BUSI 406 PRINCIPLES OF MARKETING: FINAL CONSUMERS AND THEIR BUYING BEHAVIORToday’s AgendaFirst Exam ReviewLet’s ReviewToday’s GoalsConsumer Behavior for Marketing Strategy PlanningHow We Will View Consumer Behavior Beyond Demographics…SEVEN MAJOR U.S. DEMOGRAPHIC TRENDS (Didow)US Fertility RatePowerPoint PresentationBeyond Demographics, Economic Needs Influence Buying Decisions – BUT…there’s often a whole lot more involved…Psychological Influences Within an IndividualSIX MAIN PRUNE MOTIVESPerception Determines What Consumers See and FeelLearning Determines What Response is LikelyAttitudes Relate to BuyingLifestyle Dimensions – e.g. Nielsen’s www.claritas.com/MyBestSegments/Default.jspSlide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 25Slide 26Slide 27The Family Life CycleSimple Approaches to Measuring Social Class in the U.S.Perceived Social Class Positioning For Beer BrandsSocial Influences(Greenville NC Tops in 2012 Super Bowl Snack Spending per Capita)Adoption ProcessToday’s Take-AwaysLooking ahead…BUSI 406PRINCIPLES OF MARKETING:FINAL CONSUMERS AND THEIR BUYING BEHAVIORToday’s AgendaAnswer any questionsTurn in your first case assignmentMonday, September 15: Review for First ExamWednesday, September 17: First Exam (Ch. 1-5)Let’s ReviewDiscuss material you read in Chapter 5First Exam ReviewFirst Exam Questions40 multiple-choice (2 points each, 80 points total)Can explain choices if stuck between 2 or 3 options3 short answer questions (20 points total)75 minutes to complete the examHow to study?Re-read the chaptersGo through slides (and access notes on slides)Do the practice exam questionsStudy with a partnerMaterial Covered in Chapters 1 – 5 and Classes in this portionClosed book, closed notesLet’s ReviewMarketsTarget MarketingSegmentation: One Target Market, Multiple Target Markets, Combined Target MarketDimensions: Behavioral, Geographic, DemographicDifferentiationPositioningPerceptual mapsToday’s GoalsUnderstanding Buying BehaviorWhy do we care?Who are our potential consumers? What do we know about them?Consumer Behavior ModelCharacteristics Affecting Consumer Behavior beyond pure economic needsPsychological influencesSocial and Cultural influencesPurchase Situational influencesConsumer Behavior for Marketing Strategy PlanningCH 5: Final Consumers and Their BuyingBehaviorEconomic needs Psychological variablesSocial and Cultural influencesPurchaseSituationMarketing mixes All other stimuliMarketing mixes All other stimuliConsumer decision processPerson making decisionsPerson does or does not purchase (response)CH 6: Business and OrganizationalCustomers and TheirBuying BehaviorFinal ConsumersHow We Will View Consumer Behavior Beyond Demographics…Person Making DecisionEconomic needs•Economy of purchase•Convenience•Efficiency in use•Dependability•IncomePsychological variables•Motivation•Perception•Learning•Attitude•Personality/ lifestyleSocial and Culturalinfluence•Family•Social class•Reference groups•Culture•Ethnic groupsPurchasesituation•Purchase reason•Time•SurroundingsMarketing mixes All other stimuliConsumer decision processPerson does or does not purchase (trial), or repurchase (repeat)SEVEN MAJOR U.S. DEMOGRAPHIC TRENDS (Didow)AGING OF AMERICA www.census.gov CONTINUED SLOWDOWN OF THE BIRTHRATEUNEVEN REGIONAL GROWTHNONTRADITIONAL HOUSEHOLD FORMATIONASIAN AND HISPANIC DOMINATED IMMIGRATION www.ellisisland.org RISING ETHNICITY AND MULTICULTURAL AWARENESSEVOLVING SOCIAL METAPHOR FROM 1900-1960’S “MELTING POT” TO TODAY’S “SALAD BOWL”US Fertility Rate9Source: U.S. National Center for Health Statistics. National Vital Statistics Report, annual data World Population Data Sheet, 2009Total Fertility: Average number of births per woman over her lifetimeBeyond Demographics, Economic Needs Influence Buying Decisions – BUT…there’s often a whole lot more involved…They call it a They call it a crash test. crash test. We call it a We call it a product product demonstratidemonstration.on.Psychological Influences Within an IndividualWantsWantsWantsWantsNeedsNeedsNeedsNeedsDrivesDrivesConsumers seek benefits to match Consumers seek benefits to match needs and wants!needs and wants!Drives, MotivesDrives, MotivesREPORT TO THE CALIFORNIA PRUNE ADVISORY BOARDSIX MAIN PRUNE MOTIVESDESPISED AS SYMBOLS OF STERILE OLD AGESUSPECTED OF BEING DEVITALIZED, DENATUREDRESENTED AS A LAXATIVEDISLIKED AS A SYMBOL OF PARENTAL AUTHORITYA FOOD WITHOUT “PRESTIGE”DISPARAGED AS FOOD FOR “PECULIAR” OR OLD PEOPLEPrunes are…Perception Determines What Consumers See and FeelSelective ExposureSelective ExposureSelective PerceptionSelective PerceptionSelective ExposureSelective ExposureSelective PerceptionSelective PerceptionSelective RetentionSelective RetentionLearning Determines What Response is LikelyDriveDriveDriveDriveCuesCuesCuesCuesResponseResponseResponseResponseReinforcementReinforcementAttitudes Relate to BuyingAttitude: A Point of ViewChanging Negative AttitudesKey IssuesKey IssuesBuilding Consumer Trust Meeting Expectations Is Important“Green” attitudes and beliefsEthical Issues May AriseBelief: An OpinionLifestyle Dimensions – e.g. Nielsen’s www.claritas.com/MyBestSegments/Default.jsp InterestsInterestsActivitiesActivitiesOpinionsOpinionsWhat Your Taste in Beer Says About YouHow Choice of Brew Relates to Personality, Politics and PurchasesAd Age, November 2, 2009BUDWEISERTrue to form, Bud drinkers are sensible, grounded and practical. They are the polar opposite of daydreamers and don't easily get carried away. These beer drinkers also don't like authority-- can anyone say union? --and are emotionally steady people who live in the here and now. However, what may be a bit surprising is that people who prefer Bud can also be very spontaneous and tend not to do much advance planning. Budweiser drinkers are 42% more likely to drive a truck than the average person, 68% more likely to choose a credit card with flexible payment terms and 42% more likely to use breath-freshening strips every day.BUD LIGHTAre Bud Light drinkers just Bud guzzlers on a diet? Not a chance. Bud Light personalities actually skew quite different from their more-caloric sibling. Keep in mind, this was the beer choice for President Barack Obama