- [Instructor] Hello and welcome to part two.
So now we're going to think about some of the influences
that will affect the customer and what they buy,
how they buy, when they buy and things like that.
The first set of influences
that I would like to talk to you about are psychological
and I'm gonna walk you through three factors
that will again influence what they buy, when they buy,
how they buy, their behaviors around purchasing.
So here you see a link to a video,
and I encourage you to watch that, it is humorous,
but it's one that I like.
And so this is based on a well-known
psychological model of personality types,
which is called canoe or ocean.
Here, the letters are arranged so they spell out ocean,
but you can see, you could also arrange them
so they see canoe and you'll see that on the other side
and here they are.
And on the next slide,
we will see a bit more about those factors.
And when we meet in class,
we'll have a discussion about how people
with each of these factors will...
What and how that they might buy.
So here you see them again,
and there's a link here at the bottom.
As all good scholars do, I cite my sources.
And so you can see,
so here they are spelled out to say canoe, but the idea is,
and this is sort of spelled out as a dichotomy.
And like many of these models,
you can probably think of them as extreme ends
of a continuum or the ends of the two poles
with a lot of gray area in between,
but you can think about is someone conscientious?
Are they careful and thoughtful about what they do,
or are they sort of sloppy and impulsive?
Agreeableness, do they tend to be trustful and helping,
or are they sort of suspicious and uncooperative?
Next is neuroticism.
Are they anxious or do they tend to be
calm and confident on the world?
Openness, do they like new experiences there?
Are they imaginative and spontaneous,
or do they like to stick to their routines?
And last, are they extroverted or introverted?
So extroverted being sociable that they get their energy
from being around other people,
or are they introverted in that they prefer small groups
and a lot of alone time.
So in between now, and when we have our in class discussion,
think about products or services
that we would appeal to someone on each side
of the continuum for each of these five factors.
The next influence is lifestyle
and this is a very important one.
And so you can think about
how do people spend their resources?
What is important to them?
How do they behave?
What are their opinions, their values, their behaviors?
And as I said before,
we can begin to measure this
with the concept of psychographics
so like psychology and graphics of measurement,
what are their AIOs,
their activities, interests and opinions,
what are their attitudes?
What are their values?
So we can think too about how do the different lifestyles
and how do people have different psychographics?
How does that influence their behavior as a customer?
The third influence is involvement,
and this is how much time do they spend
sort of in the process that we spoke about in part one,
this process of deciding on what of many options
that they will buy.
And we can think of this as having sort of three types.
There's extended problem solving
where they spend a lot of time, a lot of thought,
there is limited where they sort of spend some time,
but will take short cuts and then routine,
which is habitual.
And you can think about,
and we'll discuss this in class, but what drives this?
What kind of products or services
are someone going to spend a lot of time on
versus what are factors that will lead them to
spending less time?
So think about and maybe jot down a few ideas
what are some factors that would lead someone to spend
a lot of time deciding what they're going to buy?
Good information can help us make good decisions.
So here is an example of information
that maybe would be used.
So this comes from the environmental working group
and they have measured how much pesticide residue
are there in common produce items.
And so this can help sort of guide your decision making
and maybe bring you from the most involved
to sort of the middle level by thinking about
which ones should you buy organic
if you're concerned about this
and which ones is it okay to buy conventional?
So you can see that like one really obvious thing
is sort of leafy greens and things that we eat
the whole of or eat its skin tend to have higher residues,
whereas things that have a harder shell
or have an external sort of peel
that we peel off like a mango or a honeydew or an avocado,
they tend to have less pesticides.
So we saw that the first three influences,
but before now I'm gonna walk you through the next two,
which are sociocultural and situation.
So sociocultural, and I'm gonna go through each one,
includes things like the demographics,
your culture or subculture, reference groups,
and personal influence.
And again, I'm going to go through each one.
You may already be familiar with the term demographics
and I believe last week touched briefly on this,
but these are things like your age, gender, income,
et cetera, et cetera.
So think about, and we'll discuss,
what are things that someone of a certain age
or a certain gender or a certain income or occupation
or gender identity, or et cetera, race, more likely to buy?
I will go say too that this treads into for me
a little bit of dangerous territory
because we don't want to stereotype.
I think that it's safe to say that in many cases,
stereotyping is harmless.
I mean, harmful that it paints someone in a certain light
often unfavorably and has led to a lot of discrimination.
