L2A

APA FORMAT PLEASE. this week class reading are attached

Consumer behavior was explored in this chapter in terms of the hierarchy of needs concept developed by Abraham Maslow. Marketers are very aware of this need hierarchy and devise their promotional campaigns to appeal to one or more of these human needs.For this assignment you are to select a national or international company. Then research the company s promotion by gathering promotional messages from the company and examining them to determine which needs within the hierarchy are being targeted.Good companies to choose include:

Automobile manufacturers
Liquor companies
Soft drink companies
New home builders

You may gather print advertisements, sales brochures or other literature, visit the website, and record television commercials. Examine these various materials to determine which of the consumer needs they are appealing to.Questions

Which of the needs is the most commonly appealed to in the promotional campaigns analyzed? Why?
Do you think the campaigns are effective? Could the company appeal to another need within the hierarchy?
Do you think the consumers who are subjected to the campaigns realize that they are designed to appeal to a basic need? Explain.

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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Chapter 3
Consumer Behavior

Figure 3.1 – An Overview of the Buying Process
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Social Influences on Consumer Decision Making
Culture
Influences an individual’s needs, wants, and behavior
Determinant of certain aspects of consumer behavior
Cultural values are transmitted through:
Family
Religious organizations
Educational institutions
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Culture and Subculture
Marketing managers should:
Adapt the marketing mix to cultural values
Constantly monitor value changes and differences in both domestic and global markets
Subcultures
Arise when a population loses a significant amount of its homogeneity
Based on geographic areas, religions, nationalities, ethnic groups, and age
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Social Class
Develops on the basis of wealth, skill, and power
Tends to have different attitudinal configurations and values that influence the behavior of individual members
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Social Class: Classification
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Differentiated mainly by having high incomes
Upper Americans
Concerned with doing the right thing and buy what is popular
Middle class
Family folk and who depend heavily on relatives for economic and emotional support
Working class
Have the lowest education levels and resources, and lie at the bottom of the social class hierarchy
Lower Americans

Reference Groups
Groups that an individual looks to when forming attitudes and opinions
Primary reference groups – Family and close friends
Secondary reference groups – Fraternal organizations and professional associations
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Families
Important as reference groups
Family life cycle: Framework that divides the development of a family into a number of stages
Based on the needs, assets, debts, and expenditures that change with time
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Marketing Influences on Consumer Decision Making
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Brand name, quality, newness, complexity, physical appearance of the product, packaging, and labeling information
Product influences
Sales depend on consumer attitude, product attributes
Price influences
Advertising, sales promotions, salespeople, and publicity
Promotion influences
Convenience in buying
Products being sold at exclusive outlets
Products being offered by non store methods
Place influences

Situational Influences on Consumer Decision Making
Factors particular to a time and place that have a demonstrable and systematic effect on current behavior
Physical features: Geographical and institutional location, decor, sounds, aromas, lighting, weather, and visible configurations of merchandise or other materials
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Situational Influences on Consumer Decision Making
Social features: Other persons present, their characteristics, their apparent roles and interpersonal interactions
Time: Temporal dimension of a situation
Task features: An intent or requirement to select, shop for, or obtain information about a general or specific purchase
Current conditions: Momentary moods and conditions that influence consumer behavior
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Psychological Influences on Consumer Decision Making: Product Knowledge
Product knowledge: Amount of information a consumer has about particular products and ways to purchase them
Influences:
How much information is sought to make a purchase
How quickly a consumer goes through the decision-making process
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Psychological Influences on Consumer Decision Making
Product involvement: Consumer’s perception of the importance or personal relevance of an item
High-involvement product – Consumers develop a high degree of product knowledge
High degree of product involvement – Increases the time it takes to go through the decision-making process
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Figure 3.2 – The Consumer Decision-Making Process
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Types of Decision Making
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Requires the most time and effort since the purchase typically involves a highly complex or expensive product that is important to the consumer
Extensive decision making
Requires a moderate amount of time and effort to search for and compare alternatives
Limited decision making
Involves little in the way of thinking and deliberation
Routine decision making

Need Recognition
Consumer’s recognition of an unsatisfied need is the starting point in the buying process
Stimulated by either internal or external stimuli
Marketing managers must find out:
What needs and wants a particular product satisfies
What unsatisfied needs and wants consumers have for which a new product could be developed
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Abraham Maslow’s Hierarchy of Needs
Self-actualization needs
Desire to become everything one can become and fully realize talents and capabilities
Esteem needs
Awareness of importance to others and actual esteem from others
Belongingness and love needs
Social and gregarious nature of humans and the need for companionship
Safety needs
Protection from physical harm, ill health, and economic disaster and avoidance of the unexpected
Physiological needs
Primary needs of the human body such as food, water, and sex
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Alternative Search
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Consumer’s stored information and experience for dealing with a particular need
Internal sources
Communication with other people
Group sources
Advertising, salespeople, dealers, packaging, and displays offered by marketers
Marketing sources
Newspaper articles, and independent ratings of the product
Public sources
Information a consumer gets from handling, examining, and while shopping for a product
Experiential sources

