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Ins ppt ch06

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  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
    For the most part, marketers cannot control such factors, but they must take them into account.
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • Note to Instructor
    Discussion Question
    What groups are you a member of and what are your aspirational groups. How does this influence you as a consumers?
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 1: Understand the consumer market and the major factors that influence consumer buyer behavior
  • LO 2: Identify and discuss the stages in the buyer decision process
  • LO 2: Identify and discuss the stages in the buyer decision process
  • LO 2: Identify and discuss the stages in the buyer decision process
  • LO 2: Identify and discuss the stages in the buyer decision process
  • LO 3: Describe the adoption and diffusion process for new products
  • LO 3: Describe the adoption and diffusion process for new products
  • LO 3: Describe the adoption and diffusion process for new products
  • LO 4: Define the business market and identify the major factors that influence business buyer behavior
  • LO 4: Define the business market and identify the major factors that influence business buyer behavior
  • LO 4: Define the business market and identify the major factors that influence business buyer behavior
  • LO 4: Define the business market and identify the major factors that influence business buyer behavior
  • LO 4: Define the business market and identify the major factors that influence business buyer behavior
  • LO 4: Define the business market and identify the major factors that influence business buyer behavior
  • LO 5: List and define the steps in the business buying decision process
  • LO 5: List and define the steps in the business buying decision process
  • Transcript

    • 1. Understanding Consumer and Business Buyer Behaviour Chapter 6 6-1 Copyright © 2012 Pearson Canada Inc.
    • 2. Previewing the Concepts 1. Understand the consumer market and the major factors that influence consumer buyer behavior 2. Identify and discuss the stages in the buyer decision process 3. Describe the adoption and diffusion process for new products 4. Define the business market and identify the major factors that influence business buyer behavior 5. List and define the steps in the business buying decision process 6-2 Copyright © 2012 Pearson Canada Inc.
    • 3. Consumer Buying Behavior • Consumer buying behavior: – The buying behavior of individuals and households who buy goods and services for personal use – These people make up the consumer market • The central question for marketers is: – How do consumers respond to various marketing efforts the company might use? 6-3 Copyright © 2012 Pearson Canada Inc.
    • 4. Influences on Consumer Behaviour Psychological Personal Consumer Social Marketing Mix • Product • Price • Marketing Communications • Distribution Company • Image • Reputation Cultural 4 6-4 Copyright © 2012© 2010 Pearson Copyright Pearson Canada Inc.
    • 5. Consumer Buying Behavior • Factors influencing consumer behavior: 6-5 Copyright © 2012 Pearson Canada Inc.
    • 6. Culture • Culture is the most basic cause of a person’s wants and behavior – It is learned from family, church, school, peers, colleagues – Culture reflects basic values, perceptions, wants, and behaviors – Cultural shifts create opportunities for new products or may otherwise influence consumer behavior 6-6 Copyright © 2012 Pearson Canada Inc.
    • 7. 6-7 Copyright © 2012 Pearson Canada Inc.
    • 8. 6-8 Copyright © 2012 Pearson Canada Inc.
    • 9. Subculture • Subculture: – Groups of people with shared value systems based on common life experiences • Major subculture groups: – Regional subcultures – Founding nations – Ethnic subcultures – Mature consumers 6-9 Copyright © 2012 Pearson Canada Inc.
    • 10. Social Class • Social class: – 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 – People within a given social class tend to exhibit similar buying behaviour 6 - 10 Copyright © 2012 Pearson Canada Inc.
    • 11. Social Factors • Groups and social networks: – Membership, reference, and aspirational groups • Marketers attempt to reach opinion leaders, people who exert social influence on others • Opinion leaders are recruited as brand ambassadors or for buzz marketing – Online social networks allow marketers to interact with consumers • • IKEA and Buzz Marketing http://www.youtube.com/watch?v=zdd7-kHrvps 6 - 11 Copyright © 2012 Pearson Canada Inc.
    • 12. Reference Groups “A group of people with a common interest that influences its members’ attitudes and behaviour.” Reference groups (peers) are a strong influence among young people. The hip hop community (hip hop musicians) is one of the biggest brand building communities in the world. 12 6 - 12 Copyright © 2012© 2010 Pearson Copyright Pearson Canada Inc.
    • 13. Characteristics Affecting Consumer behaviour Groups and Social Networks 6 - 13 Copyright © 2012 Pearson Canada Inc.
