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Chapter 5

Final Consumers
and Their Buying
Behavior

Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
At the end of this presentation, you
should be able to:
1. describe how economic needs influence the
buyer decision process.
2. understand how psychological variables affect an
individual’s buying behavior.
3. understand how social influences affect an
individual’s buying behavior.
4. describe how culture and ethnicity influence
consumer buying behavior

Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
5-2
At the end of this presentation, you
should be able to:
5. explain how characteristics of the purchase
situation influence consumer behavior.
6. explain the process by which consumers make
buying decisions.
7. understand important new terms.

Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
5-3
Consumer Behavior for Marketing Strategy
Planning (Exhibit 5-1)

Organizational
Final Consumers
Consumers

Chapter 5 Chapter 6
Final Consumers and Their Business and Organizational Customers and
Buying Behavior Their Buying Behavior

Marketing mixes Other stimuli


Person making Decisions
Economic Psychological Social Culture Purchase
needs variables influences situation

Consumer Decision Process


Person does or does not purchase
5-4 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
A Model of Influences on Consumer
Behavior (Exhibit 5-2)
Marketing mixes All other stimuli
Person making decision
Social Purchase
Economic Psychological Culture &
influence situation
needs variables • Family Ethnicity • Purchase
• Economy of • Motivation
• Social • Ethnicity
reason
purchase • Perception • Culture
class • Time
• Convenience • Learning
• Reference • International • Surroundings
• Efficiency • Attitude
• Dependability • Trust groups
• Lifestyle

Consumer decision process

Person does or does not purchase (response)


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Economic Needs Affect Most
Buying Decisions
Decide to buy
Economic based on Economic
Buyers Needs

Economy of Efficiency in
Dependability Improvement
purchase or operation or Convenience
in use of earnings
use use

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Income
Affects
Needs

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Economic Needs Affect Many Buying
Decisions—But They’re Not the Whole Story

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Psychological Influences within an
Individual
Needs

Wants

Drives

Consumers seek benefits to match


needs and wants!
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The PSSP Hierarchy of Needs
(Exhibit 5-4)
Personal
Needs

Social Needs

Safety Needs

Physiological Needs
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A New Role for Yogurt

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Checking Your Knowledge

An individual’s insistence on buying Johnson’s


baby bathing soap for his/her toddler can be termed
as a:
A. social need
B. want
C. safety need
D. drive
E. psychological need
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5-12
Need Perception

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The Learning Process (Exhibit 5-5)

Drive

Cues
Reinforcement

Response
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Attitudes Relate to Buying
Belief: An
Opinion “Green”
Attitude: A Attitudes and
Point of View Beliefs

Building Changing
Consumer
Key Issues
Negative
Trust Attitudes

Meeting
Ethical Issues
Expectations
May Arise
Is Important
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Psychographics Focus on Activities,
Interests, and Opinions

Activities

Interests

Opinions

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Lifestyle Dimensions (Exhibit 5-6)
Dimension Examples
Activities Work Vacation Surfing web
Hobbies Entertainment Shopping
Social events Club membership Sports

Interests Family Community Food


Home Recreation Media
Job Fashion Achievements
Opinions Themselves Business Products
Social issues Economics Future
Politics Education Culture
Demographics Income Geographic area Occupation
Age Ethnicity Family size
Family life cycle Dwelling Education

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Social Influences Affect Consumer
Behavior
Family Life Cycle

Acceptance of New Ideas by


Youngsters

Growing Singles Market

Relocation for Teens


Social
Influences
Empty Nesters

Real Decision Maker


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Family Life Cycle Influences Needs
(Exhibit 5-7) Middle-aged
divorced (or
single) without
children
Young
divorced
without
children Middle-aged
married w/o
children

Young Young Middle- Middle-aged


Older
Young married married aged married w/o Older
married
single* w/o with married dependent unmarried*
*
children* children* w/children* children*

Young Middle-aged
divorced (or
Middle-aged
divorced w/o
Usual flow
divorced w/
single) w/
children
dependent Recycled flow
children children
* Traditional
family flow
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5-20

Family Life Cycle

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Checking Your Knowledge

A travel and tour operator has announced luxury vacation


packages to various destinations across the globe. The
package includes overnight stays at opulent resorts and
services from posh spas. Which of the following is most
likely to be the target customer base for the said tour
operator?
A. Teenagers
B. Single parents
C. Middle-aged married with children
D. Middle-aged married without dependent children
E. Young-married with children
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
5-21
Simple Approaches for Measuring Social
Class in the U.S.

Type of Location of
Occupation Education
Housing Housing

Income Is Not the Main Determinant!


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Other Social Influences

Reference Groups

Opinion Leaders

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Culture, Ethnicity, and Consumer
Behavior
Culture

International Consumer Ethnic Groups


Markets Behavior

Stereotypes

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Consumer Behavior in International
Markets

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Individuals Are Affected by the
Purchase Situation
Purchase Physical
Time Available
Reason Surroundings

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Expanded Model of Consumer
Behavior (Exhibit 5-8)
Marketing mixes Other stimuli

Person making Decisions


Economic Psychological Social Culture & Purchase
needs variables influences Ethnicity situation

Consumer Decision Process


Routinized response After-
Need Purchase purchase
awareness decision experience
Problem solving
•Information search
•Identify alternatives
•Set criteria
•Evaluate alternatives

Postpone Decision
Feedback based on experience
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Problem Solving Continuum
(Exhibit 5-10)
Low involvement High involvement
Frequently purchased Infrequently purchased
Inexpensive Expensive
Little risk High risk
Little information needed Much information desired

Routinized Limited Extensive


Response Problem Problem
Behavior Solving Solving

Low involvement High involvement

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Limited or
Extensive
Problem Solving?

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Problem Solving

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After-Purchase Experience

After
Purchase
Experience

Second Spread the Post-Purchase


Thoughts Word Regret

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Adoption Process Steps

Awareness

Interest

Evaluation

Dissonance
Trial
may set in
after the
Decision decision!

Confirmation
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Key Terms

1. economic buyers 12. selective exposure


2. economic needs 13. selective perception
3. discretionary income 14. selective retention
4. needs 15. learning
5. wants 16. cues
6. drive 17. response
7. physiological needs 18. reinforcement
8. safety needs 19. attitude
9. social needs 20. belief
10. personal needs
11. perception

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Key Terms

21. expectation 31. limited problem solving


22. trust 32. routinized response
23. psychographics behavior
24. lifestyle analysis 33. low-involvement purchases
25. empty nesters 34. dissonance
26. social class 35. adoption process
27. reference group
28. opinion leader
29. culture
30. purchase situation
31. extensive problem solving

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