Key Concepts Consumer Situations Types of situational

influences Influence of physical

surroundings Store location

effects Store atmosphere

Task definition Categories of gift-

giving situations Influence of time Time differences

across cultures Types of antecedent

states

CulturalEnvironment

Economic Environment

SubculturalEnvironment

RegulatoryEnvironment

Group/ family Processes

Situational Influencers

IndividualProcesses

BuyingUnit

ExchangeProcess

Marketer

The Environment and the Exchange Process

Consumer Situations . . . consist of temporary environmental factors

that form the context within which a consumer activity occurs at a particular place and time.

include factors that: Involve the time and place in which a consumer

activity takes place Explain why the action takes place Influence consumer behavior

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To gain an understanding of: The process of consumer purchase

decision making The importance of various information

sources on buying decisions The impact on purchasing caused by

reference groups, family, household, social class, culture, subculture, motivation, perception, learning, personality, attitudes, and situational factors

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BUYING-DECISION PROCESS

Need recognition

Identification of alternatives

Evaluation of alternatives

Purchase and related decisions

Postpurchase behaviour

INFORMATION

Commercialsources

Social sources

SITUATIONALFACTORSWhen consumers buyWhereconsumers buy

Why consumers buyConditions under whichconsumers buy

PSYCHOLOGICAL FORCESMotivationPerceptionLearningPersonalityAttitude

SOCIAL ANDGROUP FORCESCultureSubcultureSocial classReference groupsFamily and households

The Buying-Buying Decision Process

The consumer goes through a series of decision-making stages en route to a decision and beyond:

1. recognition of an unmet need2. choice of an involvement level3. identification of alternatives4. evaluation of alternatives5. purchase and related decisions6. postpurchase behaviour

Variations in the Purchase Process

the consumer can withdraw at any stage some stages may be skipped the stages are generally of varying length some stages may be performed

subconsciously

Level of Involvement

influences the amount of effort the consumer will devote to the purchase decision process

involvement is higher when consumer lacks information about purchase product or service is considered important risk of a bad decision is perceived to be high product or service is socially important product or service has the potential to

provide significant benefits

Identification and Evaluation of Alternatives

search for alternatives may be limited to options close at hand or may be more extensive

influenced by information available, confidence in the information, and expected benefit or value of additional information

evaluation of alternatives is based on certain criteria,criteria, which vary in importance across consumers -- this is what make for the existence of market segments

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The Purchase and Related Decisions decision to buy is only the beginning of a

more complex decision process marketers must make it as easy as

possible for the customer to make these decisions

the additional decisions that have to be made include where to buy, how to pay for the purchase, how to take delivery, whether to buy the extended warranty, etc.

purchase decision is influences by a series of patronage buying motivespatronage buying motives

Postpurchase Behaviour

after a purchase, the consumer has learned a number of things that affect future purchases

also goes through a period of anxiety known as cognitive dissonancecognitive dissonance; consumer is not sure whether he or she has made the right decision

dissonance is greater when price is high, when alternatives are similar, and when the purchase is perceived to be important

consumers try to reduce dissonance by seeking positive reinforcement

Information Influencing Purchase DecisionsThere are two sources of

information: The commercial environmentcommercial environment

consisting of all marketing organizations and individuals who attempt to communicate with consumers.

The social environmentsocial environment, including noncommercial word-of-mouth communication and observation of others using products.