Steps in Individual Information Processing
Exposure to information
Becoming attentive to the information
Understanding the information
Retaining the information
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Alternative Evaluation Process
Consumer has information about a number of brands in a product class
Consumer perceives that some of the brands in a product class are viable alternatives for satisfying a recognized need
Each of these brands has a set of attributes
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Alternative Evaluation
Set of these attributes is relevant to the consumer
Consumer perceives that different brands vary in how much of each attribute they possess
Consumers prefer brands that have desired attributes in desired amounts and desired order
Brand the consumer likes best is the brand the consumer will intend to purchase
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Purchase Decision
Involves
Product type
Brand
Model
Dealer selection
Method of payment
Consumers minimize their risk by reducing:
Negative consequences
Uncertainty
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Postpurchase Evaluation
Probability of repurchase increases if the product fulfills the need for which it was purchased
Cognitive dissonance: Lack of harmony among a person’s thoughts after a decision has been made
Related to the occurrence of postdecision dissonance
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Postpurchase Evaluation
Disconfirmation paradigm: Views consumer satisfaction as the degree to which the actual performance of a product is consistent with expectations a consumer had before purchase
Related to the occurrence of postpurchase satisfaction
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Postpurchase Evaluation
Marketers should not raise prepurchase expectations to such a level that the product cannot possibly meet them
Creating positive expectations consistent with the product’s likely performance is important
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Chapter 4
Business, Government, and Institutional Buying

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Business-to-Business (B2B) Marketing

Marketing products and services to producers, intermediaries, government agencies, and other institutions rather than to consumers

Categories of Organizational Buyers

Producers – Buy goods and services in order to produce other goods and services for sale

Intermediaries – Purchases products to resell at a profit

Government agencies – Operate at the federal, state, and local levels

Other institutions – Hospitals, museums, universities, nursing homes, and churches

Figure 4.1 – A Model of The Organizational Buying Process

Purchase-Type Influences on Organizational Buying
Straight rebuy: Routinely reordering a product from the same supplier that it had been purchased from in the past
Fast and requires few employees
Common among organizations that practice just-in-time inventory
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Purchase-Type Influences on Organizational Buying
Modified rebuy: Consideration of a limited number of alternatives before making a selection
Organizational buyer considers the new information and decides what changes to make
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Purchase-Type Influences on Organizational Buying
New task purchase: Involves an extensive search for information and a formal decision process
Most often used for big-ticket items
Time consuming
Involves a relatively large number of decision makers
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Marketing Tactics for Reaching Organizational Buyers
Type of Purchase Marketing Element Promotional Approach
Straight rebuy Advertising
Promotion
Selling Use reminder advertising
Build image for company
Hospitality events at trade shows
Any personal selling is designed to build relationships
Automate the purchasing process
Modified rebuy Advertising

Promotion
Selling Use comparison advertising to show differences between your product and similar products
Customer site demonstrations, hospitality events at trade shows
Protect relationship with current customers
Anticipate or respond quickly to changes in customer needs

Marketing Tactics for Reaching Organizational Buyers
Type of Purchase Marketing Element Promotional Approach
New task purchase Advertising
Promotion

Selling Detailed, educational ads to try to get users to try product, substitute for old method
Use demonstrations at trade shows to show how it works
Offer free trials or demonstrations at the customer’s site
Emphasize on understanding customers’ needs
Showing how new product satisfies needs better than old methods

Structural Influences on Organizational Buying
Structural influences – Design of the organizational environment and how it affects the purchasing process
Purchasing roles
Buying center: Organizational group formed from different departments which has the responsibility to evaluate and select products for purchase
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Purchasing Roles
Start the buying process by recognizing a need or a problem in the organization
Initiators
Use the product to be purchased
Users
Affect the buying decision by helping define the specifications for what is needed
Influencers
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Purchasing Roles
Have formal authority and responsibility to select the supplier and negotiate the terms of the contract
Buyers
Have the formal and informal power to select or approve the supplier that receives the contract
Deciders
Control the flow of information to a buying center
Gatekeepers
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Organization-Specific Factors
Dominant function in an organization that may control purchasing decisions
Orientation
Large organization – Joint decision making
Small organization – Autonomous decision making
Size
Centralized organization – Joint decision making is less
Decentralized organization – Joint decision making is more
Degree of centralization
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Purchasing Policies and Procedures
Ensures that:
Appropriate products and services are purchased efficiently
Responsibility for buying is assigned appropriately
Sole sourcing: All of a type of product is obtained from a single supplier
Simplifies the buying process
Converts formerly modified rebuys into simpler straight rebuys
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Behavioral Influences on Organizational Buying: Personal Motivations
Organizational buyers are subject to the same personal motives or motivational forces as other individuals
Considering both personal and nonpersonal motivational forces is necessary
Relative importance of each is not a fixed quantity
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Behavioral Influences on Organizational Buying: Role Perceptions
Manner in which individuals behave depends on:
Their perception of their role
Their commitment to what they believe is expected of their role
Maturity of the role type
Extent to which the institution is committed to the role type
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Behavioral Influences on Organizational Buying: Role Perceptions
Organizations can be divided based on differences in degree of employee commitment
Innovative – Weak commitment to expected norms of behavior
Adaptive – Moderate commitment
Lethargic – Strong commitment to traditionally accepted behavior
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Stages in The Organizational Buying Process
Organizational need – Recognizing needs, and a willingness and ability to meet them
Results in purchase
Vendor analysis: Organizational buyers rate each potential supplier on various performance measures
Helps develop a list of approved vendors
Helps compare competing vendors
Helps compare performance on evaluation criteria
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Stages in The Organizational Buying Process
Purchase activities – Influenced by:
Complexity of product or service
Number of suppliers available and pricing
Importance of product to buying organization
Postpurchase evaluation – Evaluation of vendors and the products to determine whether the products are acceptable for future purchases
Different functional areas have different evaluation criteria

Figure 4.4 – Functional Areas and Their Key Concerns in Organizational Buying
Source: Michael H. Morris, Leyland F. Pitt, and Earl D. Honeycutt, Jr., Business-to-Business Marketing, 3rd ed. (Thousand Oaks, CA: Sage Publications, 2001), p. 66.
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