    • 14. Social Influences on Consumer Decisions • Green Marketing – Growing -70% of Canadians buying more environmentally friendly products than they did one year ago – Becoming mainstream 6 - 14 Copyright © 2012 Pearson Canada Inc.
    • 15. Social Factors • Family: – Strongly influences buying behavior – Gender stereotypes for certain types of purchases are changing – Children have strong influence on family buying decisions • Roles and status: – Role = Expected activities – Status = Esteem given to role by society 6 - 15 Copyright © 2012 Pearson Canada Inc.
    • 16. Family The changing roles of adults means marketers can no longer make assumptions about who the primary buyer is. 1. 2. Major retailers are reconfiguring to appeal more to women. 3. Wal-Mart Supercentres are specifically designed for women 30 to 45 with 2 or 3 children, a husband and a career. 4. 16 6 - 16 Major decisions are shared decisions. Children influence $20 billion in family spending each year in Canada. Copyright © 2012© 2010 Pearson Copyright Pearson Canada Inc.
    • 17. Cultural Influences Culture refers to “behaviour learned from external sources such as family, the workplace, and education— that help form the value systems an individual lives by.  Gen X, Gen Y, Boomers  Ethnic Groups  French Quebec 6 - 17 17 Marketing strategies must be tailored to the unique needs of different groups. Copyright © 2012© 2010 Pearson Copyright Pearson Canada Inc.
    • 18. Personal Factors • Age/life-cycle stage: – People change the goods they buy over their lifetimes • Occupation: – Occupation affects the goods and services bought • Economic situation: – A person’s economic situation affects store and product choices 6 - 18 Copyright © 2012 Pearson Canada Inc.
    • 19. Personal Factors • People within the same subculture, social class, and occupation may have different lifestyles • Lifestyle: – Pattern of living as expressed in his or her activities, interests, opinions • People buy the values and lifestyles products represent 6 - 19 Copyright © 2012 Pearson Canada Inc.
    • 20. Lifestyle A person’s pattern of living expressed in terms of activities, interests, opinions and values. Independent research companies conduct surveys and place people in lifestyle segments. Each segment is motivated by a unique set of attitudes and beliefs. • Protective Providers • Up an Comers • Les “Petite Vie” • Mavericks • Contented Traditionalists • Joiner Activists • Passive Malcontents • Tie-Dyed Greys Source: Millward Brown Goldfarb 20 6 - 20 Copyright © 2012© 2010 Pearson Copyright Pearson Canada Inc.
    • 21. Personal Factors • Personality: – The unique psychological characteristics that distinguish a person or group – Generally defined in terms of traits – Self-concept theory suggests that people’s possessions contribute to and reflect their identities – Brands may also have personalities 6 - 21 Copyright © 2012 Pearson Canada Inc.
    • 22. Psychological Factors • Motivation: – A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction – Maslow’s hierarchy of needs explains why people are driven by needs at particular times 6 - 22 Copyright © 2012 Pearson Canada Inc.
    • 23. Psychological Factors • Maslow’s hierarchy of needs: – Physiological needs – Safety needs – Social needs – Esteem needs – Self-actualization • Hierarchy implies that lower level needs (physiological) must be satisfied first 6 - 23 Copyright © 2012 Pearson Canada Inc.
    • 24. Maslow’s Hierarchy of Needs 6 - 24 Copyright © 2012 Pearson Canada Inc.
    • 25. Psychological Factors • Perception: – Process by which people select, organize, and interpret information to form a meaningful picture of the world – Perception can be influenced by: • 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 6 - 25 Copyright © 2012 Pearson Canada Inc.
    • 26. Psychological Factors • Learning: – Changes in an individual’s behavior arising from experience – Occurs due to an interplay of drives, stimuli, cues, responses, and reinforcement – Behaviors with rewarding results tend to be repeated 6 - 26 Copyright © 2012 Pearson Canada Inc.
    • 27. Beliefs and Attitudes • Belief: – A descriptive thought that a person holds about something • Attitude: – A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea 6 - 27 Copyright © 2012 Pearson Canada Inc.
    • 28. Buyer Decision Process • There are five stages in the buyer decision process: 1. 2. 3. 4. 5. 6 - 28 Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior Copyright © 2012 Pearson Canada Inc.
    • 29. Need Recognition/ Information Search • Need recognition can be triggered by internal or external stimuli • Several sources of information may be used during information search: – Personal sources – Commercial sources – Public sources – Experiential sources 6 - 29 Copyright © 2012 Pearson Canada Inc.
