Understanding Understanding Consumer BehaviorConsumer Behavior

Chapter 6Chapter 6

Consumer BehaviorConsumer Behavior

The study of consumers and The study of consumers and how they make decisions is how they make decisions is called called consumer behaviorconsumer behavior..

Consumer behavior includes Consumer behavior includes factors that influence the factors that influence the purchase and use of products.purchase and use of products.

Final ConsumersFinal Consumers

Most people picture a customer Most people picture a customer as someone who enters a store, as someone who enters a store, purchases a product, takes it purchases a product, takes it home, and uses it.home, and uses it.

For example, when you buy a For example, when you buy a notebook and use it in your notebook and use it in your marketing class, you are a final marketing class, you are a final consumer.consumer.

A A final consumerfinal consumer buys a product buys a product or service for personal use.or service for personal use.

Business ConsumerBusiness Consumer

The second category is a The second category is a business consumer.business consumer.

A A business consumerbusiness consumer buys buys goods and services to produce goods and services to produce and market other goods and and market other goods and services or for resale.services or for resale. An example is a notebook manufacturer. An example is a notebook manufacturer.

The manufacturer buys paper, glue, ink, The manufacturer buys paper, glue, ink, wire and other raw materials to produce wire and other raw materials to produce the notebook.the notebook.

Consumers’ Wants & NeedsConsumers’ Wants & Needs

All consumers have wants and All consumers have wants and needs.needs.

A A wantwant is an unfulfilled desire. is an unfulfilled desire. Consumers want pizzas, BMW’s, Consumers want pizzas, BMW’s, vacations, different hair color, etc.vacations, different hair color, etc.

A A needneed is anything you require to is anything you require to live. You need nutritious food, a live. You need nutritious food, a good night’s sleep, shelter from the good night’s sleep, shelter from the weather, air to breathe, and clean weather, air to breathe, and clean waterwater

Hierarchy of NeedsHierarchy of Needs

Abraham Maslow’s classic work Abraham Maslow’s classic work on motivation theory has helped on motivation theory has helped marketers immensely in their marketers immensely in their study of needs.study of needs.

Maslow identified five areas of Maslow identified five areas of needs that people have. They needs that people have. They are are physiological, security, physiological, security, social, esteem, and self-social, esteem, and self-actualization.actualization.

Maslow’s TheoryMaslow’s Theory

Maslow believed that these groups Maslow believed that these groups of needs are satisfied in a hierarchy of needs are satisfied in a hierarchy and that the needs of people change and that the needs of people change as they satisfy the needs at each as they satisfy the needs at each level.level.

Everyone must satisfy physiological Everyone must satisfy physiological needs. They are not options. You needs. They are not options. You must eat, sleep, and breathe to exist. must eat, sleep, and breathe to exist. Once these are satisfied you can Once these are satisfied you can start to move on to security needs, start to move on to security needs, etc. etc.

Hierarchy of NeedsHierarchy of Needs

Trivia GameTrivia Game

Identify which need is satisfied Identify which need is satisfied from Maslow’s Hierarchy:from Maslow’s Hierarchy: A Gym MembershipA Gym Membership Online DatingOnline Dating WaterWater Health InsuranceHealth Insurance College DegreeCollege Degree Bible/Koran/TorahBible/Koran/Torah Air ConditioningAir Conditioning

Buying MotivesBuying Motives

As you decide you want or need As you decide you want or need products or services, you are products or services, you are motivated by motivated by buying motivesbuying motives: : the reasons that you buy.the reasons that you buy.

There are three motives that There are three motives that drive consumers:drive consumers: Emotional MotivesEmotional Motives Rational MotivesRational Motives Patronage MotivesPatronage Motives

Emotional MotivesEmotional Motives

Emotional MotivesEmotional Motives are reasons are reasons to purchase based on feelings, to purchase based on feelings, beliefs, or attitudes.beliefs, or attitudes.

Forces of love, affection, guilt, Forces of love, affection, guilt, fear, or passion often compel fear, or passion often compel consumers to buy.consumers to buy.

Marketers realize that emotional Marketers realize that emotional motives are very strong.motives are very strong.

ExamplesExamples Hallmark card advertisements Hallmark card advertisements

encourage you to buy greeting cards encourage you to buy greeting cards because of love and affection.because of love and affection.

Folger’s presents drinking coffee as Folger’s presents drinking coffee as a relaxing social experience.a relaxing social experience.

McDonald’s appeals to family values McDonald’s appeals to family values by showing busy young parents by showing busy young parents taking children to their restaurants.taking children to their restaurants.

Security systems prey on families Security systems prey on families fear to maintain safety and prevent fear to maintain safety and prevent robberies.robberies.

Rational MotivesRational Motives

Rational motivesRational motives are reasons to buy are reasons to buy based on facts or logic.based on facts or logic.

These include factors such as saving These include factors such as saving money, durability, and saving time.money, durability, and saving time.

Usually these products or services Usually these products or services are expensive.are expensive.

You can be convinced to upgrade You can be convinced to upgrade your computer because it’s more your computer because it’s more powerful, faster, and as more powerful, faster, and as more memory.memory.

