...Chapter 5 CONSUMER MARKETS AND CONSUMER BUYER BEHAVIOR Chapter OBJECTIVES 1. Define the consumer market and construct a simple model of consumer buyer behavior. 2. Name the four major factors that influence consumer buyer behavior. 3. List and define the major types of buying decision behavior and stages in the buyer decision process. 4. Describe the adoption and diffusion process for new products. Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption. All of these consumers combine to make up the consumer market. The American consumer market consists of more than 308 million people. Model of Consumer Behavior The central question for marketers is: How do consumers respond to various marketing efforts the company might use? The starting point is the stimulusresponse model of buyer behavior shown in Figure 5.1. Marketing stimuli consist of the four Ps: product, price, place, promotion. Other stimuli include major forces and events in the buyer’s environment: economic, technological, political, and cultural. The marketer wants to understand how the stimuli are changed into responses inside the consumer’s “black box,” which has two parts. 1. The buyer’s characteristics influence how he or she perceives and reacts to the stimuli. The buyer’s decision process itself affects the buyer’s behavior. Characteristics Affecting...
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...Marketing T1 Chapter 1 Marketing: is the activity, set of instructions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at-large. Goals are: 1. Attract new customers by promising superior value. 2. Keep and grow current customers by delivering satisfaction Marketing process: Needs: states of felt deprivation. Physical needs: Food, clothing, shelter, safety Social needs: Belonging, affection Individual needs: Learning, knowledge, self‐expression Wants: the form human needs take as shaped by culture and individual personality Demands: Human wants that are backed by buying power. Market offering: Some combinations of products, services, information or experience offered to a market to satisfy a need or want. Products: Persons, places, organizations, information, ideas. Services: Activity or benefit offered for sale that is essentially intangible and does not result in ownership. Brand experiences: “. . . dazzle their senses, touch their hearts, stimulate their minds.” Marketing Myopia: The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. They focus more on the wants and lose sight of the needs. Customer value and satisfaction: Care must be taken when setting expectations: If performance is lower than expectations, satisfaction is low. If performance...
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...economic goods and services including the decision processes that precede and determine these acts” A simple model of the consumer buyer behavior: i)The input stage ii)The process stage iii)The output stage The input stage: The input stage influences the consumer's recognition of a product need and consists of two major sources of information; The process stage: The process stage of the model focuses on how consumers make decisions. The output stage: - The consumer responses are brand choice, dealer choice, product choice, purchase timing and purchase amount etc. Culture: Culture is the most basic cause of a person’s wants and behavior.Culture is the fundamental determinant of a person’s wants and behavior. Subculture: Each culture contains smaller subculture that provide more specific identification and socialization for their members.. Subculture means culture within the culture Social class: Almost every society has some form of social class structure. Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests and behaviors. it is found that there are close relationship between Social class and shopping behavior; Social classes and leisure time activities; Social classes and media usage; Social classes and responding to promotion activities; Social classes and buying decisions Groups and social networks: Two or more people who interact to accomplish individual or mutual goals are called groups. Family:...
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...Chapter Five Consumer Markets and Consumer Buyer Behavior Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 1 Consumer Markets and Consumer Buyer Behavior Topic Outline • • • • • Model of Consumer Behavior Characteristics Affecting Consumer Behavior Types of Buying Decision Behavior The Buyer Decision Process The Buyer Decision Process for New Products Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 2 Model of Consumer Behavior Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption Consumer market refers to all of the personal consumption of final consumers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 3 Model of Consumer Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 4 Characteristics Affecting Consumer Behavior Factors Influencing Consumer Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 5 Characteristics Affecting Consumer Behavior Culture is the learned values, perceptions, wants, and Family Oriented Cultural symbol Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Future Orientation behavior from family and other important In Group - Collectivism institutions ...
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...(Fundamentals) Week 2 Marketing Orientation Marketing Management Ø The analysis , Planning , Implementation and Control activities of management with regards to marketing. Marketing Management Philosophies 1. Production Concept Focus on production and distribution efficiencies Consumers will favour products that are available and affordable 2. Product concept Focus on product improvement Consumers favour better products 3. Selling concept Focus on more selling and promotion Consumers won’t buy unless you persuade them 4. Marketing Concept Focus on satisfying target markets needs and wants better than competitors as a way to achieve organisational goals. 5. Societal Marketing Concept Ø Same as marketing Ø But do it in a way that the society’s well-being is maintained or improved. The pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare –e.g. fast food. The societal concept seems appropriate bin an age of: • • • • Environmental problems Resource shortages Rapid population growth World-wide economic problems 1 Marketing I (Fundamentals) • Neglected social services Marketing Challenge into the Next Century 1. Growth of nonprofits marketing 2. The information Technology Boom 3. Rapid globalisation 4. The changing world economy 5. The call for move ethics and social responsibility 6. The new marketing landscape The 4ps 1. Product • • • The product can be tangible or intangible The right product for the target...
