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Lecture 6

COMM 131 Lecture 6: Week 3, Session 2

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COMM 131
Nicole Robitaille

Session 2 Chapter 6: Understanding Consumer and Business Buyer Behaviour (Pg. 201-224) Consumer Markets and Consumer Buyer Behaviour Consumer Buyer Behaviour: Buying behaviour of final consumer- individuals and households that buy goods/services for personal consumption. Consumer Market: All the individuals and households that buy or acquire goods and services for personal consumption. What is Consumer Behaviour? Consumers make many purchasing decisions, some are more complex than others. • (Ex. Consumer buying coffee would go through a different decision-making process than someone buying a house). Companies will research consumer buying behaviour: What consumers buy, where they buy, how and how much they buy, when they buy, and why they buy. • Learning the whys of consumer buying behaviour isn't easy- answers are in consumers' minds! • Consumers don't always know why they buy goods either. Central question for marketers: Given all the characteristics (cultural, social, personal, and psychological) affecting consumer behaviour, how do we best design our marketing efforts to reach our consumers most effectively? The study of consumer behaviour begins and ends with the individual! Consumer behaviour was previously referred to as buyer behaviour, reflecting an emphasis on the actual exchange of goods for money. • The study of consumer behaviour is an ongoing process that starts long before the consumer purchases a product/service and continues long after they consumer it. Characteristics Affecting Consumer Behaviour Consumer purchases are strongly affected by cultural, social, personal, and psychological characteristics. • CULTURAL FACTORS Exert a broad/deep influence on consumer behaviour. Marketer must understand the role played by the buyer's culture, subculture, and social class. Culture: The set of basic values, perceptions, wants and behaviours learned by members of society from a family/institutions. • U.S. Values: achievement and success, activity/involvement, efficiency/practicality, progress, hard work, material comfort, individualism, freedom, humanitarianism, youthfulness, and fitness/health. • Canadian Values: Beauty of natural landscape, beliefs in respect, equality, fair treatment, our flag, social safety net, multiculturalism. Failure to adjust to cultural differences results in ineffective marketing/embarrassing mistakes. • CULTURE IS NOT HOMOGENEOUS, too broad to say that Canada has one culture and Japan has another. • Multiplicity of overlapping cultural groups. Subculture: A group of people with shared value systems based on common life experiences and situations. (Ex. Nationalities, religions, racial groups, and geographic regions). • Marketers will often tailor to subcultures (Ex. Specific products for the provinces). • Culturally relevant advertising is important, (Ex. Multimedia approach for the Chinese markets!) • Ex. Special products, appeals and marketing programs for black consumers (Ex. Hair relaxer, Olay body lotion or black skin). As the Canadian population ages, mature consumers are becoming an attractive market. Baby boomers will move into 50+ category, controlling a large proportion of wealth, income, and consumption than any other generation. Willing to shop around! (Ex. 25% of iPhones have been bought by 50+ people). Social Class: Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviours. • Measured by occupation, income, education, wealth etc. • Social class shows preferences in areas such as clothing, home furnishings, leisure activity, and cars. • SOCIAL FACTORS Small groups, family, and social roles/status. • Group: 2+ people who interact to accomplish individual/mutual goals. Influence behaviour. o Membership groups: Direct influence/a person belongs to. o Reference groups: Direct/indirect points of comparison/reference in forming a person's attitudes/behaviour. o Aspirational groups: Groups to which individuals wish to belong to (young hockey player hopes to join NHL). Opinion Leader: Person within a reference group who, because of special skills/knowledge/personality, or other characteristics, exerts social influence on others. • Marketers try to identify leaders for their products. Use buzz marketing by enlisting or creating opinion leaders to serve as "brand ambassadors". Online Social Networks: Online communities where people socialize and exchange information/opinions. • Marketers work to harness the power of social networks/build closer customer relationships. Family: Most important consumer buying organization in a society. Marketers are interested in family member roles. Roles and Status: People choose products appropriate to their roles and status. • PERSONAL FACTORS Buyer's age and life-cycle stage, occupation, economic situation, lifestyle, and personality/self- concept. Age and Life-Cycle Stage: People change goods/services over their lifetime. Tastes in food, clothes, furniture, and recreation are age-related. Occupation: Blue-collar workers will buy more rugged work clothes, executives buy more business suits. • Marketers try to identify occupational groups that have above-average interest in their products/services. Economic Situation: Marketers watch trends in personal income, savings, and interest rates. • Due to recent economic recession, marketers are redesigning, repositioning, and repricing their products. Target places emphasis on 'pay less' promise. Lifestyle: A person's pattern of living as expressed in their activities, interests, and opinions. • People coming from the same subculture, social class, and occupation have different lifestyles. • Can help marketers understand changing consumer values/how they affect buying behaviour. Personality and Self-Concept: Each person's distinct personality influences their buying behaviour. Personality: The unique psychological characteristics that distinguish a person or group. • Self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and
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