Mark 3000 1st Edition Lecture 5 Outline of Last Lecture I II III IV V Types of competitors Important regulations Consumer behavior Risk with making purchases Decision making process Current lecture I Factors influencing the consumer decision process II Involvement and consumer buying decisions Factors influencing the consumer decision process 1 The Marketing mix Includes Product Place Price and Promotion Same for all consumers 2 Psychological Factors a Includes how the consumer thinks and who the consumer is b Motives need or want that is strong enough to cause the person to seek satisfaction Defined by Maslow s hierarchy of needs i Physical needs Food clothing ii Safety needs iii Love Need to be loved by those around you iv Esteem Make yourself feel good v Self actualization Challenge yourself c Attitude enduring evaluation of his or her feelings about and behavior tendencies toward an object or idea i Cognitive Something you know in your head to be true ii Affective Your emotional reaction or what you feel about the issue at hand iii Behavioral actions that we undertake based on what we know and feel These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute d Perceptions and Learning i Perception how we select organize and interpret information 1 Must be processed through our perceptual screens of attention distortion and retention 2 Selective perception Everyone perceives different things and only perceive the things that are most important to them 3 Selective distortion we will only remember part of the information which is consistent with the current perception ii Learning change in thought process or behavior a Cognitive Have to research to learn b Experimental learn by trying it out e Lifestyle how we spend our time and money f Demographics Age gender ethnic background and marital status 3 Social factors Family Reference groups and culture a Consumer socialization we learn how to buy from our family or parents b Family roles also influence choices c Reference groups affect the way we think i Membership A member of ii Aspirational Aspire to be a member of iii Dissociative Group that you don t want to be part of d Culture Shared meanings beliefs morals and values of a group of people i Ex Is it ok to be extravagant 4 Situational factors a Purchase situation are you buying the product for yourself or for someone else b Temporal state time of the day or mood i Sellers try to get customers to shop at the time of the day that they are most used to c Shopping situation what you encounter as you buy the product i The Sales people the store s atmosphere crowding promotions demonstrations packaging etc Involvement and consumer buying decisions Involvement is the customer s degree of interest in the product or service 2 types of buying decisions depending on level of involvement Extended problem solving common for a purchase decision with a lot of risk Limited problem solving based on impulse buying and habitual decision makingand occurs during purchase decision that calls for a moderate amount of effort or time o Can lead to impulse buying buying decision made on the spot o Habitual decision making purchase in which consumers engage in little conscious effort