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1,CHAPTER 2,Determinants of Customer Behavior: Personal Factors and Market Environment,CUSTOMER BEHAVIOR: A MANAGERIAL PERSPECTIVE PART 1:,Copyright 1999 by Thomas Southwestern. All rights reserved.,2,Framework,Payer,User,Buyer,Personal Context Culture Groups and Institutions Personal Worth Social Class,Personal Traits Genetics Biogenics Personality,Market Context Economy Government Policy Technology,Market Traits Climate Topography Ecology,Copyright 1999 by Thomas Southwestern. All rights reserved.,3,Two Broad Classes,Personal traits Those biological and physiological features a person is born with and those that develop as a person grows but whose origin derives from biological heredity. Individual traits Group traits Personal context The characteristics of the socio-econocultural environment in which we have lived and are living, which has intimately influenced our resources, tastes, and preferences,4,Personal Factors,Copyright 1999 by Thomas Southwestern. All rights reserved.,5,Personal Traits,Genetics Biogenics Race Gender Age Personality,Copyright 1999 by Thomas Southwestern. All rights reserved.,6,Genetics: The Cards We Are Dealt at Birth,DNA (deoxyribonucleic acid) Chemicals in cell nuclei that form the molecular basis of heredity in organisms Genes (segments of DNA) provide the code that determines our characteristics,Copyright 1999 by Thomas Southwestern. All rights reserved.,7,Research,Research is in progress on genetics and DNA, seeking to discover secrets of the human condition and behavior Advances in neurology are uncovering various chemicals that regulate human emotions and behavior These discoveries support the idea of biological determinism the belief that human behavior is determined by biological factors such as genetics and DNA Other non-biological factors such as culture, perception, learning, and individual motivation, determine much of adult behavior as well,Copyright 1999 by Thomas Southwestern. All rights reserved.,8,Genetics Affect Customer Needs and Behavior,Four Factors Physiological differences Diseases and mental disorder Circadian rhythm Emotions and behavior,Copyright 1999 by Thomas Southwestern. All rights reserved.,9,Direct Effects of Genetics,Physical features and physiological characteristics Height, weight, skin color and tone, color of eyes, color and texture of hair, and bodily reactions to variations in temperature and other environmental changes (i.e., allergies),Copyright 1999 by Thomas Southwestern. All rights reserved.,10,Daily Cycle of Activity,Circadian Rhythm biological “clock” governs rhythms like sleep-wake cycles Peoples rhythms affect, when shoppers like to shop, among other things Research is also examining whether consumers might process advertisements differently at different times of the day according to their circadian rhythm,Copyright 1999 by Thomas Southwestern. All rights reserved.,11,Human Behavior,Nature (biological factors) Behavior is determined by a persons upbringing, by family life, by parental values, by peer group influences, by school, and by church groups Nurture (the familial and social environment) Behavior is determined by a persons genetic makeup: our emotions, our sexual preference, tribalism, love of status, notions of beauty, our sociability, creativity, and morality itself,Copyright 1999 by Thomas Southwestern. All rights reserved.,12,Birth Order Matters,Birth order is the sequence among all siblings born of the same mother Older children are control freaks, aspiring, ambitious and driven Younger siblings, in contrast, take themselves much less seriously, are more sociable and less judgmental, more risk taking and more open to new things and change,Copyright 1999 by Thomas Southwestern. All rights reserved.,13,Biogenics,Three biogenic characteristics that influence customer behavior: Race Gender Age,Copyright 1999 by Thomas Southwestern. All rights reserved.,14,Race,In the United States, the Bureau of the Census specifies the following four race categories: Caucasian African American American Indian and Alaskan Eskimos Asian and Pacific Islanders,Copyright 1999 by Thomas Southwestern. All rights reserved.,15,Gender,Gender is a biogenic group trait that divides customers into two groups males and females This group trait remains constant through a persons life, and it influences customer values and preferences,Copyright 1999 by Thomas Southwestern. All rights reserved.,16,Age,Age is perhaps the most pervasive influence on customer behavior Both needs and wants vary immensely by age Age helps determine the lifetime revenue from a customer Lifetime revenue is the estimated revenue a firm may expect to receive from a customer over the customers lifetime,Copyright 1999 by Thomas Southwestern. All rights reserved.,17,Chronological Age-based Grouping,The GI Generation (born from 1901 to 1924) Silent