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73CHAPTER5CONSUMERMARKETSANDCONSUMERBUYERBEHAVIORCONCEPTCONNECTIONSCHAPTEROVERVIEW1.Definetheconsumermarketandconstructasimplemodelofconsumerbuyerbehavior.2.Namethefourmajorfactorsthatinfluenceconsumerbuyerbehavior.3.Listandunderstandthestagesinthebuyerdecisionprocess.4.Describetheadoptionanddiffusionprocessfornewproducts.Thischapterexploresthedynamicsofconsumerbuyingbehaviorandtheconsumermarket.Markets(andthosewhichtheyserve)havetobeunderstoodbeforemarketingstrategiescanbedeveloped.Theconsumermarketbuysgoodsandservicesforpersonalconsumption.Atpresent,theworldconsumermarketconsistsof6billionpeople.Aswillbeshowninthenextchapter,theconsumermarketdiffersfromthebusinessmarket.Withrespecttotheindividualsintheconsumermarket,thebehavioroftheconsumerisinfluencedbythebuyer’sdecisionprocess.Buyercharacteristicsincludefourmajorfactors:cultural,social,personal,andpsychological.Eachofthesefactorsisexploredindetailandrelationshipsaredrawnbetweenthemandtheirsubpartsandtheconsumptionpurchasesmadebyconsumers.Sincemanyofthesefactorsaredeepandlong-lastingintheireffect,themarketingmanagershouldpayspecialattentiontoacquiringinformationaboutthemwithrespecttotheorganization’stargetmarkets.Severalexamplesarepresentedtoillustratehowthismightbedone.Afterthechapterexaminestheinfluencesthataffectbuyers,adiscussionispresentedthatexaminesofhowconsumersmakeactualbuyingdecisions.Decisionsvarybasedonthedegreeofbuyerinvolvementandthedegreeofdifferencesamongbrands.Asummarydiscussionispresentedthatoutlinescomplexbuyingbehavior,dissonance-reducingbuyingbehavior,habitualbuyingbehavior,andvariety-seekingbuyingbehavior.SpecialfocusisdirectedtowardsaPrinciplesofMarketing:Chapter574CHAPTEROVERVIEW(CONTINUED)simplemodelofbuyingbehaviorwhichexplainsmostofthetermspertinenttothestudyofbuyingbehavior.Thesimplemodel(consistingoffivestages--needrecognition,informationsearch,evaluationofalternatives,purchasedecision,andpostpurchasebehavior)tiestogethermaterialaboutthebuyingdecisionprocess.Fornewproducts,specialsituationsaffecttheconsumerchoicedecision.Ithasbeenfoundthatconsumersrespondatdifferentrates(dependingonconsumerandproductcharacteristics),gainknowledgeabouttheproductsindifferentways,andbecomeawareof“newness”withvaryingratesofconsideration.Factorsthatspeedtherateofadoptionofnewproductsarecoveredandexplained.Understandingconsumerbehaviorisdifficultenoughforcompaniesmarketingwithinthebordersofasinglecountry.Theproblemiscompoundedwhenafirmattemptstomarketintheglobalenvironment.Thechapterbrieflydisclosesdifferencesbetweenglobalconsumermarkets.Lastly,marketersmustdecidewhethertoadapttheirproductstomatchthedemandsoftheglobalmarketplaceornot.Thequestionofadaptationorstandardizationwillbeatopicfordebateforseveralyearstocome.CHAPTEROUTLINE1.Introductiona.Manydifferentfactorsaffectconsumerbuyingbehavior.Buyingbehaviorisneversimple.However,understandingitistheessentialtaskofmarketingmanagement.b.Consumerbuyingbehaviorreferstothebuyingbehavioroffinalconsumers--individualsandhouseholdswhobuygoodsandservicesforpersonalconsumption.c.Theconsumermarketisalltheindividualsandhouseholdswhobuyoracquiregoodsandservicesforpersonalconsumption.1).TheAmericanconsumermarketconsistsofabout273millionpeople.2).Thesepeopleconsumetrillionsofdollarsofgoodsandserviceseachyear.3).Theworldconsumermarketconsistsofmorethan6billionpeople.4).Consumersvarytremendouslyinage,income,educationlevel,andtastes.*****UseKeyTermsconsumerbuyingbehaviorandconsumermarketHere;UseConceptConnection#1Here;UsePowerPoint5-2Here*****PrinciplesofMarketing:Chapter5752.ModelofConsumerBehaviora.Consumersmakemanybuyingdecisionseveryday.b.Amodelofconsumerbehaviorhelpsmanagersanswerquestionsaboutwhatcon-sumersbuy,wheretheybuy,howandhowmuchtheybuy,whentheybuy,andwhytheybuy.1).Learningaboutthewhat,where,when,andhowmuchisfairlyeasy.2).Learningaboutthewhyismuchmoredifficult.c.Thecentralquestionis:Howdoconsumersrespondtovariousmarketingeffortsthecompanymightuse?*****UsePowerPoint5-2Here*****d.Thestimulus-responsemodelofbuyerbehaviorshowsthatmarketing(madeupofthefourP’s--product,price,place,andpromotion)andotherstimuli(suchastheeconomic,technological,political,andculturalenvironments)centeronthecon-sumer’s“blackbox”andproducecertainresponses.e.Marketer’smustfigureoutwhatistheconsumer’s“blackbox.”f.The“blackbox”hastwoparts.1).Thebuyer’scharacteristicsinfluencehowheorsheperceiveandreacttostimuli.2).Thebuyer’sdecisionprocessitselfaffectsthebuyer’sbehavior.*****UseConceptConnection#1Here;UseFigure5.1Here;UseIssuesforDiscussion#1Here;UsePowerPoint5-3Here*****3.CharacteristicsAffectingConsumerBehaviora.Consumerpurchasesarestronglyinfluencedbycultural,social,personal,andpsychologicalcharacteristics.Forthemostpart,themarketercannotcontrolthem,buttheymustbetakenintoaccount.*****UseConceptConnection#2Here;UseFigure5.2Here;UsePowerPoint5-4Here*****CulturalFactorsb.Culturalfactorsexertthebroadestanddeepestinfluenceonconsumerbehavior.Themarketerneedstounderstandtheroleplayedbythebuyer’sculture,sub-culture,andsocialclass.c.Cultureisth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