Marketing chapter 5[1]

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  • {"33":"Note to Instructor\nThis Web link brings you to PriceGrabber—an online comparison shopping site. What is interesting on this site is on the left hand side, you can search by features. These features help a consumer know how to evaluate a product. For instance, this example is laptop computers and one can search by processing speed, processor type, screen size, etc.\n","11":"Note to Instructor\nDiscussion Question\nWhat groups are you a member of and what are your aspirational groups. How does this influence you as a consumers?\n","17":"Note to Instructor\nLifestyle: BlackBerry has achieved initial success by attracting consumers with an interest in a cool lifestyle and social networking.\nDiscussion Question\nWhat categories of products seem to be targeted to consumer’s lifestyles?\nThey will realize many products in addition to cars including food, cosmetics, shampoo also appeal to a consumer’s lifestyles.\n","23":"Note to Instructor\nSelective perception: It’s impossible for people to pay attention to the thousands of ads they’re exposed to every day, so they screen most of them out.\nDiscussion Question\nIf you watched television last night, what ads do you remember seeing?\nProbe to find out why they remember certain ads—was it that they broke through the clutter, that they saw them many times, or that they are in the market for that certain product?\n","12":"Note to Instructor\nIt is a great idea to click through to the BuzzParadise Web site. It is an excellent example of Buzz marketing. Ask students if they tend to have a “go to” person when they want to purchase. Would they consider themselves opinion leaders? A great group to ask about is middle school aged kids. Who are the opinion leaders here? What qualities do they possess?\n","7":"Note to Instructor \nReal Marketing 5.1 discusses McDonald’s challenges in the Arab world. McDonald’s is currently operating in 14 Arab countries. A key element in McDonald’s strategy is to adapt its traditional American approach to local culture, food habits, and lifestyles. \nFor example, in some countries of the Arab world, McDonald’s outlets are divided along male and female lines in accordance with local custom. As well as adapting the restaurants themselves, McDonald’s tailors its menu to meet the food culture or preferences of different countries. The McDonald’s menu varies widely in different parts of the world. In the Arab world, for example, the company launched ‘McArabia,’ a product that McDonald’s intended to match regional tastes and preferences.\n","13":"Note to Instructor:\nDiscussion Question\nHow can marketers use these networks?\nThis slide should provide a lively discussion for students because they all are users of social networks. Ask students for examples they have seen or experienced. Then be sure to ask if they think the marketing efforts were effective for the marketer and why? P&G for example set up\n","19":"Note to Instructor\nIt is interesting to talk about brand personalities and ask students the personality of several brands:\nA brand personality is the specific mix of human traits that may be attributed to a particular brand. \nOne researcher identified five brand personality traits\n1. Sincerity (down-to-earth, honest, wholesome, and cheerful)\n2. Excitement (daring, spirited, imaginative, and up-to-date)\n3. Competence (reliable, intelligent, and successful)\n4. Sophistication (upper class and charming)\n5. Ruggedness (outdoorsy and tough)\n","8":"Note to Instructor \nThis weblink directs you to the homepage of professor Geert Hofstede’s Cultural Dimensions in the Arab World. \nHofstede identified a high Power Distance Index (PDI) ranking in the Arab world. This indicates high levels of inequality of power and wealth. People expect and accept that leaders will separate themselves from the majority. \nHofstede also identified a high Uncertainty Avoidance Index (UAI). This indicates that people are uncomfortable with uncertainty. Strict rules, laws, policies, and regulations are put in place to minimize or reduce this level of uncertainty. \nLarge PDI and UAI scores, 80 and 68 respectively, suggest that people in Arab world societies are likely to follow a hierarchical system in which there is little social mobility. According to Hofstede, the combination of these two dimensions produces a situation in which leaders have ultimate power and authority, and allows them to set laws and regulations\nthat reinforce their leadership and control.\nThe Masculinity Index (MAS) is the Arab world’s third highest dimension, though at 52 it is only slightly higher than the 50.2 world average. This score suggests that women in the Arab world have limited rights. However, it is not clear whether this is due to cultural or religious factors.\nThe lowest Hofstede dimension for the Arab world is for Individualism (IDV). With a score of 38, it is significantly below the world average of 64. This shows the existence of a Collectivist society rather than an Individualist culture. In a Collectivist culture, there is a close long-term commitment to the member ’group,’ in other words to the family, extended family,\nor extended relationships. In this culture, loyalty is vital and overrides most other societal rules.\n","14":"Note to Instructor\nDiscussion Question\nWhat brands do you purchase because it is what your parents used? Why do you think this occurs?