CHAPTER 6

1. CHAPTER 6 ANALYZING CONSUMER MARKETS AND BUYER BEHAVIOR

2. INFLUENCING FACTORS IN BUYING BEHAVIORS • Cultural Factors: • Culture: • Wants and behaviors of consumers • Subculture: • Nationalities, religion and regional differences • Social Class: • Income factor: • social classes differ in many characteristics-high, middle and low income groups • members behave more alike within each class • members perceived as inferior/superior • clusters of variation exists in each class • members move from one class to another.

3. INFLUENCING FACTORS IN BUYING BEHAVIORS • Social Factor: • Reference Groups-membership groups: • primary-family, relatives, co-workers • secondary-professional groups • aspirational • dissociative • opinion leaders • Family: • Husband, wife and children • Role and Status.

4. INFLUENCING FACTORS IN BUYING BEHAVIORS • Personal Factors: • Age and Life Cycle Stages • family life cycle • psychological life cycle • Occupation: • White color or blue color workers • Economic Circumstances: • Spending/saving • Life Style: • Psychographics and Value and life styles (VALS principle • Personality and Self-Concept-self image: • actual self-concept-how you view yourself • ideal self-concept-how you would like to view yourself • others self-concept-how you think others view yourself

5. INFLUENCING FACTORS IN BUYING BEHAVIORS • Psychological Factors: • Motivation: • Need satisfaction and drive to act: • biogenic-hunger, thirst • psychogenic-esteem, recognition • motive-pressing person to act • Theories of motivation: • Freud’s theory -unconscious behaviors • Maslow’s theory-need satisfaction • Herzberg’s theory-satisfiers/dissatisfiers • Perception-How the motivated person act: • Selective attention: • People do not pay attention everything around them • Selective distortion: • People twist information into personal meaning • Selective Retention: • People will forget what they learn

6. INFLUENCING FACTORS IN BUYING BEHAVIORS • Learning-arise from experience • Drive: • Strong internal stimulus impelling action • Cue: • Minor stimuli • Reinforcement: • Rewarding experience • Beliefs and Attitudes: • Beliefs: • Descriptive thought based on knowledge and opinion • Attitudes: • Favorable/unfavorable feelings

7. BUYING PROCESS • Buying Roles: • initiator-person who suggests the idea • influencer-person who gives advise • decider-person who decides to buy • buyer-person who makes actual purchase • user-person who consumes • Buying Behavior: • complex buying behaviors: • High-involvement: • Develop beliefs • Develop attitudes • Purchase decision

8. BUYING PROCESS (CONT.) • Dissonance reducing behaviors • Few differences between brands: • Infrequent purchase • Habitual behavior: • Low-involvement: • Brand familiarity and conviction. • Techniques to convert high involved purchase to low involved purchase: • link the product to some issues(problem solving) • link to personal situation • trigger emotions • add important features, • Variety-seeking buying behaviors: • Brand switching

9. BUYING PROCESS (CONT.) • Buying Decision Process: • Problem recognition • Information search: • personal-family friend • commercial-advertising, salesperson • public-consumer union • experiential-personal experience • Information about competing set of brands: • total set • awareness set • consideration set • choice set • final decision

10. BUYING PROCESS (CONT.) • Evaluation of alternatives: • Brand belief and brand image(needs and benefits) • Purchase: • attitudes of others • unanticipated situational factors • perceived risk • Purchase sub-decisions: • Brand, vendor, quantity, timing and payment method • Post Purchase behaviors: • Post-purchase satisfaction: • Satisfied, somewhat satisfied, dissatisfied • Post-purchase action: • Repeat purchase • Complains • Post-purchase use and disposal of product: • Storage and new uses of the product