So I think it's good to keep in mind
that we don't want to stereotype, but nonetheless,
there are certain products or services
that someone of a certain age or gender
might be more likely to buy.
And as a business person, trying to get them to buy them,
trying to reach out and find them and talk to them about
your product and get them to buy it that your time
and energy would be better suited finding specific people
who are going to be more likely to,
but just because be aware that at least in my mind
that demographic segmentation and stereotyping
may have overlaps, and I think one is useful
and one can be harmful and I'm also always
willing to discuss this
if it feels like it's getting away from the
useful territory and getting into
the exploited ever harmful kind.
Next is the culture or subculture.
So the norms and patterns of behavior
based on the group that you are in,
the values, customs, tradition that there are certain things
that UVM students as a culture,
certain beliefs and tradition and attitudes
that you are likely to have, certain norms of behavior
and I would like you to next time think about
what are some of the norms and patterns of behavior
that you find among UVM students.
And here are two rather humorous,
but I think interesting links of
two people's commentaries on the subcultures at UVM.
Another set of factors is reference groups.
The set of standards and norms of people that you either
are a part of, want to be a part of,
or don't want to be a part of.
So you can think of it as something as simple as
what will people at this event wear?
So you can see that if you go to a Penn State football game,
something I have done many times,
you probably want to wear blue and white,
and these groups are thought of as again
the ones that you are a member of,
want to be a member of, and don't want one to.
So your membership group are your peers.
Those who are like you.
Your aspiration group is who were the cool kids
or the successful people
or the ones that you want to be more like
and then the dissociated group are like ooh those folks,
I don't want to be like them.
And certainly these groups change
for an individual over time
and certainly vary among individuals,
but by knowing what are the norms and values and standards
that ones, especially membership group or aspiration group,
what they have
that that will help you to better understand them
and it's going to influence what you buy
just so that you will fit in better.
You will dress like them and eat those kinds of foods
and go to those kinds of events
of your membership and aspiration groups,
and try to avoid doing the same thing
with the dissociative group.
The last personal influence
that I want to speak to you about is opinion leadership.
So this is somebody, an opinion leader is someone
who is knowledgeable about and therefore seen as credible
and therefore being influential
about a certain product category.
So it might be music or film or cars
or electronics or vacation spots,
sort of a food critic or a film critic.
But it also might be someone that you know, a friend,
like do you know someone who is always seeking out
the next sort of new kind of music,
or is always knowledgeable about what cool shows
or movies are on Netflix and you seek them out
and ask their opinion.
And it's important that if you can get your product
or service into the hands of an opinion leader,
if you can get them to try it and especially,
hopefully they will like it,
then they can be something of an informal spokesperson
or even an ambassador for your product
and because they have the reputation and credibility
that can go a long way toward giving a favorable reputation
and enhancing the credibility and raising awareness
of your product or service.
And finally, there are situational influences.
There's certain things that people consume
depending on the time of day.
I think folks are much more likely to have a cup of coffee
at 10:00 AM and a glass of beer or wine
maybe at 10:00 AM.
And also by the time of year that,
and we'll talk about this and discuss this in our meeting,
but certainly things that you buy someone as a gift
are not the same kind of things
that you're gonna probably buy for yourself.
If there are things that are appropriate as gifts
that if you gave it whereas there are other things,
if you gave it to somebody as a gift,
they would be like that's weird
or if you gave a friend a diamond ring,
they would probably think what is that all about
whereas if you gave...
There are certain items that are appropriate
depending on the setting.
The last part here of part two
is that I want to touch very briefly
on B2B, business customers.
And this is for those of you who are going to sell a product
or service to an intermediate business,
not to the end consumer.
So this might be something like a retailer or manufacturer,
many peoples sell it, government agencies.
In some cases, it might be raw material.
So maybe you're selling tomatoes
to a salsa maker or something like that.
So the key here is that you really...
Most established businesses probably have someone
that they are already buying from
and are at least somewhat happy with that,
or may not be aware of the alternatives.
So it's really your job to exceed the value of that product
that they're already buying.
So there has to be something better about you,
has to be a better price, better specs,
better performance, delivery, after sales service,
there has to be something that you're offering
that's better than what they're already buying.
So that is the end of part two.
Please go to part three when you wish and continue
with the third and final part
of this week's lecture, thank you.