conformity more likely to occur?

5-25 What do you think the future of C2C e- commerce is? How will it affect traditional marketing firms? How would you describe the decision process for impulse products placed near a store’s checkout area?