Consumer Analysis Practicum Presentation - Group 2

Alyssa Evans, Rob Spadoni, Melissa Tencati, Alejandra Villa, Jessica Porter

iPhone by Apple, Inc.

• In 2007 Apple announced that they would be entering the cell phone world.

• June of 2007, the iPhone took the

world by storm by making

an iPod that could make phone

calls and have apps at your

finger tips.

Objective

To understand major forces on customer behavior and how marketers employ those forces.

• Cultural

• Social

• Personal

• Psychological

What is Consumer Buying Behavior?

• Consumer buyer behavior:The buying behavior of final consumers- individuals and households that buy goods and services for personal consumption

• Consumer variations:

Age Income

Education level Tastes

Motivations

Perception

Learning

Beliefs & attitudes

PsychologicalCulture

Subculture

Social Class

Cultural

Reference Groups

Family

Roles & Status

Social

Age & life cycle stage

Occupation EconomicLifestyle

Personality & self-concept

Personal

Buyer

Factors Influencing iPhone Consumer Behavior

Characteristics Affecting Consumer Behavior

Culture Factors

The set of values, perceptions, wants, and behaviors learned by members of society from family and other important institutions

Subculture:

A group of people with shared value systems based on common life experiences and situations

Social Class:

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

Characteristics Affecting Consumer Behavior

Social Factors: Groups

Two or more people who interact to accomplish individual or mutual goals

• word- of- mouth influence

• Opinion leader

• Online social networks

Family

Most important consumer-buying influence

Roles and Status

A person’s role, status, and duties in a particular group

Characteristics Affecting Consumer Behavior

Characteristics Affecting Consumer Behavior

Personal FactorsAge and Life-Cycle Stage

Occupation

Economic Situation

Lifestyle

• A person’s pattern of living as expressed in his or her activities, interests, and opinions

Personal and Self-Concept

• A brand's personality: sincerity, excitement, competence, sophistication, ruggedness.

Characteristics Affecting Consumer Behavior

Psychological FactorsMotivation

A need that is sufficiently pressing to direct the person to seek satisfaction of the need.

Perception

People select, organize, and interpret information to form a meaningful picture of the world

Learning

Changes in individual behavior arising from experience

Beliefs and Attitude

• Descriptive thought that a person holds about something

Buying Decision Behavior

Complex buying behavior• Consumer buying behavior in situations characterized by high consumer

involvement in a purchase and significant perceived differences among brand

Dissonance - Reducing Buying Behavior

Habitual Buying Behavior

Variety - Seeking Buying Behavior

The Buyer Decision process

Five Stages:

1. Need Recognition

2. Information search

3. Evaluation of Alternatives

4. Purchase Decision

5. Postpurchase Behavior

The Buyer Decision Process for New Products

• Stages in the Adoption Process

• Individual Differences in Innovativeness

• Influence of Product Characteristics on Rate of Adoption

How Marketers take Advantage

• Word-of-Mouth Influence

• Opinion Leaders

Adoption Process for an iPhone Buyer

Awarenessconsumer becomes aware of the new product but lacks information about it

Interestconsumer seeks information about the new product

Evaluationconsumer considers whether trying the new product makes sense

Trialconsumer tries the new product on a small scale to improve their estimate of its value

Adoptionconsumer decides to make full and regular use of the new product

Learning Outcomes

The Environment

Marketing StimuliProductPricePlace Promotion

Other Economic Technological Social Cultural

Buyer’s Black Box

● Buyer’s characteristics

● Buyer’s decision process

Buyer’s Response● Buying

attitudes and preferences

● Purchase behavior: what the buyer buys, when,where and how much

● Brand and company relationship behavior

Learning Outcomes

Beliefs - Innovative - “excitement”

PsychologicalSubculture: Apple - Discerning - Tech-Savvy - Educated

Culture

Roles & Status - Expensive - Good Taste - Intelligent (i.e. Apple Geniuses)

Reference Groups - Opinion Leaders - Early Adopters

Social

Lifestyle

- Individually Tailored

Personal

Buyer

Apple - Think Different Ad

http://www.youtube.com/watch?v=SswMzUWOiJg

References Apple - Think Different Commercial. (2013, March 25). YouTube. Retrieved February 13, 2014, from http://www.youtube.com/watch?v=SswMzUWOiJg

Armstrong, K. a. (2014). Principles of marketing . new jersey : Pearson.A bit of eveything!. (n.d.). : Apple Fanatics. Retrieved February 14, 2014, from http://farmenta.blogspot.com/2010/04/apple-fanatics.htmlIP Carrier: Will Verizon iPhone Sales Change iPhone Demographics?. (n.d.). IP Carrier: Will Verizon iPhone Sales Change iPhone

Demographics?. Retrieved February 20, 2014, from http://ipcarrier.blogspot.com/2011/01/will-verizon-iphone-sales-change-iphone.htmlMac Loyalists: Don't Tread on Us. (n.d.). Wired.com. Retrieved February 19, 2014, from

http://www.wired.com/gadgets/mac/news/2002/12/56575?currentPage=allSearch. (n.d.). iMore. Retrieved February 14, 2014, from http://www.imore.com/history-iphone‎Stern, J. (2013, September 20). Seriously, Why Are These People Waiting in Line for the New iPhones?. ABC News. Retrieved February 20,

2014, from http://abcnews.go.com/Technology/iphone-5s-5c-launch-long-lines/story?id=20314089Twitter Statistics - In-depth Report by Sysomos on Twitter's Growth. (n.d.). Twitter Statistics - In-depth Report by Sysomos on Twitter's

Growth. Retrieved February 19, 2014, from https://www.sysomos.com/insidetwitter/hWhy You’ll Still Buy the iPhone, Even As Other Phones Get Better. (n.d.). Why You'll Still Buy the iPhone, Even As Other Phones Get

Better. Retrieved February 19, 2014, from http://www.gottabemobile.com/2013/08/17/as-continued-interest-in-iphone-proves-itunes-is-still-king/

YOU TUBE LOGO. (n.d.). ukharp. Retrieved February 18, 2014, from http://ukharp.net/resources/images/site/youtube-logo.pngiPhone Market Share Expected to Hit 68% in the United States by 2017. (n.d.). - Mac Rumors. Retrieved February 20, 2014, from

http://www.macrumors.com/2013/12/16/iphone-market-share-expected-to-hit-68-in-the-united-states-by-2017/

Practicum Presentation - Group 2Alyssa Evans, Rob Spadoni, Melissa Tencati, Alejandra Villa, Jessica Porter