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Okay, hello everyone. Uh, today we will continue our topic on the consumer market and The Bu Behavior. If we recall, in the past, uh, you know, um class on Friday, we had one experiments with the sodas, different kinds of drinks, soft drinks such as Coca-Cola, Coca-Cola zero, Pepsi and Pepsi lime. So what the students had to do the participants for the for the challenge had to do: uh, there were four types of cups in front of them for same cups with the soda, which which had very similar, first of all, uh, color, uh, obviously, the texture, fuzziness, the carbonation level was pretty much similar and the students uh who were participating in that challenge had to identify which drink it was. We do know that, um, there, there is a great difference between Pepsi and Coca-Cola. When we know the bottle, when we see the bottle, and we know the, the logo in it. Once we see this uh appearance of the bottle and when it taste it- two different drinks they have very distinguished taste. However, what we, we we have identified previous class, we have identified that is actually, without that information that is sent to us, such as the bottle, the logo or the name of the of the drink, soft drink, in in our particular case, it's really hard to distinguish the and identify the real taste. So, uh, I mean, I'm not saying that those drinks taste the same. However, with the very little information about the products here, it was really hard for us to make a conclusion and it was really hard for us to identify what kind of drink we are tasting. So, um, that was the int? Uction kind of session for the consumer market and the buying Behavior. Uh, if we go call recall Show more

quickly, uh, one of the cases that we have discussed in previous class was the company called beyond meat and uh, basically Beyond meet, what you see in the picture here. It's a plan-based burger, right, plan-based Burger, so it consists of zero meat, basically, right, it's made for, uh, the vegan people who don't? Uh, you know, uh, consume or prefer not to eat any meat. However, this particular product called beyond meat, and in this particular case, the Patty, the burger py, is trying to change the consumer attitude and behavior. Right, is trying to change the consumer of attitudes and behavior, because many people who actually become vegans, for instance, right, they miss the certain products and in this particular case, many, um, I mean, according to the customer needs, many vegan uh customers would miss the idea of the, the, the burger patty, the burger beef patty, and how. It's not just the idea of the burger patty, but how it makes what the sizzles, the sizzling noise, right, a sizzling noise. So I mean that experience again, I mean, as, according to beyond meat the company, that experience of the customer is very, very valuable. Okay, therefore, they have introduced a per a product, a burger patty in this particular case, the picture that sizzles when On's preparing- or One prices. So let's move on and let's quickly identify Show more

what was the uh consumer buyer Behavior? Well, we know that. If we I mean uh, we know that uh, the uh definition of consumer and we know the idea of consumer: a consumer is somebody who consumes a products. Right, works as somebody uh who buys a product. That person we called a customer or buyer. Right. In this particular case, the textbook gives you definition of a consumer buyer Behavior. Right, it's identified as as defined as buying behavior of final consumers. Okay, individuals and households that buy goods and services for personal consult. So the idea of we know that behavior. On the other hand, is: what is an action? Right, we, in our very first class, we Define the difference, we identify the difference between Behavior versus attitude, where Behavior was an action and attitude was- I hope you remember the- uh- the. The concept of attitude is the feeling towards something. Right, for example, he has a great attitude means that he has a great feeling towards something. Therefore he probably acts very well. Right, acting means, in this particular case, will be the behavior. So how do we define a consumer market then? Consumer markets are made of of all individuals and households that buy or acquire goods and services for their personal consumption. So what do we have here? We have markets and versus the behavior. Right, buying, Behavior and the set of uh groups, basically individuals and groups that Acquire goods and services for their personal consumption. Okay, this is the model of Show more

