CONSUMER BUYING BEHAVIOR

Good Afternoon!! 9/9/13

Today’s Agenda: Learning about Consumer Buying Behavior through: Consumer Vocabulary Consumer Buying Process Notes

This week: Consumer rights and responsibilities Comparison Shopping – what are YOU going

to shop for?

Consumer Market

Consists of all the individuals and households who buy or acquire goods and services for personal consumption.

Consumer Buying Decision Process

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-PurchaseEvaluation

Types of Buying BehaviorRoutine ResponseLimited Decision Extensive Decision Impulse Buying

Factors Influencing Consumer Behavior

PersonalPsychological

SocialCultural

Personal FactorsAgeLife-Cycle Stage

Stages in Family Life-Cycle

1. Single2. Newly Married Couples3. Full Nest I4. Full Nest II5. Full Nest III6. Empty Nest I7. Empty Nest II8. Solitary Survivor9. Solitary Survivor, Retired

Personal Factors

AgeLife-Cycle StageOccupationEconomic CircumstancesLife Style

Buying Motives

Psychological WANTS Motivations Perceptions Learned experiences

Functional Satisfies a NEED

Psychological Factors“Wants”

Based on a want or desire to have something. Not a necessity.

Psychological Factors

Motivation: Freud

IdEgoSuper Ego

MaslowHierarchy of Needs

Psychological Factors Motivation Perception

The process by which an individual selects, organizes, and interprets inputs to create a meaningful picture of the world. Selective Exposure Selective Distortion Selective Retention

Psychological FactorsMotivationPerceptionLearning

Changes in an individual’s behavior arising from experience

Psychological Factors Motivation Perception Learning Beliefs

Descriptive thoughts that a person holds about something

Psychological Factors Motivation Perception Learning Beliefs Attitudes

Enduring favorable or unfavorable cognitive evaluations emotional feelings and action tendencies

Functional Factors“Needs”

Need over wants. Delivers to a real “need” to have something.

Social Class

Relatively homogenous, enduring divisions in a society,

hierarchically ordered with members sharing similar values,

interests, and behaviors.

American Social Classes

Upper Upper 1% Lower Upper 2% Upper Middle 12% Middle 32% Working 38% Upper Lower 9% Lower Lower 7%

Family Influence on Buying Behavior

Husband-DominantWife-DominantEqual

Culture & Subcultures

Cultures The accumulation of values, knowledge,

beliefs, customs, objects, and concepts that a society uses to cope with its environment

Subcultures Groups of individuals who have similar value

and behavior patterns within the group but differ from those in other groups.

Adoption Process1. Awareness2. Interest3. Evaluation4. Trial5. Decision6. Confirmation

Examples of Buying Motives:Psychological or Functional?

A senior wants to impress his date at the prom .His primary motive is …?

Psychological

Examples of Buying Motives:Psychological or Functional? A girl wants to remember her

grandmother on her birthday.Her primary motive is…?

Psychological

Examples of Buying Motives:Psychological or Functional? A homemaker needs a new washing

machine and has had good experiences with Sears.

Her primary motive is …?

Functional

Examples of Buying Motives:Psychological or Functional? A teacher wants to buy a practical car to

be used for family transportation.Her/His primary motive is …?

Functional

Examples of Buying Motives:Psychological or Functional? A career woman always buys Liz

Claiborne clothes.Her primary motive is…?

Psychological

Examples of Buying Motives:Psychological or Functional? An overweight 40 year old man wants to

loose weight so that he can reduce his blood pressure.His primary motive is…?

Functional

Examples of Buying Motives:Psychological or Functional? A homeowner needs to mow their lawn.

Their primary motive is…?

Functional

Consumer Buying Behavior Competency

Functional Motive

Psychological Motive

The price is 40 cents off the regular price.

It never needs ironing.

Diamonds are forever.

Serving you since 1971.

Ninety-day warranty.

Consumer Buying Behavior Competency

Functional Motive

Psychological Motive

Running shoe with built-in arch.

It’s all the rage—colored action wear and style.

Wheaties—the breakfast of champions!

Steel-belted radial tires warranted for 40,000 miles

A watch—a gift she will treasure always.

Consumer Buying Decision Process

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-PurchaseEvaluation