1. Final Consumers and Their Buying Behavior www.mhhe.com/fourps For use only with Perreault and McCarthy texts. © 2003 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter Five

2. 1. Know how income affects consumer behavior and spending patterns. 2.Understand the economic buyer model of buyer behavior. 3. Understand how psychological variables affect an individual’s buying behavior. 4. Understand how social influences affect an individual’s and household’s buying behavior. 5. See why the purchase situation has an effect on consumer behavior. 6. Know how consumers use problem-solving processes. 7. Have some feel for how a consumer handles all the behavioral variables and incoming stimuli. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin When we finish this lecture you should

3. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A Luxury Item +

4. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Income Dimensions of the US Market Exhibit 5-1

5. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Appealing to Higher Income Consumers +

6. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Behavioral Sciences Help You Understand the Buying Process +

7. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin How We Will View Consumer Behavior Exhibit 5-2

8. Wants Needs © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Psychological Influences within an Individual Drives Consumers seek benefits to match needs and wants!

9. Physiological Needs Several Needs at the Same Time © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Safety Needs Social Needs Personal Needs

10. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Interactive Exercise: Needs

11. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Personal Needs +

12. Selective Exposure Selective Perception Selective Exposure Selective Perception © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Perception Determines What Consumers See and Feel Selective Retention

13. Drive Cues Response Learning Determines What Response is Likely © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Reinforcement

14. Cue

15. Attitude: a point of view Attitude: a point of view Belief: an opinion Attitude: a point of view Attitude: a point of view Belief: an opinion Ethical Issues May Arise Work With Existing Attitudes Need to Understand attitudes & Beliefs Need to Understand Attitudes & Beliefs Attitudes Relate to Buying © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Meeting Expectations Is Important Key Concepts Key Concepts

16. Interests Activities Interests Personality and Lifestyle Analysis © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Personality: how people see things Opinions

17. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Family Life Cycle Exhibit 5-7 +

18. Empty Nesters Reallocation for teenagers Reallocation for teenagers Reallocation for teenagers Reallocation for teenagers Acceptance of new ideas Acceptance of new ideas Key Issues Key Issues Acceptance of new ideas Acceptance of new ideas Family Life Cycle Implications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Senior Citizens

19. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Credit Card Use

20. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Social Influences Affect Consumer Behavior +

21. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Social Class Affects Attitudes, Values, & Buying Exhibit 5-8 +

22. Reference Groups Opinion Leaders Culture Other Social Influences © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

23. High Growth Rate Ethnic Dimensions of the US Market © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Avoid Stereotypes Buy Differently

24. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Appealing to Minority Consumers +

25. Purchase Reason Time Available Purchase Reason Time Available Individuals Are Affected by the Purchase Situation © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Physical Surroundings

26. Social Influences Marketing Mixes Psychological Variables Purchase Situation All Other Stimuli Person Making Decision Social Influences Psychological Variables Purchase Situation Consumers Use Problem Solving Processes Need-want Awareness Information Search Set Criteria Decide on Solution Purchase Product Routinized Response Feedback of Information as Attitudes Postpurchase Evaluation Postpone Decision Response

27. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Grid of Evaluative Criteria Helps Exhibit 5-10

28. Three Levels of Problem Solving Are Useful © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Routinized Response Behavior Low involvement Frequently purchased Inexpensive Little risk Little information Limited Problem Solving Extensive Problem Solving High involvement Infrequently purchased Expensive High risk Much information desired Low involvementHigh involvement

29. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Limited or Extensive Problem Solving? +

30. Awareness Interest Awareness Interest Evaluation Trial Decision Confirmation Decision Problem Solving is a Learning Process Dissonance may set in after the decision! © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

31. Problem Solving

32.   Discretionary income   Economic buyers   Economic needs   Needs   Wants   Drive   Physiological needs   Safety needs   Social needs   Personal needs   Perception   Selective exposure © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Key Terms   Selective perception   Selective retention   Learning   Cues   Response   Reinforcement   Attitude   Belief   Expectation   Psychographics   Lifestyle analysis   Empty nesters

33.   Social class   Reference group   Opinion leader   Culture   Extensive problem solving   Limited problem solving   Routinized response behavior © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Key Terms   Low-involvement purchases   Adoption process   Dissonance