the consumer Behavior. What do we have? On the very first, uh, on the very. On the left, we do have an environment. Uh, the environment consists of multiple stimulus, right, uh, number one, uh, we had uh 4p- those for the stimulus. Stimul means something that impacts, something that makes you by something. For example, right, in this particular case, we have a product 4p, okay, product price place and promotion. Can you think of this when you go, for example? For example, soon, uh, next week, this coming Friday, will be a Black Friday. Black Friday is the day or a season right, where many businesses in America, many companies America, have huge sales. So what do we have here? What do we experience here? The idea of those promotions and huge discounts, right, and uh impacted by a certain event, such as a Black Friday or Thanksgiving holidays in America. We do know that that price change might impact us, might make, make us to buy the product. Right, they make that build that urge to buy the product because Black Friday, we know that it's. It's a promotion that doesn't last very long. In America, for instance, it on only at long, only last only one day, okay, on one Friday. Therefore, people save their money, uh, not only in America, but I mean I mean in many countries right now. They save their money to buy or to buy something right to buy something. Okay. We do have, okay, I just mentioned four marketing stimulis. I gave an example of the price, for example, as one of the stimulis. And we also have other stimulis- we call them external stimulus, such as pest, pest stands for the political, economical, um, um, social, cultural, technological, e, ecologic and legal, for instance. Right, so we do have, again, external factors, all those things, those, all those environmental factors, including marketing stimulus and other factors, external factors that do impact the buyer decision, uh processing. So here, what do we have? Here we do have a under the buyer decision processing, we do have Show more

buyer characteristics. Okay, buyer characteristics also do have, uh, do shape, certain uh buying, uh, for example, uh, purchasing power. They do impact certain actually, uh, you know, uh buying, pents and also the buyer's decision process. And we I mean purchase decision making. It's not a new topic, we have been studying it for some time already and but we do know, know that based on various stimulis, varies, on various stimulis, whether it's a marketing stimul, whether it's a external stimula, whether it's a buyer or customers or consumers characteristics, all those things will impact the buyer decision process. Here we do have the buyer responses, all those things, stimulis, in other words, environment and the buyer uh decision processes, the way people make purchasing decisions- that all of it impact the buyer's responses. What do we have here? We do have a buying uh attitudes and preferences. We have purchasing Behavior Uh how they buy it, what they buy it, where they buy it, how much they buy it when they buy it, for example, right. And we also have uh like, for example, um another uh response called brand engagement and relationships. Let's say this: what we have been seeing in the past uh few month for in or in the past few years, for instance, we do see that there have been a lot of Trends with food, for example, right, with food. And we have seen a lot of actually, uh, you know, engagement of customers, of social media personas, for example, or influencers in, in, in social media such as Instagram or Tik Tok. So what we see here, we see, I mean, who is mainly the people who promote those. You know various Cuisines, types of food, various cooking Styles, or you know cooking, various cooking, cooking certain meals, for example, Cuisines, for example, like you know, convenience store, uh kind of. You know Tik Tok videos, uh, you we see have uh like, for example, making, uh you know some spicy noodle challenges, for example. You have seen that right. So what are the buyer's Show more

characteristics? What are the buyer's decision processes? For instance, if I am a customer who has never tried, let's say, spicy Korean noodles, right, this, the very spicy Korean noodles for in, for instance, and if I happen to encounter or watch a video for some re, I mean for somehow in the, my social media, right, what do I experience as a customer? First of all, speaking of very spicy noodles, sometimes we want to try, right, whether that noodle is actually spicy. Our curiosity, in other words, right, uh, I mean, um, maybe you're a very adventurous person, therefore, you would like to, you know, go and you know, try, you know this, the certain trends that is, you know, very popular in the internet right now. So you see me as a buyer, I will have a certain characteristic. Maybe my characteristic will be this: certain, a certain social, for example, status, certain, uh, for example, geographical location, right, maybe certain, uh, income, maybe certain you know like characteristic, as in my, like, you know, being adventurers. As a person, that who, somebody who wants to try. And also very important characteristic of mine will be somebody who uses social media as well, who, somebody who is interested in social media trends as well. So what do we see here? We see all those character istics will build a certain bio response, including brand engagement and relationship. We'll come back to this model of a bi Behavior later on, but let us quickly I I try to go over the four major factors that influence consumer bi Behavior. So what do we have? We just Show more

