MARKETING 2201 CH 5

Factors influencing consumer behavior:

CULTURAL

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

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

• Social class: divisions in society with similar values

SOCIAL

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

  • Family: most important reference group

• Opinion leaders: People within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.

• 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

PERSONAL

• 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)

PSYCHOLOGICAL:

• 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

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 

Cognitive dissonance: a person's behavior and beliefs do not complement each other or when they hold two contradictory beliefs

5 stages in adopting a new product:

Awareness: aware of product but lacks info

Interest: seeks 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.

• Products that offer free trials or demos are adopted faster

Communicability: The degree to how well the innovation can be described to others.

• If people can see results quickly, they are more likely to adopt

3 types of buying situations:

Straight rebuy - reorder with no modifications 

Modified rebuy - reorder with specified modifcations

New task - buying for first time