1. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 6: Final Consumers and Their Buying Behavior

2. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Possible Needs Motivating a Person to Some Action

3. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill

4. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Several Needs at the Same Time: PSSP Hierarchy of Needs (Exhibit 6-4) Summary Overview Many different levels of needs can appeal to or motivate a person. The PSSP pyramid shown here helps apply motivation theory to the particular needs of consumers and marketing managers trying to develop marketing mixes to meet those needs. Key Issues Physiological needs: the most basic needs people experience. Examples: biological needs for food, liquid, and rest. Safety needs: concerned with protection and physical well-being. Examples: health, medicine, exercise, security. Social needs: derived from a person’s interactions with others. Examples: love, friendship, status. Personal needs: concerned with an individual’s need for personal satisfaction, unrelated to what others do. Examples: self-esteem, fun, and freedom. Discussion Question: Can you provide an example of products or services whose marketing mixes attempt to fulfill the four types of needs? NOTE: Some products may try to satisfy only one type of need, while others may attempt to satisfy more than one type. This slide relates to material on pp. 156-157.

5. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Lifestyle Dimensions (and some related demographic dimensions)

6. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Characteristics and Attitudes of Middle and Lower Classes Middle classes Plan and save for the future Analyze alternatives Understand how the world works Feel they have opportunities Willing to take risks Confident about decision making Want long-run quality or value Lower classes Live for the present "Feel" what is "best" Have simplistic ideas about how things work Feel controlled by the world "Play it safe" Want help with decision making Want short-run satisfaction

7. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Purchase Situation Influences Surroundings Time Purchase Reason 6-8

8. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Consumer Decision Process 1] Problem Recognition 2] Information Search 3] Evaluation of Alternatives 4] Purchase Decision & Purchase 5] Post-Purchase Evaluation

9. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Problem Recognition – consumer becomes aware of a discrepancy between their existing and their desired state of affairs. Information Search – gathering information in order to determine the alternative means to solve the problem. Information Search can be internal only or also external Evoked Set – Brands that immediately come to mind to solve a problem

10. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Evaluation of Alternatives – person looks at the merits of the choices available Purchase Decision & Purchase – Deciding to buy, where to buy, and how to buy. Post-Purchase Evaluation – individual consumes the product and decides how well product solved the problem. Dissonance – tension caused by uncertainty about the rightness of a decision (pg 169).

11. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 3 Consumer Problem Solving Processes Routinized Response Behavior Limited Problem Solving Extensive Problem Solving

12. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Routinized Response Behavior Definition - when consumers regularly select a particular way of satisfying a need when it occurs (pg 169) Internal Search for Information Individual currently satisfied with the brand Little (no) information search

13. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Limited Problem Solving Defined - when some effort is required in deciding the best way to satisfy a need (pg 169) Some ?’s about the product or Get information about an unfamiliar brand in a familiar product category Decision criteria set, but new information needed to pick a brand

14. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Extensive Problem Solving Defined - consumers put much effort into deciding how to satisfy a need (pg 169) Purchaser unfamiliar with product category or high purchase risk Must set decision criteria Extensive information search (internal and external) High time cost to use EPS

15. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Exhibit 6-9 6-10 Levels of Problem Solving Extensive Problem Solving Limited Problem Solving Routinized Response Behavior Involvement Continuum Low InvolvementHigh Involvement Low involvement Frequently purchased Inexpensive Little risk Little information needed High involvement Infrequently purchased Expensive High risk Much information desired