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Chapter 6

Chapter 6 Notes


Department
Management (MGM)
Course Code
MGMA01H3
Professor
Alison Jing Xu
Chapter
6

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Chapter 6 Consumer Markets and Consumer Buyer Behaviour Notes
What is Consumer Behaviour?
consumer buying behaviour the buying behaviour of final consumers—individuals and households that buy goods and
services for personal consumption, who make up the consumer market
consumer market all the individuals and households who buy or acquire goods and services for personal consumption
consumers vary tremendously in age, income, education level, and tastes and buy an incredible variety of goods and services
consumers make many purchase decisions, and some are more complex than others
marketers now recognize the study of consumer behaviour as an ongoing process that starts long before the consumer purchases
a product or service and continues long after they consume the product or service
Factors Affecting Consumer Behaviour
Cultural Factors
Culture
culture set of basic values, perceptions, wants, and behaviours learned by person from family and other important institutions
every group or society has a culture, and cultural influences on buying behaviour may vary greatly from country to country
failure to adjust to these differences can result in ineffective marketing or embarrassing mistakes
it should not be assumed, however, that culture is a homogeneous system of shared meaning, way of life, or unifying values
marketers are always trying to spot cultural shifts to discover new products that might be wanted
Subculture
subculture a group of people with shared value systems based on common life experiences and situations
subcultures include nationalities, religions, racial groups, and geographic regions
many subcultures make up important market segments, and marketers design products and marketing programs tailored to them
Social Class
social class relatively permanent and ordered divisions in society whose members share similar values, interests, behaviours
social class is not determined by a single factor, such as income or wealth or education, but is measured as a combination of
occupation, income, education, wealth, and other variables
in some social systems, members of different classes are reared for certain roles and cannot change their social positions
marketers are interested in social class because people within a given social class tend to exhibit similar buying behaviour
social classes show distinct product and brand preferences in areas such as clothing, home furnishings, leisure activity, vehicles
Social Factors
Groups and Social Networks
broadly defined, reference groups are any external influence that serve as direct (face-to-face) or indirect points of comparison or
reference in forming a person’s attitudes or behaviour, which influence many small groups
group 2 or more people who interact to accomplish individual or mutual goals
groups that have a direct influence and to which a person belongs are called membership groups
people are also influenced by reference groups to which they do not belong
reference groups expose a person to new behaviours and lifestyles, influence the person’s attitudes and self-concept, and create
pressures to conform that may affect the person’s product and brand choices
opinion leader a person within a reference group who, because of special skills, knowledge, personality, or other
characteristics, exerts social influence on others; the influentials or leading adopters
online social networks online social communities—range from blogs, social networking websites, or even virtual worlds—
where people socialize or exchange information and opinions
marketers are working to harness the power of these new social networks to promote their products and build closer customer
relationships; they hope to use social networks to interact with consumers and become a part of their conversations and lives
Family
family members can strongly influence buyer behaviour
the family is the most important consumer buying organization in society, and it has been researched extensively
marketers are interested in the roles and influence of husband, wife, and children on purchase of different products and services
Roles and Status
a person belongs to many groups—family, clubs, organizations
the person’s position in each group can be defined in terms of both role and status
a role consists of the activities people are expected to perform according to those around them
each role carries a status reflecting the general esteem given to it by society
people usually choose products appropriate to their role and status
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Personal Factors
Age and Life-Cycle Stage
tastes in food, clothes, furniture, and recreation are often age-related
buying is also shaped by stages of the family life cycle—the stages through which families might pass as they mature over time
marketers define their target markets in terms of life-cycle stage and develop appropriate products and marketing plans for each
today, marketers are increasingly catering to a growing number of alternative, non-traditional stages such as unmarried couples,
singles marrying later in life, childless couples, same-sex couples, single parents, extended parents, and others
Occupation
a person’s occupation affects the goods and services bought
marketers try to identify the occupational groups that have an above-average interest in their products and services
a company can even specialize in making products needed by a given occupational group
Economic Situation
marketers of income-sensitive goods watch trends in personal income, savings, and interest rates
if economic indicators point to a recession, marketers can take steps to redesign, reposition, and re-price their products closely
some marketers target consumers who have lots of money and resources, charging prices to match
other marketers target consumers with more modest means
Lifestyle
people coming from the same subculture, social class, and occupation may have quite different lifestyles
lifestyle a person’s pattern of living as expressed in his or her activities, interests, and opinions
it involves measuring consumers’ major AIO dimensions—activities (work, hobbies, shopping, sports, social events), interests
(food, fashion, family, recreation), and opinions (about themselves, social issues, business, products)
lifestyle profiles a person’s whole pattern of acting and interacting in the world
Personality and Self-Concept
personality unique psychological characteristics that lead to relatively consistent and lasting response to own environment
personality is usually described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness,
adaptability, and aggressiveness—this can be used to analyze consumer behaviour for certain product or brand choices
idea is that brands also have personalities, and that consumers are likely to choose brands with personalities that match their own
brand personality the specific mix of human traits that may be attributed to a particular brand
many marketers use a concept related to personality—a person’s self-concept (also called self-image)
the basic self-concept premise is that people’s possessions contribute to and reflect their identities
Psychological Factors
Motivation
motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction of the need
Sigmund Freud assumed that people are largely unconscious about the real psychological forces shaping their behaviour
Freud’s theory suggests that buying decisions are affected by subconscious motives that even the buyer may not fully understand
the term motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations
many companies employ teams of psychologists, anthropologists, and other social scientists to carry out motivation research
Abraham Maslow sought to explain why people are driven by particular needs at particular times
Maslow’s hierarchy of needs—(1) physiological needs; (2) safety needs; (3) social needs; (4) esteem needs; (5) self-actualization
Perception
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 because of 3 perceptual processes: selective attention, selective
distortion, and selective retention—people are exposed to a great number of stimuli every day
selective attention—the tendency for people to screen out most the information to which they are exposed—means that
marketers must work especially hard to attract the customer’s attention
selective distortion describes the tendency of people to interpret information in a way that will support what they already believe
because of selective retention, consumers are likely to remember good points made about a brand they favour and to forget good
points made about competitive brands—they tend to retain information that supports their attitudes and beliefs
because of selective attention, distortion, and retention, marketers must work hard to get their messages through
this fact explains why marketers use so much drama and repetition in sending messages to their market
although most marketers worry about whether their offers will be perceived at all, some consumers worry that they will be
consumers worry that they will be affected by marketing messages without even knowing it—through subliminal advertising
Learning
learning changes in an individual’s behaviour arising from experience
learning occurs through the interplay of drives, stimuli, cues, responses, and reinforcement
drive is a strong internal stimulus that calls for action; it becomes a motive when it is directed toward a particular stimulus object
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