Consumer Behavior in Business Marketing

Business Concepts in Consumer Behavior

Distinction Between Consumer and Customer

  • Consumer: The final individual or household that buys a product.

    • Example: Leslie buying a cable charger for her phone.

  • Customer: An entity that can be anyone buying a product, which may include consumers.

    • Emphasizes the inclusivity of the term.

Chapter Overview

  • Focus on Business-to-Consumer (B2C) marketing and purchasing behaviors.

  • Discussion revolves around how various factors influence consumer purchasing decisions.

Factors Influencing Purchasing Behavior

  • Various variables play a role in consumer decisions, including:

    • Price:

    • Example: Leslie's cable charger cost was approximately $5.99 to $12.20 depending on the quality.

    • Convenience: How easy it was for Leslie to visit Target to purchase the cable.

    • Dependability: Trust in the availability and quality of products at Target.

Real-life Consumer Example: Leslie's Purchase

  • Leslie expressed a need for a cable for her sister, leading to her decision to buy it at Target.

    • Motivation: Her sister's visit created urgency to acquire the cable.

    • Convenience: Target was easily accessible to Leslie before class.

    • Trust: Leslie felt comfortable with Target's selection and reliability.

  • Additional Variables Considered During Purchase:

    • Social Influence: Leslie's sister was present during the decision, showcasing family influence in purchasing.

    • Reference Groups: Leslie didn’t use reference groups for advice, highlighting that certain purchases may not require external validation.

    • Social Class: The impact of consumer identity potentially affected by socio-economic factors but minimal influence on Leslie's decision for this low-cost item.

Purchase Situation Factors

  • Timing: Leslie had a specific time frame (2 hours between classes) to make the purchase.

  • Environmental Factors: Target underwent a remodel which may affect consumer perceptions and choices in shopping environments.

Significance of Reviews and Recommendations

  • A discussion on the influence of restaurant rankings (TripAdvisor) demonstrated how reviews can dictate consumer behavior.

    • Example: Choosing a highly rated restaurant out of trust in collective opinions, emphasizing the importance of perceived value and community endorsements.

Needs Versus Wants in Marketing

  • Needs: Basic psychological states or conditions; essential for survival.

  • Wants: Specific ways of fulfilling those needs including products or services (advertising influences).

    • Example: Leslie felt a need for a phone to connect and navigate life effectively.

Maslow's Hierarchy of Needs (Detailed)

  • Physiological Needs: Basic needs for survival, like food and water.

  • Safety Needs: Security and protection from physical and emotional harm.

  • Social Needs: Belongingness, love, and relationships with others, including fear of missing out (FOMO).

  • Esteem Needs: Respect, self-esteem, and recognition from others.

  • Self-Actualization Needs: The desire to achieve one's full potential and engage in self-fulfillment activities.

Internal Reasons for Product Needs

  • Statement: Consumers often seek products not just for their functional benefits but also for emotional satisfaction addressing underlying needs.

    • Example: A smartphone helps maintain social connections and augments personal safety.

Marketing Inferences and Consumer Psychology

  • Marketers do not create needs; they create wants to satisfy existing needs.

  • Physiological Needs: Example of a marketed food product aimed at late-night hunger cravings.

  • Marketing Interpretation: Ads often leverage deep psychological insights to connect consumer needs with their marketed products.

Selective Exposure, Perception, and Retention

  • Selective Exposure: Consumers are exposed to specific advertisements and promotions.

  • Selective Perception: How a consumer interprets and understands the message of an advertisement.

  • Selective Retention: What customers remember after seeing an advertisement.

These frameworks illustrate how various layers of human psychology affect consumer behavior and decision-making during the purchasing process. The real-world application of these theories can enhance a marketer's understanding of their audience, leading to more effective marketing strategies.