Textbook Notes (380,873)
CA (168,244)
UTSC (19,296)
MGM (268)
MGMA01H3 (184)
Chapter 8

Chapter 8

9 Pages
96 Views

Department
Management (MGM)
Course Code
MGMA01H3
Professor
Ingrid L.Stefanovic

This preview shows pages 1-3. Sign up to view the full 9 pages of the document.
INTRODUCTION
Consumer Behaviour consists of the activities of individuals in obtaining, using and
disposing of goods and services, including the decision processes that precede and follow
these actions
Basic task of marketing is to understand the customer so sound marketing planning can
occur
Lewins proposition is that : B = f(P,E)
oB: is behaviour
oF: function
oP: : interactions of individual factors
oE: the pressures exerted on individuals by outside forces in the environment
Consumer Behaviour: B = f(E,I)
oB: is behaviour
oF: is a function
oE: interaction of environmental factors
oI: individual factors and psychological processes
ENVIRONMENTAL FACTORS THAT AFFECT CONSUMER
BEHAVIOUR
Two important groups of factors that affect consumer behaviour are cultural and social
influences
Cultural Influences
The broadest environmental determinant of consumer behaviour
Culture can be defined as the complex of values, ideas, attitudes, institutions and other
meaningful symbols created by people that shape human behaviour, and the artifacts of
that behaviour, transmitted from one generation to the next.
Core values in Canadian Culture
Marketers must constantly assess cultural norms
One strong cultural thread is an awareness of the distinctiveness of the Canadian
identity”
Cultural Influences: An International Perspective
An awareness of cultural differences is particularly important for international marketers
oDifferent attitudes affect marketing strategy
Often marketing programs successful in Canada cannot be applied to international
markets because of cultural differences
World marketers must become familiar with many aspects of the local population –
including their cultural heritage
Subcultures
Microculture is a subgroup with its own distinguishing modes of behaviour
www.notesolution.com
Some microcultures are based on factors such as face, nationality, age, rural-urban
location, religion and geographic distribution
oWest coast people emphasize outdoor entertainment
oMormons refrain from purchasing tobacco and liquor
oChinese people may exhibit more interest in products that reflect their Chinese
heritage
THE FRENCH-CANADIAN MARKET
Canadas two founding cultures are English and French
The Quebec market is large enough and different enough to create an entire industry of its
own
oDifficult to define the French differences precisely
There are basic cultural differences between Quebec and Canada rather than specific
differences
Some marketing programs may be distinctively different in Quebec
The key to success in this important Canada market is having marketing specialists who
understand people and how to deal in that specific market
Social Influences
Children are part of a very important group; the family
oAs they grow they join other groups; school, neighbourhood, friends
From these groups they acquire status and role
Status refers to relative position in a group
Role refers to the rights and duties expected of an individual in a group by other members
of the group
Group Influence Affects Conformity
Groups are highly influential in purchase decisions
Individuals tend to adhere in varying degrees to the general expectations of a group
Asch Phenomenon is the impact that groups and group norms can exhibit on individual
behaviour
Reference Groups
Reference Groups are groups whose value structures and standards influence a persons
behaviour
Consumers try to keep their purchase behaviour in line with what they perceive to be
values of their reference group
Membership group is a type of reference group to which individuals actually belong
Aspirational group is a type of reference group with which individuals wish to associate
Disassociate group is a type of reference group with which and individual does not want
to be identified
It is not essential that the individual be a member in order for the group to serve as a point
of reference
For reference-group influence to be great, two factors must be present
www.notesolution.com
oThe item purchased must be one that can be seen and identified by others
oThe item purchased must also be conspicuous in the sense that it stands out, is
unusual, and is a brand or product that not everyone owns
Social Classes
Social Class is the relatively permanent divisions in a society into which individuals or
families are categorized based on prestige and community status
Families are grouped into two categories each of lower, middle and upper class on the
basis of occupation, source of income, education, family background, and dwelling area
Income is not main determinant of social-class behaviour
Relating Social-Class Hierarchy and Lifestyles
It is lifestyle, not just income, that determines what a person buys
Knowledge of person`s lifestyle provides the means to accurately profile the consumer
base
PSYTE is a geodemographic classification system that identifies lifestyle cluster profiles
across Canada
people with similar cultural backgrounds, means and perspectives naturally gravitate
toward one another, or form relatively homogeneous communities
The major contributions of PSYTEs geodemographic clustering to modern marketing are
as follows:
oDiscriminating power
oMedium of integration
oAccountability
oLongitudinal time series
oAddressable, mapable targets
Opinion Leaders
Opinion Leaders are trendsetters – individuals who are more likely to purchase new
products early and to serve as information sources for others in a given group
Are rare
Found within all segments of the population
Play a crucial role in interpersonal communication
Can be particularly useful in launching new products
Family Influences
The close, continuing interactions among family members are the strongest group
influences for the individual consumer
There are many different types of market segments within family
oFamily your born into
oFamily to whom you marry into
oSingle parent
oFamily with many children/ or few
Identifying Target Markets by Lifestage
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
INTRODUCTION Consumer Behaviour consists of the activities of individuals in obtaining, using and disposing of goods and services, including the decision processes that precede and follow these actions Basic task of marketing is to understand the customer so sound marketing planning can occur Lewins proposition is that : B = f(P,E) o B: is behaviour o F: function o P: : interactions of individual factors o E: the pressures exerted on individuals by outside forces in the environment Consumer Behaviour: B = f(E,I) o B: is behaviour o F: is a function o E: interaction of environmental factors o I: individual factors and psychological processes ENVIRONMENTAL FACTORS THAT AFFECT CONSUMER BEHAVIOUR Two important groups of factors that affect consumer behaviour are cultural and social influences Cultural Influences The broadest environmental determinant of consumer behaviour Culture can be defined as the complex of values, ideas, attitudes, institutions and other meaningful symbols created by people that shape human behaviour, and the artifacts of that behaviour, transmitted from one generation to the next. Core values in Canadian Culture Marketers must constantly assess cultural norms One strong cultural thread is an awareness of the distinctiveness of the Canadian identity Cultural Influences: An International Perspective An awareness of cultural differences is particularly important for international marketers o Different attitudes affect marketing strategy Often marketing programs successful in Canada cannot be applied to international markets because of cultural differences World marketers must become familiar with many aspects of the local population including their cultural heritage Subcultures Microculture is a subgroup with its own distinguishing modes of behaviour www.notesolution.com
More Less
Unlock Document


Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit