MARKETING 2201 CH 5

4 factors influencing consumer behavior

Cultural, Social, Personal, Psychological

3 types of cultural factors

• Culture: basic value, perceptions, and behaviors learned by family and institutions 

• Subculture: group of people with shared values based on experience

• Social class: divisions in society with similar values

Culture (cultural)

Basic values, perceptions, and behaviors learned by family and institutions.

Subculture (cultural)

A group of people with shared values based on experience.

Social class (cultural)

Divisions in society with similar values.

4 types of social factors

• Reference groups: point of comparison and reference in forming a person's attitude or behavior

• Word of mouth influence: Personal words and recommendations of trusted friends, family, associates, and other consumers tend to be more credible than those coming from commercial sources, such as advertisements or salespeople.

• Influencer marketing: Enlisting established influencers or creating new influencers to spread the word about a company’s brands.

• Roles and status: a person's position in each group & their expected activities

Reference groups (social)

Points of comparison and reference in forming a person's attitude or behavior.

Opinion leaders (social)

People within a reference group who exert social influence due to special characteristics.

Word of mouth influence (social)

Personal recommendations from trusted individuals tend to be more credible than advertisements.

Influencer marketing (social)

Enlisting established influencers or creating new influencers to promote a company’s brands.

Roles and status (social)

A person's position in each group and their expected activities.

6 types of personal factors

• Occupation: jobs affect what someone can buy 

• Age/ life stage: people change taste overtime 

• Economic situation: affects product choices 

• Environmental: physical, tech, health circumstances 

• Lifestyle: pattern of living by their activities, interests, and opinions

• Personality: unique psychological characteristics (brands have personalities and consumers choose brands with matching personalities)

Occupation (personal)

Jobs that affect what someone can buy.

Age/life stage (personal)

People's tastes change over time.

Economic situation (personal)

Impacts product choices based on financial status.

Environmental (personal)

physical, tech, health circumstances 

Lifestyle (personal)

Patterns of living determined by activities, interests, and opinions.

Personality (personal)

Unique psychological characteristics influencing brand choice.

4 types of psychological factors

• Motivation: need that is pressing them to seek satisfaction of the need

• Perception: how ppl select, organize, and interpret info

• Learning: changes in behavior based on experience 

• Beliefs and attitude: thoughts and evaluations

Motivation (psychological)

A pressing need that encourages a consumer to seek satisfaction.

Perception (psychological)

How people select, organize, and interpret information.

Learning (psychological)

Changes in behavior based on experience.

Beliefs and attitude (psychological)

Thoughts and evaluations influencing consumer behavior.

Cognitive dissonance

Conflict between a person's behavior and beliefs.

5 stages in adopting a new product:

Awareness: aware of product but lacks info

Interest: seeves info on product

Evalvation: considers whether trying product makes sense

Trial: tries product to estimate valve

Adoption: decides to mave regular use ot product.

Five characteristics important in influencing an innovation’s rate of adoption:

Relative advantage: The degree to which the innovation appears superior to existing products.
Compatibility: The degree to which the innovation fits the values and experiences of potential consumers. 

Complexity: The degree to which the innovation is difficult to understand or use. 

Divisibility: The degree to which the innovation may be tried on a limited basis.

Communicability: The degree to which the The degree to which the 

3 types of buying situations:

Straight rebuy - reorder with no modifications 

Modified rebuy - reorder with specified moditications

New task - buying for first time

5 step buyer decision process:

Need recognition: The buyer recognizes a problem or need.

Information search: An interested consumer may search for more information.

Evaluation of alternatives: How consumers process information to choose among alternative brands

Purchase decision: The consumer ranks brands and forms purchase intentions.

Post-purchase behavior: if consumers will take further action after purchase based on satisfaction or disatisfaction