Mark 3000 1st Edition Lecture 5Outline of Last Lecture I. Types of competitors II. Important regulations III. Consumer behavior IV. Risk with making purchases V. 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, clothingii. 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 culturea. 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