Chapter 15
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Consumer's Digest is an American magazine that allows companies to use its product reviews and "Best Buy" seal for marketing. The magazine judges products and awards the seal to those it deems the best quality for a reasonable price. Several brands have employed the green and gold "Consumer's Digest Best Buy" seal in their marketing, including hot tubs, tires, home security systems, and automobiles.
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5
Understanding Consumer Behavior
LEARNING油OBJECTIVES
After reading this chapter you should be able to:
LO 5-1Describe the stages in the consumer purchase decision process.
LO 5-2Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving.
LO 5-3Identify the major psychological influences on consumer behavior.
LO 5-4Identify the major sociocultural influences on consumer behavior.
ENLIGHTENED油CARMAKERS油KNOW油WHAT油CUSTOM(H)ERS油VALUE
Who makes 60 percent of new-car buying decisions? Who influences 80 percent of new-car buying decisions? Women. Yes, women.
Women are a driving force in the U.S. automobile industry. Enlightened carmakers have hired women designers, engineers, and marketing executives to better understand and satisfy this valuable car buyer and influencer. What have they learned? While car price and quality are important, women and men think and feel differently about car features and key elements of the new-car buying decision process and experience.
The sense of styling. Women and men care about styling. For men, styling is more about a cars exterior lines and accents or curb appeal. Women are more interested in interior design and finishes. Designs that fit their proportions, provide good visibility, offer ample storage space, and make for effortless parking are particularly important.
The need for speed. Both sexes want speed, but for different reasons. Men think about how many seconds it takes to get from zero to 60 miles per hour. Women want to feel secure that the car has enough acceleration to outrun an 18-wheeler trying to pass them on a freeway entrance ramp.
The substance of safety. Safety for men is about features that help avoid an accident, such as antilock brakes and responsive steering. For women, safety is about features that help to survive an accident. These features include passenger airbags and reinforced side panels.
The shopping experience. The new-car-buying experience differs between men and women in important ways. Generally, men decide up front what car they want and set out alone to find it. By contrast, women approach it as an intelligence-gathering expedition. Referred to as油CROPing, women shoppers look for油CRedible油OPinions. They actively seek information and postpone a purchase decision until all options have been evaluated. Women, more frequently than men, visit auto-buying websites, read car-comparison articles, and scan car advertisements. Still, recommendations of friends and relatives matter most to women. Women typically shop three dealerships before making a purchase decisionone more than men.
Page 111
Carmakers have learned that women, more than men, dislike the car-buying experiencespecifically, the experience of dealing with car salespeople. In contrast to many male car buyers, women do not typically revel in the gamesmanship of car buying. Men get all excited about going out to buy a car and talk about how theyre g.Chapter 15
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油
The document discusses decision making processes for purchasing a car and cell phone. It lists different types of retailers including discount stores like Walmart and Target, department stores like Belk and Macys, and specialty stores like Ace Hardware and Best Buy. It also briefly defines impulse buying as purchasing too quickly without consideration.CONSUMER BUYING BEHAVIOR
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Chapter 15
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Consumers Digest is a magazine that evaluates products to help consumers make informed purchasing decisions. The document then provides examples of steps consumers can take when making different types of purchases, including cars, cell phones, and from various retail stores. It also defines an impulse buy as purchasing something quickly without much forethought, often occurring while grocery shopping.Some Factors That Influence Consumers Buying Behavior Yo.docx
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Some Factors That Influence Consumers Buying Behavior
Youve been a consumer with purchasing power for much longer than you probably realizesince the first
time you were asked which cereal or toy you wanted. Over the years, youve developed rules of thumb or mental
shortcuts providing a systematic way to choose among alternatives, even if you arent aware of it. Other consumers
follow a similar process, but different people, no matter how similar they are, make different purchasing decisions.
You might be very interested in purchasing a Smart Car, but your best friend might want to buy a Ford F-150 truck.
What factors influenced your decision and what factors influenced your friends decision?