Generation (born between 1925) Baby Boomers (born between 1946 to 19640 Generation X (Post 1964) Generation Y (born between 1977 and 1995) Children,Copyright 1999 by Thomas Southwestern. All rights reserved.,18,Distribution of Online Buyers By Age,Copyright 1999 by Thomas Southwestern. All rights reserved.,19,Customer Personality,Personality refers to a persons consistent ways of responding to the environment in which he or she lives Customer personality is a function of two factors: Genetic makeup Environmental conditioning,Personality = Genetics x Environment,Copyright 1999 by Thomas Southwestern. All rights reserved.,20,Behaviorism Theory,A person develops a pattern of behavioral responses because of the rewards and punishments offered by his or her environment,Copyright 1999 by Thomas Southwestern. All rights reserved.,21,Freudian Theory,Human personality is driven by both conscious and unconscious motives Three divisions of the human psyche: id the basic source of inner energy directed at avoiding pain and obtaining pleasure and represents the unconscious drives and urges ego between the unconscious and impulsive desires of the id and the societal ideals internalized by the superego superego the moral side of the psyche, reflecting societal ideals,Copyright 1999 by Thomas Southwestern. All rights reserved.,22,Unconscious Tactics of the Ego,Aggression Rationalization Projection Repression Withdrawal Regression,Copyright 1999 by Thomas Southwestern. All rights reserved.,23,Trait Theory,A person is viewed as a composite of several personality traits A personality trait is a consistent, characteristic way of behaving,Copyright 1999 by Thomas Southwestern. All rights reserved.,24,Personality of the Business Customer,Two personality traits of the “social styles” classification Assertiveness Responsiveness,Classification of Personality Into Social Styles,RESPONSIVENESS,ASSERTIVENESS,LOW,HIGH,HIGH,LOW,RESPONSIVENESS,ASSERTIVENESS,HIGH,Copyright 1999 by Thomas Southwestern. All rights reserved.,26,Personal Context,Culture Institutions and groups Personal worth Social class,Copyright 1999 by Thomas Southwestern. All rights reserved.,27,Culture,Enculturation,Acculturation,Copyright 1999 by Thomas Southwestern. All rights reserved.,28,Institutions and Groups,Institutions More permanent groups with pervasive and universal presence in society Groups Two or more persons sharing a common purpose,Copyright 1999 by Thomas Southwestern. All rights reserved.,29,Types of Groups,MEMBERSHIP,SYMBOLIC,Copyright 1999 by Thomas Southwestern. All rights reserved.,30,Classification of Groups for Household Customers,Copyright 1999 by Thomas Southwestern. All rights reserved.,31,Private-Public, Luxury-Necessity, Product-Brand Influences,NECESSITY,LUXURY,Copyright 1999 by Thomas Southwestern. All rights reserved.,32,Personal Worth,Three components of personal worth Income Wealth Borrowing power,Copyright 1999 by Thomas Southwestern. All rights reserved.,33,Social Class Characteristics,Rank ordering Relative permanence Intergenerational class mobility Internal homogeneity Distinct from income,34,Market Environment,Copyright 1999 by Thomas Southwestern. All rights reserved.,35,Two Broad Classes,Market traits The physical characteristics of the surroundings in which consumers select, use, and pay for products and services in both household and business markets Market context The man-made market forces (as opposed to the nature-made forces) of the market as a physical place that affects customer needs and wants,Copyright 1999 by Thomas Southwestern. All rights reserved.,36,Market Traits,Climate Topography Ecology,Copyright 1999 by Thomas Southwestern. All rights reserved.,37,Climate,Climate is the first major component of the geophysical market environment, which consists of temperature, wind, humidity, and rainfall in the area Homeostasis Influences consumer behaviors Food consumption Use of clothing Housing patterns Geographical distribution of population Climate also affects business customers needs and purchases,Copyright 1999 by Thomas Southwestern. All rights reserved.,38,Topography,Topography is another major component of the geophysical environment which is the terrain, altitude, and soil conditions of the market where customers buy and use the product or service Consumption varies across different regions of the world Geographical variation Different patterns of consumption in different regions Regional marketing Adapting marketing programs according to segmentation based on geographic differences among customers,Copyright 1999 by Thomas Southwestern. All rights reserved.,39,Ecology,Ecology refers to the natural resources and the delicate balance and interdependence among vegetation, animals and humans Ecology affects customer behavior by making certain market options less conve

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