Lesson 7.1: Influences on Consumer Purchasing

Introduction

• Context: Introduction to Consumer Behavior (Unit 7) as a foundational business concept.
• Content Focus: Business-to-Consumer (B2C) markets and consumer behavior influences.

Key Concepts

• Consumer Behavior: Actions taken by individuals to fulfill needs and wants.
• Market Research: Identifies consistent influences on consumer behavior to enhance value delivery and sales efficiency.

Influences on Consumer Buying Behavior

Psychological Influences

• Definition: Covers various human needs such as:

  • Physical Needs: Essentials for survival (food, water, air).
  • Security: Safety from physical harm or financial dangers.
  • Love and Acceptance: From family and friends for appreciation.
  • Esteem: Self-confidence and respect from others.
  • Self-Actualization: Expressing true self through achievement and charity.

• Maslow's Hierarchy of Needs:

  • Pyramid structure with different levels of needs.
  • Lower tiers (physical, security) need fulfillment before higher tiers (esteem, self-actualization).
  • Larger markets for physical needs and security.
  • Marketing strategies can target multiple tiers to broaden appeal.
  • Examples: Smartphone promotions can target security, love, esteem.

Social Influences

• Culture:

  • Ethnicity, social class, and cultural media (TV, movies, social media) impact purchases.
  • Example: Energy drinks marketed to extreme sports culture.

• Family:

  • Parents influence children's consumer behavior through religion, values, and brand preferences.

• Peer Group:

  • Desire for social acceptance.
  • Word of mouth is powerful—trust in peers more than ads.
  • Example: Positive experiences shared among friends increase brand consideration.

Situational Influences

• Environmental Factors: Weather, store location, and time of day.
• Other Factors: Mood, financial situation, physical abilities.
  • Example: Rain might lead to purchasing an umbrella.

Exam Preparation

• Key Point: Maslow's Hierarchy of Needs is crucial for exams and role plays.
• Practice: DECA question example provided.

Conclusion

• Summary: Review of influences on consumer purchasing and application of Maslow's hierarchy.
• Resources: Sources provided for additional information.