I.

Consumer Markets and Consumer Buying Behavior

A. A consumer market consists of purchasers and household members who intend to consume or benefit from the purchased products and do not buy products for the primary purpose of making a profit. B. Buying behavior is the decision processes and acts of people involved in buying and using products. C. II. Consumer buying behavior refers to the buying behavior of ultimate consumers. Level of Involvement and Consumer Problem-Solving Processes

D. To acquire and maintain products that satisfy their current and future needs consumers engage in different types of problem!solving processes depending on the nature of the products involved. The amount of effort both mental and physical that buyers e"pend in solving problems also varies considerably. #. A ma$or determinant of the type of problem!solving process employed depends on the customer%s level of involvement, the degree of interest in a product and the importance the individual places on that product. &. 'evels of involvement may be classified as low high enduring and situational.

a( )igh!involvement products tend to be those that are visible to others *e.g. clothing furniture or automobiles( and e"pensive as well as issues of high importance such as health care. b( 'ow!involvement products tend to be less e"pensive and have less associated social risk such as many grocery items. c( A person%s interest in a product or product category that is ongoing and long term is referred to as +enduring involvement., d( +-ituational involvement, is temporary and dynamic and results from a particular set of circumstances such as the need to buy a new car after being involved in an accident. e( Consumer involvement may be attached to product categories *e.g. sports( loyalty to a specific brand interest in a specific advertisement *e.g. a funny commercial( or a medium *such as a particular television show( or to certain decisions and behaviors *e.g. a love of shopping(. .. Involvement level as well as other factors affects a person%s selection of one of three types of consumer problem solving/ routini0ed response behavior limited problem solving or e"tended problem solving.

f( Routinized response behavior is the type of consumer problem!solving process that requires very little search!and!decision effort1 it is used for products that are low priced and bought frequently. g( Limited problem solving is a type of consumer problem!solving process that buyers use when they purchase products occasionally or need information about unfamiliar brands in a familiar product category1 it requires a moderate amount of time for information gathering and deliberation. h( Extended problem solving is the consumer problem!solving process employed when unfamiliar e"pensive or infrequently bought products *such as a car home and college education( are purchased1 buyers use many criteria to evaluate brands and spend more time searching for information and deciding on the purchase. i( mpulse buying in contrast is an unplanned buying behavior involving a powerful urge to buy something immediately. III. Consumer Buying Decision Process

2. The consumer buying decision process is a five!stage purchase decision process that includes problem recognition information search evaluation of alternatives purchase and postpurchase evaluation. 3. The actual act of purchase is only one stage in the process and is a later stage.

4. 5ot all decision processes once initiated lead to an ultimate purchase1 the individual may terminate the process at any stage. 6. 7. 5ot all consumer buying decisions include all five stages. Problem Recognition

8. This stage occurs when a buyer becomes aware of a difference between a desired state and an actual condition. 9. The individual may be unaware of the problem or need.

:. ;arketers may use sales personnel advertising and packaging to trigger recognition of needs or problems. <. ). =ecognition speed can be slow or fast. Information Search

&>. After the consumer becomes aware of the problem or need he or she searches for information about products that will help resolve the problem or satisfy the need.

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There are two aspects to an information search/

$( In the internal search buyers first search their memories for information about products that might solve the problem. k( In the external search buyers seek information from outside sources.

*&( An e"ternal search occurs if buyers cannot retrieve enough information from their memories for a decision. *.( Buyers seek information from friends relatives public sources such as government reports or publications or marketer!dominated sources of information such as salespeople advertising websites package labeling and in!store demonstrations and displays. &.. =epetition a technique well known to advertisers increases consumers% learning of information1 however repetition eventually may cause wearout meaning consumers pay less attention to the commercial and respond to it less favorably than they did at first. I. valuation of !lternatives

&3. A successful information search within a product category yields a consideration !evoked" set of products or a group of brands that the buyer views as possible alternatives. l( In this stage the consumer establishes a set of evaluative criteria against which to compare the characteristics of the products in the evoked set. m( The consumer rates and eventually ranks the brands in the consideration set by using the criteria and their relative importance. &4. ;arketers can influence consumers% evaluation by +framing, the alternatives?that is by the manner in which they describe the alternatives and attributes. @. &6. Purchase The consumer selects the product or brand to be purchased.

