MT 219 Marketing Unit Three Consumer and Business Buyer Behavior Note: This seminar will be recorded by the instructor.

Review of Unit Two How did it go? Questions or concerns? Instructor suggestions for Unit 3 Questions

3 External Environment Political/Legal Social/Cultural Technology Natural/Resources Economics Demographics Internal Environment The Organization itself Suppliers Intermediaries Competitors Customers Publics

Consumer Behavior The buying behavior of people who purchase products for personal or household use and not for business purposes. Business Owner behavior includes organizational behavior. We study consumer behavior in order to -understand the major influences on what, where, when and how consumers buy -be in a better position to develop marketing strategies

Influences on Consumer Behavior Figure 5.2 in e-text 4 Factors: -Cultural -Social -Personal -Psychological

Culture Single broadest determinant of consumer behavior Accumulation of values, knowledge, beliefs, customs, objects, and concepts that characterizes a society

Subcultures Groups of individuals whose values and behavior patterns are similar Can be based on a number of factors, including -Geography -Demographic characteristics -Common experiences and history

Social Classes Open groups of individuals with similar social rank -Education, Occupation, and Income -Upper -Middle -Working -Lower

Social Influences Reference Groups -Groups that we do or don’t want to be associated with -Opinion leaders are important in this influence grouping -Online social networking is increasingly being used to identify one’s reference group Family- Strong influences, particularly in early years Roles and Status- Where one sees or is placed in the group hierarchy

Personal Influences Age and life cycle stage Occupation Economic situation Lifestyle Personality and self-concept Think about the changes in consumption that take place as these personal influences change in a person’s life.

Psychological Factors Motivation Perception Learning Beliefs and attitudes Temporal Factors

Psychological Factors- Motivation Self actualization Esteem Social Safety Physiological

Psychological influences - Perception Selective Attention Selective Distortion Selective Retention

Psychological Influences- Learning Change in behavior resulting from experience and information Begins with -Drive -Cue - can be turned on by any sense -Response -Reinforcement -Generalization

Psychological Influences- Beliefs and Attitudes Beliefs -Descriptive and objective thought about something -Based on knowledge, opinion or faith -Does not carry emotional baggage that an attitude does Attitudes -Hard Direction to Change, but do-able - A belief linked to an emotion

Consumer Decision Process Need Recognition Internal – basic necessity for living External – exposure to something Information Search Evaluation of Alternatives Purchase Decision Post Purchase Behavior Cognitive Dissonance – Doubts about purchase or non-purchase.

1.Awareness 2.Interest 3.Evaluation 4.Trial 5.Adoption

Awareness Interest Evaluation Trial Adoption Adoption is an individual’s decision to become a committed user of a product Stages in Consumer Adoption Process

Adopter Categories - diffusion Innovators Early Adopters Early Majority Late Majority Laggards One Note: You can fall into different categories depending on the product.

Organizational Buying Behavior Different from consumer buying -Purchases are used to produce goods or services -Used to resell or rent to consumers Fewer buyers, but larger Process is more complex and involves more people than the consumer buying process Buying situations -New-task purchases -Straight rebuy -Modified rebuy

Questions, Comments, Concerns – Issues or Problems?