Chapter 8 Overview The consumer is the central focus of marketing To devise good marketing plans it is essential to study consumer attributes and needs lifestyles and purchase processes and then make proper marketing mix decisions Who what why how when where how often are all important questions on analysis Final Consumers buy goods and services for personal family or household use Demographics Defined and Enumerated Consumer Demographics objective and quantifiable population characteristics After studying single factors a firm can forma consumer demographic profile Can pinpoint potential opportunities and problems Developed areas have accurate data because it is based on real data under developed areas have estimates for data o Population Size Gender and Age Industrialized countries have large proportion of the births as firstborns Populations in industrialized nations are older than in less developed nations Half male half female in world population females live longer slightly larger population o Location Housing and Mobility Large movements to suburbs World wide mobility of the population is high o Income and Expenditures Personal income is often stated as GDP Economic growth is cyclical US has biggest spread of income Real US income has been offset by prices which have raised the standard of living consumer price index Developed nations spend money on medicine and personal business Less developed nations spend on food Disposable after tax income Discretionary income luxuries o Occupations and Education More women in the work force Unemployment rates vary with countries US is most educated with exceptionally high literacy rate Overall increase contributed by growing of people in upper income o Marital Status of households with married adults is higher in other nations Male and female marriage ages are lower and have bigger families Family a group of two or more person residing together who are related by blood marriage or adoption Household a person or group of persons occupying a housing unit o Ethnicity Race origin or race o Limitations of Demographics reasons for behavior behavior One measure of a nation s diversity with regard to language country of European union is having issues because of multiple languages spoken Dated unavailable too general require profile analysis and not consider Now using consumer lifestyles to help answer more questions on consumer Consumer Lifestyles Social Characteristics of Consumers o Culture a group of people who share a distinctive heritage American achievement success activity efficiency material comfort fit o Social class status hierarchy by which groups and individuals are classified on the basis of esteem and prestige Industrialized nations have larger middle classes greater interchange less rigid may represent target market o Social performance how a person carries out his or her roles in life o Reference group one that influences a person s thoughts or actions Opinion leaders people to whom other consumers turn for advice and information via face to face communication o Family Life cycle how a family evolves through various stages of life Joint decision making Household life cycle is more important Incorporates family and non family households o Time Expenditures reflect the workweek family care and leisure Psychological Characteristics of Consumers o Personality sum total of an individual s enduring internal psychological traits that make the person unique o Attitudes opinions neutral be studied The attitude itself and the purchase intention toward a firm s brand needs to o Class Consciousness the extent to which a person seeks social status Upward mobility social visibility brand name items Inner directed please themselves and functional items o Motivation drive impelling action caused by motives reasons for behavior o Perceived Risk the uncertainty felt by the consumer about a purchase Functional physical financial social psychological time o Innovativeness trying a new product others see as risky Outgoing person above avg income educated o Importance of a purchase important v unimportant Selected Consumer Lifestyles o Family values Emphasizes marriage children home Leading one in other nations Focus on children and education o Voluntary simplicity Ecological awareness seek product durability self reliance tech simple Cautious conservative thrifty o Getting By o Me generation Frugal people due to economic circumstances Do so because they must like the one before except for that Attracted to well known brands Being good to one s self self fulfillment self expression Less pressure to conform Buy expensive things Blurring gender roles A poverty of time exists when a quest for financial security means less free time Whit a component life style consumer attitudes and behavior vary by situation There are limitations to these concepts like difficulty to measure subjective self reports The Final Consumer s Decision Process 1 Stimulus a cue or a drive meant to motivate a person to act a Social commercial noncommercial physical 2 Problem Awareness recognition of a shortage or an unfulfilled desire a Recognition of shortage realizes a repurchase is needed b Unfulfilled desire not been bought before i Hesitation 3 Information Search determining alternatives and their characteristics 4 Evaluation of Alternatives weighing features and selecting the desired product 5 Purchase picking where to buy agreeing to terms and checking availability 6 Post Purchase behavior further buying or reevaluation a Cognitive dissonance doubt that a correct decision has been made Types of Decision Processes o Extended Consumer person fully uses the model important decision o Limited Consumer uses model but not so much time at each step previously bought the good service before o Routine Consumer buys out of habit and skips steps experience Most are limited or routine decisions low involvement purchasing a consumer minimizes the time and effort expended in making decisions usually unimportant brand loyalty the consistent repurchase of and preference toward a particular brand Chapter 9 Overview When firms deal with organizational consumers they engage in industrial b to b marketing 2 emerging trends need special merit attention o Growth of the internet b to b Closer relationships better communications quicker transaction times cost efficiencies and greater flexibility o Rise in outsourcing when one company provides services for another company that could also be or
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