Textbook Notes (367,974)
Canada (161,538)
Commerce (1,690)
Chapter 4

Chapter 4 Textbook Notes.docx

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Department
Commerce
Course
COMMERCE 2MA3
Professor
Stephen Charko
Semester
Fall

Description
Chapter 4: Consumer Behaviour • Consumer Behaviour: process through which buyers make purchase decisions • B = f(P, E) • Interpersonal Determinants of Consumer Behaviour… • Culture: values, beliefs, preferences, and tastes handed down from one generation to the next o Broadest environmental determinant of consumer behaviour o Core values are underlying motivations that move society forward and are shaped by the people one grows up with • They do not change over time as cultural values do o Microcultures: smaller groups within a society that have their own distinct characteristics and modes of behaviour o More than 80 cultural groups across the country • Social Influences o Every consumer belongs to a number of influential social groups o Groups establish norms of behaviour o Differences in status and roles within the group also influence behaviour o A child's earliest group experiences comes from membership in a family The Asch Phenomenon: S.E. Asch ; individuals conform to majority rule, even if that majority rule goes against their beliefs 1. Reference Groups: people or institutions whose opinions are valued and to whom a person looks for guidance in his or her own behaviour, values, and conduct, such as family, friends, or celebrities • Strong influence by a group on a member's purchase requires two conditions: 1. The purchased product must be one that others can see and identify 2. The purchased item must be conspicuous; it must stand out as something unusual, a brand or product that not everyone owns 1. Social Classes o Research has identified six classes within the social structures of North American cities: i. Upper-upper i. Lower-upper ii. Upper-middle iii. Lower-middle iv. Working class v. Lower class • Determined by occupation, income (income not always a primary factor), education, family background, and residence location 1. Opinion Leaders: trendsetters who purchase new products before others in a group and then influence others in their purchases • Present in nearly every reference group • Individuals tend to act as opinion leaders for specific goods or services based on their knowledge of an interest In those products. Chinese Cdn Consumers -hongkong 80's -average spending more than the average spending of canadian population --> companies can target more expensive things South-asia cdn consumers -largest growing, younger population -by 2031 going to be largest cultural group • Family Influences o The family group is perhaps the most important determinant of consumer behaviour because of the close, continuing interactions among family members Family Structure is changing over the last century due to - declining birthrate - An increase in the number of childless couples - higher divorce and separation rates - children staying at home longer o Marketers describe the role of each spouse using 4 categories: i. Autonomic Role is seen when the partners independently make equal numbers of decisions ii. Husband-Dominant Role occurs when the husband usually makes certain purchase decisions iii. Wife-Dominant Role has the wife making most of the buying decisions i. Syncratic Role refers to joint decisions o Children and Teens in Family purchases - they represent a huge market - influence what their parents buy, from cereal to cars Personal Determinants of Consumer Behaviour… • Individual purchase behaviour is driven by the motivation to fill a perceived need o Need: imbalance between a consumer's actual and desired states o Motive: inner state that directs a person toward the goal of satisfying a need • Maslow's Hierarchy of Needs o Pyramid of needs for satisfaction o An individual must satisfy lower-level needs before higher level needs can be actualized • Physiological Needs  Requirements for survival • Food • Water • Shelter • Safety Needs  Financial or lifestyle security • Insurance  Physical Protection • Social/Belongingness Needs  Desire to be accepted by people and groups • Memberships • Esteem Needs  Universal desire for a sense of accomplishment or achievement • Respect through brand-name products • Self-Actualization Needs  Desire to realize their full potential and to find fulfillment by expressing their unique talents and capabilities • Vacations and exotic adventure trips • Perception: meaning that a person attributes to incoming stimuli gathered through the five senses o Results from the interaction of two types of factors i. Stimulus Factors  Characteristics of the physical object • Size
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