While some influences may be temporary and others are long lasting, different factors can affect how buyers
behavewhether they influence you to make a purchase, buy additional products, or buy nothing at all. Lets now
look at some of the influences on consumer behavior in more detail.
Situational Factors
Have you ever been in a department story and couldnt find your way out? No, you arent
necessarily directionally challenged. Marketing professionals take physical factors such as a stores
design and layout into account when they are designing their facilities. Presumably, the longer you
wander around a facility, the more you will spend. Grocery stores frequently place bread and milk
products on the opposite ends of the stores because people often need both types of products. To buy
both, they have to walk around an entire store, which of course, is loaded with other items they might
see and purchase.
Store locations also influence behavior. Starbucks has done a good job in terms of locating its
stores. It has the process down to a science; you can scarcely drive a few miles down the road without
passing a Starbucks. You can also buy cups of Starbucks coffee at many grocery stores and in
airportsvirtually any place where there is foot traffic.
Physical factors that firms can control, such as the layout of a store, music played at stores, the
lighting, temperature, and even the smells you experience are called atmospherics. Perhaps youve
visited the office of an apartment complex and noticed how great it looked and even smelled. Its no
coincidence. The managers of the complex were trying to get you to stay for a while and have a look at
their facilities. Research shows that strategic fragrancing results in customers staying in stores
longer, buying more, and leaving with better impressions of the quality of stores services and
products. Mirrors near hotel elevators are another example. Hotel operators have found that when
people are busy looking at themselves in the mirrors, they dont feel like they are waiting as long for
their elevators.Patricia Moore, Smells Sell, NZ Business, February 2008, 2627.
Not all physical factors are under a companys control, however. Take w.3 Keys to Managing Credit Card Debt
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Industrialization and urbanization led to rapid changes in American society in the late 19th century. There was a new wave of immigration as millions came to the US for opportunities. Cities grew substantially in size and population, bringing both economic opportunities and social problems. New mass communication technologies like the telephone connected people. Public schooling expanded to educate more children and help immigrants assimilate to American culture. Overall this was a period of significant transformation in industry, cities, immigration patterns, and society.The Americans Chapter 15 powerpoint
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The document summarizes FDR's New Deal programs and policies during the 1930s to address the Great Depression. It details FDR's election in 1932 and his "Hundred Days" of legislation passing major programs to provide relief, reform, and recovery. This included the AAA to boost agriculture, the CCC to employ young men, the WPA and PWA to fund public works projects, and the Social Security Act. The New Deal expanded the role of government and marked a shift toward more liberal policies. By the late 1930s, the economy had improved but unemployment remained high, leading FDR to launch a Second New Deal with additional relief programs.Ku Klux Klan
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5Understanding Consumer BehaviorLEARNING油OBJECTIVESAfter rea.docx
5Understanding Consumer BehaviorLEARNING油OBJECTIVESAfter rea.docxalinainglis
油
5
Understanding Consumer Behavior
LEARNING油OBJECTIVES
After reading this chapter you should be able to:
LO 5-1Describe the stages in the consumer purchase decision process.
LO 5-2Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving.
LO 5-3Identify the major psychological influences on consumer behavior.
LO 5-4Identify the major sociocultural influences on consumer behavior.
ENLIGHTENED油CARMAKERS油KNOW油WHAT油CUSTOM(H)ERS油VALUE
Who makes 60 percent of new-car buying decisions? Who influences 80 percent of new-car buying decisions? Women. Yes, women.
Women are a driving force in the U.S. automobile industry. Enlightened carmakers have hired women designers, engineers, and marketing executives to better understand and satisfy this valuable car buyer and influencer. What have they learned? While car price and quality are important, women and men think and feel differently about car features and key elements of the new-car buying decision process and experience.
The sense of styling. Women and men care about styling. For men, styling is more about a cars exterior lines and accents or curb appeal. Women are more interested in interior design and finishes. Designs that fit their proportions, provide good visibility, offer ample storage space, and make for effortless parking are particularly important.