&8. Aroduct availability seller choice and terms of sale may influence the final product selection. &9. B. The actual purchase is made unless the process has been terminated earlier. Post"urchase valuation

&:. The buyer begins to evaluate the product after purchase based on many of the criteria used in the evaluation of alternatives stage.

&<. Cognitive dissonance is a buyer%s doubts shortly after a purchase about whether it was the right decision. IC. Situational Influences on the Buying Decision Process

'. #ituational influences are factors resulting from circumstances time and location that affect the consumer buying decision process. .>. .&. ;. They can influence a consumer%s actions in any stage of the buying process They can shorten lengthen or terminate the buying process -ituational factors can be divided into five categories/

... Ahysical surroundings include location store atmosphere aromas sounds lighting weather and other factors in the physical environment in which the decision process occurs. .3. -ocial surroundings include characteristics and interactions of others who are present during a purchase decision or who may be present when the product is used or consumed as well as conditions during the shopping environment. .4. The time dimension influences the buying decision process in several ways such as the amount of time required to become knowledgeable about a product to search for it and to buy and use it. n( Time plays a role in that the buyer considers the possible frequency of product use the length of time required to use the product and the length of the overall product life. o( Dther time dimensions that influence purchases include time of day day of the week or month seasons and holidays. p( The amount of time pressure a consumer is under affects how much time is devoted to purchase decisions. A customer under severe time constraints is likely either to make a quick purchase decision or to delay a decision. .6. The reason for purchase raises the questions of what e"actly the product purchase should accomplish and for whom. 2or e"ample people who are buying a gift may buy a different product from one they would buy for themselves. .8. The buyer%s momentary moods or momentary conditions *e.g. fatigue illness being flush with cash( may have a bearing on the consumer buying decision process. Any of these moods or conditions can affect a person%s ability and desire to search for information receive information or seek and evaluate alternatives. They can also significantly influence a consumer%s postpurchase evaluation. C. Psychological Influences on the Buying Decision Process

$sychological influences are those that operate in part to determine people%s general behavior thus influencing their behavior as consumers. 5. Perce"tion

&. $erception is the process of selecting organi0ing and interpreting information inputs to produce meaning. nformation inputs are sensations received through sight taste hearing smell and touch. Ehen we hear an advertisement see a friend smell polluted air or water or touch a product we receive information inputs. .9. As the definition indicates perception is a three!step process.

q( Although we receive numerous pieces of information at once only a few reach our awareness. *3( Through a process called selective exposure% an individual selects which inputs will reach awareness. *.( #elective distortion is changing or twisting currently received information1 it occurs when a person receives information inconsistent with personal feelings or beliefs. *4( In selective retention, a person remembers information inputs that support personal feelings and beliefs and forgets inputs that do not. r( To produce meaning an individual must mentally organi0e and integrate new information with what is already stored in memory. s( Interpretation the third step in the perceptual process is the assignment of meaning to what has been organi0ed. A person bases interpretation on what he or she e"pects or what is familiar. .:. Although marketers cannot control buyers% perceptions they often try to influence them through information. t( This may fail if a consumer%s perceptual process operates such that a seller%s information never reaches the consumer%s awareness. u( It may fail if a buyer receives a seller%s information and perceives it differently from the way the marketer intended. v( It may fail when buyers perceive information inputs that are inconsistent with prior beliefs1 they are likely to forget the information quickly. D. Motives

.<. A motive is an internal energi0ing force that directs a person%s behavior toward satisfying needs or achieving goals. w( A buyer%s actions at any time are affected not by $ust one motive but by a set of motives some stronger than others. "( ;otives affect the direction and intensity of behavior.

