Ch 5: Marketing and Consumer Behavior

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Utility

Products ability to satisfy both functional needs and psychological wants (Example: Ford Focus).

Advertising

__________ helps communicate product utility

Advertising

_________ can help reinforce this satisfaction of needs

Customer Needs

Functional or Psychological

Product Utility

form, task, possession, time and place.

Goal of marketing

to create exchanges that satisfy the perceived needs, wants, and objectives of the people.

Exchange

theoretical core of marketing

Customer's perception

perception of a product/service; sometimes advertisers need to change those.

Seller's perception

perception of the customers needs, wants, objectives.

Functional needs

form, taste, possession, time, place, and utility.

Key participants in the Marketing Process

customers, markets (groups of customers), and marketers.

Customer types

Current, prospective, and centers of influence

Current Customers

already bought something or buy it regularly. ( measure business's success by calculating the current customers and their repeat purchases)

Prospective Customers

people about to make an exchange or considering it.

Centers of Influence

any customer or prospective customer or opinion leader whose ideas and actions others respect.

Markets

a group of current customers, prospective customers, and noncustomers who share a common interest, need or desire. (4: Consumer, business, government and transnational).

Consumer market

people who buy goods for their own use

Business market

people who buy service, natural resources or products tha they either resell or use to conduct their business or use to manufacture another product.

Reseller markets (subtype of business market)

buy products to resell them (Ex: Sunkist needs to persuade grocery store to sell product)

Industrial market (subtype of business market)

buy products used to produce other goods and services

Government markets

buy products for municipal or other governmental activites

Transnational (Global) markets

consumer, business, and government markets located in foreign countries.

Marketers

every person or organization that has products, services, or ideas to sell (Ex: farmers market wheat).

Consumer Behavior

the mental and emotional processes and physical activities of people who purchase and use goods and services to satisfy particular needs and wants, that affect, derive from, or form the context of human consumption.

Systematic Decision Makers and Active Interpreters

the 2 perspectives of consumer behavior

Systematic Decision Makers

maximizing the benefits from purchases defines the purchase-- consumers are deliberate

Active Interpreters

cultural/ social membership defines purchase; consumers are "meaning makers" in their consumption.

Consumer Decision Process

the mental process that begins evaluation when medium delivers advertising message to consumer. Fundamental building blocks: personal processes, influences and evaluation.

Modes of Consumer Decision-Making: Variations by Involvement and Experience (Perspective 1)

1. Involvement: interests/advocations, risk-high price or long term involvement, high symbolic meaning to purchase, deep emotion attached to purchase. 2.Experience: more experience, more astute the consumer

4 Modes of Consumer Decision-Making

1. Extended Problem Solving: low experience, high involvement. deliberate careful research. (buying a diamond ring or hybrid car). 2.Limited Problem Solving: low experience, low involvement. common products, limited search. (diapers, tooth paste for sensitive teeth). 3.Habitat or Variety Seeking: high experience, low involvement. Variety-switch brands at random, Habitat-buy single brand repeatedly. 4.Brand loyalty: high experience, high involvement. conscious commitment to find same bran each time purchase made. (chanel ad with woman w/ chanel tattoo).

Personal Processes

Perception, learning and persuasion, and motivation.

Consumer Perception Process

Physical Data (stumuli), Physiological Perceptual Screens (sensory), Psychological Perceptual Screens (emotional), Cognition (awareness), and Mental Files (memory).

Stimulus

physical information we receive through our senses

Learning Theories

1. Cognitive Theory: views learning as a mental process, using memory and thinking. 2. Conditioning Theory: treats learning as "trial-and-error".

ELM

way consumers respond to persuasive messages based on the amount and nature of elaboration or processing information; routes to attitude change

Elaboration Likelihood Model

focuses on the way consumers respond to persuasive messages based on the amount and nature of elaboration or processing of information.

Central Route

ability and motivation to process a message is high and close attention is pain to message content details. Tend to learn cognitively and comprehend more, comes to mind quickly. (HIGH INVOLVEMENT).

Peripheral Route

like stimulus response learning, ability and motivation to process a message is low and receiver focuses more on peripheral cues rather than message content. But gains made are short lived. (LOW INVOLVEMENT).

Attitude, Brand Interest, Habits and Brand Loyalty

Learning Produces... _____, ______, ______ and _____.

Consumer Motivation Process

motivation (underlying forces driving decisions), needs (basic and instinctive), wants (learned during lifetime).

Maslow's Hierarchy of Needs

people meet their needs based on priorities; the lower physiological and safety needs dominate humna behavior and must be satisfied before socially acquired needs.

Positively Originated (Informational) Motives

when we run out of something, we experience negative state of mind so we seek to replace product. Motives: problem removal; problem avoidance; incomplete satisfaction; mixed approach-avoidance; normal depletion.(Got milk/trix ad- cant eat cereal without milk)

Negatively Originated (Transformational) Motives

positive bonus is promised rather than the removal of a negative situation, "reward" motives. Motives: sensory gratification; intellectual stimulation or masters; and social approval.

Rossiter & Percy's Fundamental Motives

Negative Motives: problem removal or avoidance. Positive Motives: benefit, bonus, or reward.

Consumer Decision-Making: Consumer as Social Being

Consumption as a social and cultural process. -Sociocultural environment; -Advertising as a social text

Influences on Consumer Behavior

Interpersonal and Nonpersonal

Influences: Interpersonal

Family, Society, Reference Groups, and Opinion Leaders

Influences: Nonpersonal

Time, Place of Sale, and Environment.

Cognitive Dissonance

feelings of doubt and concern after a purchase is made. -Dissonance increases when.... price is high, many close alternatives, item is intangible (haircut), purchase is important, the item lasts long time.

Perceptual Screens

the subconscious filters that shield us from unwanted messages

Cognition

comprehending the stimulus

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