MKT 230 1st Edition Lecture 12Outline of Last Lecture I. Step 4: Evaluate Relevant Market SegmentsII. Step 5: Select Specific Target MarketsIII. Buying Behavior and Possible InfluencesIV. Consumer Buying Decision ProcessOutline of Current Lecture I. InfluencesII. Psychological InfluencesIII. Level of InvolvementIV. Problem Solving StrategiesV. Social InfluencesVI. Business MarketsCurrent Lecture – Wednesday, February 24, 2015I. Influences- Psychological Influenceso Perceptiono Motiveso Learningo Attitudeso Personality and lifestyle- Social Influences – Forces that other people exert on buying behavior- Situational Influences – result from circumstances, time and location that affect the consumer buying decision1. Physical surroundings – like music or smell in a store2. Social surroundings – buying a shirt at a concertThese 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.3. Time perspective – needing a car immediately will result in the buyer not taking as much time to research, look, etc.4. Reason for purchase – wanting a more fuel efficient car5. Mood at moment o Can influence a buyer at any stage in the buying processII. Psychological Inflences- Perception – selecting, organizing, and interpreting information to produce meaning. There is a three step process1. Selective Exposure – indirectly selecting which inputs will reach awareness. People are not conscious of all inputs at one time2. Selective Distortion – changing and twisting received information, this occurs when a person received information inconsistent with their personalfeelings or beliefs3. Selective Retention – Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do nota. Example: Being bias towards one brand so you ignore the facts. (In class example) Professor Wills likes Ford so he ignored the fact that the maintenance costs more than on another brand of car- Motives – internal energizing forces that direct a persons behavior towards satisfying needs or achieving goalso Patronage Motive – influences where a person purchases products on a regular basiso Maslow’s Hierarchy of Needs1. Self-actualization needs2. Esteem needs3. Social needs4. Safety needs5. Physiological needso Example of marketing towards a need: When you market a security system, the marketing efforts are highlighting the safety needs that people have- Learning – Changes in an individuals thoughts process and behavior caused by information and experienceso Sources of Learning1. Behavioral consequencesa. Example: A fish trying to eat minnows video – Basically if a customer buys a product and it doesn’t work multiple times, the company will lose that customer2. Information Processing3. ExperiencesSelf-Actualizatoin Self-Actualizatoin Esteem Esteem Social Social Safety Safety Psysiological Psysiological- Attitudes – individuals enduring evaluation of feelings about tendencies and behavior towards an object or ideao There are 3 major components1. Cognitive – knowledge and information2. Affective – Feelings and emotions3. Behavioral – Actions regarding the object or ideao These can be positive or negativeo Measured by an attitude scale: a sense of adjectives, phrases, or sentences about an object- Self-concept and lifestyleo Lifestyle – an individuals pattern of living expressed through activities, interests, and opinionso Self-concept – one’s views of one’s self. This is closely linked to personality type III. Levels of Involvement – individual’s degree of interest in a product and the importance ofthe product for that process- Enduring Involvement – when someone buys something over and over again, an on-going and long-term involvement with a product or product categoryo Example: Professor Wills always goes back to Ford- Situational Involvement – temporary or dynamic involvement resulting from a particular set of circumstanceso When you need something immediately you may not buy what you normally buy- High-Involvement Product – A product that is visible to others or is expensiveo Example: cars, computers, houses- Low-Involvement Product – Less expensive and less associated social risko Example: a t-shirt or groceriesIV. Problem Solving Strategies- Routinized Response – used when buying frequently purchased, low-cost items that require very little searching and decision efforto Example: Buying the same bread every time at the grocery store- Limited Problem Solving – used when buying products occasionally or when one needs to obtain information about an unfamiliar brand in a familiar product categoryo Example: tires- External Problem Solving – when purchasing unfamiliar, expensive or infrequently bought productso Example: cars- Impulse Buying – Involves no conscious planning; a powerful urge to buy something immediatelyo Example: candy or gum, things that are at the checkout laneso There is a direct relationship between time and cost, the more time you spend on a decision the more it will costV. Social Influences – Forces that other people exert on one’s buying behavior- Roles – Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding personso Example: Wal-Mart owners exude low prices and bare minimum, or some people project the image of being successful by driving expensive carso Family Influences – People that have a direct impact on the buying decision processo Reference Group – a group with which a person strongly identifies, adopts values, attitudes and behaviors of group members1. Membership – a group that an individual belongs to2. Aspirational – a group to which an individual wants to belong to3. Dissociative – A group to which an individual does not want to belong too Opinion Leaders – members of informal groups who provide information about specific topics about which other group members seek information1. Most influential in high-involvement product situations2. Example: religious leaders, doctors, etc.- Culture – accumulation of values, knowledge, beliefs, customs, objects and concepts that a society uses to cope with its environment and passes on to future generationsVI. Business Markets- Business versus Consumer Buying- Business Markets – individuals, organizations, or groups that purchase a specific kind of