MKTG 311 1st Edition Lecture 9Outline of Last Lecture I. QuestionsII. Data QualityIII. Step 4 and 5: Develop Findings, Then take Marketing ActionsIV. Chapter 5: The Consumer Decision-Making ProcessOutline of Current Lecture I. 3 Types of Buying Decision Behavior1. Extended Problem Solving2. Limited Problem Solving3. Routine Problem SolvingII. 2 Major Influences on Consumer Purchases1. Socio-Cultural factors2. Psychological factorsCurrent LectureI. 3 Types of Buying Decision Behavior1. Extended Problem SolvingComplex Buying Behavior Dissonance Reducing Buying BehaviorHigh level of consumer involvement High level of consumer involvementProducts that are expensive, some element of risk, purchased infrequently, reflect one’s social image.Products that are expensive, some element of risk, purchased infrequently, reflect one’s social image.Significant Brand Differences Few Brand DifferencesGoods: can Service: Printing One’s home2. Limited Problem Solving3. Routine Problem SolvingHabitual Buying Behavior Variety Seeking Buying BehaviorThese 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.Low consumer involvement Low consumer involvementFew perceived brand differences Significant brand differencesConsumers select the same brands dueto familiarity NOT loyaltyConsumers switch brands to try something newStaple Good: Bread, Milk, Tylenol Snack FoodsII. 2 Major Influences on Consumer Purchases1. Socio-Cultural FactorsInfluences on Consumer Purchases: Socio-Cultural Influences- Culture: Values, beliefs, preferences, behaviors of larger group.- Subculture: Smaller groups that exist within the culture: Ethnic groups, Regional groups, Religious groups.- Social class: One’s rank in society, it is a function of 4 factors: Income, Occupation, Education and Wealth. As these 4 factors, so does one’s social class. *7 US social class segments *#1 Working class- 38% US- Membership groups: Clubs, Athletic groups, Sororities, Fraternities all influence our purchase process- Reference groups: Individuals we look up to, want to be like: Athletes, Celebrities, Business people- Opinion leaders: People who we respect their knowledge in a certain area, seek advice.- FamilyPersonal Factors- Age- Children: toys; Teens: entertainment; Young adults: technology, cars, clothing; Middle aged adults: family, insurance needs; Old adults: retirement and traveling- Family Life Cycle- Stages that consumers pass through as they grow older, not just their age. Example: Graduating from college- Occupation- How to dress at work2. Psychological FactorsInfluences on Consumer Purchases: Psychological Influences- Motivation: An internal state that drives us to satisfy our needs.o Primary theories: Maslow’s Hierarchy of Needso Basic Needs: Physiological needs. Food and Watero Fulfill lower level needs first, followed by higher level needs- Perception: Process by which consumers select, organize, and interpret information from the outside world.o Selective Attention: Lots of messages, which ones do we pay attention to, it must be important to US.o Selective Comprehension: Tendency to interpret information that is consistent with your attitudes and beliefs. Example- Toro snow pup- Show Mastero Selective Retention: How much information do we remember after we see, read, or hear the advertisement? Critical to leave information with the consumer.- Learning: As we become more familiar with brand, lifelong loyalty and attachment to the