mentioned that there are four major or other external um factors, right characteristics other than marketing stimulus. That includes play, the, the four piece, right, we do have those. The following factors, such as cultural factors: okay, we have uh, for example, under these cultural factors, we have a culture and subculture right as one of the characteristics. We do have a social factors uh, such as groups, social networks, even influencers, our family roles and Status. We also have uh personal factors, such as age and life stage, OCC, Pati, current economic situation that may include our income, environmental situation, where we are, for example, if I'm in Korea, for instance, and I see everyone, for example trans, certain transends and Foods, I will be curious as well. Right, uh, certain lifestyle U maybe want. Personality and self-concepts: right. And also we do have psychological factors that are also very, very important nowadays, such as motivation. Motivation is like a inner drive, right, your one's perception, the, the one accepts and and receives an information and interprets that information in other, in other words, the way one understand the information that comes to one. Learning- I mean, I don't have to explain you what learning is Right- beliefs and attitudes here as well. So all those things right, all those things, all those four factors will impact one's consumer. Beh, I mean once's Behavior right, once Behavior meaning consumer Behavior and the and the buyer Behavior. Can we just Show more

quickly go over the cultural factors. What is a culture? First of all, we Define culture as a set of very basic values, want's, perceptions, desires and wants and behaviors learns by a member of a society. I mean, in often cases, of course, the very first group that we encounter in our life, our family, right and other important institutions. That may include, for example, a kindergarten school, I may include University, it may include some other, you know, institution that you belong to, meaning as in like group that you belong to. Maybe it's a religious group, maybe it's um, I don't know. It's a some kind of interest group, for example, like if you play music, maybe your uh, your um, I mean your beliefs or your values, Val are shaped by, like you know, are similar to the people that are in that Show more

group. Um, cultural factors, uh, one more uh, actually uh, characteristic of the cultural factor that we had was subculture. So subcultures, we usually Define it as a group of people within a groups of people, within a culture that share value systems based on common life experiences and situation. For example, example, what do you see in this picture? In this picture, we see McDonald's. Right, we see McDonald's. So, um, so what the uh, the idea of this advertisement is? So the marketing to the, for example, to Hispanic American consumers, because we know that America is one of the most Multicultural, uh, you know, countries. So the way, the market, for example McDonald's to Hispanic American consumers right is as follow: the select McDonald's restaurant in communities within a deep Latin rout, for example in in Miami's iconic Little Havana neighborhood. Okay, so what they do is they kind of, you know, I mean, based on that location, okay, on like, for example, neighborhood, they, what they do is they promote. They promote certain, you know, with the, with a certain poster, for example here, right, certain poster here. So I mean just like that, um, you know, Al Al. One one more example that was big recently with McDonald's, about two or three years ago, uh, so, uh, within couple of years ago, like two or three years ago, what was really big? Actually, in Korea and all over the world, McDonald's began to sell, uh, you know, BTS meals, BTS meals. But BTS meals consists of very regular meals such as, you know, chicken nuggets, uh, sorry, certain um drink, um, french fries and, uh, you know of, um, uh, some special sauce, Special Sauce, but I mean, again, nothing was very like, you know, different. It was very simple yet very, uh, you know, very effective marketing tool here. Okay, but BTS, BTS Army, BTS Army- we can actually, uh, Define it as a subculture. Okay, there are BTS Army def fans. The BTS fans are groups of people, okay, within a culture, certain culture, maybe pop culture, who with shared value system based on common life experiences and situations. Okay, maybe with the common taste in music, for instance. Okay, um, I mean, let's just move on. Let's just move Show more

