This document provides an overview of consumer buyer behavior and marketing research. It discusses the consumer decision-making process and how it is influenced by cultural, social, personal and psychological characteristics. There are four main types of buying behavior: complex, dissonance-reducing, variety-seeking, and habitual. The stages of the buyer decision process are need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Marketing research involves defining problems, developing a research plan, collecting and analyzing data, and reporting findings. It obtains both secondary and primary data to develop marketing intelligence and customer insights.

1. Marketing Stephan Langdon, MBA, M.Ed.

2. Week 5

3. Chapter Five Consumer Markets and Consumer Buyer Behavior

4. Consumer Markets and Consumer Buyer Behavior Model of Consumer Behavior Characteristics Affecting Consumer Behavior Types of Buying Decision Behavior The Buyer Decision Process The Buyer Decision Process for New Products Topic Outline

5. Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption Consumer market refers to all of the personal consumption of final consumers Model of Consumer Behavior

6. Model of Consumer Behavior

7. Buyer characteristics and the buyer decision process are two parts of _______. buyer’s black box buyer’s white box buyer’s red box buyer’s shopping box

8. Buyer characteristics and the buyer decision process are two parts of _______. buyer’s black box buyer’s white box buyer’s red box buyer’s shopping box

9. Characteristics Affecting Consumer Behavior Factors Influencing Consumer Behavior

10. Consumer purchases are influenced by cultural, _______, personal, and psychological characteristics. cost social health profit

11. Consumer purchases are influenced by cultural, _______, personal, and psychological characteristics. cost social health profit

12. Culture is the learned values, perceptions, wants, and behavior from family and other important institutions Characteristics Affecting Consumer Behavior

13. Characteristics Affecting Consumer Behavior Subculture are groups of people within a culture with shared value systems based on common life experiences and situations Hispanic African American Asian Mature consumers

14. Four examples of subculture groups include Hispanic, African American, Asian American, and ________. middle-class mature consumers RVers echo boomers

15. Four examples of subculture groups include Hispanic, African American, Asian American, and ________. middle-class mature consumers RVers echo boomers

16. Groups of people with shared value systems based on common life experiences are called ________. cohorts generations subcultures affiliate groups

17. Groups of people with shared value systems based on common life experiences are called ________. cohorts generations subcultures affiliate groups

18. The fastest-growing and most affluent subculture in the United States is the _____ population. Hispanic African American Asian American mature

19. The fastest-growing and most affluent subculture in the United States is the _____ population. Hispanic African American Asian American mature

20. Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors Measured by a combination of occupation, income, education, wealth, and other variables Characteristics Affecting Consumer Behavior

21. Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors is referred to as ________. subculture families social class reference groups

22. Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors is referred to as ________. subculture families social class reference groups

23. Which of the following is not one of the major American social classes? Upper class Working class Lower-upper class Lower-working class

24. Which of the following is not one of the major American social classes? Upper class Working class Lower-upper class Lower-working class

25. Characteristics Affecting Consumer Behavior

26. Characteristics Affecting Consumer Behavior Groups and Social Networks

27. Characteristics Affecting Consumer Behavior Word-of-mouth influence and buzz marketing Opinion leaders are people within a reference group who exert social influence on others Also called influentials or leading adopters Marketers identify them to use as brand ambassadors Groups and Social Networks

28. A person within a reference group who, because of special skills, knowledge, or other characteristics, exerts social influence on others is called a(n) ________. opinion leader mature consumer marketer upper class citizen

29. A person within a reference group who, because of special skills, knowledge, or other characteristics, exerts social influence on others is called a(n) ________. opinion leader mature consumer marketer upper class citizen

30. Characteristics Affecting Consumer Behavior Online Social Networks are online communities where people socialize or exchange information and opinions Include blogs, social networking sites (facebook), virtual worlds (second life) Groups and Social Networks

31. Characteristics Affecting Consumer Behavior Family is the most important consumer-buying organization in society Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status Social Factors

32. Characteristics Affecting Consumer Behavior Age and life-cycle stage RBC Royal Band stages Youth: younger than 18 Getting started: 18–35 Builders: 35–50 Accumulators: 50–60 Preservers: over 60 Personal Factors

33. Characteristics Affecting Consumer Behavior Occupation affects the goods and services bought by consumers Economic situation includes trends in: Personal Factors

34. Characteristics Affecting Consumer Behavior Lifestyle is a person’s pattern of living as expressed in his or her psychographics Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment Personal Factors

35. The VALS classification system measures a person’s ________. income occupation lifestyle personality

36. The VALS classification system measures a person’s ________. income occupation lifestyle personality

37. Characteristics Affecting Consumer Behavior Personality and self-concept Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment Personal Factors

