AB219 Marketing Unit Three Tonight’s Focus: Consumer and Business Buyer Behavior

What do I have to do this week? Reading: Chapter 5. Discussion: Toyota & Consumer Buying Influences Career Development Activity (same format & requirements as discussions) U3 Quiz: “untimed” quiz Complete by 11:59 pm. (weekly deadline)

Discussion Requirement - Setting Up 2 APA Styled Reference Sources Website would be structured as follows: Ghirardelli Chocolate (2011). Ghirardelli.com. Retrieved from Look at the “Referencing in APA Guide,“ in doc sharing, as a guide to setting up different types of reference sources. Look at the “Citing in APA Guide,” in doc sharing, as a guide to citing within your assignments & projects. You can also simply do a Google search on how to setup a particular reference type in APA format.

U2 Powerpoint Assignment How hard did you find it? What suggestions do you have to make it clearer on what has to be done? Please note that late submissions are under the late policy, out of fairness to all classmates, but better to get most points than none!

Grades & Work Deadlines When are your Grades Posted/Work Graded? By Sunday Evening after Unit closes!!!!!!!!!!! Click on the individual grades to see my comments. (Particularly for the Assignments, Research Projects & Discussions) When is your Unit Work Due? Weekly Deadline: 11:59 pm EST. If no documented Life or personal emergency … late policy will apply. (this policy is strictly followed out of fairness for entire class!) What if I have a Problem or Emergency? If an emergency or major problem comes up…………contact me! If deadline is missed, get in touch with me as soon as possible to discuss it.

External Marketing Environment Microenvironmental actors that include: -The organization itself -Suppliers -Marketing Intermediaries -Competitors -Publics -Customers Macroenvironmental Forces that inlclude: -Demographic environment -Economic environment -Natural environment -Technological environment -Political environment -Cultural environment

TOMS Shoes & External Environment

Marketing Mix & Macro/Micro environment

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

Consumer Behavior The buying behavior of people who purchase products for personal or household use and not for business purposes. 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 Four Factors: 1) Cultural, 2) Social 3) Personal & 4) Psychological. Figure 5.2, in ebook, exemplifies these influences.

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

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 -Three most important factors: Education, Occupation, and Income -Upper -Middle -Working -Lower

Social Influences INCLUDES THE FOLLOWING: 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 INCLUDES THE FOLLOWING: 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 Factors Self actualization Esteem Social Safety Physiological

Psychological influences - Perception Selective Exposure Selective Distortion Selective Retention

Psychological Influences - Learning Change in behavior resulting from experience & information Begins with -Drive or Need -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

A Few Other Consumer Behavior Concepts to Learn Consumer Buying Decision Process Stages in the Consumer Adoption Process Consumer Adoption Categories What are the differences between Consumer & Organizational Buying Behavior?

Consumer Decision Process 1. Problem Recognition 2. Information Search Internal External 3. Evaluation of Alternatives consideration set evaluative criteria 4. Purchase 5. Post Purchase Evaluation Cognitive Dissonance

Stages in Consumer Adoption Process 1.Awareness 2.Interest 3.Evaluation 4.Trial 5.Adoption

Adopter Categories – “Diffusion” Innovators Early Adopters Early Majority Late Majority Laggards One Note: You can fall into different categories depending on the product we are talking about.

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

What do I have to do this week? Reading: Chapter 5. Discussion: Toyota & Consumer Buying Influences Career Development Activity (same format & requirements as discussions) U3 Quiz: “untimed” quiz Complete by 11:59 pm. (weekly deadline)

Any Questions? Thank you for attending! See you next week.... Same Place, Same Time!