MQM 328 E & The Arts 1

1. MQM 328E & The Arts 1 Chapter 4: Consumer Behaviors

2. Basic Function of Marketing • Meeting Consumer Need by; • Creating a product that fulfills a specific consumer need or • Positioning your product in regards to the needs of a specific segment of the population

3. Meeting Consumer Needs • Consumers always base their purchase decision on two things • Internal (Previous experience) • External (Type of product, word of mouth, etc)

4. Consumer Decision Making • Based on three major types of variables • Those related directly to consumers themselves • Those related to the purchasing context or situation • Those related to the product being considered

5. Motivation • Consumers will not purchase a product unless they are strongly motivated to do so. • Consumer motivation, a definition • The imbalance between the consumer’s current and desired state.

6. Individual Variables • Product involvement, a definition • The feeling of importance or personal interest associated with the product in a given situation

7. Individual Variables • Product Involvement is a function of • Level of functional risk • The possibility that the product does not meet consumer expectations • Level of economic risk • The more expensive the product, the more complicated the decision making process is

8. Individual Variables • Level of psychological risk • Must correspond to my own sense of self image • Level of social risk • What will others think?

9. Individual Variables • Experience • The broader the experience, the shorter the decision making process • Many consumers are seeking continuity • Consumers categorize previous experiences into • Known • Unknown • Retained • Rejected

10. Individual Variables • Socio-demographic variables • Have an impact on consumer behavior largely because they determine the intensity of existing risks

11. Individual Variables • Personality • Least conclusive of all in terms of consumer behaviors • Some consumers tend to imitate peer behavior but a significant number seem to behave according to their own dispositions

12. Individual Variables • Benefits sought • Many and varied • Many times consumers may not be able to articulate the benefits they seek

13. The Decision Making Process • The decision making process is often colored by highly emotional factors

14. The Decision Making Process • Attitude • Requires both experience and involvement in the particular cultural product or category of cultural products • Allows the consumer to reach a decision simply, quickly, and effectively using positive past experience and the ensuing personal judgment

15. The Decision Making Process • Cognitive processes • Used with products that require a high degree of involvement (as in an experienced consumer) • (Linear compensatory decision making model) • ( • Conjunctive model)

16. The Decision Making Process • Subordinate Processes • Used when the consumer lacks the time or ability to absorb the necessary product information • Decisions will then be based on imitation, recommendation, or compliance

17. The Decision Making Process • Affective Processes • Relies heavily on emotional elements (love, hate, joy, boredom, fatigue, etc.) • Particularly common among consumers of cultural products

18. The Decision Making Process • Habit • Characterized by a low level of involvement • Provides consumers with an easy, routine way of selecting a product, especially when the purchase or consumption involves very little risk

19. The Decision Making Process • Impulse Purchasing • Characterized by a low level of involvement • Purchases are generally unplanned and of little consequences

20. Situational Variables • Period • Time available • Reference groups • Economic variables • Place

21. Information Processing • A key function of marketing is to provide consumers with information • The more experience the consumer has, the less interested he will be in information from outside sources.