BUS M 300 1nd Edition Lecture 2 Outline of Last Lecture I What is Marketing II How Marketing Discovers and Satisfies Consumer Needs III The Marketing Program How Customer Relationships are Built IV How Marketing Became so Important Outline of Current Lecture I Consumer Purchase Decision Process and Experience II Psychological Influences on Consumer Behavior III Sociocultural Influences on Consumer Behavior Current Lecture I Consumer Purchase Decision Process and Experience Consumer behavior actions a person takes in purchasing and using products and services Consumer purchase decision process stages a buyer passes through in making choices about which products or services to buy Five stages of purchase decision process not always linear 1 Problem recognition perceiving a difference between a person s ideal and actual situations big enough to trigger a decision 2 Information search searches for appropriate information to make a reasonable decision includes internal and external search o External search when past knowledge isn t enough Personal sources Public sources Market dominated sources 3 Alternative evaluation compare and contrasts different products and brands o Evaluative criteria represent both the object attributes of a brand and the subjective ones used to compare different products and brands o Evoked set brands actually considered during a choice process II Allows consumer to compare products Helps them understand competitors o Consideration set the group of brands that one would consider from among all the brands of which they are aware in the product class 4 Purchase decision involves a simultaneous evaluation of product attributes and seller characteristics o From whom to buy o When to buy 5 Postpurchase behavior consumer compares purchase with expectations and is either satisfied or not Two types of involvement in purchases o High involvement purchase characteristics expensive Serious personal consequences Could reflect on one s social image o Low involvement purchase Toothpaste Soap Extended problem solving 5 stages of the consumer purchase decision process is used high involvement purchases like cars college ouse Limited problem solving consumers typically seek some information orr rely on friends to help evaluate alternatives examples clothing dinner Routine problem solving consumers recognize problem make decision spend little effort seeking external information and evaluating alternatives examples soda candy Three involvement marketing strategies 1 Maintain product quality 2 Avoid stockout situations 3 Repetitive ads Five situational influences on the purchase decision process 1 Purchase task reason for engaging in decision 2 Social surroundings other people present when purchase decision is made 3 Physical surroundings d cor music crowds 4 Temporal effects time of day amount of time available to shop 5 Antecedent states consumer s mood amount of cash on hand Psychological Influences on Consumer Behavior Motivation energizing force that stimulates behavior to satisfy a need Hierarchy of needs o Self actualization needs personal fulfillment marketers aim o Personal needs status respect prestige what motivates us to buy products and or services o Social needs friendship belonging o Safety needs financial security freedom from harm o Physiological needs food water shelter Self concept way people see themselves and believe others see them Perception way person interprets information to create a meaningful picture of the world Selective perception filtering of exposure comprehension and retention Selective exposure people pay attention to messages that are consistent with their attitudes and beliefs Selective comprehension involves interpreting information so that it is consistent with their attitudes and believes Selective retention consumers don t remember all information they see read hear even right after hearing it Five risks that concern the buyers 1 Performance risk 2 Financial risk 3 Physical risk 4 Social risk 5 Time loss risk Perceived risk anxiety felt when consumers cannot anticipate possible negative outcomes of a purchase Strategies to reduce perceived risk 1 Seals of approval 2 Securing endorsements from influential people 3 Free trials 4 Liberal return policies 5 Guarantees Brand loyalty favorable attitude toward and consistent purchase of a single brand over time Methods used to try and change consumers attitudes toward products 1 Change beliefs about brand attributes 2 Change perceived importance of attributes 3 Add new attributes to product Consumers inspired by 1 Ideals 2 Achievement 3 Self expression Ideals motivated groups guided by knowledge and principle oriented in nature o Thinkers are mature and reflective III o Believers conservative conventional Achievement motivated groups look for products or services that demonstrate success status oriented in nature o Achievers busy goal directed lifestyle o Strivers trendy fun loving Self expression motivated groups desire social and physical activity risk and variety action oriented nature o Experiencers young impulsive consumers o Makers fewer resources experience world by working on it High and low resource groups o Innovators tend to be higher educated and more influential consumers successful sophisticated take charge o Survivors tend to be less educated and less influential consumers least resources of any segment focus on meeting basic needs Sociocultural Influences on Consumer Behavior Opinion leaders individuals who have social influence over others o 18 million opinion leaders influence purchases of some 85 million consumers for DIY products Word of mouth people influence each other in person conversations o Buzz popularity created by word of mouth Reference groups people to whom an individual looks as a basis for self appraisal or as a source of personal standards can cause conformity Membership group one to which a person actually belongs o Example fraternity Aspiration group one that a person wishes to be a member of or wishes to identify with o Example professional society Dissociative group one that a person wishes to maintain a distance from Consumer socialization process by which people acquire the skills knowledge and attitudes necessary to function Children learn how to purchase 1 Interacting with adults in purchasing 2 Through their own purchasing and product usafe experiences Family life cycle family s progression from formation to retirement each phase bringing with it