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- [Instructor] Hello
and welcome to part two.

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So now we're going to think
about some of the influences

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that will affect the
customer and what they buy,

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how they buy, when they
buy and things like that.

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The first set of influences

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that I would like to talk to
you about are psychological

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and I'm gonna walk you
through three factors

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that will again influence
what they buy, when they buy,

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how they buy, their
behaviors around purchasing.

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So here you see a link to a video,

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and I encourage you to
watch that, it is humorous,

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but it's one that I like.

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And so this is based on a well-known

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psychological model of personality types,

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which is called canoe or ocean.

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Here, the letters are arranged
so they spell out ocean,

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but you can see, you
could also arrange them

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so they see canoe and you'll
see that on the other side

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and here they are.

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And on the next slide,

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we will see a bit more
about those factors.

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And when we meet in class,

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we'll have a discussion about how people

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with each of these factors will...

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What and how that they might buy.

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So here you see them again,

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and there's a link here at the bottom.

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As all good scholars
do, I cite my sources.

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And so you can see,

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so here they are spelled out
to say canoe, but the idea is,

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and this is sort of
spelled out as a dichotomy.

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And like many of these models,

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you can probably think
of them as extreme ends

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of a continuum or the
ends of the two poles

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with a lot of gray area in between,

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but you can think about
is someone conscientious?

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Are they careful and
thoughtful about what they do,

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or are they sort of sloppy and impulsive?

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Agreeableness, do they tend
to be trustful and helping,

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or are they sort of
suspicious and uncooperative?

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Next is neuroticism.

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Are they anxious or do they tend to be

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calm and confident on the world?

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Openness, do they like
new experiences there?

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Are they imaginative and spontaneous,

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or do they like to
stick to their routines?

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And last, are they
extroverted or introverted?

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So extroverted being sociable
that they get their energy

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from being around other people,

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or are they introverted in
that they prefer small groups

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and a lot of alone time.

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So in between now, and when we
have our in class discussion,

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think about products or services

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that we would appeal
to someone on each side

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of the continuum for each
of these five factors.

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The next influence is lifestyle

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and this is a very important one.

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And so you can think about

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how do people spend their resources?

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What is important to them?

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How do they behave?

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What are their opinions,
their values, their behaviors?

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And as I said before,

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we can begin to measure this

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with the concept of psychographics

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so like psychology and
graphics of measurement,

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what are their AIOs,

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their activities, interests and opinions,

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what are their attitudes?

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What are their values?

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So we can think too about how
do the different lifestyles

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and how do people have
different psychographics?

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How does that influence
their behavior as a customer?

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The third influence is involvement,

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and this is how much time do they spend

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sort of in the process that
we spoke about in part one,

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this process of deciding
on what of many options

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that they will buy.

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And we can think of this as
having sort of three types.

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There's extended problem solving

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where they spend a lot of
time, a lot of thought,

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there is limited where they
sort of spend some time,

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but will take short cuts and then routine,

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which is habitual.

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And you can think about,

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and we'll discuss this in
class, but what drives this?

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What kind of products or services

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are someone going to
spend a lot of time on

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versus what are factors
that will lead them to

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spending less time?

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So think about and maybe
jot down a few ideas

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what are some factors that
would lead someone to spend

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a lot of time deciding
what they're going to buy?

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Good information can help
us make good decisions.

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So here is an example of information

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that maybe would be used.

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So this comes from the
environmental working group

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and they have measured
how much pesticide residue

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are there in common produce items.

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And so this can help sort of
guide your decision making

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and maybe bring you from the most involved

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to sort of the middle
level by thinking about

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which ones should you buy organic

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if you're concerned about this

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and which ones is it
okay to buy conventional?

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So you can see that like
one really obvious thing

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is sort of leafy greens
and things that we eat

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the whole of or eat its skin
tend to have higher residues,

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whereas things that have a harder shell

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or have an external sort of peel

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that we peel off like a mango
or a honeydew or an avocado,

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they tend to have less pesticides.

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So we saw that the first three influences,

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but before now I'm gonna walk
you through the next two,

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which are sociocultural and situation.

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So sociocultural, and I'm
gonna go through each one,

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includes things like the demographics,

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your culture or subculture,
reference groups,

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and personal influence.

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And again, I'm going
to go through each one.

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You may already be familiar
with the term demographics

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and I believe last week
touched briefly on this,

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but these are things like
your age, gender, income,

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et cetera, et cetera.

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So think about, and we'll discuss,

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what are things that
someone of a certain age

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or a certain gender or a
certain income or occupation

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or gender identity, or et
cetera, race, more likely to buy?

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I will go say too that
this treads into for me

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a little bit of dangerous territory

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because we don't want to stereotype.

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I think that it's safe to
say that in many cases,

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stereotyping is harmless.

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I mean, harmful that it paints
someone in a certain light

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often unfavorably and has led
to a lot of discrimination.

