Divisibility The degree to which the innovation may be tried on a limited basis

Divisibility the degree to which the innovation may

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Divisibility : The degree to which the innovation may be tried on a limited basis. Early HDTVs and HD cable and satellite systems were very expensive, which slowed the rate of adoption. As prices fall, adoption rates increase. Communicability : The degree to which the results of using the innovation can be observed or described to others. Because HDTV lends itself to demonstration and description, its use will spread faster among consumers. (Kotler 209) Other characteristics influence the rate of adoption, such as initial and ongoing costs, risk and uncertainty, and social approval. The new-product marketer must research all of these factors when developing the new product and its marketing program. (Kotler 209-210) REVIEWING OBJECTIVES AND KEY TERMS The North American consumer market consists of almost 342 million people who consume more than US$10 trillion worth of goods and services each year, making it one of the most attractive consumer markets in the world. The world consumer market consists of more than 6.8 billion people. Consumers around the world vary greatly in terms of cultural, social, personal, and psychological makeup. Understanding how these differences affect consumer buying behaviour is one of the biggest challenges marketers face. OBJECTIVE 1 Define the consumer market and  explain the process of consumer buyer behaviour. The consumer market consists of all individuals and households who buy or acquire goods and services for personal consumption. Consumer behaviour should be viewed as an ongoing process that starts long before the consumer purchases a product or service and continues long after he or she consumes it. This extended definition of consumer behaviour means that marketers must be aware of a number of issues before, during, and after purchase to build brand loyalty and lasting relationships with their customers.
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OBJECTIVE 2 Name the four major factors that  influence consumer buyer behaviour. Consumer buyer behaviour is influenced by four key sets of buyer characteristics: cultural, social, personal, and psychological. Although many of these factors cannot be influenced by the marketer, they can be useful in identifying interested buyers and shaping products and appeals to serve consumer needs better. Culture is the most basic determinant of a person’s wants and behaviour. Subcultures are “cultures within cultures” that have distinct values and lifestyles and can be based on anything from age to ethnicity. Many companies focused their marketing programs on the special needs of certain cultural and subcultural segments. (Kotler 210) Social factors also influence a buyer’s behaviour. A person’s reference groups family, friends, social networks, and professional associations—strongly affect product and brand choices. The buyer’s age, life-cycle stage, occupation, economic circumstances, personality, and other personal characteristics influence his or her buying decisions. Consumer lifestyles —the whole pattern of acting and interacting in the world—are also an important influence on purchase decisions. Finally, consumer buying behaviour is influenced by four major psychological factors : motivation, perception, learning, and beliefs and attitudes. Each of these factors
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  • Winter '16
  • Simon P. Sigué
  • Marketing, Consumer, buying behaviour

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