3>. Asychologist Abraham ;aslow conceived a theory of motivation1 &aslo'(s hierarchy of needs is the five levels of needs humans try to satisfy from most to least important. Dnce needs at one level are met humans try to fulfill needs at the ne"t level/ y( At the most basic level are +physiological needs , requirements for survival such as food water se" clothing and shelter which people try to satisfy first. 0( At the ne"t level are +safety needs , which include security and freedom from physical and emotional pain and suffering. aa( 5e"t are +social needs , the human requirements for love and affection and a sense of belonging. bb( At the level of +esteem needs , people require respect and recognition from others as well as self!esteem a sense of one%s own worth. cc( At the top of the hierarchy are +self!actuali0ation needs , which refer to people%s need to grow and develop and to become all they are capable of becoming. 3&. $atronage motives are motives that influence where a person purchases products on a regular basis. A. Learning

Learning refers to changes in an individual%s thought processes and behavior caused by information and e"perience. 3.. The learning process is strongly influenced by the consequences of an individual%s behavior1 behaviors with satisfying results tend to be repeated. 33. Ine"perienced buyers use different types of information than do e"perienced shoppers familiar with the product and purchase situation. 34. ;arketers help customers learn about their products by helping them gain e"perience with them perhaps through free samples in!store demonstrations and test drives. 36. Consumers learn about products indirectly through information from salespeople friends relatives and advertisements.

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!ttitudes

An attitude is an individual%s enduring evaluation of feelings about and behavioral tendencies toward an ob$ect or idea. 38. 39. Attitudes are learned through e"perience and interaction with other people. Attitudes remain generally stable but they can be changed.

3:. An attitude consists of three ma$or components/ cognitive *knowledge and information about an ob$ect or idea( affective *feelings and emotions toward an ob$ect or idea( and behavioral *actions regarding an ob$ect or idea(. 3<. Consumers% attitudes toward a firm and its products strongly influence the success or failure of the organi0ation%s marketing strategy. 4>. ;arketers use several approaches to measure consumer attitudes toward dimensions such as prices package designs brand names advertisements salespeople repair services store locations features of e"isting or proposed products and social responsibility activities. dd( ee( Direct questioning of consumers Aro$ective techniques

ff( Attitude scales are means of measuring consumers% attitudes by gauging the intensity of individuals% reactions to ad$ectives phrases or sentences about an ob$ect. 4&. ;arketers may try to change negative attitudes toward an aspect of a marketing mi" to make them more favorable but this is generally a long e"pensive and difficult task and may require e"tensive promotional efforts. =. Personality and Self-Conce"t

4.. $ersonality is a set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior. gg( The uniqueness of one%s personality arises from hereditary background and personal e"periences. hh( Ehen advertisements focus on certain types of personalities the advertiser uses personality characteristics that are valued positively. 43. ii( #elf)concept% or self!image is a perception or view of oneself. Buyers purchase products that reflect and enhance their self!concept.

$$( A person%s self!concept may influence whether he or she buys a product in a specific product category and may have an impact on brand selection. -. Lifestyles

Lifestyle is an individual%s pattern of living e"pressed through activities interests and opinions. 44. Aatterns include the way people spend time e"tent of interaction with others and general outlook on life and living. 46. 48. CI. Aeople partially determine their lifestyle but lifestyles are influenced by other factors. 'ifestyles influence product needs. Social Influences on the Buying Decision Process

#ocial influences are the forces that other people e"ert on one%s buying behavior. T. Roles

49. A role is a set of actions and activities that an individual in a particular position is supposed to perform based on the e"pectations of both the individual and surrounding persons. 4:. #ach individual has many roles and each role affects both general behavior and buying behavior. G. #amily Influences and Consumer Buying Decisions

4<. An individual%s roles particularly family roles to some e"tent influence that person%s behavior as a buyer. 6>. Consumer socialization is the process through which a person acquires the knowledge and skills to function as a consumer. 6&. 2amily roles may ascribe specific buying behaviors especially for some categories of products. 6.. The family life cycle stage *to be further discussed in Chapter &>( affects individual and $oint needs of family members. 63. Eithin a household an individual may perform one or more buying!decision roles.

