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Marketing Chapter 6 midterm exam notes

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York University
Administrative Studies
ADMS 2200
Louise Ripley

Marketing Chapter 6 Notes Consumer buyer behaviour: The buying behaviour of final consumers - individuals and households that buy goods and services for personal consumption. Consumer market: All the individuals and households that buy or acquire goods and services for personal consumption. (e.g. North American consumer market consists of all Canadians and Americans who consume goods and services) - consumers make purchasing decisions in different ways - marketers study consumer purchases to find out what they buy, where, and how much... need to know why - known as buyer behaviour in the past --> emphasis on actual exchange of goods/services for money - today's consumer behaviour is an ongoing process beginning before the purchase and continuing after you consume it Stages of the consumption process: Consumer's perspective Marketer's perspective Prepurchase Issues How does the consumer decide How are consumer attitudes if he needs the product? toward products formed/changed? Purchase Issues Is purchasing the product a How do situational factors (store stressful or pleasant experience? display) affect purchase decisions? Postpurchase Issues Does the product perform the What determines whether the intended function? person will buy the product again? - must take all characteristics (social, personal, psychological) into account when designing a marketing strategy to reach customers most effectively Characteristics affecting consumer behaviour: Cultural, Social, Personal, Psychological, Buyer Culture: The set of basic values, perceptions, wants, and behaviours learned by a member of society from family and other important institutions e.g. values of achievement and success are often learned from the family - every group/society has a culture, cultural influences may vary from country to country - culture is not homogeneous - we can't say that all Canadians have the same values - marketers try to spot cultural shifts to create new products (e.g. shift towards greater concern for health and fitness has created a huge industry for exercise equipment and organic foods) Subculture: A group of people with shared value systems based on common life experiences and situations - each culture has smaller subcultures based on religion, racial group, geographic region, etc. - subcultures often make up important market segments, marketers try to market programs to their needs e.g. Toronto has a visible minority population of %70 - many firms are now spending more of their budget on ethnic marketing --> a poll indicated that Chinese Canadians spend more time on the internet than with the radio or TV - websites such as are free markets of information for Canada's Chinese community, and many advertisers choose to place ads on these sites (often in Chinese) - some researchers claim that age cohorts also have distinct cultures Median age: point where exactly half of the population is older and the other half is younger - median age in Canada was 25.4 years in 1966, grew to 37.6 years by 2001... today's population is dominated by older individuals - as the Canadian population ages, mature consumers are becoming an attractive market e.g. Dove's pro-age product line says "Beauty has no age limit" and reflects the needs of women in their best years... "This isn't anti-age, it's pro-age." Social class: Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviours - determined by a combination of factors (occupation, income, education, wealth, etc.) - people within a social class tend to show similar buying behaviour e.g. Most Canadians see themselves as middle-class, but are less likely to identify ourselves by social class than Americans - NDP now tries to appeal to "ordinary Canadians" instead of "the working class" Social Factors - reference groups, family, social roles/status Group: Two or more people who interact to accomplish individual or mutual goals - membership groups (groups to which you belong) - reference groups (groups to which you don't belong, but identify with) e.g. young hockey player hopes to become like Sidney Crosby and play in the NHL someday - group influence is important, especially when the product is visible to others whom the buyer respects - opinion leader: Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others. (also known as influentials/leading adopters) - marketers try to direct marketing efforts toward opinion leaders, and even enlisting them as brand ambassadors, to spread the word about their products - Online social networks: online social communities - blogs, social networking websites, or even virtual worlds - where people socialize or exchange information and opinions. --> marketers harness the power of these social networks to promote their products and build closer customer relationships Family members can strongly influence buyer behaviour - must consider the role of the husband, wife and even kids Roles and Status - a person belongs to many groups (family, clubs, organizations)... a role consists of the activities people are expected to perform according to the persons around them Each role carries a status reflecting the general esteem given to it by society - people choose products appropriate to their roles and status Personal Factors - personal characteristics such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, personality and self-concept Age and Life-Cycle Stage - people change the goods/services they buy over their lifetimes (tastes in food, clothes, furniture) Family Life-Cycle - stages through which families might pass as they mature over time (marriage, having children, purchasing a home) Occupation - occupation affects the goods/services bought (blue-collar workers buy rugged work clothes, executives buy business suits) Economic Situation - marketers watch trends in personal income, savings, and interest rates e.g. with the recent recession, shops focus on advertising value and lower prices Lifestyle - A person's pattern of living as expressed in his or her psychographics (activities, interests, and opinions... a person's pattern of interacting in the world) Personality - unique psychological characteristics that distinguish a person or group (self-confidence, dominance, sociability, aggressiveness, etc.) --> likely to choose brands with personalities that match their own A brand personality is the specific mix of human traits taht may be attributed to a certain brand e.g. Apple is associated with "excitement", Dove with "sincerity" Self-concept (self-image) - people's possessions contribute to and reflect their identities... marketers must understand the relationship between consumer self-concept and possessions 4 major Psychological Factors: motivation, perception, learning, beliefs + attitudes Motive (drive): A need that is sufficiently pressing to direct the person to seek satisfaction of the need - we have many needs, biological (hunger, thirst) and psychological (need for recognition, belonging) Sigmund Freud - a person's buying decisions are affected by subconscious motives that even the buyer may not fully understand e.g. an aging Baby Boomer may explain that he bought a convertible because he likes the feel of the wind, but at a deeper level he may be trying to impress others, feel young and independent Motivation research (interpretive consumer research): qualitative research designed to probe consumers' hidden, subconscious motivations (hire psychologists and other scientists to carry out this research) Abraham Maslow suggested that human needs are arranged in a hierarchy from the most pressing at the bottom to the least pressing at the top - include physiological needs, safety needs, social needs, esteem needs, and self-actualization needs - try to satisfy the most important need first, then the next one and so on e.g. starving people will focus on their physiological need and not their self-actualization need Perception: The process by which people select, organize, and interpret information to form a meaningful picture of the world - people can form different perceptions of the same stimulus due to 3 factors: Selective attention - tendency for people to screen out most of the information they are exposed to Selective distortion - tendency of people to interpret info in a way that will support what they believe Selective retention - people are likely to remember good points about a brand they favour and forget good points about a competing brand Subliminal adve
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