The need for speed. Both sexes want speed, but for different reasons. Men think about how many seconds it takes to get from zero to 60 miles per hour. Women want to feel secure that the car has enough acceleration to outrun an 18-wheeler trying to pass them on a freeway entrance ramp.
The substance of safety. Safety for men is about features that help avoid an accident, such as antilock brakes and responsive steering. For women, safety is about features that help to survive an accident. These features include passenger airbags and reinforced side panels.
The shopping experience. The new-car-buying experience differs between men and women in important ways. Generally, men decide up front what car they want and set out alone to find it. By contrast, women approach it as an intelligence-gathering expedition. Referred to as油CROPing, women shoppers look for油CRedible油OPinions. They actively seek information and postpone a purchase decision until all options have been evaluated. Women, more frequently than men, visit auto-buying websites, read car-comparison articles, and scan car advertisements. Still, recommendations of friends and relatives matter most to women. Women typically shop three dealerships before making a purchase decisionone more than men.
Page 111
Carmakers have learned that women, more than men, dislike the car-buying experiencespecifically, the experience of dealing with car salespeople. In contrast to many male car buyers, women do not typically revel in the gamesmanship of car buying. Men get all excited about going out to buy a car and talk about how theyre g.Chapter 15
Chapter 15mayj
油
The document discusses decision making processes for purchasing a car and cell phone. It lists different types of retailers including discount stores like Walmart and Target, department stores like Belk and Macys, and specialty stores like Ace Hardware and Best Buy. It also briefly defines impulse buying as purchasing too quickly without consideration.CONSUMER BUYING BEHAVIOR
CONSUMER BUYING BEHAVIORLibcorpio
油
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油
This document provides an introduction to the BrandZ Top 100 Most Valuable Global Brands 2009 ranking. It explains that the ranking is based on proprietary consumer research and market/financial data to determine the monetary brand value. The ranking considers thousands of brands across over 30 countries and 17 brand categories. It aims to provide the most comprehensive, and useful assessment of brand value available by quantifying the contribution of brand equity to market value.Chapter 15
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Consumers Digest is a magazine that evaluates products to help consumers make informed purchasing decisions. The document then provides examples of steps consumers can take when making different types of purchases, including cars, cell phones, and from various retail stores. It also defines an impulse buy as purchasing something quickly without much forethought, often occurring while grocery shopping.Some Factors That Influence Consumers Buying Behavior Yo.docx
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Some Factors That Influence Consumers Buying Behavior
Youve been a consumer with purchasing power for much longer than you probably realizesince the first
time you were asked which cereal or toy you wanted. Over the years, youve developed rules of thumb or mental
shortcuts providing a systematic way to choose among alternatives, even if you arent aware of it. Other consumers
follow a similar process, but different people, no matter how similar they are, make different purchasing decisions.
You might be very interested in purchasing a Smart Car, but your best friend might want to buy a Ford F-150 truck.
What factors influenced your decision and what factors influenced your friends decision?
While some influences may be temporary and others are long lasting, different factors can affect how buyers
behavewhether they influence you to make a purchase, buy additional products, or buy nothing at all. Lets now
look at some of the influences on consumer behavior in more detail.
Situational Factors
Have you ever been in a department story and couldnt find your way out? No, you arent
necessarily directionally challenged. Marketing professionals take physical factors such as a stores
design and layout into account when they are designing their facilities. Presumably, the longer you
wander around a facility, the more you will spend. Grocery stores frequently place bread and milk
products on the opposite ends of the stores because people often need both types of products. To buy
both, they have to walk around an entire store, which of course, is loaded with other items they might
see and purchase.
Store locations also influence behavior. Starbucks has done a good job in terms of locating its
stores. It has the process down to a science; you can scarcely drive a few miles down the road without
passing a Starbucks. You can also buy cups of Starbucks coffee at many grocery stores and in
airportsvirtually any place where there is foot traffic.
