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Cultures & Marketing. Customer Decision making. Consumer Decision Making Process Need Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Behavior Consumer Buying Decision / Involvement Routine Limited Executive.

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customer decision making
Customer Decision making
  • Consumer Decision Making Process
    • Need Recognition
    • Information Search
    • Evaluation of Alternatives
    • Purchase
    • Postpurchase Behavior
  • Consumer Buying Decision / Involvement
    • Routine
    • Limited
    • Executive
  • Factors that Influence Consumer Buying Decisions
    • Culture
    • Social
    • Individual
    • Psychological
culture
Culture
  • The United States & other societies have a social class system.
  • A social class is a group of people who are considered nearly equal in status or community esteem, who regularly socialize with one another, and share behavioral norms.
    • Upper class (Capitalist Class / Upper Middle Class)
      • 15% of country
    • Middle Class (Middle Class / Working Class)
      • 65% of country
    • Lower Class (Working Poor / Underclass)
      • 20% of country
culture1
Culture
  • Upper Class is more likely to…
    • Own house
    • Own car
    • Volunteer
    • Be active in civic affairs
    • Not smoke
    • Go on vacation
    • Go to concerts, sporting events, theatres, operas, museums, dance performances, art shows
    • http://www.youtube.com/watch?v=jF06waZ1y_Y
  • Most Americans define themselves as middle class when in reality 52% are below that income level.
  • Education is the #1 factor in determining income levels
cultural influences
Cultural Influences
  • Why do marketers care about social class and income?
    • Social class determined medium to use for advertising
      • Example:

Middle class tends to care about local issues so advertising on local television is effective when targeting that income group.

Target Upper class with print ads in business magazines

    • Knowing what products best appeal to which social classes can help marketers determine where to best distribute their products
      • Expensive products are more commonly sold in expensive areas
social influences
Social Influences
  • Consumers seek out other people’s opinion to reduce their search and evaluation effort on products
    • Customers interact socially with reference groups, opinion leaders, and family members to obtain product information and decision approval
    • Reference Groups
      • A group in society that influences the buying behavior of an individual
      • Consumers may use products or brands to identify with or become a member of a group
      • They observe how members of their reference group consume & they use the same criteria to make their own consumer decisions.
social influences1
Social Influences
  • References Groups
    • Direct: Face-to-Face membership groups that touch people’s lives directly
      • Primary Membership Groups: All groups with which people interact in an informal, face-to-face manner, such as family, friends, and co-workers.
      • Secondary Membership Groups: Less consistent interaction done at a more formal level. These groups might include clubs, professional groups, & religious groups.
    • Indirect
      • Aspirational Reference Groups: Groups a person would like to join. A person conforms to the norms of that group.
      • Example:
        • Want to be elected to a political group, dress more conservatively like other politicians
        • Teenagers want to fit in with certain groups they may die their hair and have piercings, tattoos.
      • Nonaspirational Reference Groups: Dissociative groups, influence our behavior when we try to maintain distance from them.
social influences2
Social Influences

Why do reference groups matter?

  • They serve as information sources and influence perceptions.
  • They affect an individual’s aspiration levels.
  • Their norms either constrain or stimulate consumer behavior.

Example:

Edgers Influencers  Conformers  Passives

A&F created Hollister as a result of reference groups

social influences3
Social Influences
  • Opinion Leaders:
    • An individual who influences the opinion of others.
    • These are the trend setters.
    • Marketers influence them so that they will influence others to buy
    • Opinion leaders are typically first to try a product
    • Usually self-indulgent
    • Willing to try new products (especially technology)
    • Marketers sometimes try to create opinion leaders by hiring attractive females to model products or giving away product for free so that cool people have it
    • Marketers look to blogs to determine interests. Teens are very open with thoughts online
family
Family
  • Family is the most important social institution for many consumers
    • Influence values, attitudes, self-concept, & buying behavior
    • Example:

A family that values health eats & acts much differently than those that don’t

    • Socialization Process
      • The passing down of cultural values and norms to children
      • Children mimic their parents shopping habits
      • Initiators: Suggest, initiate, or plant seed of purchase
      • Influencers: Members of the family whose opinions are valued
      • The Decision Maker: Family member who actually makes decision about purchase
      • Purchaser: Person who actually exchanges money for product
      • Consumer: Actual user of the product
individual influences
Individual Influences
  • Personal Characteristics also influence the buying decision
    • Characteristics that are unique to each individual
      • Gender
      • Age
      • Life-Cycle Stage
      • Personality
      • Self-Concept
      • Lifestyle
    • These characteristics are typically stable over a persons lifetime or change slowly
individual influences1
Individual Influences
  • Gender
    • Physiological differences between men & women result in different needs
      • Buy different Health & Beauty Products
      • Television programming has started targeting genders more
      • Magazines
    • Men & Women possess the same motivation when shopping
      • Reasonable prices
      • Merchandise quality
      • Low-pressure purchasing environment
    • Men & Women do not have the same opinion of shopping
      • Women enjoy it; men usually don’t
      • Men prefer simplicity. Less variety and more convenience . Men like to shop closer to home
      • Women change their mind more & value variety
    • Companies are recognizing the growth & influence of women and are targeting them more
individual influences2
Individual Influences
  • Age
    • Age indicates products you may buy
    • Examples: Food, clothing, cars, & furniture are all products that change with age
    • Age indicates what you read and watch you watch on television
  • Family Life Cycle
    • Orderly series of stages through which attitudes and behavioral tendencies
    • Consumers attitude & behavioral tendencies evolve through maturity, experience, and changing income & status
      • Marketers use phrases like “Young & Single” “Married with Children”
      • Married parents spend more on health care, clothing, housing, food, cars, & gas
individual influences3
Individual Influences
  • Personality
    • Broad concept that can be thought of as a way of organizing & grouping how an individual typically reacts to situations.
    • Personality combines psychological makeup & environmental forces
    • Some Marketers feel personality is one of the least important factors in the buying process
    • Some marketers believe it has a large influence on the types and brands of products purchased
      • Examples: Car, clothes, & jewelry
individual influence
Individual Influence
  • Self Concept
    • How a consumer perceives themselves
    • Attitude, perception, beliefs, and self-evaluations
    • Usually changes are gradual in this area
    • Combines ideal self-image with real self-image
      • We want our real self-image to match our ideal standards
    • Consumers seldom buy products that jeopardize their self-image
    • Consumers shop at stores that support their image
    • Consumers buy cars that match their image
  • Lifestyle
    • A mode of living as identified by a persons activities, interests, & opinions
    • Psychographics are more measurable than personality traits
    • Gap uses lifestyle advertising to promote products