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So I think it's good to keep in mind

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that we don't want to
stereotype, but nonetheless,

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there are certain products or services

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that someone of a certain age or gender

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might be more likely to buy.

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And as a business person,
trying to get them to buy them,

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trying to reach out and find
them and talk to them about

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your product and get them
to buy it that your time

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and energy would be better
suited finding specific people

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who are going to be more likely to,

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but just because be aware
that at least in my mind

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that demographic
segmentation and stereotyping

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may have overlaps, and
I think one is useful

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and one can be harmful and I'm also always

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willing to discuss this

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if it feels like it's
getting away from the

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useful territory and getting into

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the exploited ever harmful kind.

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Next is the culture or subculture.

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So the norms and patterns of behavior

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based on the group that you are in,

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the values, customs, tradition
that there are certain things

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that UVM students as a culture,

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certain beliefs and
tradition and attitudes

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that you are likely to have,
certain norms of behavior

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and I would like you to
next time think about

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what are some of the norms
and patterns of behavior

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that you find among UVM students.

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And here are two rather humorous,

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but I think interesting links of

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two people's commentaries
on the subcultures at UVM.

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Another set of factors
is reference groups.

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The set of standards and norms
of people that you either

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are a part of, want to be a part of,

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or don't want to be a part of.

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So you can think of it
as something as simple as

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what will people at this event wear?

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So you can see that if you go
to a Penn State football game,

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something I have done many times,

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you probably want to wear blue and white,

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and these groups are thought of as again

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the ones that you are a member of,

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want to be a member of,
and don't want one to.

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So your membership group are your peers.

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Those who are like you.

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Your aspiration group is
who were the cool kids

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or the successful people

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or the ones that you want to be more like

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and then the dissociated group
are like ooh those folks,

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I don't want to be like them.

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And certainly these groups change

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for an individual over time

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and certainly vary among individuals,

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but by knowing what are the
norms and values and standards

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that ones, especially membership
group or aspiration group,

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what they have

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that that will help you
to better understand them

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and it's going to influence what you buy

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just so that you will fit in better.

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You will dress like them
and eat those kinds of foods

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and go to those kinds of events

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of your membership and aspiration groups,

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and try to avoid doing the same thing

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with the dissociative group.

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The last personal influence

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that I want to speak to you
about is opinion leadership.

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So this is somebody, an
opinion leader is someone

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who is knowledgeable about
and therefore seen as credible

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and therefore being influential

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about a certain product category.

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So it might be music or film or cars

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or electronics or vacation spots,

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sort of a food critic or a film critic.

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But it also might be someone
that you know, a friend,

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like do you know someone
who is always seeking out

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the next sort of new kind of music,

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or is always knowledgeable
about what cool shows

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or movies are on Netflix
and you seek them out

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and ask their opinion.

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And it's important that if
you can get your product

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or service into the hands
of an opinion leader,

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if you can get them to
try it and especially,

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hopefully they will like it,

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then they can be something
of an informal spokesperson

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or even an ambassador for your product

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and because they have the
reputation and credibility

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that can go a long way toward
giving a favorable reputation

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and enhancing the credibility
and raising awareness

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of your product or service.

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And finally, there are
situational influences.

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There's certain things that people consume

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depending on the time of day.

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I think folks are much more
likely to have a cup of coffee

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at 10:00 AM and a glass of beer or wine

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maybe at 10:00 AM.

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And also by the time of year that,

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and we'll talk about this and
discuss this in our meeting,

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but certainly things that
you buy someone as a gift

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are not the same kind of things

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that you're gonna
probably buy for yourself.

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If there are things that
are appropriate as gifts

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that if you gave it whereas
there are other things,

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if you gave it to somebody as a gift,

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they would be like that's weird

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or if you gave a friend a diamond ring,

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they would probably think
what is that all about

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whereas if you gave...

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There are certain items
that are appropriate

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depending on the setting.

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The last part here of part two

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is that I want to touch very briefly

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on B2B, business customers.

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And this is for those of you
who are going to sell a product

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or service to an intermediate business,

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not to the end consumer.

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So this might be something like
a retailer or manufacturer,

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many peoples sell it, government agencies.

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In some cases, it might be raw material.

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So maybe you're selling tomatoes

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to a salsa maker or something like that.

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So the key here is that you really...

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Most established businesses
probably have someone

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that they are already buying from

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and are at least somewhat happy with that,

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or may not be aware of the alternatives.

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So it's really your job to
exceed the value of that product

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that they're already buying.

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So there has to be
something better about you,

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has to be a better price, better specs,

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better performance, delivery,
after sales service,

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there has to be something
that you're offering

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that's better than what
they're already buying.

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So that is the end of part two.

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Please go to part three
when you wish and continue

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with the third and final part

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of this week's lecture, thank you.