Physical factors that firms can control, such as the layout of a store, music played at stores, the
lighting, temperature, and even the smells you experience are called atmospherics. Perhaps youve
visited the office of an apartment complex and noticed how great it looked and even smelled. Its no
coincidence. The managers of the complex were trying to get you to stay for a while and have a look at
their facilities. Research shows that strategic fragrancing results in customers staying in stores
longer, buying more, and leaving with better impressions of the quality of stores services and
products. Mirrors near hotel elevators are another example. Hotel operators have found that when
people are busy looking at themselves in the mirrors, they dont feel like they are waiting as long for
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Throughout this quarter we have discussed topics relating to culture and communication such as selection, perception, and interpretation. Write a two-page paper on your experiences, decisions, and the conflicts that arise when you engage in the game, Inside Disaster: http://www.insidedisaster.com/experience/Main.html. This interactive experience takes you into the Haiti earthquake that happened in 2010. You will be describe your experiences as a gamer and turn in your paper discussing your gaming experience on Moodle by Saturday, February 18, 11 pm.
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4. What did you learn about Haiti and the 2010 earthquake?
5. Discuss the story and perspectives of this game.
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Page 1
Group 4: Mark Keck Contribution
Instructor Merriman
MGMT479
February 9, 2017
Under Armour Strategic Audit (Team Suggestions)
Under Armour Current Situation
Current Financial Performance
18.1% increase net revenue over 2008, US$856,411,000
.71% decrease in gross margin in 2009 (attributed to liquidation of shoe inventory)
78% market share in the performance apparel clothing segment (UA created the segment)
94% of revenue generated from Canadian and domestic markets
Sports apparel industry down 4.3% as a whole due to recession
Strategic Position
Brand Mission:
To make all athletes better through passion, science and the relentless pursuit of innovation.
Objectives
Launch and establish a running shoe line to capture some of the $5 billion running shoe segment, and at least 3% of the $31 billion international branded footwear market
Strategies
Keep retail pricing aligned with competitors in apparel and foot wear
Policies
Strategic Managers
Board of Directors
8 Person Board of Directors including:
Kevin A. Plank, Chairman of the Board of Directors
Top Management
Kevin A. Plank, President & CEO
Wayne A. Marino, COO; Brad Dickerson, CFO
Henry B. Stafford, Senior VP of Apparel
Gene McCarthy, Senior VP of Footwear
Dan J. Sawall, VP of Retail
John S. Rogers, VP/General Manager of E-Commerce
J. Scott Plank, Executive VP Domestic and Global Business Development
External Environment
Natural Environment
Societal Environment
Sports apparel market is highly correlated to disposable income, recession had an industry wide negative net effect to revenues, recession ending
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- 2. Consumer Digest Consumers Digest is an American for-profit magazine that allows companies to use its reviews for marketing purposes. The magazine awards its Consumers Digest Best Buy seal to products its staff judges to be of the best quality for the most reasonable price. Some of the brands that employ the green and gold "Consumers Digest Best Buy" seal include Cal Spas hot tubs, Bridgestone Tires, Brinks Home Security, Multi-Pure Drinking Water Systems, McKleinUSA Business Cases and Mercury Automobiles.
- 3. Buying a Car Identify the car you want Know what the other choices are Pick out the car you want Evaluate the other cars Buy your selected car
- 4. Buying a Cell Phone Identify the cell phone you want Know what the other choices are Pick the cell phone you want Evaluate the other phones Buy the selected phone
- 5. Discount Stores Wal-Mart, Kmart, Target
- 6. Department Stores JC Penny, Sears, Macys
- 7. Specialty Stores Harris Teeter, Payless Shoe Source, Dicks Sporting Goods
- 8. Impulse Buying Impulse Buying is when you are addicted to shopping and you buy way to much and you become bankrupt. You make impulse shopping when you are shopping for cool or expensive items.