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...|Marketing |[pic]process by which companies create value for customers and build strong customer | | |relationships to capture value from customers in return | |[pic]Market offerings |[pic] | | |some combination of products, services, information, or experiences offered to a market to| | |satisfy a need or want | |[pic]Marketing myopia |[pic] | | |mistake of paying more attention to the specific products a company offers that to the | | |benefits and experiences produced by these products | |[pic]Exchange |[pic] | | |act of obtaining a desired object from someone by offering something in return | |[pic]Markets |[pic]set of actual and potential buyers of a product or service | |[pic]Marketing management |[pic] ...
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...CHAPTER 4 SOCIAL AND CULTURAL ENVIRONMENTS SUMMARY Culture, a society’s “programming of the mind,” has both a pervasive and changing influence on each national market environment. Global marketers must recognize the influence of culture and be prepared to either respond to it or change it. Human behavior is a function of a person’s own unique personality and that person’s interaction with the collective forces of the particular society and culture in which he or she has lived. In particular, attitudes, values, and beliefs can vary significantly from country to country. Also, differences pertaining to religion, aesthetics, dietary customs, and language and communication can affect local reaction to brands or products as well as the ability of company personnel to function effectively in different cultures. A number of concepts and theoretical frameworks provide insights into these and other cultural issues. Cultures can be classified as high- or low-context; communication and negotiation styles can differ from country to country. Hofstede’s social value typology sheds light on national cultures in terms of power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and long- versus short-term orientation. By understanding the self-reference criterion, global marketers can overcome the unconscious tendency for perceptual blockage and distortion. Rogers’ classic study on the diffusion of innovations helps explain how products...
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...CHAPTER 1 136) What should sellers consider if they wish to avoid marketing myopia? Answer: Sellers should consider the particular benefits and experiences desired by their customers, and not just pay attention to the specific products they offer. Diff: 1 Page Ref: 6 AACSB: Analytic Skills Skill: Application Objective: 1-2 137) You are a manufacturer of tents, sleeping bags, and outdoor cooking equipment. How might you go about creating brand experiences for your customers? Answer: Such manufacturers should focus on the benefits enjoyed through the use of their products-access to the great outdoors, shared family experiences, and relived memories of the consumer’s youth. Diff: 1 Page Ref: 7 AACSB: Analytic Skills Skill: Application Objective: 1-2 138) Think about suppliers and other marketing partners. A modern marketing system relies on profitable relationships all along the way. How might Wal-Mart rely on their marketing partners in order to offer low prices? Answer: Wal-Mart must rely on suppliers that will provide merchandise at low costs, a low-cost and efficient distribution system, an accurate and efficient customer relationship database system, and a strong partnership with each of the members of its supply chain. Diff: 1 Page Ref: 8 AACSB: Analytic Skills Skill: Application Objective: 1-2 139) When demand for the latest talking Elmo was at its highest, it was suggested that manufacturers purposefully maintain strong demand by limiting...
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...CHAPTER 1: Creating/Capturing Customer Value Marketing: aim of marketing is to create value for customers and to capture value from customers in return * The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging products that have value for customers, clients, partners, and society at large -The Firm’s Stakeholders: these include employees, unions, customers, competitors, activists, government and the press (these people affect company) The Marketing Process: 1) Understand the marketplace + customer’s needs/wants 2) Design a customer-driven market strategy 3) Construct a marketing program that delivers superior value 4) build relationships + create customer delight *5) Capture value from customers to create profits and customer equity ($$$) * Human Needs: states the felt deprivation; include basic physical needs for food, clothing, warmth, and safety; social needs for belonging/affection, and individual needs for knowledge and self-expression. These needs are not created by marketers * Human Wants: the form of human needs take as shaped by culture and individual personality Wants are shaped by one’s society + marketing programs * Need food but want a breakfast sandwich and espresso at Tims * Human Demands: when backed by buying power, wants become demands. Given someone’s wants, people demand products that add up to most value + satisfaction Marketing Offerings: a combination of products, services...
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...Part 1: Defining Marketing and the Marketing Process (Chapters 1–2) Part 2: Understanding the Marketplace and Consumers (Chapters 3–6) Part 3: Designing a Customer-Driven Strategy and Mix (Chapters 7–17) Part 4: Extending Marketing (Chapters 18–20) 5 Consumer Markets and Consumer Buyer Behavior marketChapter Preview You’ve studied how and use ers obtain, analyze, information to develop customer insights and assess marketing programs. In this chapter, we take a closer look at the most important element of the marketplace—customers. The aim of marketing is to affect how customers think and act. To affect the whats, whens, and hows of buyer behavior, marketers must first understand the whys. In this chapter, we look at final consumer buying influences and processes. In the next chapter, we’ll study the buyer behavior of business customers. You’ll see that understanding buyer behavior is an essential but very difficult task. To get a better sense of the importance of understanding consumer behavior, we begin by looking at GoPro. You may never have heard of GoPro, the small but fast-growing company that makes tiny, wearable HD video cameras. Yet few brands can match the avid enthusiasm and intense loyalty that GoPro has created in the hearts and minds of its customers. GoPro knows that, deep down, it offers customers much more than just durable little video cameras. More than that, it gives them a way to share action-charged moments and emotions with friends...