Rational Motives ContinuedRational Motives Continued

Automobile purchases are Automobile purchases are rational when you consider rational when you consider features such as price, gas features such as price, gas mileage, warranties, or mileage, warranties, or extended mileage protection extended mileage protection packages. packages.

Rational Motives can turn into Rational Motives can turn into Emotional Motives when you Emotional Motives when you really want that Mercedes really want that Mercedes Convertible!!Convertible!!

Patronage MotivesPatronage Motives

Patronage Motives are based on Patronage Motives are based on loyalty. loyalty.

They encourage consumers to buy They encourage consumers to buy at a particular business or to buy a at a particular business or to buy a particular brand.particular brand.

It is important to remember that It is important to remember that people who are motivated by this are people who are motivated by this are very loyal to the product, service or very loyal to the product, service or brand.brand.

Companies use this approach to Companies use this approach to eliminate the competition.eliminate the competition.

The Consumer Decision The Consumer Decision Making ProcessMaking Process

A consumer goes through five A consumer goes through five steps when making a purchase steps when making a purchase decisiondecision

Problem RecognitionProblem Recognition

First the consumer must First the consumer must recognize a need, desire, or recognize a need, desire, or problemproblem

In order to play the piano, you In order to play the piano, you recognize you need to find a recognize you need to find a good piano instructor.good piano instructor.

Information SearchInformation Search

Next, the consumer gathers Next, the consumer gathers information about alternative information about alternative solutions. solutions.

After you recognize the need for After you recognize the need for a piano instructor, you talk to a piano instructor, you talk to your parents, teachers, or your parents, teachers, or friends about piano teachers. friends about piano teachers.

You might look through the You might look through the phone book or search the phone book or search the classified section, etc.classified section, etc.

Evaluation of AlternativesEvaluation of Alternatives

After gathering information, the After gathering information, the consumer evaluates the various consumer evaluates the various alternatives to determine which is alternatives to determine which is best. Sometimes this involves best. Sometimes this involves summarizing information, comparing summarizing information, comparing pros and cons of each choice, pros and cons of each choice, making tradeoffs between price and making tradeoffs between price and various options, etc.various options, etc.

You may need to decide between You may need to decide between what you can afford, what hours are what you can afford, what hours are convenient, and reputation of convenient, and reputation of instructor.instructor.

Post-Purchase EvaluationPost-Purchase Evaluation

After the purchase of course the After the purchase of course the consumer judges the consumer judges the satisfaction or dissatisfaction satisfaction or dissatisfaction with the product or service with the product or service purchased. purchased.

Recently, marketers have been Recently, marketers have been focusing on this by gathering focusing on this by gathering feedback. Toll-Free numbers feedback. Toll-Free numbers allow customers to let allow customers to let companies know.companies know.

Influences on the Consumer Influences on the Consumer Decision Making ProcessDecision Making Process

The first influence is personality. The first influence is personality. PersonalityPersonality is a well defined, is a well defined, enduring pattern of behavior.enduring pattern of behavior.

Personalities influence buying Personalities influence buying decisions because everyone decisions because everyone has individual preferences has individual preferences based on his or her patterns of based on his or her patterns of behavior.behavior.

Personality and a CarPersonality and a Car

You may be the flashy You may be the flashy convertible typeconvertible type

The laid back pick-up typeThe laid back pick-up type

Or the conservative four-door Or the conservative four-door sedan typesedan type

Social ClassSocial Class

A second influence is A second influence is social classsocial class; or ; or the lifestyle, values, and beliefs that the lifestyle, values, and beliefs that are common to a group of people.are common to a group of people.

These are usually identified by These are usually identified by income level or neighborhood.income level or neighborhood.

Your social class affects whether or Your social class affects whether or not you have the money available to not you have the money available to purchase somethingpurchase something

This will affect what brands or This will affect what brands or particular types of products you particular types of products you choose.choose.

Cultural EnvironmentCultural Environment

The third influence is The third influence is cultural cultural environmentenvironment; a set of beliefs or ; a set of beliefs or attitudes that are passed on attitudes that are passed on from generation to generation.from generation to generation.

In Long Valley many students In Long Valley many students have access to a car, but in the have access to a car, but in the inner cities students very rarely inner cities students very rarely have access to a car.have access to a car.

Reference GroupsReference Groups

Reference groupsReference groups are groups or are groups or organizations from which you organizations from which you take your values and attitudes.take your values and attitudes.

They might include church They might include church groups, fraternities, work groups, fraternities, work groups, civic organizations, groups, civic organizations, families, or friendship circles. families, or friendship circles.

Types of Decision MakingTypes of Decision Making

RoutineRoutine – are for purchases that are – are for purchases that are made quickly and do not require made quickly and do not require thought. Customers are familiar with thought. Customers are familiar with the productthe product

LimitedLimited – often associated with a – often associated with a product that is more expensive or is product that is more expensive or is purchased less frequently. You purchased less frequently. You need to evaluate alternatives before need to evaluate alternatives before making decisionmaking decision

Extensive Extensive – occurs when the – occurs when the consumer methodically goes through consumer methodically goes through all five steps of decision making all five steps of decision making process.process.