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Cultural Influences on Behaviour buying decisions are influenced by social

forces cultureculture has the most indirect impact; we are

all products of a handed-down culture cultural influences change very slowly over

time ethnic subcultures have a profound effect on

how Canadians lead their lives the most obvious subcultural differences are

between French- and English-Canadians, although many other ethnic subcultures exist

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Multiculturalism inCanada Sub-cultures make for profitable market

segments across Canada Notable ethnic markets include:

Italian Portuguese Chinese German

Middle and Eastern Europeans are clustered in the Prairie region

Italian and Chinese populations are clustered in Toronto, Montreal, and Vancouver

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The Quebecois Market The Francophone market differs from the

Anglophone market in Canada and should be treated as distinct

It is large enough to be considered a culture, rather than a sub-culture

The French live across Canada, but the Quebec region is different due to: Size Homogeneity Purchasing power Social and political orientation

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Social Class Influence social classsocial class represents an interesting way

to look at a market; influenced by such factors as education, occupation, and place of residence

may be used as a basis for segmenting markets, and may reflect the aspirations of consumers

social classes exist whether people care to admit it or not; differences in beliefs and attitudes exist across class boundaries; and social class may be a better predictor of buyer behaviour than income

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The Social Class System

The UpperClass(2%)

• The Upper (Old Money)• The Lower (New Rich)

The Middle Class

(45%)

• The Upper (12%)• Moderately successful business people, professionals

• The Lower (32%)•White collar workers, technicians, small business ownersThe Lower

Class(54%)

•The Upper (38%)•Blue collar (working class)

•The Lower (16%)•Unskilled, chronically unemployed, welfare poor

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Reference Group Influence

reference groups are those with whom we interact and who influence our attitudes, values and behaviour

small reference groupsreference groups establish norms that influence purchase decisions, and their word-of-mouth is considered to be more powerful than advertising and other commercial forces

the familyfamily and householdhousehold are considered to be very influential reference groups

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Psychological Factors Impacting Purchasing

Motivation and Need Perception Learning Personality and Attitude

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Motivation and NeedMotivation, a need sufficiently stimulated that an individual is moved to seek satisfaction.

Motives are either physiological or psychological.

Many different motives are often involved in a purchase.

Maslow presents a hierarchy of needs which helps us understand motivation.

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SELF-ACTUALIZATIONNeeds for self-fulfillment

ESTEEMNeeds for self-respect,

reputation, prestige, and statusBELONGING AND LOVE

Needs for affection, belongingto a group, and acceptance

SAFETYNeeds for security, protection, and order

PHYSIOLOGICALNeeds for food, drink, sex, and shelter

Maslow’s Hierarchy of Needs

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Perception The process of receiving, organizing and

assigning meaning to stimuli detected by the senses

Impacted by selectivity: Selective attention —only those stimuli that

capture and hold attention can be perceived. Selective distortion —consumers alter

information that is inconsistent with their beliefs and attitudes.

Selective retention —consumers retain only part of what they perceive.

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Learning Changes in behaviour which result

from observation or experience Responses to stimuli are learned as a

result of rewards or punishments. Responses can become habits that

replace wilful behaviour.

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Personality and Attitude personalitypersonality is a pattern of traits that influence

behaviour; but it is not always clear how personality affects consumption behaviour

a consumer tends to act in a way that is consistent with his or her self-conceptself-concept

attitude attitude is one of the most important concepts in understanding consumer behaviour; it is a learned disposition to act in a certain way

attitudes are formed over time, are slow to change, and are excellent predictors of behaviour

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Values and Lifestyles

most valuable way of looking at a market and its potential

psychographic research is considered to have transcended demographic categories

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Situational Influences Five situations in which consumers find

themselves often influence their purchase behaviour:1. consider how timetime affects the decision to buy2. physical surroundings physical surroundings often influence purchases3. the terms and conditionsterms and conditions surrounding the actual

purchase will influence the buying decision4. the consumer’s objectivesobjectives are important5. the final buying decision is often influenced by

the consumer’s physical condition and moodphysical condition and mood

Belk’s Situational Elements

Physical surroundings Social surroundings Time Task definition Antecedent states

Physical Surroundings . . .

. . .are the concrete physical and spatial aspects of the environment that encompass a consumer activity.

The Effects of Crowding on Consumers

Density - how closely packed people are (i.e., the physical arrangements of people in a space).

Crowding - the unpleasant feelings that people experience when they perceive that densities are too high and that their control of the situation has been reduced to unacceptable levels.