on speaking of groups on and social uh Networks. So what are the reference group? Reference groups are people who basically bring some certain opinion. Okay, for example, if you are okay, you're young, uh, very active. Uh, group of students. Right, if I use you as my reference group, for example, if I ask you this following question: what is the most? Because, since let's assume that I've never been in kdu global, uh, you know campus, if I come to you and I say, hey, what is the best restaurant? Best, maybe, like you know, budget friendly restaurant around K Global Restaurant, you, in my case, will be reference group because you can give me some advice in certain places. Okay, opinion leaders, for example, let's assume that you, okay, is one of the most take savy individual in our school. And if I come to you, okay, because I know you know everything about Technologies, about smartphones, if I come to you and I say, hey, could you please help me out? I'm not sure which smartphone to buy, okay, you, in this case, will be what an example of an opinion leader. Word of month, influence, word of month means sharing you know, through kind of you know, uh, certain you know. I mean through a verbal kind of you know, uh, communication. You sharing, for example, certain information about the product. For example, me and you are friends. Okay, we're close friends, and I get to experience a very new place, new cafe around kuu Global, and I come to and I say hey girls or hey guys, I have H. You know, I have a great experience in, in visiting. I had a great experience visiting a cafe, very nice cafe, near K Global. So this act, this uh situation, is an example of a word of mouth influence. When I do a suggestion to you, verbal suggestion to you, we call it word of word of mouth or w m w m. And there is another word actually, um, uh called e w m. E w m stands for electronic Word of Mouth. Let's say this: I have the same situation, I have the same experience in a nice CA. What I do is, let's say, in my Show more

Instagram, in my stories or in my in post, I make a Instagram post saying that take by, but by uploading some pictures, by sharing some certain information about location, about the menu, about the prices to my followers, that's a great example of electronic Word of Mouth. Let's say this: I go to coupon or I go to amazoncom, I purchase a product and I leave some few commments there. Okay, I leave few comments there. That example- me leaving reviews on the product that I have purchased- will be another example of the electronic word of math. Okay, and many more. Influencer marketing: uh, influencer marketing, I mean influencer marketing- is something that is been very common and popular these days. Uh, we do have certain again uh, online opinion leaders, for example, for celebrities, for the sports women and men that celebrities, athletes that you adore and you love, for example, right there are the best representation of, for example, success, of a healthy lifestyle, maybe of, you know, of inspiration, of a great story, of a great history, of a motivation, determination. They are an example of the influencer marketing. If they one time begin to advertise, let's say, a sports drink or sports wear or sports shoes, okay. And online social networks, other online social networks, such as YouTube, uh, we do have Twitter, we do have, you know, Facebook and other, you know like, you know, social network, just like that. Okay, uh, let's move on to the social Show more

factors. Now, family. We just mentioned that previously just mentioned that one of the very first social groups that we encounter in our life are family. Okay, when we are children, our parents usually are the ones who are in charge of groceries, cooking food. Our taste preferences for food, for example, are built in our families. Okay, uh, role in statos: they can be also defined by the person's position in a group. Okay, okay, uh, let's move on. How do social, those social factors, influence a buyer's Behavior? Okay, we do have. Also, we Show more

mentioned that we also have a personal factors. Okay, one, factors such as your occupation affects the goods and services, but both by the consumers. If I'm an athlete, let's say, right, if I'm an athlete and I do care about, about my- you know- body weight, about my muscle structure, about my body structure, then, of course, what it will impact the buying for example, the buying Behavior, or for the Grocers, for the food, for instance. Okay, age and life stage, it affects taste in food, cloth, furniture and the creation. So I don't have to even explain with that. Obviously, when you're young, maybe you are more into, let's say, a certain types of food, like junk food, fast fast food, for example. As you get older, when you, uh, you know, have your own children, so you're Tas in food, for example, in clothing and even in furniture, and even uh, Recreation will change, right, will change. And also economic situations, uh, include Trends and spending, uh, personal income, saving and interest Show more

