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Chapter 6

Week 3 - Chapter 6


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

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- Harley-'DYLGVRVPDUNHWHUVVSHQGDJUHDWGHDORIWLPHWKLQNLQJDERXWFXVWRPHUVDQGWKHLUEX\LQJ
behaviour. This has led them to be as successful as they are today since they market owning a
Harley to being a member of the Harley-Davidson family
What Is Consumer Behaviour?
- Consumer buyer behaviour are the buying behaviour of final consumers ± individuals and
households that buy goods and services for personal consumption
- The consumer market are made up of 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
- When consumers make purchase decisions, the decision making process could be more complex
(e.g. buying a house) rather than buying an everyday product (e.g. coffee)
- Learning whys of consumer buying behaviour is difficult since the answers are often locked deep
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- The central question is: 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 is an ongoing process of being aware of a number of issues
before, during, and after the purchase where companies want to build brand loyalty and lasting
relationships with customers
Factors Affecting Consumer Behaviour
- Consumer purchases are influenced strongly by cultural, social, personal, and psychological factors
(marketers cannot control these factors but they must take them into account)
Cultural Factors
- Marketer need WRXQGHUVWDQGWKHUROHSOD\HGE\WKHFRQVXPHVculture, subculture&social class:
- Culture
o Culture is the set of basic values, perceptions, wants, and behaviours learned by a member
of society from family and other important institutions
o Every group or society has a culture which influences on buying behaviour
o Marketers must adjust to these differences or it can result in ineffective marketing
o Should not be assumed that culture are identical within a country since there can be
overlapping of cultural groupings (e.g. Canada is a diverse country with many cultures)
o Marketers are always trying to spot cultural shifts to discover new products that might be
wanted (e.g. cultural shift toward concern for health expanded the fitness industry )
- Subculture
o Each culture contains smaller subcultures which is made up of a group of people with
shared value systems based on common life experiences and situations
o Subcultures include nationalities, religions, racial groups, and geographic regions
o Four important subculture groups in Canada include regional subcultures, founding nations,
ethnic subcultures, and mature consumers:
Regional Subcultures
x Within Canada, there are distinctive regions such as the Atlantic provinces,
Quebec, Central Canada, the Prairies, and British Columbia
x Its varied geographic features and climate have shaped regional character and
personality (e.g. Atlantic Canada is largely defined by its proximity to and
historical relationship with the sea)
Chapter 6 ± Consumer Markets and Consumer Buyer Behaviour (pg. 180 ± 205)
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x Perceived disparities in political power have also increased regionalism,
especially in Quebec, Newfoundland and Labrador, and Alberta
Founding Nation
x Canada had three founding nations: Aboriginal peoples, the English, and the
French
x The unique history and language of each of these nations has driven many of
the cultural differences that result in different buying behaviour
x Canadian law makes it mandatory that nutritional information on food labels
be bilingual (English and French)
x Publications like Wind Speaker can be used as vehicles to effectively
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Ethnic Consumers
x According to Statistics Canada, roughly one in five people in Canada could
be a member of a visible minority by 2017
x People with a Chinese background are still the largest group among visible
minorities in Canada and they appreciate advertising delivered in their native
tongue
x People who identify themselves as black in 2006 make up one third of
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x P&G currently spends six times more on media targeting black consumers
than it did five years ago by using black spokespeople (e.g. Queen Latifah)
and producing products that best satisfies them
x Canada is increasingly becoming a multilingual society and being able to
effectively ethnic market will make companies more successful
Mature Consumers
x Although age is a demographic variable, researchers believe that different
age groups have distinct cultures
x As the Canadian population ages, mature consumers are becoming very
attractive as they move into the 50+ age bracket since they control the largest
proportion of wealth, income, and consumption
x The growing mature consumers group creates an attractive market for
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look as young as they feel (e.g. cosmetics, fitness products)
- Social Class
o Social classes DUHVRFLHW\¶VUHODWLYHO\SHUmanent and ordered divisions whose members
share similar values, interests, and behaviours
o Not determined by a single factor, such as income, but is measured as a combination of
occupation, income, education, wealth, and other variables
o People within a given social class tend to exhibit similar buying behaviour
o Social classes show distinct product and brand preferences in areas such as clothing, home
furnishings, leisure activity, and automobiles
Social Factors
- $FRQVXPHVEHKDYLRXULVDOVRLQIOXHQFHGE\ VRFLDOIDFWRUVVXFKDVWKHFRQVXPHU¶Vsmall groups,
family, and social roles and status:
- Groups and Social Networks
o Reference groups are any external influence that serve as direct or indirect points of
FRPSDULVRQRUUHIHUHQFHLQIRUPLQJDSHUVRQ¶VDWWLWXdes or behaviour
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o Groups which consists of two or more people who interact to accomplish individual or
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o Membership groups such as your family, friends, or organizations you belong to influence
you directly (you are a member of that group)
o Aspirational groups influence you indirectly where you do not belong in the group (e.g. a
young hockey player hopes to someday follow Sidney Crosby and play in the NHL)
o Marketers try to identify the reference groups since reference groups expose a person to new
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Word-of-Mouth Influence and Buzz Marketing
x Opinion leaders are people within a reference group who, because of special
skills, knowledge, personality or other characteristics, exerts social influence
on others (often called the influentials/leading adopters)
x Marketers often try to identify opinion leaders for their products and direct
marketing efforts toward them
x Use buzz marketing by creating opinion leaders who spreads the word
Online Social Networks
x Online social networks are online social communities where people
socialize or exchange information and opinions (eg. blogs, virtual world)
x Marketers hope to interact with consumers and become a part of their
conversations/lives (instead of throwing one-way commercial messages)
x The more selective sites such as Yub.com for shopaholics, and Fuzzster.com
for pet lovers, allows marketers to target their brands to a more selective
population where they trust the content and the ads
x Marketers must be careful when tapping into social networks since results are
difficult to measure and control, users ultimately control the content so online
network marketing attempts can easily backfire
- Family
o Family members can strongly influence buyer behaviour and is the most important
consumer buying organization in society
o Marketers are interested in the roles and influence of the husband, wife, and children on the
purchase of different products and services
o Husband-wife involvement varies widely by product category and by stage in the buying
process (buying roles change with evolving consumer lifestyles)
o Women now make almost 85% of all family purchases (e.g. vacation, homes, cars)
o Marketers that traditionally sold their products to men must not court the opposite sex
o Studies found that kids significantly influence family decisions about where they take
vacations and what cars and cellphones they buy (e.g. place ads on YTV and Teletoon)
- Roles and Status
o A person belongs to many groups ± IDPLO\FOXEVRUJDQL]DWLRQVDQGWKHSHUVRQ¶VSRVLWLRQLQ
each group can be defined in terms of both role and status
o A role consists of the activities people are expected to perform and each role carries a status
which reflects the general esteem given to it by society
o People usually choose products appropriate to their roles and status (e.g. a working mother
plays the role of a brand manager and in her family, a mother and wife. As a brand manager,
she will buy clothing that reflects her role and status in her company)
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