\n","31":"Note to Instructor\nThis innovative ad from Clorox clothing detergent reminds parents that “This is how babies see the world. Keep it clean.”\n","4":"Note to Instructor\nDiscussion Question\nWhat have you recently purchased that cost over $100? Write down all the reasons you purchased this particular item.\nBecause students are all consumers—it is interesting to start the class with a discussion of products they have recently purchased. When you ask them why they purchased a particular item or product, you can bring them through many topics in this chapter including the characteristics that affect consumer behavior (cultural, social, personal, and psychological). You can also try to determine the process they went through including how and where they searched for information and how they evaluated their alternatives. Finally, ask them how they feel about their purchase (postpurchase behavior). This discussion will lead nicely to the next slide which is the Model of Buyer Behavior.\n","21":"Note to Instructor\nAn aging consumer who buys a sporty convertible might explain that he or she simply likes the feel of the wind in his or her thinning hair. At a deeper level, the person may be buying the car to feel young and independent again. \n"}

Transcript

  • 1. Ch 5 -1 Copyright © 2011 Pearson Education
  • 2. Principles of Marketing, Arab World Edition Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed Tolba Presentation prepared by Annelie Moukaddem Baalbaki CHAPTER FIVE Consumer Behavior Lecturer: Insert your name here Ch 5 -2 Copyright © 2011 Pearson Education
  • 3. Chapter Learning Outcomes Topic Outline 5.1 Model of Consumer Behavior 5.2 Characteristics Affecting Consumer Behavior 5.3 Types of Buying Decision Behavior 5.4 The Buyer Decision Process 5.5 The Buyer Decision Process for New Products Ch 5 -3 Copyright © 2011 Pearson Education
  • 4. Consumer Behavior Consumer Buyer Behavior and Consumer Market Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption. Consumer market refers to all of the personal consumption of final consumers. Ch 5 -4 Copyright © 2011 Pearson Education
  • 5. Model of Consumer Behavior Ch 5 -5 Copyright © 2011 Pearson Education
  • 6. Characteristics Affecting Consumer Behavior Ch 5 -6 Copyright © 2011 Pearson Education
  • 7. Characteristics Affecting Consumer Behavior Cultural Factors Culture is the set of basic values, perceptions, wants, and behavior learned from family and other important institutions. Subculture are groups of people within a culture with shared value systems based on common life experiences and situations. Ch 5 -7 Copyright © 2011 Pearson Education
  • 8. Characteristics Affecting Consumer Behavior Cultural Factors Prof. Hofstede defined five dimensions to analyze and compare cultures across the world. Using research conducted in Egypt, Iraq, Kuwait, Lebanon, Libya, Saudi Arabia, and the UAE, he developed a measure of the Arab world. The 5 dimensions are: 1.Power Distance Index 2.Uncertainty Avoidance Index 3.Individualism 4.Masculinity 5.Long-Term Orientation. Ch 5 -8 Copyright © 2011 Pearson Education
  • 9. Characteristics Affecting Consumer Behavior Cultural Factors Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Measured by a combination of occupation, income, education, wealth, and other variables. Ch 5 -9 Copyright © 2011 Pearson Education
  • 10. Characteristics Affecting Consumer Behavior An Arab Example : Social Classes in the UAE Nationals Al-Muwateneen Ruling Sheikhly Families • The Merchant Class • New Middle Class • Low Income Groups • Ch 5 -10 Copyright © 2011 Pearson Education Foreign immigrants Al-Wafedeen Top Professionals and International Contractors • Middle Range Professionals • Low-paid, Semi-skilled and Unskilled workers •
  • 11. Characteristics Affecting Consumer Behavior Social Factors Groups and Social Networks Ch 5 -11 Copyright © 2011 Pearson Education
  • 12. Characteristics Affecting Consumer Behavior Social Factors Word-of-mouth influence and buzz marketing • Opinion leaders are people within a reference group who exert social influence on others • Also called influentials or leading adopters • Marketers identify them to use as brand ambassadors Ch 5 -12 Copyright © 2011 Pearson Education
  • 13. Characteristics Affecting Consumer Behavior Social Factors Online Social Networks are online communities where people socialize or exchange information and opinions: • Blogs • Social networking sites (facebook) • Virtual worlds (second life) Ch 5 -13 Copyright © 2011 Pearson Education
  • 14. Characteristics Affecting Consumer Behavior Social Factors Family is the most important consumer-buying organization in society. Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status. Ch 5 -14 Copyright © 2011 Pearson Education
  • 15. Characteristics Affecting Consumer Behavior Personal Factors Age and life-cycle stage: • People change the goods and services they buy over their lifetimes • Tastes in food, clothes, furniture, and recreation are often age related • Buying is also shaped by the stage of the family life-cycle— the stages through which families might pass as they mature over time Ch 5 -15 Copyright © 2011 Pearson Education
  • 16. Characteristics Affecting Consumer Behavior Personal Factors Occupation affects the goods and services bought by consumers. Economic situation includes trends in: Ch 5 -16 Copyright © 2011 Pearson Education