rates. How about the personal factors? Lifestyle? Okay, Lifestyles is a p person's one, it's one's pattern of living as expressed in his or her psychographics. For example, I mean, back in times there were many hipsters or hippies. Hippies, I think you have heard people who had, I mean hippies, were the people who identified, who were, I mean very much identified as peace lovers, as Freedom lovers. Right, that lifestyle would definitely, itely, I mean the buying patterns of that lifestyle will definitely be very different. For example, if you identify yourself, as you know, like a skater boy, scater girl, obviously the way the cloth that you wear, uh, the uh, the uh, for example, the shoes that you wear, will be very different, right, will be very different also, because I mean it should be according to your uh lifestyle and uh, actually, many Brands, many Brands today, clothing Brands, they have promote certain lifestyle. For example, V shoes that you see in the picture right. V shoes that you see in the picture was originally made for the skaters, but these days it has become one of the fashion, very fashion items, right, the old school vs, for instance, or the, the um, um, the vs Originals, for example, have become the shoes that represent not only like, for example, a certain lifestyle, as in like, I mean not everyone who wears those Van shoes today, for example- represent a certain lifestyle, right, maybe it's like a it be has become a certain style, right, but maybe not a certain lifestyle. Also, personality is is a great Factor here as well. Personality refers to the unique psychological uh characteristics that distinguish a person or group or group and personality. For example, uh, people who uh, more timid, more, have more introverted personality versus extroverted personality, they will probably have certain, not a big difference, but I mean maybe some difference in their style as well. Okay, in the choice of the color of their cloth, for example, uh, the, the choice of the haircut they have, for instance, right and Etc. Okay, so what do we see here in this uh picture? We have a brand personality, okay, so what do we see in the picture here? We have Ford's Market leading feries pickup track brand. So what do I mean? How, if you look at this picture, how would you perceive this car? Okay, how would you perceive this car? Well, we see a car Show more

right and so, build fort, tough, build tough, basically, right, Fort, built for tough. And we see kind of, you know, off-road kind of car, you know, uh, with some dirt in it. Um, the even the design of a car look very tough, okay, so it's, it's no secret that this brand in particular- and not brand, I'm sorry, this particular, uh, um, truck, truck, uh, model, right, positions on toughness, right. However, they also, at the same time, since it's very tough, build tough, it can V quality, durability and certain resilience. So we do know that if the car is tough should be what the car, that is, very quality, durable and resilient, okay, uh. One more last Factor, Show more

but one of the most important factor, because I mean, these days, many experts, they Define marketing as psychology. Okay, marketing as pschology. So what do we? Um, I mean, what factors do we have under psychological factors? Number one is a motivation. Motivation is basically what is a inner Drive? Right, inner drive. We also have a perception here: learning, beliefs and attitudes. Okay, what we will see in this picture? We see picture. So I mean this picture, right, it's a, it's American, it's by the American Association of advertising agencies. Okay, very controversial statement here. Okay, so this classic ad from the American Association of advertising agencies: pox, fun at subliminal advertising. Okay, so-called subliminal advertising simply does not exist, say the advertisement. However, it creates certain overreactive imagination. Okay, however, most certainly do. Okay, very controversial statement, however, uh, I mean, I think it's, it's very interesting. I think it's very interesting statement here. So I mean I will bring this up in the, in the, the in Friday Show more

class. So what are the psychological factors? I mean motivation, first of all. Motive or drive, right in the drive, is a need that is sufficiently pressing to direct the person to seek satisfaction of the need. So motivation research refers to qualitative research designed to prop consumer hidden, subconscious motivation. So, in other words, motivation is kind something qualitative research, right, it's, it's something to prop consumers. Hidden and subconscious motivation means that what a motivation? That's something that is so, so subjective. Can't be quite subjective here, okay, but yet. Yet they also Define that motive or or drive is a need that is sufficiently pressed to direct the person to seek satisfaction of the need. Okay, I mean, this is Show more

