1. Understanding Consumer Behavior Chapter 6

2. Consumer Behavior is called consumer behavior. is called consumer behavior. Consumer behavior includes factors that influence the purchase and use of products. Consumer behavior includes factors that influence the purchase and use of products.

3. Final Consumers Most people picture a customer as someone who enters a store, purchases a product, takes it home, and uses it. Most people picture a customer as someone who enters a store, purchases a product, takes it home, and uses it. For example, when you buy a notebook and use it in your marketing class, you are a final consumer. For example, when you buy a notebook and use it in your marketing class, you are a final consumer. A final consumer A final consumer

4. Business Consumer The second category is a business consumer. The second category is a business consumer. A business consumer A business consumer An example is a notebook manufacturer. The manufacturer buys paper, glue, ink, wire and other raw materials to produce the notebook. An example is a notebook manufacturer. The manufacturer buys paper, glue, ink, wire and other raw materials to produce the notebook.

5. Consumers’ Wants & Needs All consumers have wants and needs. All consumers have wants and needs. A want A want Consumers want pizzas, BMW’s, vacations, different hair color, etc. Consumers want pizzas, BMW’s, vacations, different hair color, etc. A need A need You need nutritious food, a good night’s sleep, shelter from the weather, air to breathe, and clean water You need nutritious food, a good night’s sleep, shelter from the weather, air to breathe, and clean water

6. Hierarchy of Needs Abraham Maslow’s classic work on motivation theory has helped marketers immensely in their study of needs. Abraham Maslow’s classic work on motivation theory has helped marketers immensely in their study of needs. Maslow identified five areas of needs that people have. They are Maslow identified five areas of needs that people have. They are

7. Maslow’s Theory Maslow believed that these groups of needs are satisfied in a hierarchy and that the needs of people change as they satisfy the needs at each level. Maslow believed that these groups of needs are satisfied in a hierarchy and that the needs of people change as they satisfy the needs at each level. Everyone must satisfy physiological needs. They are not options. You must eat, sleep, and breathe to exist. Once these are satisfied you can start to move on to security needs, etc. Everyone must satisfy physiological needs. They are not options. You must eat, sleep, and breathe to exist. Once these are satisfied you can start to move on to security needs, etc.

8. Hierarchy of Needs

9. Trivia Game Identify which need is satisfied from Maslow’s Hierarchy: Identify which need is satisfied from Maslow’s Hierarchy: A Gym Membership A Gym Membership Online Dating Online Dating Water Water Health Insurance Health Insurance College Degree College Degree Bible/Koran/Torah Bible/Koran/Torah Air Conditioning Air Conditioning

10. Buying Motives As you decide you want or need products or services, you are motivated by buying motives: As you decide you want or need products or services, you are motivated by buying motives: There are three motives that drive consumers: There are three motives that drive consumers: 1. 1. 2. 2. 3. 3.

11. Emotional Motives Emotional Motives Emotional Motives Forces of love, affection, guilt, fear, or passion often compel consumers to buy. Forces of love, affection, guilt, fear, or passion often compel consumers to buy. Marketers realize that emotional motives are very strong. Marketers realize that emotional motives are very strong.

12. Examples Hallmark card advertisements encourage you to buy greeting cards because of love and affection. Hallmark card advertisements encourage you to buy greeting cards because of love and affection. Folger’s presents drinking coffee as a relaxing social experience. Folger’s presents drinking coffee as a relaxing social experience. McDonald’s appeals to family values by showing busy young parents taking children to their restaurants. McDonald’s appeals to family values by showing busy young parents taking children to their restaurants. Security systems prey on families fear to maintain safety and prevent robberies. Security systems prey on families fear to maintain safety and prevent robberies.

14. Rational Motives Rational motives Rational motives These include factors such as saving money, durability, and saving time. These include factors such as saving money, durability, and saving time. Usually these products or services are expensive. Usually these products or services are expensive. You can be convinced to upgrade your computer because it’s more powerful, faster, and as more memory. You can be convinced to upgrade your computer because it’s more powerful, faster, and as more memory.

15. Rational Motives Continued Automobile purchases are rational when you consider features such as price, gas mileage, warranties, or extended mileage protection packages. Automobile purchases are rational when you consider features such as price, gas mileage, warranties, or extended mileage protection packages. Rational Motives can turn into Emotional Motives when you really want that Mercedes Convertible!! Rational Motives can turn into Emotional Motives when you really want that Mercedes Convertible!!

16. Patronage Motives Patronage Motives Patronage Motives They encourage consumers to buy at a particular business or to buy a particular brand. They encourage consumers to buy at a particular business or to buy a particular brand. It is important to remember that people who are motivated by this are very loyal to the product, service or brand. It is important to remember that people who are motivated by this are very loyal to the product, service or brand. Companies use this approach to _________________________. Companies use this approach to _________________________.

17. The Consumer Decision Making Process A consumer goes through five steps when making a purchase decision A consumer goes through five steps when making a purchase decision

18. Problem Recognition First the consumer must First the consumer must In order to play the piano, you recognize you need to find a good piano instructor. In order to play the piano, you recognize you need to find a good piano instructor.

19. Information Search Next, Next, After you recognize the need for a piano instructor, you talk to your parents, teachers, or friends about piano teachers. After you recognize the need for a piano instructor, you talk to your parents, teachers, or friends about piano teachers. You might look through the phone book or search the classified section, etc. You might look through the phone book or search the classified section, etc.

20. Evaluation of Alternatives After gathering information, After gathering information, Sometimes this involves summarizing information, comparing pros and cons of each choice, making tradeoffs between price and various options, etc. Sometimes this involves summarizing information, comparing pros and cons of each choice, making tradeoffs between price and various options, etc. You may need to decide between what you can afford, what hours are convenient, and reputation of instructor. You may need to decide between what you can afford, what hours are convenient, and reputation of instructor.

21. Post-Purchase Evaluation After the purchase of course the consumer After the purchase of course the consumer Recently, marketers have been focusing on this by gathering feedback. Toll-Free numbers allow customers to let companies know. Recently, marketers have been focusing on this by gathering feedback. Toll-Free numbers allow customers to let companies know.

22. Influences on the Consumer Decision Making Process The first influence is personality. Personality The first influence is personality. Personality Personalities influence buying decisions because everyone has individual preferences based on his or her patterns of behavior. Personalities influence buying decisions because everyone has individual preferences based on his or her patterns of behavior.

23. Personality and a Car You may be the flashy convertible type You may be the flashy convertible type The laid back pick-up type The laid back pick-up type Or the conservative four-door sedan type Or the conservative four-door sedan type

24. Social Class A second influence is social class; A second influence is social class; These are usually identified by income level or neighborhood. These are usually identified by income level or neighborhood. Your social class affects whether or not you have the money available to purchase something Your social class affects whether or not you have the money available to purchase something This will affect what brands or particular types of products you choose. This will affect what brands or particular types of products you choose.

26. Cultural Environment The third influence is cultural environment; The third influence is cultural environment; In Long Valley many students have access to a car, but in the inner cities students very rarely have access to a car. In Long Valley many students have access to a car, but in the inner cities students very rarely have access to a car.

27. Reference Groups Reference groups Reference groups They might include church groups, fraternities, work groups, civic organizations, families, or friendship circles. They might include church groups, fraternities, work groups, civic organizations, families, or friendship circles.

28. Types of Decision Making Routine – Routine – Limited – Limited – Extensive – Extensive –