Marketing
this is Consumer Buyer Behavior Part 2. Our learning objectives today include identify the five steps of the consumer buying decisionmaking process, analyze interpersonal and non-personal influences on buying behavior, describe how culture, values, beliefs, and religion impact purchase behavior.
The five steps of the consumer buying decision-making process include problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Now let me give you an example to illustrate. And this is what marketers often do.
Step one, I have a problem, which is I want to try the new restaurant in town but I'm unsure of the prices, the quality of the food, the location, the parking situation, et cetera. I move on to step two. I search for information on the web, the restaurant website, and review sites like Yelp.com for information.
Three, I evaluate my alternatives-- other restaurants in the area that seem comparable or my go-to restaurants-- and I think to myself, do I want to go there or do I want to try the new restaurant? Four, I make the decision to try it out. Five, I am thrilled with the experience. I take photos of myself, with my friends, of the wait staff. I take photos of the food. I post everything on Snapchat, Yelp.com, et cetera. So I had a really good experience.
However, through those five steps, there are many interpersonal and non-personal influences that can possibly lead us astray. And as marketers, we need to pay attention to this. Interpersonal influences-- there are many examples-- family members are strong influencers when it comes to big and small purchases.
Examples. I need to ask my dad about the types of cars I am interested in. He will know what is best for me at this time in my life. Or another example. I always buy Thomas' English muffins and bagels because my grandmother and my mom used to buy that brand and it evokes really good feelings in me and it reminds me of my childhood.
Mentors are also heavy influencers. So an example. My football coach during middle school and high school always believed in my talent and thinks I should choose Temple University's football program. So I do.
Religion is another key factor that often shapes decision making. Here's an example. I was raised in a Jewish kosher family and will ensure my family home has an awesome kosher kitchen for large family gatherings and wonderful food. I'm in the process of building my house. There are only two contractors in the area that specialize in kosher kitchen design, so out of the 30 contractors out there that I'm aware of, I'm only going to talk to those two for estimates.
Culture is another driver of consumption. Example. I grew up watching the old movies-- black and white films from the '30s, '40s, and '50s. I absolutely love it. I want to be a historical firm major in college. Where should I go to study this? Ah, the film degree at NYU's Tisch School of the Arts. I think I'll go there.
Non-personal influences are also something that marketers have to take into serious consideration. So economic and political decisions can drive consumers and businesses to make certain decisions. Example. I am a Democrat and will not purchase goods or services from specific brands because they receive funding from non-democratic sources.
Or another real-world example from the B2B side of the fence is Kellogg. So Kellogg cereal brand. They expanded advertising efforts during World War II and were able to steal sizable market share from its competitors, who cut back on advertising during that time.
Here's a question for you. How many of you look at reviews posted on sites like amazon.com and yelp.com before making a final purchase decision? Social media influences are critical for brands to pay attention to, and the brands must address them immediately, especially when there are concerns.
The use of brand ambassadors who convey an authentic message for a specific brand are usually effective. And is the key word here is authentic. So this person who is a brand ambassador must resonate with the end consumer. Oprah has struggled with weight issues her entire life and therefore resonates with many Weight Watchers members. Lady Gaga is aligned with deep-rooted social causes. This has created a halo effect around her persona, so many consumers will see her in a brand ambassador role and feel compelled to purchase that specific brand.
Ethnic subcultural roots play an important part in consumer behavior. Here's an example. Many Latino consumers will only prepare meals that are freshly made. This dictates the types
of food and other products-- food, beverages-- they purchase at a grocery store.
Millennials are more prone to choose brands that are aligned with social causes, such as Patagonia and Trader Joe's. Depression era and older baby boomers are likely to shop more frugally and most of the time with coupons, so Aldi and Costco are fan favorites. Vegans tend to shop for organic foods versus processed foods-- Whole Foods, Trader Joe's, and Wegmans are popular with this group.
An attitude is a mental position taken toward a topic, a person, or event that influence the person's feelings, perceptions, and learning processes. Attitudes often drive final purchase decisions. Cognitive mapping simulates the knowledge structures and memories embedded in our brains. Brands such as Mastercard and its Priceless campaign leverage this mapping by creating personal stories that resonate with everyday people. Consumers will see a Priceless ad, such as the iconic father and son baseball TV commercial, remember those small but priceless moments spent with loved ones, and therefore may feel compelled to get Mastercard in their wallet because the company spoke to them in a personal way.
The Evoked Set consists of several brands a person may consider during the purchase process. So here's a personal example for me. I recently purchased a GMC Acadia SUV. While I was thinking about this specific SUV-- GMC was on the top of my list, but I also was thinking about the Honda Pilot, the Ford Explorer, and the Toyota Pathfinder in my evoked set.
The Multi-Attribute approach is valuable in understanding high-involvement purchases. So consumers examine sets of product attributes across an array of brands before making a final purchase decision. So think of a $1,000 computer purchase that you're about to make. Most of us will compare attributes of price, style, software, memory storage, transportability, and before making that final decision, weigh all the pros and cons of those attributes. This is why computer companies go to extreme lengths in describing product attributes and showing the product in use during ads, and examples include Apple and Microsoft.
Environmental trends are also strong drivers of consumption. People who live active lifestyles may identify with Subaru's outdoors-y family-friendly brand positioning. People with diverse lifestyles often seek brands with inclusive associations and reputations, so some of the most inclusive brands today include Amazon, Netflix, and Dawn dish detergent.
The communication revolution has put a brand's image perception into the hands of consumers via social media, like Twitter, Facebook, Yelp.com. If a consumer is unhappy, the
brand and the rest of the world is going to know about it. Experience pursuits resonate with consumers who want to reward themselves for a job well done, and this could translate to a Nordstrom shopping trip, to going to Chick-Fil-A and eating all of the waffle fries that you want in an hour span, going to Las Vegas for a weekend getaway, or buying yourself a Tesla.
Other important environmental trends shaping our decisions include health care. An example is the Fitbit fitness tracking watch and app. Political activism can motivate someone to donate and/or participate in specific causes. Heavy tech-reliant consumers are usually the first adopters of new product introductions. Apple usually markets to them first, by the way, in a pre-launch phase. And more brands are beginning to realize the necessity of catering to the needs and wants of consumers in real time. Examples include ordering music from iTunes, being picked up by Uber, or shopping in Target with its Cartwheel app.