something I think I've introduced in our class before it's called the m l hierarchy of needs. Okay, meaning that it's a, it's a the needs, as in as in motivation. Okay, for example, if I want to uh so fulfill my safety needs, that means I need to fulfill my uh physiological needs, such as hunger and thirst. If I want to reach self-actualization need, it means that I mean, according to this Theory, I need to fulfill the needs that are in the Show more

bottom. Okay, perception, then: what is a? Perception is a process of which people select, organize and depret information to form a meaningful picture of the word. So what do we have here? We have, uh, perceptual processes here, which is a selective attention, selective Distortion and selective retention of the information. So, once again, perception, okay, it's when I mean, for example, when there is a certain information around us, however right, it just doesn't come to us. We, as human being, we select that information and somehow we organize that information and we interpret that information so that we have some certain you know kind of, you know conclusion, right, conclusion, asn't like we have a certain meaningful picture of the Show more

word. So let's go talk about the selective attention. Okay, it's a tendency for a people to screen out most of the information to which they are exposed to. Okay, so, once again, it's when people screen out, meaning that they understand, they accept that information, most of information, just because they are exposed to that information. Selective Distortion is the tendency for people to interpret information in a way that will support what they already believe in. Okay, that's called selective Distortion. And selective retention is the tendency to remember good points made about the brand, the favor, and forget good points made about competing Brands. Let's say this: I mean I think good example will be iOS versus Android, right, iPhone versus, like, let's say, Samsung phones or redmi phones. It's a game. It's when, it's a tendency when people only remember the good points made about the. Let's say, if you fa for Apple, if let's say this, it's if you only think about the good points about Apple, but even though, for example, Android has a lot more good points, right, better points than performance points than, let's say, Apple phones, then I mean you don't you kind of you tend to ignore or forget those good points made about the competing PRS? Okay, okay, um, let's move on. We almost there. Psychological factors. We have learning. Uh, well, learning is the change in individual's Behavior arising from experience and occurs through the interplay of various drives, various stimulus, cues, responses and reinforcements. I don't even have to actually tell you what learning is, right, it's. So. I mean it's such a, like, you know, straightforward concept here. Uh, psychological factors: we a belief and attitude. So what is a belief? It's a descriptive thought that a person has about something, based on one's knowledge, opinion and Faith. An attitude describes a person's relatively consistent evaluation, feelings and tendencies, Tendencies toward an object or ideas. Okay, so we do have four major uh factors here influencing Show more

consumer Behavior. We do have cultural. On the cultural, we have cult, culture and subculture. We have social characteristics. Under that we have social groups, uh, social networks, influence aners, our families, roles and Status. We do have personal factors such as age and life stage, occupation, economic situation, environmental situation, you know lifestyle, personality and self-concept. And we do have psychological characteristics, uh, and under that we do have motivation, perception, learning, beliefs and attitudes. When it comes to the uh perception, we did have three. We did have three type of of Show more

um. Okay, when it comes came to perception, we did have three different perceptual processes. Number one is the selective attention uh, selective Distortion and selective retention. Okay, we had motivation, again, once again under the psychological factors characteristics, motivation, uh, we had perception, we had uh beliefs and um, you know, attitude. And we also have last one, learning, okay, uh, okay. So what we will do on Friday? On Friday we will look more into the uh, the real life examples, a company examples, if you could just think of those factors, brainstorm on those factors, could you please think how? For example, how, if you- I mean a year ago, you lived probably in your home country- your decision making your, again consumer or buyer behavior, let's say a year ago, versus your consumer and buying Behavior today, well, it's all, even though the difference is just one year, can you please think for uh, I mean with, with, with uh, for think uh, pay some time, uh, spend some time on thinking on- you know, brainstorming on this question- your buying Behavior, your consuming Behavior a year ago. You're consuming and buy Behavior today. How is it different based on those factors or characteristics that we have just quickly studied together? Okay, that's something that we will discuss on Friday. Okay, see you Show more

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