38. A person’s _____ is his/her unique set of psychological characteristics that are relatively consistent and lasting. self-esteem self-concept lifestyle personality

39. A person’s _____ is his/her unique set of psychological characteristics that are relatively consistent and lasting. self-esteem self-concept lifestyle personality

40. Characteristics Affecting Consumer Behavior

41. Which of the following is not one of the five brand personality traits? Ruggedness Sophistication Self-concept Sincerity

42. Which of the following is not one of the five brand personality traits? Ruggedness Sophistication Self-concept Sincerity

43. Characteristics Affecting Consumer Behavior Psychological Factors

44. Characteristics Affecting Consumer Behavior A motive is a need that is sufficiently pressing to direct the person to seek satisfaction Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations Psychological Factors Motivation

45. Characteristics Affecting Consumer Behavior Maslow’s Hierarchy of Needs

46. Maslow’s hierarchy of needs are psychological, safety, ________, esteem, and self-actualization. social economic lifestyle education

47. Maslow’s hierarchy of needs are psychological, safety, ________, esteem, and self-actualization. social economic lifestyle education

48. Characteristics Affecting Consumer Behavior Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes Selective attention Selective distortion Selective retention Psychological Factors

49. The process by which people select, organize, and interpret information to form a meaningful picture of the world is ________. sensation learning perception motivation

50. The process by which people select, organize, and interpret information to form a meaningful picture of the world is ________. sensation learning perception motivation

51. Characteristics Affecting Consumer Behavior Psychological Factors Selective attention is the tendency for people to screen out most of the information to which they are exposed Selective distortion is the tendency for people to interpret information in a way that will support what they already believe Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands

52. Characteristics Affecting Consumer Behavior Learning is the change in an individual’s behavior arising from experience and occurs through interplay of: Psychological Factors

53. Characteristics Affecting Consumer Behavior Belief is a descriptive thought that a person has about something based on: Knowledge Opinion Faith Psychological Factors Beliefs and Attitudes

54. Characteristics Affecting Consumer Behavior Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea Psychological Factors

55. Types of Buying Decision Behavior

56. Types of Buying Decision Behavior Four Types of Buying Behavior

57. A consumer purchasing fine furniture (which is expensive and for which a brand’s name matters) would probably result in ________ buying behavior. dissonance-reducing variety-seeking complex habitual

58. A consumer purchasing fine furniture (which is expensive and for which a brand’s name matters) would probably result in ________ buying behavior. dissonance-reducing variety-seeking complex habitual

59. ________ buying behavior is characterized by low consumer involvement but significant perceived brand differences. Dissonance-reducing Variety-seeking Complex Habitual

60. ________ buying behavior is characterized by low consumer involvement but significant perceived brand differences. Dissonance-reducing Variety-seeking Complex Habitual

61. The Buyer Decision Process Buyer Decision Making Process

62. The Buyer Decision Process Occurs when the buyer recognizes a problem or need triggered by: Internal stimuli External stimuli Need Recognition

63. The Buyer Decision Process Information Search Sources of Information Personal sources—family and friends Commercial sources—advertising, Internet Public sources—mass media, consumer organizations Experiential sources—handling, examining, using the product

64. The Buyer Decision Process How the consumer processes information to arrive at brand choices Evaluation of Alternatives

65. The Buyer Decision Process The act by the consumer to buy the most preferred brand The purchase decision can be affected by: Attitudes of others Unexpected situational factors Purchase Decision

66. The Buyer Decision Process The satisfaction or dissatisfaction that the consumer feels about the purchase Relationship between: Consumer’s expectations Product’s perceived performance The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction Cognitive dissonance is the discomfort caused by a post-purchase conflict Post-Purchase Decision

67. The Buyer Decision Process Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value Post-Purchase Decision

68. The Buyer Decision Process for New Products Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. Stages in the process include:

69. What are the two largest statistical populations in the adoption process? Innovators and early majority Early adopters and early majority Early majority and late majority Innovators and laggards

70. What are the two largest statistical populations in the adoption process? Innovators and early majority Early adopters and early majority Early majority and late majority Innovators and laggards

71. The Buyer Decision Process for New Products Influence of Product Characteristics on Rate of Adoption

72. The Company’s Macroenvironment Cultural Environment Shifts in Secondary Cultural Values People’s view of nature Some feel ruled by it Some feel in harmony with it Some seek to master it People’s view of the universe Renewed interest in spirituality