    • 30. Situational Influences on Consumer Decisions • Physical environment dimensions such as décor, smells, and lighting • Arousal and pleasure determine consumers’ reaction to store environment • Time 6 - 30 Copyright © 2012 Pearson Canada Inc.
    • 31. Evaluation of Alternatives / Purchase Decision • Evaluation of alternatives depends upon the specific buying situation and the individual consumer • Two factors may come between the purchase intention and purchase decision: – Attitudes of others – Unexpected situational factors 6 - 31 Copyright © 2012 Pearson Canada Inc.
    • 32. Post Purchase Behavior • Consumer satisfaction is a function of consumer expectations and perceived product performance – Performance < Expectations = Disappointment – Performance = Expectations = Satisfaction – Performance > Expectations = Delight • Cognitive dissonance: – Discomfort caused by postpurchase conflict 6 - 32 Copyright © 2012 Pearson Canada Inc.
    • 33. Stages in the Adoption Process • • • • • 6 - 33 Awareness: Consumer becomes aware of the new product, but lacks information Interest: Consumer seeks information about new product Evaluation: Consumer considers whether trying the new product makes sense Trial: Consumer tries new product on a small scale to determine its value Adoption: Consumer decides to make regular use of the new product Copyright © 2012 Pearson Canada Inc.
    • 34. Adopter Categorization • Individual differences influence the speed people will try new products, yielding five adopter categories: – Innovators – Early adopters – Early majority – Late majority – Laggards 6 - 34 Copyright © 2012 Pearson Canada Inc.
    • 35. Rate of Adoption • Relative advantage: Is the innovation superior to existing products? • Compatibility: Does the innovation fit the values and experience of the target market? • Complexity: Is the innovation difficult to understand or use? • Divisibility: Can the innovation be used on a limited basis? • Communicability: Can results be easily observed or described to others? 6 - 35 Copyright © 2012 Pearson Canada Inc.
    • 36. Business Markets and Buyer Behavior • Business buyer behavior: – The buying behavior of organizations that buy goods and services for the production of other products/services or to resell or rent them to others for a profit • Business market is huge and involves far more dollars and items than consumer markets 6 - 36 Copyright © 2012 Pearson Canada Inc.
    • 37. Business Markets • Market structure and demand: – Contains far fewer but larger buyers – Business demand is derived from consumer demand – Business markets have more fluctuating demand • Nature of the buying unit: – Business purchases involve more decision participants and a more professional purchasing effort 6 - 37 Copyright © 2012 Pearson Canada Inc.
    • 38. Business Markets • Key differences exist between business and consumer buying situations: – Business buyers usually face more complex buying decisions – The business buying process tends to be more formalized – Buyers and sellers are much more dependent on each other in business markets 6 - 38 Copyright © 2012 Pearson Canada Inc.
    • 39. Types of Buying Situations • Straight rebuy: Buyer routinely reorders something without any modifications • Modified rebuy: Buyer modifies product specifications, prices, terms, or suppliers • New task: Buyer purchases a product or service for the first time • Systems (solution) selling is becoming more common 6 - 39 Copyright © 2012 Pearson Canada Inc.
    • 40. Participants in the Business Buying Process • A buying center is all the individuals and units that participate in the purchase decision-making process – The buying center is not a fixed or formally identified unit – The size and makeup will vary for different products and different situations 6 - 40 Copyright © 2012 Pearson Canada Inc.
    • 41. Influences on Business Buyers • Major influences on business buyer behaviour: 6 - 41 Copyright © 2012 Pearson Canada Inc.
    • 42. The Business Buying Process • Stages of the business buying process: 6 - 42 Copyright © 2012 Pearson Canada Inc.
    • 43. E-procurement • Online purchasing (e-procurement) can be implemented in many ways: – Reverse auctions – Trading exchanges – Company buying sites – Extranet links with key suppliers • E-procurement presents several benefits and problems 6 - 43 Copyright © 2012 Pearson Canada Inc.
    • 44. Reviewing the Concepts 1. Understand the consumer market and the major factors that influence consumer buyer behavior 2. Identify and discuss the stages in the buyer decision process 3. Describe the adoption and diffusion process for new products 4. Define the business market and identify the major factors that influence business buyer behavior 5. List and define the steps in the business buying decision process 6 - 44 Copyright © 2012 Pearson Canada Inc.

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