Exam 2 Chapter 5 Consumer Buyer Behavior The buying behavior of final consumers Factors Influencing Consumer Behavior Culture is the set of basic values perceptions wants and behaviors by a member of society from family and other important institutions Marketers are always trying to spot cultural shifts in order to discover new products that might be wanted Subculture is a group of people with shared value systems based on common life experiences and situations Ex Hispanic Americans African Americans and Asian American consumers Include nationalities religions racial groups and geographic regions Social Class relatively permanent and ordered divisions in a society whose members share similar values interests and behaviors Lower Lower 7 Upper Lower 9 Working Class 38 Middle Class 32 Upper Middle 12 Lower Upper 2 Upper Upper 1 Motive is a need that is sufficiently pressing to direct the person to seek satisfaction of the need Maslow Hierarchy of Needs bottom to top Physiological Safety Social Self Esteem Self Actualization Belief vs Attitude Belief a descriptive thought that a person holds about something Attitude A person s consistently favorable or unfavorable evaluations feelings and tendencies toward and object or idea Perception is a process by which people select organize and interpret information to form a meaningful picture of the world Social Influences Family Opinion Leaders Reference Groups the people to whom an individual looks when forming attitudes about an object o Direct membership Primary co workers friends Secondary professional associations religious groups o Indirect nonmember Aspirational want to be in Dissociative don t want to be in Social Class Personal Influences Age and Family Life Cycle Stage Economic Situation Occupation Personality Self Concept Lifestyle Identification Activities Interests Opinions Ex Two very different ideal vacations The Buyer Decision Process Stages in the Adoption Process Interest The consumer seeks information about the new product Awareness The consumer becomes aware of the new product but lacks info Trial The consumer tries the product on a small scale Adoption The consumer decides to make a full and regular use of the new product careful use basis Buyer Decision Process for New Products Innovators 2 5 venturesome try new things at risk Early Adopters 13 5 guided by respect opinion leaders early but Early Majority 34 deliberate rarely leaders adopt before avg person Late Majority 34 skeptical only adopt after majority Laggards 16 suspicious of change only adopt when tradition Characteristics important in influencing innovations rate of adoption Relative advantage the degree to which the innovation appears superior to existing products Compatibility the degree to which the innovation fits the values and experiences of potential consumers Complexity the degree to which the innovation is difficult to understand or Divisibility the degree to which the innovation may be tried on a limited Communicability the degree to which the results of using the innovation can be observed or described to others Chapter 6 Identifying Market Needs Benefits in terms of o Product Features o Expense o Quality o Savings in time and convenience Market Segmentation dividing a market into distinct groups with distinct needs characteristics or behaviors who might require separate products or marketing mixes Geographic by region city size urban vs rural climate Demographic age gender family size occupation etc Psychographic social class lifestyle personality Behavioral occasions usage rate loyalty status Innovators take charge curious sophisticated VALS Thinkers reflective informed content Achievers goal oriented brand conscious conventional Experiencers trend setting impulsive variety seeking Believers literal loyal moralistic Makers responsible practical self sufficient Survivors nostalgic constrained cautious Strivers contemporary imitative style conscious Is this a good segmentation scheme Homogeneous o Likely to respond to our 4 P s Heterogeneous Substantial Operational o Can you identify a profitable segment o Can you measure and reach a profitable segment o Can you address the need of the profitable segment To be useful a market segment must be Measurable Accessible Substantial Differentiable Actionable Target Market consists of a set of buyers who share common needs or characteristics that the company decides to serve Types of Marketing Strategies broad to narrow Undifferentiated mass marketing same product to all consumers Differentiated segmented marketing different products to one or more Concentrated niche marketing Different products to subgroups within segments segments Micromarketing local or individual marketing Products to suit the tastes of individuals or locations Market Positioning The place the product occupies in consumers minds relative to competing products Define YOUR Product Relative to the Competition s in terms of Benefits Detail a Marketing Plan 4Ps to SUPPORT that Definition Value Proposition the full positioning of a brand the full mix of benefits on which it is positioned Chapter 7 Product anything that can be offered to a market for attention acquisition use or consumption and that might satisfy a want or need Service any activity benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything Three Levels of a Product Individual Product Designs Product Attributes Quality o Level o Consistency Features Style Packaging Label Benefits vs Attributes Product Assortment Mix Individual Product A specific version of a product that can be designated as a distinct offering among an organization s products Product Line A group of products that are closely related All products that an organization sells Product mix dimensions Product mix width Product Mix Depth o Number of different product lines carried by company o Number of different versions of each product in the line Product mix consistency o How closely related the various product lines are in end use production requirements distribution channels or some other way Brand a name term design symbol or any other feature that identifies one seller s good or service as distinct from those of other sellers Brand equity the positive effect that knowing the brand name has on customer response to the product Brand Decisions Positioning Name Selection Sponsorship Development Brand Development Strategies Line Extension Introduction of