BUS 343 Chapter Notes - Chapter 6: Cognitive Dissonance, Market Structure, Extranet

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Published on 14 Mar 2017
Simon Fraser University
Business Administration
BUS 343
Chapter 6 Understanding Consumer and Business Buyer Behavior
Consumer buyer behavior buying behavior of individuals and households that buy g/s for personal consumption
Given all the characteristics of consumer behavior, how can marketers design efforts to reach customers more
Issues that arise during the consumption process
o Pre-purchase decision process, source of info
o Purchase good or bad experience?
o Post-purchase satisfactory g/s? environmental consequences
Consumer market all individuals and households that buy or acquire g/s for personal consumption
North America 345 million people that consumer more than USD15 trillion of g/s
Characteristics affecting consumer behavior: cultural, social, personal, and psychological
Cultural factors
Culture set of basic values, perceptions, wants, and behaviors learned by a member of society from family, etc
o E.g. respect, equality, family life, fitness, etc
o Marketers try to spot cultural shifts to discover new products that might be wanted
Subculture group of people with shared value systems based on common life experiences/situations
o E.g. nationalities, religions, racial groups, geographic regions, founding nations, etc
o Canada has regions with different geographic features and climates
Also immigration and political disparities is affecting these regions
o 3 founding nations of Canada: English, French and Aboriginal peoples language is important
o 4% of Canadian population is Chinese
o Cross-cultural marketing: including ethnic themes and cross-cultural perspectives to appeal to
consumer similarities across subcultures rather than differences
The new mainstream is multicultural
Social Class relatively permanent and ordered divisions in a society whose members share similar values,
interests and behaviors
o Determined by a combo of occupation, income, education, wealth, etc
o They have different buying behavior, but most Canadians identify as middle class
Social Factors
Groups two or more people who interact to accomplish individual or mutual goals
o Membership groups groups that have direct influence and to which a person belongs to
o Reference groups direct or indirect points of comparison i foig a peso’s attitudes
People are influenced by reference groups that they are not a part of
o Aspirational groups group that a person wants to belong to
o Group influence is strongest when product is visible to others to whom the buyer respects
o Word-of-mouth influence the impact of the personal words and recommendations of trusted friends,
associates and other consumers on buying behavior
o Opinion Leader a person w/in a reference group who, because of special skills, knowledge,
personality, etc., exerts social influence on others
Marketers want to reach these people because consumers listen to them
o Buzz marketing enlisting or creating opinion leaders to serve as brand ambassadors for company
o Online social networks blogs, social media, online communities where people socialize/exchange info
Consumer-to-consumer and business-to-consumer marketing
Goals is to create opportunities for customers to get involved with brands and share experiences
Brands build comprehensive social media presence
Family (most important consumer buying organization in society)
o Husband-wife involvement varies with product category, buying roles change with lifestyles
o Products cannot be advertised only to women or only to men anymore
o Kids influence how much is spent on clothing, entertainment, personal care, type of car,etc
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Role and Status defines persons position within a group
o Role activities a person is expected to perform according to people around them
o People choose products that are appropriate to the roles that they play
Personal Factors
Age and Life-cycle stage taste in food, clothes, furniture and recreation are age related
o Demographics and life-changing events single, marriage, kids, buy a home, divorce, kids to university,
personal income, etc
o Personicx segmented households into 70 consumer segments and 21 life-stage grops
Occupation affects what kind of clothes people buy
Economic Situation affects store and product choices
o Companies have to redesign, reposition and reprice g/s during frugal times
o Marketers must watch personal income, savings and interest rate trends
Lifestyle a peso’s patte of liig as epessed i his/he atiities, iteests ad opiios (AIO dimensions)
o Consumers buy the values and lifestyles that products represent
o Activities (work, hobbies, shopping, sports, social events)
o Interests (food, fashion, family, recreation)
o Opinions (about themselves, social issues, businesses, products)
Personality unique psychological characteristics that distinguish a person/group
o Brand personality: a mix of human traits that can be attributed to a brand
5 traits sincerity, excitement, competence, sophistication, ruggedness
Most well-known brands are associated with one trait
o Self-concept: we are what we consume
Psychological Factors
Motivation (Drive) need that is sufficiently pressing to direct the person to seek satisfaction of the need
o Sigud Feud theo suggests people’s uig deisios ae affeted  suosious oties
o Motivation research ualitatie eseah doe to poe osues’ hidde, suosious otiatio
Companies hire psychologists, anthropologists and social scientists to carry research
o Interpretive consumer research touchy-feely research methods to dig deeper into consumer psyches
o Malso’s hieah of eeds: phsiologial, safet, soial, estee, self-actualization (down-up)
Perception the process by which people select, organize, and interpret information to form a meaningful
picture of the world
o People can form different perceptions because of 3 perceptual processes
Selective attention tede to see out the ost ipotat ifo that ou’e eposed to
Selective distortion tendency to interpret info in a way that supports prior beliefs
Selective retention consumers likely to remember good point about a brand they favor and
forget good points about competing brands
o Makes it hard for marketers to get their messages through
o Subliminal marketing marketing messages that affect consumers w/o them even knowing it
But studies sho that it does’t had the poe attiuted to it  itis
Learning hages i a idiidual’s behavior arising from experience
o Occurs through interplay of drives, stimuli, cues, responses and reinforcement
Drive strong internal stimulus that calls for action
Stimulus object that caused the drive
Cues minor stimuli that determine when, where, and how a person responds
Response the action that customer takes as a result of cues
Reinforcement if product is satisfactory, the response is reinforced
Beliefs and Attitudes
o Belief a descriptive though that a person holds about something
They make up product/brand images that affect consumer behaviour
o Attitude - peso’s osistetl faoale/ufaoale ealuatios, feelings and tendencies toward an
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Document Summary

Chapter 6 understanding consumer and business buyer behavior. Issues that arise during the consumption process: pre-purchase decision process, source of info, purchase good or bad experience, post-purchase satisfactory g/s? environmental consequences. Consumer market all individuals and households that buy or acquire g/s for personal consumption: north america 345 million people that consumer more than usd15 trillion of g/s. Characteristics affecting consumer behavior: cultural, social, personal, and psychological. Lifestyle a pe(cid:396)so(cid:374)"s patte(cid:396) of li(cid:448)i(cid:374)g as e(cid:454)p(cid:396)essed i(cid:374) his/he(cid:396) a(cid:272)ti(cid:448)ities, i(cid:374)te(cid:396)ests a(cid:374)d opi(cid:374)io(cid:374)s (aio dimensions: consumers buy the values and lifestyles that products represent, activities (work, hobbies, shopping, sports, social events) The buyer decision process (the order of process depends on nature of buyer, product and buying situation: need recognition triggered by internal stimuli (normal needs) or external stimuli (ads, friends, etc) Interpersonal authority, status, empathy, persuasiveness subtle. Individual age, income, education, job position, personality, risk attitudes. These buying process steps are for new task.

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