kk( The gatekeeper is the household member who collects and controls information?price and quality comparisons locations of sellers and assessment of which brand best suits the family%s needs.

ll( The influencer is a family member who e"presses his or her opinions and tries to influence buying decisions. mm( nn( oo( C. The decider is a member who makes the buying choice. The buyer is a member who actually makes the purchase. The user is any household member who consumes or uses the product. Reference $rou"s

64. A reference group is any group?large or small?that positively or negatively affects a person%s values attitudes or behaviors. 66. 2amilies friends church groups and professional groups are e"amples of reference groups. 68. There are three ma$or types of reference groups/ membership aspirational and disassociative. pp( A membership reference group is one to which an individual actually belongs1 the individual identifies with group members strongly enough to take on the values attitudes and behaviors of people in that group. qq( An aspirational reference group is a group to which a person aspires to belong1 the individual desires to be like those group members. rr( A group that a person does not wish to be associated with is a disassociative or negative reference group1 the individual does not want to take on the values attitudes and behavior of group members. 69. A reference group is an individual%s point of comparison and a source of information.

6:. )ow much a reference group influences a purchasing decision depends on the individual%s susceptibility to reference group influence and strength of involvement with the group. 6<. =eference group influence may affect the product decision the brand decision or both.

8>. A marketer sometimes uses reference group influence in advertisements to promote the message that people in a specific group buy the product and are highly satisfied with it. E. %"inion Leaders

8&. An opinion leader is a reference group member who provides information about a specific sphere that interests reference group participants.

8.. An opinion leader is likely to be most influential when consumers have high product involvement but low product knowledge when they share the opinion leader%s values and attitudes and when the product details are numerous or complicated. H. Social Classes

A social class is an open group of individuals with similar social rank. 83. The criteria used to group people into classes vary from one society to another.

84. In our society we group according to many factors including occupation education income wealth race ethnic group and possessions1 analyses of social class in the Gnited -tates divide people into three to seven categories. 86. 88. ss( tt( uu( vv( I. To some degree individuals within social classes develop common patterns of behavior. Because social class influences so many aspects of a person%s life it also affects Buying decisions -pending saving and credit practices Type quality and quantity of products -hopping patterns and stores patroni0ed Culture and Subcultures

89. Culture is the accumulation of values knowledge beliefs customs ob$ects and concepts that a society uses to cope with its environments1 culture includes/ ww( ""( yy( Tangible items such as food clothing furniture buildings and tools Intangible concepts such as education welfare and laws The values and a broad range of behaviors accepted by a specific society

8:. The concepts values and behavior that make up a culture are learned and passed from one generation to the ne"t. 8<. Because cultural influences affect the ways people buy and use products culture affects the development promotion distribution and pricing of products. 9>. 00( International marketers must take into account tremendous global cultural differences. Aeople in other regions of the world have different attitudes values and needs.

aaa( International marketers must adapt to different methods of doing business and must develop different types of marketing mi"es. 9&. #ubcultures are groups of individuals whose characteristic values and behavior patterns are similar and differ from those of the surrounding culture. bbb( -ubcultural boundaries are usually based on geographic designations and demographic factors. ccc( ;arketers recogni0e that the growth in the number of G.-. subcultures has resulted in considerable variation in consumer buying behavior. *6( *( *( *( *8( *( *( *( *9( *( !frican !merican Subculture 'argest racial or ethnic subculture -hop more often use less coupons prefer ads specifically targeting African Americans =esearch shows a positive response to ads that reflect heritage &is"anic Subculture Eithin the ne"t ten years will become the largest ethnic group -trong family values need for respect affects buying trends Concern for product quality and strong brand loyalty !sian !merican Subculture 2astest growing most affluent and perhaps most diverse American subculture

*( Individual language religion and value system of each group influences purchasing decisions *( -ome cross!culture traits include an emphasis on hard work strong family ties and high value placed on education