CHAPTER FIVE

Final Consumers and Their Buying Behavior

CHAPTER FIVE

Final Consumers and Their Buying Behavior

TotalIncome

TotalIncome

Different Types of Spending

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TotalIncome

TotalIncome

TaxesTaxes

NecessitiesNecessities

DiscretionaryIncome

DiscretionaryIncome

lessless

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Changing US Income Patterns

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Income Dimensions of the US MarketExhibit 5-1

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How We Will View Consumer BehaviorExhibit 5-2

WantsWantsWantsWants

NeedsNeedsNeedsNeeds

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Psychological Influences within an Individual

DrivesDrives

Consumers seek benefits to match Consumers seek benefits to match needs and wants!needs and wants!

DrivesDrives

Physiological Needs

Several Needs at the Same Time

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Safety Needs

Social Needs

PersonalNeeds

InterestsInterests

ActivitiesActivitiesActivitiesActivities

InterestsInterests

Personality and Lifestyle Analysis

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Personality: How People See Things

Personality: How People See Things

OpinionsOpinions

Selective Exposure

Selective Exposure

Selective Perception

Selective Perception

Selective Exposure

Selective Exposure

Selective Perception

Selective Perception

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Perception Determines What Consumers See and Feel

Selective Retention

Selective Retention

DriveDriveDriveDrive

CuesCuesCuesCues

ResponseResponseResponseResponse

Operant Conditioning (Learning)

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ReinforcementReinforcement

Unconditioned Stimulus

Unconditioned Stimulus

UnconditionedResponse

UnconditionedResponse

Classical Conditioning (Learning)

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Conditioned Stimuluse

Conditioned Stimuluse

ConditionedResponse

ConditionedResponse

Work with Existing Attitudes

Work with Existing Attitudes

Work with Existing Attitudes

Need To Understand Attitudes &

Beliefs

Need To Understand Attitudes &

Beliefs

Need To Understand Attitudes &

Beliefs

Belief: An Opinion

Belief: An Opinion

Belief: An Opinion

Attitude: A Point of ViewAttitude: A

Point of ViewAttitude: A

Point of ViewAttitude: A

Point of View

Attitudes Relate to Buying

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Ethical Issues May Arise

Ethical Issues May Arise

Ethical Issues May Arise

Meeting Expectations Is Important

Meeting Expectations Is Important

KeyConcepts

KeyConcepts

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Grid of Evaluative Criteria HelpsExhibit 5-9

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The Family Life CycleExhibit 5-7

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Simple Approaches for Measuring Social Class in the U.S.

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Income Is Not the Main Determinant!Income Is Not the Main Determinant!

OccupationOccupation EducationEducation Type of HousingType of Housing

Location of Housing

Location of Housing

Reference GroupsReference GroupsReference GroupsReference Groups

Opinion LeadersOpinion Leaders

Other Social Influences

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Purchase Reason

Purchase Reason

Time Available

Time Available

Purchase Reason

Purchase Reason

Time Available

Time Available

Individuals Are Affected by the Purchase Situation

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Physical Surroundings

Physical Surroundings

Need-want AwarenessNeed-want Awareness

Information SearchInformation Search

Set CriteriaSet Criteria

Decide on SolutionDecide on Solution

Purchase ProductPurchase Product

Need-want AwarenessNeed-want Awareness

Information SearchInformation Search

Set CriteriaSet Criteria

Decide on SolutionDecide on Solution

Social InfluencesSocial InfluencesPsychological Variables

Psychological Variables

Purchase Situation

Purchase Situation

Consumers Use Problem Solving Processes

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Three Levels of Problem Solving Are Useful

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Routinized Response Behavior

Routinized Response Behavior

Low involvementFrequently purchasedInexpensiveLittle riskLittle information

Limited Problem Solving

Limited Problem Solving

Extensive Problem Solving

Extensive Problem Solving

High involvementInfrequently purchased

Expensive High risk

Much information desired

Low involvement High involvement

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Limited or Extensive Problem Solving?

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Several Processes Are Relevant to Strategy Planning

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• Discretionary income

• Needs

• Wants

• Drive

• Perception

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Key Terms

• Selective exposure

• Selective perception

• Selective retention

• Learning

• Cues

• Response

• Reinforcement

• Attitude

• Belief

• Expectation

• Psychographics

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• Social class

• Reference group

• Opinion leader

• Consideration set

• Extensive problem solving

• Limited problem solving

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Key Terms

• Routinized response behavior

• Low-involvement purchases

• Adoption process

• Dissonance