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...person’s knowledge, culture, or personality 7. The four utilities created by marketing are g. Form, place, time, and possession 8. According to the American Marketing Association ___ is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders h. Marketing 9. The activity in which two or more parties give something of value to each other to satisfy perceived needs is known as i. Exchange 10. The societal marketing concept is j. The view that an organization should discover and satisfy the needs of its consumers in a way that also provides for society’s well being 11. Which of the following conditions must exist in order for marketing to occur k. Two or more parties with unsatisfied needs, a desire and ability to satisfy them, a way to communicate, and something to exchange 12. The ratio of the sales revenue of the firm to the total sales revenue of all firms in the industry, including...
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...------------------------------------------------- Personal Perspective on Human Sexuality [Document subtitle] . This paper will discuss my personal views, beliefs, and experiences on human sexuality. It will address the following subjects: nudity; the appropriate age to become sexually intimate; the number of sex partners; the morality of sex outside marriage; sex education; when sexual intimacy may be wrong; the influence of family, culture, religion, and the media on my personal perception of sexuality; the impact of puberty on my development; and society’s gender role expectations influence on my sexual identity. I view the naked human body as a sacred masterpiece of living art. In the United States, public nudity is unlawful, except in specifically designated places not visible to the public such as nudist colonies, resorts, camps, enclaves, etc. Likewise, pornography carries a stigma and one must be eighteen to purchase it. These taboos are evidence that society regards the naked body as a sexual stimulant or as unsightly or disgusting whenever it is not sexy. Society has conditioned us to see public nudity as a distraction, one that causes people to feel sexually aroused and embarrassed. For example, a woman in a sleeveless dress would be a punishable offense in Saudi Arabia, but is acceptable in the West. Some tribal indigenous groups practice nudity and do not experience sexual arousal by sight alone. I think nudity has its place, but in the context of U.S...
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...Research Paper 1 Introduction to Sociology Richard Fields SOC 101: Research Paper Jeremy Baker December 2, 2013 Research Paper 2 Research Paper This outline paper contains the importance of three Sociological theories, Functionalism, Conflict and Interaction of the sociological institution of economics. It discusses five different elements; (1) how each theory that applies to the sociological institution, (2) what is the same and differences, (3) how each theory affects the views of the individual who is part of the institution, (4) the approach to social change within the institution, and lastly (5) how each theory affects the views of society. Along with how does each theory apply to the sociological institution or economics. The functionalism theory in regards to economics does certainly affect the world which we live in. This change is noted by Hegelian dialectics, functionalism and structuralism, (Karsten, 2005). There are economies becoming intertwined within the increasing internet of the global economy. Enterprises have developed a global idea by internationalizing their products and services, encouraging labor and capital to move quickly among industrialized countries, affecting social, fiscal, and monetary policies. Additional developments have increased awareness on a global scale, human rights, the environment, demographics, and natural...
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...Table of contents 1. Introduction..................................................................................................................3 2. Interaction of resources between households, business, and government.............. 4 3. Scarcity, market mechanisms, price elasticity, gross domestic............................... 6 product (GDP), and foreign exchange 4. Trade and productivity............................................................................................... 8 5. Unemployment, inflation, and the business cycle..................................................... 8 6. Classical and Keynesian economics and aggregate supply and demand................ 9 7. Conclusions and outcomes..........................................................................................10 1. Introduction: The name of my company is Compact Atomic. Our company was created in March of 2014 by a team of highly specialized engineers that spent most of their careers working in research and development for corporate America, in the nuclear energy space. The idea to start a company came during lunch, on a typical week day as the founders were brainstorming for fun. The goal to produce self contained compact nuclear reactors had been murmured between them for a while, but conversations turned into actions, and soon after, they turned their backs on their stable and high-paying jobs, offered their resignations, and went on to pursue their...
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...CONSUMER BEHAVIOR PART ONE CONSUMER BEHAVIOR INTRODUCTION As the twentieth century has come to a close and we have moved into the third millennium, we can see many developments and changes taking place around us with all the industries and firms within each industry trying to keep pace with the changes and diverse needs of the people. Though for decades together, marketers have regarded ‘customer’ as the king and evolved all activities to satisfy this concept is gaining more momentum and importance today. This can largely be attributed to the prevailing market situation. Not only competition has become intense but over an above with the market being flooded with many products. The challenge before the marketers is to understand the diversity of consumer behavior and offer goods and services accordingly. Today the company image is built and made known by its customers. Thus the success of the firm will be determined by how effective it has been in meeting the diverse consumer needs and wants by treating each customer as unique and offering products and services to suit his needs and creating a life time value and relationship with him. (Nair 2004; 3) Marketers have come to realize that their effectiveness in meeting consumer needs directly influences their profitability the better they understand the factors underlying consumer behavior, the better able they are to develop effective marketing strategies to meet consumer needs. (Assael 2001; 3) Today, the digital revolution...
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