Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 2.

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Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Consumer Behavior Chapter 2

Transcript of Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 2.

Advertising and Sales Promotion

©2013 Cengage Learning. All Rights Reserved.

Consumer Behavior

Chapter 2

Advertising and Sales Promotion

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CHAPTER 2

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Consumer Behavior

2.1 The Consumer Is in Charge2.2 Consumer Purchase Classifications2.3 Influences on Consumer Behavior

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2.1 The Consumer Is in Charge

GoalsRecognize the importance of understanding the

customer’s wants and needs.Identify the five-step consumer decision-making

process

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Termsconsumer behavior – the way consumers make

buying decisions, choose among alternative and used products

Need – anything you require for survivalWant – something you desire but could live

without

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Termsroutine decision making – the consumer decision-

making process for frequently purchased, low-cost products that require little thought

limited decision making – the consumer decision-making process in which a moderate amount of time is pent collecting and comparing information about an unfamiliar product or brand.

extensive decision making – the methodical consumer decision-making process used to buy an infrequently purchased product

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Understanding the Customer

Identifying consumer needs and wantsScarcity – limited product and services

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Maslow’s Hierarchy of Needs Pyramid

Self-Actualization(to realize your potential)

Esteem(respect and recognition)

Social(friends, love, belonging

Security(physical safety and economic security)

Physiological(food, sleep, water, shelter, air)

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So Many Different Decisions Consumer decision-making process

Recognize the problem – 1st step occurs when the consumer recognizes a need, desire or problem

Search for information – gathers information about alternative solutions. Evaluate alternatives – summarizing, comparing and ranking the alternatives. Make the purchase – make a purchase when an appropriate option has been

identified. Evaluate the purchase – decides whether the purchase met their

expectations and satisfied the need.

Types of consumer decision making Routine decision making Limited decision making Extensive decision making

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Check Point1. What is the difference between a need and a want?2. Why should marketers be concerned about the

consumer decision-making process? 3. Do you think advertising influences consumer needs

and wants? Explain your answer? 4. Write a post-purchase evaluation for a recent

purchase. Evaluation should describe your product expectations and your satisfaction or dissatisfaction with the purchase.

5. Describe an advertisement that focuses on a want and an advertisement that focuses on a need.

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2.2 Consumer Purchase Classifications

GoalsDistinguish between types of consumer purchases

and recognize the level of consumer involvement in buying decisions.

Describe different types of consumer products.

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Termconvenience products – types of products that are

purchased regularly without much planning. shopping products – types of products that

consumers want to own after they meet personal needs.

specialty products – types of products that have a strong brand loyalty

unsought products – types of products that are not actively sought out by consumers

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The Buying DecisionNew purchase – buying a product for the first

time Modified purchase – consumer realize that the

product they purchased in the past did not totally meet their current needs. The consumer identify the product changes or improvements needed and will purchase to meet their new specifications.

Repeat purchase – purchasing the same products and services over and over again.

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The Buying DecisionConsumer involvement in buying decisions

Past experience – low level of involvement in making the buying decision

Interests – increase the level of involvement in buying decision. (spend more time shopping)

Perceived risk – become more involved in the buying process. (example: high priced item can result in financial risk)

Circumstances – consumer involved in the buying process. (example: special occasions)

Self-image – consumer wants to make a statement or reinforce their image by purchasing a certain product, the buying decision becomes more relevant (example: designer clothing, luxury cars.)

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Types of Products

Convenience productsStaple productsImpulse productsEmergency products

Shopping productsSpecialty productsUnsought products

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Check Point

1. What are some reasons for a modified purchase?

2. What is an effective strategy for selling shopping products? (give an example of an Ad)

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2.3 Influences on Consumer Behavior

GoalsDiscuss consumer buying motives.Describe individual, social, and marketing

influences on consumer behavior.

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Termsbuying motives – the driving forces that cause consumers to buy

products and services emotional motives – reasons to make a purchase based on

feelings, beliefs, or attitudes. rational motives – reasons to make a purchase based on facts or

logic. patronage motives – reasons to make a purchase based on

loyalty. Culture – the shared attitudes and behaviors of a specific social

group. reference group – an organization or group of people that an

individual identifies with and admires. advertising campaign – a series of related advertisements with a

common Theme or idea that focuses on a specific product, service, brand or message.

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Buying Motives

Emotional motives – buying things that they know

Rational motives – buying based on factsPatronage motives – buying based on loyalty

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Factors Influencing ConsumerBuying DecisionsIndividual influences

Personality – set of emotions, traits, and behaviors that define an individual

Gender – man or woman Age Culture – shared attitudes and behaviorsEthnicity – shared identity

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Factors Influencing ConsumerBuying DecisionsSocial influencesMarketing influences

Advertising influences – series of related advertisements with a common theme or idea

Promotional influences – create a favorable image of its products or services

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Check Point

1. How do buying motives affect consumer purchases?

2. What personal characteristics might influence a consumer’s buying decision?

3. Describe a cultural influence that impacts your buying decisions?