Chapter 6 Flashcards
Consumer Buyer Behaviour
buying behavior of final consumers-combine to make up consumer market
consumer behavior
In order to build brand loyalty and lasting relationships with consumers, the marketer must be aware of the number of issues before, during and after purchase
differences in consumer characteristics in the market are typically the underlying reasons for the differences in consumer behavior.
Characteristics affecting consumer behavior
Cultural-Social-Personal-Psychological
Cultural factors
Culture= set of basic values, perceptions, wants and behaviors learned by a member of society from family or other important institutions
Subculture= Shared value systems within the group
Regional subcultures/Founding nations/Ethnic consumers
Social class= division based on a combination of occupation, Income, Education, wealth…
4 Key Canadian social values
balance btw individualism and concern for human good
acceptance of diversity, multiculturalism
having a secure safety net for all
Peace
Social factors
reference groups: Direct or indirect f comparison or reference in forming a person’s attitudes or behavior.
*Aspiration Group: group to which not belong to but wishes he did
*Membership groups: Direct influence and to which person belongs(family, friends…)
*Word of Mouth: impact of personal words and recommendations on buying power
*Opinion leaders: a person that because of special skill, personality and other characteristics exerts social influence on others
*Buzz marketing: Enlisting or creating opinion leaders to serve as Brand Ambassador and spread word on products
*Online social networks: online social communities where people socialize and exchange info
Family: buying roles changing.More men doing the shopping
Role and status:
A person position in each group they belong to
Ex: at work people will wear clothes that reflect their position but at a sporting event will wear clothes supporting team
Personal Factors
Age and life-cycle stage: consumer experiences many life stage changes during life. as life stage changes so do behaviour and purchasing preferences
Occupation: occupation affects goods and services bought
Economic situation: Marketers watch trends in personal income, savings and interest rates
Lifestyle: Person pattern of living expressed by their activities, interests, and opinions
* involves measuring consumers’ major AIO- Activities( work, hobbies..) Interests(food, sport) and opinions(about themselves, business, products)
* Consumers don’t just buy products they buy values and lifestyles those products represent.
Personality and self-concept:
personality: unique phycological characteristics that distinguish a person from a group
Brand personality: specific mix of human traits that have been attributed to the brand
*Sincerity, competence, excitement, sophistication, ruggedness
Self-concept: idea that peoples possessions reflect their identities
Phycological Factors
Motivation: need that is pressing which direct person to seek satisfaction for need
*Motivation research: qualitative research designed to probe consumers subconscious motivations
*Maslow’s Hierarchy of needs
Perception: the process by which people elect, organize and in interpret information to organize meaningful picture of the world
*Selective attention: people screen out most of the info to which they are exposed
* Selective distortion: the tendency for people to interpret Info in a way that supports there beliefs
*Selective retention: Consumers likely to remember good points about a brand they favor and forget good points about competing brand
Learning: changes in indvs behavior arising from experience
Beliefs and attitudes:
*Beliefs: descriptive though that person holds about something( ex: Molson has no aftertastes, Prius tech advanced car)
*Attitude: persons consistent favorable or unfavorable evaluation, feelings and tendencies towards object or idea. Attitudes difficult to change. ( I prefer Iphones, the Prius is the best car on the market)
Product involvement
High involvement product: high risk, infrequently purchased, high price, complex
Low involvement product: all the opposite
Buyer decision process
1: Need recognition=Buyer recognized a need of problem
* Internal stimuli: person needs rises to become a drive
* External stimuli: discussion with someone might get you thinking of new product
2: Info search: Consumers can obtain info from diff sources: personal sources(family..) commercial sources(ads,salespeople..) Public sources( Social media,online searches..) and experiential sources( using and examining product)
3: Evaluation of alternatives: depends on consumer and buying situation(careful calculations vs impulse buying)
* Most buyers consider several attributes, each with different importance
4: Purchase decision: two factors.
* Attitude of others: Bi=uyers take into account what others think
* Unexpected situational factors: ex economy might turn to its worst
5: Post purchase behavior: Satisfied or dissatisfied?
* mostly all major purchases result in cognitive dissonance: buyer discomfort caused by post-purchase conflict. Customer satisfied but made compromises and feels uneasy losing those benefits
* Encourage customers to complain, to know where to improve
The buyer decision process for new products
New product: good, service or idea perceived by some potential customer as new
Adoption Process:(steps later) Mental process which indv passes from 1st hearing to final adoption
Assumption: Buyer trying to decide whever to begin using the new product regularly over an old one
Stages in adoption process
Awareness/Interest/evaluation/Trial/Adoption
Individual differences in Inovativeness
Important in designing the communication/promotion program for new product
Innovators/Early adopters/ early Mainstream/late mainstream/laggards
Rate of Adoption
how fast innovation is adopted by the target market and replaces an older product
Five Product Characteristics Affecting Rate of Adoption
Relative advantage: degree at which innovation appears superior to existing products
Compatibility: Degree which innovation fits values and experiences of potential consumers
Divisibility: innovation may be tried on a limited basis (triability)
Communicability: the results of using the innovation can be observed or described to others
Complexity: innovation is difficult to understand or use