73. A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________. cost non-profit organizations others nature

74. A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________. cost non-profit organizations others nature

75. Which of the following are included in the major forces affecting a company’s macroenvironment? Marketing mix, positioning, price cultural, political/legal, economic Marketing concept, goal setting, cultural Baby boomers, minimum wage rates, product/service

76. Which of the following are included in the major forces affecting a company’s macroenvironment? Marketing mix, positioning, price Cultural, political/legal, economic Marketing concept, goal setting, cultural Baby boomers, minimum wage rates, product/service

77. Responding to the Marketing Environment Views on Responding

78. A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach. proactive reactive ingenuous peaceful

79. A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach. proactive reactive ingenuous peaceful

80. A company’s macroenvironment consists of all of the following except ________. demographic forces economic forces competitive forces technological forces

81. A company’s macroenvironment consists of all of the following except ________. demographic forces economic forces competitive forces technological forces

82. Marketing Information and Customer Insights Fresh and deep insights into customers needs and wants Difficult to obtain Not obvious Customer’s unsure of their behavior Not derived from more information but better information and more effective use of existing information Customer Insights are:

83. Marketing Information and Customer Insights Companies are forming customer insights teams Include all company functional areas Use insights to create more value for their customers Customer controlled could be a problem Customer Insights

84. Marketing Information and Customer Insights Marketing Information Systems (MIS) Marketing information system(MIS) consists of people and procedures for: Assessing the information needs Developing needed information Helping decision makers use the information for customer

85. Marketing Information System

86. In a marketing information system, the first step is ________. distributing data to managers forming focus groups determining the marketing mix assessing information needs

87. In a marketing information system, the first step is ________. distributing data to managers forming focus groups determining the marketing mix assessing information needs

88. A marketing information system begins and ends with information from ________. customers databases administrators users

89. A marketing information system begins and ends with information from ________. customers databases administrators users

90. Assessing Marketing Information Needs MIS provides information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies

91. Assessing Marketing Information Needs Balancing what the information users would like to have against what they need and what is feasible to offer Characteristics of a Good MIS

92. Developing Marketing Information Marketers obtain information from

93. Developing Marketing Information Internal databases are electronic collections of consumer and market information obtained from data sources within the company network Internal Data

94. Marketing managers can access and work with information in the _______ database to identify opportunities and threats and to evaluate performance. internal external cost profit

95. Marketing managers can access and work with information in the _______ database to identify opportunities and threats and to evaluate performance. internal external cost profit

96. Which of the following is a problem with using internal databases? The information was collected for another reason. The information is in the wrong format. The information may be incomplete. All of the above

97. Which of the following is a problem with using internal databases? The information was collected for another reason. The information is in the wrong format. The information may be incomplete. All of the above

98. Developing Marketing Information Marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace Marketing Intelligence

99. Developing Marketing Information Marketing Research Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

100. The systematic collection and analysis of publicly available information about your competitors is referred to as ________. marketing concept marketing strategy marketing intelligence focus groups

101. The systematic collection and analysis of publicly available information about your competitors is referred to as ________. marketing concept marketing strategy marketing intelligence focus groups

102. Developing Marketing Information Steps in the Marketing Research Process

103. The marketing research process includes four steps. The final step of this process is ________. defining your problem developing a plan to collect data collecting and analyzing data interpreting and reporting your findings

104. The marketing research process includes four steps. The final step of this process is ________. defining your problem developing a plan to collect data collecting and analyzing data interpreting and reporting your findings

105. What is often the hardest step in the marketing research process? Defining the problem Developing the research plan Implementing the research plan Reporting the findings

106. What is often the hardest step in the marketing research process? Defining the problem Developing the research plan Implementing the research plan Reporting the findings

107. Developing Marketing Information Marketing Research Defining the Problem and Research Objectives

108. ________ research is marketing research to test hypotheses about cause-and-effect relationships. Causal Exploratory Descriptive Written

109. ________ research is marketing research to test hypotheses about cause-and-effect relationships. Causal Exploratory Descriptive Written

110. The objective of _____ is to gather preliminary information that will help define the problem and suggest reasons. causal research competitive research descriptive research exploratory research

111. The objective of _____ is to gather preliminary information that will help define the problem and suggest reasons. causal research competitive research descriptive research exploratory research

112. Developing Marketing Information Outlines sources of existing data Spells out the specific research approaches, contact methods, sampling plans, and instruments to gather data Marketing Research Developing the Research Plan

113. Developing Marketing Information Marketing Research Written Research Plan Includes:

114. Developing Marketing Information Secondary data consists of information that already exists somewhere, having been collected for another purpose Primary data consists of information gathered for the special research plan Marketing Research Developing the Research Plan

