Transcript Essentials of Marketing, 8th Edition

Chapter 5:
Final Consumers and their
Buying Behavior
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Chapter 5 Objectives
When you finish this chapter, you should
1. Know how income affects
consumer behavior and
spending patterns.
2. Understand the economicbuyer model of buyer
behavior.
3. Understand how
psychological variables affect
an individual’s buying
behavior.
4. Understand how social
influences affect an
individual’s and household’s
buying behavior.
5-1
5. See why the purchase
situation has an effect on
consumer behavior.
6. Know how consumers use
problem-solving processes.
7. Have some feel for how a
consumer handles all the
behavioral variables and
incoming stimuli.
8. Understand the important new
terms.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Median Family Income, 1960-1996
Median income
$44K
Long term income trends are
important to marketing
managers because strategy
planning must take into
account realistic growth
potential. A narrow focus on
a high growth period that
extends a temporary rate too
far into the future can ruin
chances for long term success
$34K
$26K
1960
5-2
1980
1996
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
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Income Distribution
Percent of Total Income
50
40
46.8%
30
20
23.1%
15.8%
10
10.0%
4.2%
$0
19,680
Lowest 20%
Income Group
34,315
51,086
Middle 20%
Income Group
75,316
Top 20%
Income Group
Percent of Total Income Going to Different Income Groups in 1996
Exhibit 5-1
5-3
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Consumer Spending Patterns
Discretionary
Income
Key
Terms and
Issues
Expenditure
Data
Family
Life Cycle
5-4
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
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A Model of Buyer Behavior
Marketing Mixes
All Other Stimuli
Psychological
Variables
Social
Influence
Purchase
Situation
Motivation
Perception
Learning
Attitude
Personality/Lifestyle
Family
Social Class
Reference Groups
Culture
Purchase Reason
Time
Surroundings
Person
Making
Decision
Problem-Solving Process
Exhibit 5-2
5-5
Person Does or Does Not Purchase (Response)
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
The PSSP Hierarchy of Needs
Personal
Needs
Social Needs
Safety Needs
Physiological Needs
Exhibit 5-4
5-6
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
The Learning Process
Drive
Cues
Reinforcement
Response
Exhibit 5-5
5-7
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
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Lifestyle Dimensions
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5-8
Activities
Interests
Opinions
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
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Family Life Cycle
Middle-aged
divorced w/out
children
Young
divorced
w/out
children
Young
single*
Young
married
x-child.*
Middle-aged
married w/out
children
Young
married with
children*
Middle-aged
married with
children*
Middle-aged
married w/out
dep. children*
Young
divorced with
children
Middle-aged
divorced with
children
Middle-aged
divorced w/out
dep. children
Usual flow
Recycled flow
Older
married*
Older
unmarried*
*Traditional family flow
Exhibit 5-7
5-9
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Social Class Dimensions
Upper-class
1.5%
Upper-middle class
12.5%
32%
38%
15%
Lower-middle class
Upper-lower
(“working”) class
Lower-lower class
Exhibit 5-8
5-10
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Ethnic Dimensions of the US Market
5-11
Buying
Behavior
Median
Income
Growth
Growth
Rate
Accurate
Target
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
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Purchase Situation Influences
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???????
???????
???????
???????
5-12
Purchase Reason
Time
Surroundings
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
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The Consumer Problem Solving Process
Marketing mixes
Psychological
Variables
All other stimuli
Social Influences
Purchase
Situation
Person making
decision
Need-want Awareness
Routinized Response
Information Search
Set Criteria
Feedback of
information
as attitudes
Decide on Solution
Postpone
Decision
Exhibit 5-9
5-13
Purchase Product
Postpurchase
Evaluation
Response
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
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Levels of Problem Solving
High involvement
Infrequently purchased
Expensive
High risk
Much information desired
Low involvement
Frequently purchased
Inexpensive
Little risk
Little information needed
Routinized
Response
Behavior
Limited
Problem
Solving
Low Involvement
Extensive
Problem
Solving
High Involvement
Involvement Continuum
Exhibit 5-11
5-14
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© The McGraw-Hill Companies, Inc., 2000
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The Adoption Process
Awareness
Interest
Evaluation
Trial
Decision
Confirmation
5-15
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© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Relating the Processes
Problem-solving steps Adoption process steps
1. Becoming aware of
or interested in the
problem
Awareness and interest
2. Gathering
information about
possible solutions
Interest and evaluation
Drive
3. Evaluating alterative Evaluation, maybe trial
solutions
4. Deciding on the
appropriate solution
Decision
5. Evaluating the
decision
Confirmation
5-16
Learning steps
Cues
Reinforcement
Response
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Key Terms
Discretionary income
Economic Buyers
Economic Needs
Needs
Wants
Drive
Physiological Needs
Safety Needs
Social Needs
Personal Needs
Perception
Selective Exposure
Selective Perception
Selective Retention
5-17
Learning
Cues
Response
Reinforcement
Attitude
Belief
Expectation
Psychographics
Lifestyle Analysis
Empty Nesters
Social Class
Reference Group
Opinion Leader
Culture
Extensive Problem
Solving
Limited Problem
Solving
Routinized Response
Behavior
Low-involvement
Purchases
Adoption Process
Dissonance
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill