© 2009 South-Western, Cengage LearningMARKETING 1 Chapter 6 MARKETING STARTS WITH CUSTOMERS 6-1Understanding Consumer Behavior 6-2What Motivates Buyers? 6-3Influencing Consumer Decisions CHAPTER 6

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 2 Focus Questions: Is the advertising appealing to children, parents, or both? In what ways? What is appealing about the product that would influence parents to purchase Dimetapp Cold & Allergy rather than another brand of medication? ©WYETH

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 3 UNDERSTANDING CONSUMER BEHAVIOR GOALS Describe the importance of understanding consumer behavior. Demonstrate an understanding of consumers’ wants and needs. 6-1

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 4 Consumer Behavior Marketing Begins with Customers Marketing Concept states: Must be responsive to consumers. Consumer Behavior: the study of consumers and how they make decisions.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 5 Consumer Behavior Successful business continually: consider customers’ wants and needs as they plan & implement their marketing strategies.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 6 Consumer Behavior Final consumers Buy products/services for personal use. Business consumers Buy goods/services to produce and market other goods/services or for resale.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 7 Consumers’ Wants and Needs All consumers have wants and needs. Want: an unfulfilled desire. Pizza, BMW, Vacation to France Hair Highlights, Super Bowl Tickets Need: anything you require to live. Nutritious Food, Sleep, Shelter from Weather, Air to Breathe, Clean Water.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 8 Maslow’s Hierarchy of Needs Page 158 Esteem (respect and recognition) Social (friends, love, belonging) Security (physical safety and economic security) Physiological (food, sleep, water, shelter, air) Self-Actualization (to realize your potential)

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 9 Different People, Different Levels Marketers must realize that people are at different levels on the hierarchy of needs. Maslow’s Hierarchy of needs illustrates the progression people follow in satisfying their needs. Marketers must understand consumer needs

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 10 WHAT MOTIVATES BUYERS? GOALS Distinguish the types of buying motives. Describe the five steps of the consumer decision-making process. 6-2

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 11 Motivation Motivation: the set of positive or negative factors that direct individual behavior. Buying Motives: the reason that you buy. Your decisions to spend money on products and services are influenced by buying motives.

© 2009 South-Western, Cengage LearningMARKETING Chapter Categories of Buying Motives 1) Emotional motives: reasons to purchase based to feelings, beliefs, or attitudes. Forces of love, affection, guilt, fear, or passion often compel consumers to buy. Hallmark Cards & Gifts – Love, Affection Security Systems – Fear

© 2009 South-Western, Cengage LearningMARKETING Chapter Categories of Buying Motives 2) Rational motives: reasons to buy based on facts or logic. Factors of Rational: Saving time or money; Obtaining highest quality or greatest value. Important for Expensive Purchases. Business consumers try to avoid emotional.

© 2009 South-Western, Cengage LearningMARKETING Chapter Categories of Buying Motives 3) Patronage motives: based on loyalty. Encourage consumers to purchase from a particular business or particular brand. Loyalty is influenced by positive previous experiences or close identification with the product or business. Low prices, high quality, friendly staff, great customer service, convenient location

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 15 Customer Decision-Making Process Buying Behavior: The decision process and actions of consumers as they buy. Consumer Decision-Making Process: the process by which consumers collect and analyze information to make choices among alternatives.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 16 The Consumer Decision-Making Process Problem Recognition Information Search Alternative Evaluation Purchase Postpurchase Evaluation

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 17 Customer Decision-Making Process Problem Recognition – Recognize a need, desire, or problem. How urgent is it? Time? Information Search Common Problem - relatively easy to identify New Problem - more difficult to find information

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 18 Customer Decision-Making Process Alternative Evaluation – review information gathered and determine which is best. Purchase – what product, what price, payment method, how to receive product. Post-Purchase Evaluation – did it meet the need or solve the problem? Satisfied?

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 19 INFLUENCING CONSUMER DECISIONS GOALS Describe important influences on the consumer decision-making process. Explain how consumers and businesses use each of the three types of decision making. 6-3

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 20 Influences on Buying Decisions Many internal and external factors influence purchase decisions. Two important factors are: Individual characteristics Cultural and social environment

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 21 Individual Characteristics Personal Identity: the characteristics & character that make a person unique. Major influence on buying decisions 4 Important Factors:

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 22 Personal Identity 1)Personality: an enduring pattern of emotions and behaviors that define an individual. 1)Attitude: a frame of mind developed from a person’s values, beliefs and feelings.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 23 Personal Identity Self-Concept: an individual’s belief about his or her identity, image, and capabilities. Lifestyle: the way a person lives as reflected by material goods, activities, and relationships.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 24 Personal Identity 2)Gender - Clothes, Grooming, Relationships, Activities, etc. 3)Ethnicity - Ancestry, Country of Origin, Language, Traditions 4)Age - type of products/services

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 25 Cultural and Social Environment Culture: the history, beliefs, customs & traditions of a group. Strong Influence on: Values and Behaviors Activities & Relationships, shared by people over many generations.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 26 Cultural and Social Environment Social Environment: groups and organizations that people live and interact with on regular basis. Community, Neighborhood, Social or Business Organization, Church

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 27 Cultural and Social Environment Reference Group: group of people or an organization that an individual admires, identifies with, and wants to be a part of. Clubs, Social Organizations, Business Groups

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 28 Types of Decision-Making Consumers spend varying amounts of time and consider different factors when making decisions. 3 Types of Decision Making:

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 29 Types of Decision-Making 1.Routine Decision Making Purchase made frequently Do not require much thought Familiar with product/brand

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 30 Types of Decision-Making 2.Limited Decision Making More time to consider decision Maybe more expensive product Maybe purchase less frequently Routine product is unavailable

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 31 Types of Decision-Making 3.Extensive Decision Making Go through all 5 D.M. Steps Expensive (home, car, vacation) Evaluate alternatives extensively

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 32 Marketers’ Response Marketers need to understand how customers make decisions so that they can provide customers with the right amount of info to convince consumers to purchase their product.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 33 Marketers’ Response Marketers want the opportunity to explain the benefits of their products and to demonstrate how they can satisfy consumer needs.

© 2009 South-Western, Cengage LearningMARKETING Chapter 6 34 Marketers’ Response Determine whether: Consumer considers alternatives Have opportunity to explain their products and benefits Consumer is brand loyal Make product available, remind customer of the value of product