115. ________ consist(s) of information that already exists, having been collected prior to the research plan. Primary data Secondary data Exploratory data Focus groups

116. ________ consist(s) of information that already exists, having been collected prior to the research plan. Primary data Secondary data Exploratory data Focus groups

117. Research approaches, contact methods, sampling plans, and research instruments are decisions that need to be made in the ______ data collection process. secondary primary external internal

118. Research approaches, contact methods, sampling plans, and research instruments are decisions that need to be made in the ______ data collection process. secondary primary external internal

119. Developing Marketing Information

120. Developing Marketing Information Marketing Research

121. Developing Marketing Information Observational research involves gathering primary data by observing relevant people, actions, and situations Ethnographic research involves sending trained observers to watch and interact with consumers in their natural environment Market Research Research Approaches

122. Developing Marketing Information Survey research is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences, and buying behavior Flexible People can be unable or unwilling to answer Gives misleading or pleasing answers Privacy concerns Market Research Research Approaches

123. Developing Marketing Information Experimental research is best for gathering causal information—cause-and-effect relationships Market Research Research Approaches

124. Experiments involving matched groups of subjects—giving them different treatments, controlling unrelated factors, and checking for different responses—is a type of __________. causal information descriptive information secondary data ethnographic research

125. Experiments involving matched groups of subjects—giving them different treatments, controlling unrelated factors, and checking for different responses—is a type of __________. causal information descriptive information secondary data ethnographic research

126. The three types of research approaches a marketer may use are ________, ________, and ________. surveys; observations; historic reviews observations; surveys; databases observations; experiments; surveys experiments; databases; surveys

127. The three types of research approaches a marketer may use are ________, ________, and ________. surveys; observations; historic reviews observations; surveys; databases observations; experiments; surveys experiments; databases; surveys

128. Developing Marketing Information Marketing Research Strengths and Weakness of Contact Methods

129. Developing Marketing Information Marketing Research Contact Methods Focus Groups Six to 10 people with a trained moderator Challenges Expensive Difficult to generalize from small group Consumers not always open and honest

130. Developing Marketing Information Marketing Research Contact Methods

131. Developing Marketing Information Marketing Research Online Research

132. Developing Marketing Information Sample is a segment of the population selected for marketing research to represent the population as a whole Who is to be surveyed? How many people should be surveyed? How should the people be chosen? Marketing Research Sampling Plan

133. Which of the following is not one of the decisions a marketer must make when designing a sample? Who should be sampled How many people should be sampled How the people in the sample should be chosen What type of research method should be utilized

134. Which of the following is not one of the decisions a marketer must make when designing a sample? Who should be sampled How many people should be sampled How the people in the sample should be chosen What type of research method should be utilized

135. Developing Marketing Information Marketing Research Sampling Plan – Types of Samples

136. Developing Marketing Information Marketing Research Research Instruments

137. Developing Marketing Information Marketing Research Research Instruments—Questionnaires Closed-end questions include all possible answers, and subjects make choices among them Provide answers that are easier to interpret and tabulate Open-end questions allow respondents to answer in their own words Useful in exploratory research

138. If a marketer wanted to collect large amounts of information at a low cost per respondent, she could use ________. personal interviews mail questionnaires focus groups approach interviews

139. If a marketer wanted to collect large amounts of information at a low cost per respondent, she could use ________. personal interviews mail questionnaires focus groups approach interviews

140. If a marketer wanted to collect information quickly and allow for flexible answers, he should use ________. telephone interviews mail questionnaires focus groups approach interviews

141. If a marketer wanted to collect information quickly and allow for flexible answers, he should use ________. telephone interviews mail questionnaires focus groups approach interviews

142. Interviewer bias is often greater with ________. telephone interviews mail questionnaires focus groups online surveys

143. Interviewer bias is often greater with ________. telephone interviews mail questionnaires focus groups online surveys

144. If an interviewer wanted to reach the teen market, a fast and low-cost method would be to use ________. telephone interviews mail questionnaires focus groups online surveys

145. If an interviewer wanted to reach the teen market, a fast and low-cost method would be to use ________. telephone interviews mail questionnaires focus groups online surveys

146. Developing Marketing Information Marketing Research Research Instruments

147. Developing Marketing Information Marketing Research Implementing the Research Plan

148. Analyzing Marketing Information CRM consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth, and apply the results to build stronger customer relationships Customer Relationship Management (CRM)

149. Analyzing Marketing Information Customer Relationship Management Touchpoints

150. Distributing and Using Marketing Information Information distribution involves entering information into databases and making it available in a time-useable manner Intranet provides information to employees and other stakeholders Extranet provides information to key customers and suppliers