Buyer Behavior Ch. 1 PDF

Consumer Behavior… More Than Just Buying! Consumer Behavior Defined... Breaking It Down Consumer Behavior Defined: Set of mental and physical activities before you even buy the thing, there is a process before hand - Mental activities: Are acts of the mind and they are related to wh...

Consumer Behavior… More Than Just Buying! Consumer Behavior Defined... Breaking It Down Consumer Behavior Defined: Set of mental and physical activities before you even buy the thing, there is a process before hand - Mental activities: Are acts of the mind and they are related to what we think feel and know about products ➔ Ex. When you are contemplating buying a product, even dreaming about it you are engaging in mental activity ➔ when you are thinking over a product's benefit and risk, making sense of an advertisement, trying to remember the price of a product in the store you previously visited - Physical activities: acts of the human body, and they relate to what we do physically to acquire into a consume products ➔ Visiting stores, clipping coupons, talking to salespeople, test driving a car, placing an item in the shopping cart, abandoning a shopping cart, and saving empty cartons for later recycling Product: to refer to any physical or nonphysical product or service that offers some benefit to the consumer Consumers: is anyone engaged in the acquisition and use of products and services available in the marketplace Need: can be defined as a discomforting human condition - It can be discomforting any physiological sense or any psychological sense - physiologically discomforting conditions are sensations of hunger or cold - psychological conditions are feeling bored feeling insecure or experience being looked up and down Want: is a desire for specific object or product - the consumer who wants a product judges that it would restore his or her condition to satisfactory state The the felt discomfort of hungry stomach is need, desire for food for specific kind of food is a want There's more than the buying the things Its understanding economic components, psychology, societal influences, biological needs and wants 3 Essential of Consumer Behavior Exchange Exchange: interchange of resources in return of value between two parties (market & consumer) - Exchange of value, in return for something value between consumer and value Marketer: Is an individual or an organization with an organizational goal to offer products and services in exchange for the customer's money or occasionally other resources - Commercial entity: when a marketer primarily seeks money and has the making money principal organizational goal - Nonprofit: when a marketer offers products and services either free of cost or add a nominal charge insufficient to cover costs or make any profit Resources Resources: Something we own or possess that people value - as humans we value resources ourselves, and because other humans value them too, we exchange some of them to satisfy our needs and wants Five Resources 1. Money,Is most often used resources for Marketplace Exchange - we typically pay for them with money when we acquire products and services 2. Time: we buy time saving devices to gain more time, - Ex. we hire maid so we ourselves don't have to expend time in housekeeping chores - When we wait line to buy something 3. Knowledge: we buy books and take college courses to gain knowledge, we buy Home Improvement books to learn to to do handy work and pay for lessons to acquire the skills needed to compete on Dancing With the Stars 4. Energy: to build our bodies and enhance physical energy as a resources we spend money and join a gym, spend time doing yoga, by vitamins and nutrition supplements to get energy 5. Social capital: WE Network friends and professional connections that can be of help in our hours of mean - are you by designer brand clothes that will help us get acceptance among our peers - we spend time writing thank you notes and sending gifts to keep the friends we have - we pay fees to join Social Clubs and associations to enlarge our social networks Value  Value: The sum total of net benefits we received from an activity or exchange - value is a core goal of all exchanges that humans undertake - 4 values (Benefits) consumers seek in exchange for resources (USER MODEL) 1. Utilitarian value: utilitarian value is the set of tangible outcomes of products usage ( or of an activity) - it compromises the physical consequences of a product and its effects in the physical world around us with and within us - also called functional value, utilitarian value come from objects when they enable us to manage Our Lives as a biological and physical beings and to manage our external physical environments as well - Ex. Our bellies with food and energizing our bodies with nutrients moisturizing our skin with lotions 2. Social value: comes from our ability to manage social our worlds - this includes maintaining warm and harmonious relations with others, fitting in with peers, and generally projecting a good image to others - we get social value when we wear name brand clothing with certain brand image - we also receive social value when we donate blood as part of an office Drive are we doing clubs like the Ruby 3. ego/identity value: Come from our need to construct and nurture our identities, our