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

2. Tonight’s Agenda Late assignments Review Unit 2 Quiz Assignments Discussion Questions? Unit 3 Consumer Behavior Business Buyer Behavior

3. 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

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

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

6. 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

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

8. 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

9. 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.

10. Psychological Factors- Motivation Self actualization Esteem Social Safety Physiological

11. Psychological influences - Perception Selective Attention Selective Distortion Selective Retention

12. 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

13. 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

14. Consumer Decision Process Need Recognition Internal External Information Search Evaluation of Alternatives Purchase Decision Post Purchase Behavior Cognitive Dissonance

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

16. 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.

17. 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

18. Any Questions? Thank you for attending! See you next week!