  • 17. Characteristics Affecting Consumer Behavior Personal Factors Lifestyle is a person’s pattern of living as expressed in his or her psychographics. Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment. Ch 5 -17 Copyright © 2011 Pearson Education
  • 18. Characteristics Affecting Consumer Behavior Personal Factors Personality and self-concept • Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment: Self-confidence, Sociability, Autonomy, Defensiveness, Adaptability, Aggressiveness. • Self-concept or self-image premise is that people’s possessions contribute to and reflect their identities—that is, ‘we are what we have’. Ch 5 -18 Copyright © 2011 Pearson Education
  • 19. Characteristics Affecting Consumer Behavior Brand Personalities Sincerity: Down-to-earth, honest, wholesome, and cheerful Excitement: Daring, spirited, imaginative, and up-to-date Competence: Reliable, intelligent, and successful Sophistication: Upper class and charming Ruggedness: Outdoorsy and tough Ch 5 -19 Copyright © 2011 Pearson Education
  • 20. Characteristics Affecting Consumer Behavior Psychological Factors Ch 5 -20 Copyright © 2011 Pearson Education
  • 21. Characteristics Affecting Consumer Behavior Psychological Factors Motivation A motive is a need that is sufficiently pressing to direct the person to seek satisfaction. Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations. Ch 5 -21 Copyright © 2011 Pearson Education
  • 22. Characteristics Affecting Consumer Behavior Ch 5 -22 Copyright © 2011 Pearson Education
  • 23. Characteristics Affecting Consumer Behavior Psychological Factors Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes. • Selective attention • Selective distortion • Selective retention Ch 5 -23 Copyright © 2011 Pearson Education
  • 24. Characteristics Affecting Consumer Behavior Psychological Factors Selective attention is the tendency for people to screen out most of the information to which they are exposed. Selective distortion is the tendency for people to interpret information in a way that will support what they already believe. Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands. Ch 5 -24 Copyright © 2011 Pearson Education
  • 25. Characteristics Affecting Consumer Behavior Psychological Factors Learning is the change in an individual’s behavior arising from experience and occurs through interplay of: Ch 5 -25 Copyright © 2011 Pearson Education
  • 26. Characteristics Affecting Consumer Behavior Psychological Factors Beliefs and Attitudes Belief is a descriptive thought that a person has about something based on: • Knowledge • Opinion • Faith Ch 5 -26 Copyright © 2011 Pearson Education
  • 27. Characteristics Affecting Consumer Behavior Psychological Factors Beliefs and Attitudes Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. Ch 5 -27 Copyright © 2011 Pearson Education
  • 28. Types of Buying Decision Behavior Ch 5 -28 Copyright © 2011 Pearson Education
  • 29. Types of Buying Decision Behavior Ch 5 -29 Copyright © 2011 Pearson Education
  • 30. The Buyer Decision Process Ch 5 -30 Copyright © 2011 Pearson Education
  • 31. The Buyer Decision Process Need Recognition Occurs when the buyer recognizes a problem or need triggered by: • Internal stimuli • External stimuli Ch 5 -31 Copyright © 2011 Pearson Education
  • 32. The Buyer Decision Process Information Search Sources of Information Personal sources—family and friends Commercial sources—advertising, Internet Public sources—mass media, consumer organizations Experiential sources—handling, examining, using the product Ch 5 -32 Copyright © 2011 Pearson Education
  • 33. The Buyer Decision Process Evaluation of Alternatives How the consumer processes information to arrive at brand choices. Depends on the individual consumer and the specific buying situation. Ch 5 -33 Copyright © 2011 Pearson Education
  • 34. The Buyer Decision Process Purchase Decision The act by the consumer to buy the most preferred brand The purchase decision can be affected by: • Attitudes of others • Unexpected situational factors. Ch 5 -34 Copyright © 2011 Pearson Education
  • 35. The Buyer Decision Process Post-Purchase Decision The satisfaction or dissatisfaction that the consumer feels about the purchase. Relationship between: • Consumer’s expectations • Product’s perceived performance The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction. Ch 5 -35 Copyright © 2011 Pearson Education
  • 36. The Buyer Decision Process Post-Purchase Decision Cognitive dissonance is the discomfort caused by a postpurchase conflict. Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value. Ch 5 -36 Copyright © 2011 Pearson Education
  • 37. The Buyer Decision Process for New Products New Product and Adoption Process A New Product is a good, service, or idea that is perceived by some potential customers as new. Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. Ch 5 -37 Copyright © 2011 Pearson Education
  • 38. The Buyer Decision Process for New Products Stages in the Adoption Process Ch 5 -38 Copyright © 2011 Pearson Education
  • 39. The Buyer Decision Process for New Products Individual Differences in Innovativeness Ch 5 -39 Copyright © 2011 Pearson Education
  • 40. The Buyer Decision Process for New Products Influence of Product Characteristics on Rate of Adoption Ch 5 -40 Copyright © 2011 Pearson Education
  • 41. This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Ch 5 -41 Copyright © 2011 Pearson Education