self-concepts, our sense of ego, our ideas of Who We Are - We eat vegetarian food because we value the identity of being an animal - we gain ego / identity value by recycling because we believe in preserving the environment 4. Recreation value: Comes from objects and activities when they recreate our moods and regenerate our mental ability, removing our fatigue and boredom, stimulating the sense and rejuvenating our minds - Hedonic value: Recreation value is obtained from wide-ranging forms of consumption, from mood lifters like listen to one's favorite music to the extreme acceleration of watching one's favorite sports team win the championship game, from a short coffee break to wallowing in the pleasure at the Venetian in Las Vegas  - Recreation - How do marketers appeal to consumer with these values/benefits Resources: 5 resources consumers posses to exchange for value, somethings we give up - Money - Time: wait in line for some, time when we buy a home - Knowledge: giving information to a brand about you, we give knowledge away when we use our phone. We are giving them our data, the knowledge - Energy: giving up energy - Social capital - How do you use each of these in your market exchange as a consumer? 5 Visions/Roles of the Consumer Consumer as Problem solver: Consumers are searching for solutions to the needs of daily life, looking for a product or service that will meet those needs in the best possible way - once they find the solution product they can relax and move on with their lives Consumer as an economic creature: Consumers are also planners and managers of personal finances - m they want to use their money wisely. they seek to buy products at the best available price - this does not mean that they always go for the lowest price but often you do, they always want to maximize their utility Consumer as computer: it also see consumers reading package labels, Checking off items on a shopping list, pondering information in their heads, At ads, making sense of instructions on how to use a product, in other words starting out all the information about products and the marketplace - indeed our brains act like human computers Consumer as a shopper: This is the familiar image of consumers coming out of a store with shopping bags in hand, they may not shop but they enjoy the site anyway, window shopping  Consumer as Reveler: We all have visions of consumers just having a good time at a, Rock concert, enjoying life Four Social Sciences that Feed Consumer Behavior as Field of Study Anthropology: Is a study of humankind in its habitat, it examines humankind's historic development how people come to live the way they do - it is a study of humans in nature how they survive as a group and how cultural develops to help them live and adapt Sociology: Is the study of social systems, groups organizations and societies - it examines their structure and how individuals relate to one another in these social groups - it can include the study of social institutions, such as the Family Church School and the part they play Society in the consumer's lives Economics: is a study of goods, how they are produced, distributed, and consumed - it also deals with how societies and individuals allocate their resources and what to produce and what to buy - economics helps us understand how we spend money why save it and how to gain maximum utility from every transaction Psychology: is a study of the human mind in the mental processes that influence a person's Behavior - here we study how we develop perceptions how we learn how we form attitudes and what motivations drives our Behavior Who Should Study Consumer Behavior? Marketers: Are people who connect a business/organization to Consumers - they present the product and its message to Consumers hoping consumers will find it a source of satisfaction of their needs - marketers interpret consumer needs and preferences for their benefit of their own organization to departments and their friend can design and make products that was satisfies those consumer needs - must understand consumer Behavior Social Organizations: the study of consumer behavior is just as useful to organizations whose goals are to promote public well-being, not to make money - political parties Market candidates, the Red Cross and other agencies seeking volunteers and money are marketers offering good feelings in exchange - Arts organizations, educational institutions, social and Human Services agencies, all need to understand their consumers- donors patrons are aficionados even irresponsible consumers  Public Policy Makers: They are concerned with protecting the consumer both of marketers potentially deceptive practices and from consumers on irrational consumption behaviors - sometimes marketers are tempted to engage in opportunistic practices that compromise consumers interest - to prevent this lawmakers make laws in various agencies of the government and force those laws monitoring business practices - the Federal Trade Commission is a helpful agency Consumers: A study of consumer Behavior should be of interest to Consumer themselves - we spend many of our waking hours in so much of our money contemplating an experiencing consumption that understanding what drives that behavior can be interesting - What is the purpose of Business and Marketing?? To create value