 Hi, welcome. My name is Dr. Marcy Stone and this is Unit 3, Understanding the Consumer of your Consumer Behavior Course. This course has 10 units and Unit 3 is on Understanding the Consumer. Here are the Unit 3 learning outcomes. So we have identified how the self-concept strongly influences consumer behavior, explain why products often play a pivotal role in defining the self-concept, explain how consumers' lifestyles are key to developing marketing strategies, and assess health psychographics, augment demographics, enabling marketers to understand and reach different consumer segments. Why are learning outcomes so important? So every learning outcome ties back to your course materials and your content and this includes your assessments and also your test preparation. Here are the Unit 3 overview topics for this presentation. Self-concept and consumer behavior, products and self-concept, consumers' lifestyle and marketing, psychographics, demographics, and consumer segments. And then this is the list of vocabulary for this presentation and this unit. Okay, some consumers buy products to help them become the person they want to be. For example, you might buy new outdoor recreation equipment because you want to be more active or you might buy clothing that doesn't quite fit now but you plan to lose 10 pounds. These are examples of self-concept and depending on how you feel at the time of a potential purchase, it may dictate what you and who you want to be in the future. There are four types of self-concept and these include actual, ideal, private, and social. The four self-concept types include who you are now, who you would like to be, how you see yourself, and how others see you. Depending on how strongly you feel about your self-concept, certain advertising or marketing may be more effective. For example, if you are overweight and you do not want to make home repairs and you watch a lot of TV, you may be less likely to watch commercials about home improvement. Or if you're motivated to lose weight and become more active, you may be more open to commercials about weight loss and exercise. Most people do not consider why they are attracted to certain brands but there's always a reason. It may be that your friends like something and then you do or you tried one product in a brand and loved it so much that you tried others or you may find the company itself fascinating. The products or brands that we like are also related to our self-concept. We may be more open to products that are currently aligned with our self-concept. In marketing, it's important to consider self-concept and create advertising that focuses on the idea of how a product might change your life. Over time, demographics also change. Every decade or so, we may change the type of stores that we shop in because they no longer fit our needs. Our self-concept changes and therefore so do our favorite brands. Our values, beliefs and tastes will dictate our lifestyle and everyone seems to have a different type of idea of the type of lifestyle that they want. So some individuals prioritize a healthy lifestyle while others seek out money to create a wealthy lifestyle and others may focus on friendships and family. During these transitions, consumer behavior also changes based on current lifestyle wants and needs. Television may also influence our wants and needs. Marketers use demographics to focus their target market and take into consideration consumer lifestyle changes over time. For example, couples may want a big house for their growing families when they're in their 20s and 30s but when they're in their 50s, they may be looking to scale back as their grown children leave home. By focusing marketing strategy on specific consumer lifestyles and how they change over time, you may be able to better focus your advertising to your target market. By segmenting the market, a marketer can better focus on their target audience. This may be done by using psychographics or demographics. Using psychographics analyzes a consumer's personality, lifestyle, traits or values. These are reasons a consumer might make a specific choice during the buying process. As a couple ages, their lifestyle or goals change. They may move from buying family related items to retirement related items. As these type of psychographics change in a consumer's life, so does the marketing and advertising that they pay attention to. Demographics might include education level, age, race, sex or homeowner, if you're a homeowner or not. By narrowing down the target market with the use of demographics, a marketer can focus their products or services to people who are more likely to buy. This just gives us a little bit of an overview of segmentation. You've got geographics, demographics, behavioral and psychographics on here. Geographics is really based on location. Where are you located? You have demographics that might include, again, you've got age, gender, maybe an occupation, maybe certain classes. Are they middle class, lower class? All of those things are considered demographics. They give an example there and it says college students ages 18 to 24 would be a demographic. Then you have behavioral. These are customers. These are things like what type of benefits are they going to look for? Do they have a loyalty status in there? Are they using an app to order food online and the app is already downloaded on their phone? Are they ready to buy? You also have early adopters. These are the people that want the brand new iPhone, the day that it comes out and they wait in line for it. These are behaviors that people use to make decisions. One of them I talked about was if you have an app and you've downloaded three different fast food or restaurants and you can easily order dinner. Maybe you're leaving work and you can easily order through an app and then pick up the food on your way home. You are more likely because of that loyalty status with those three companies, you're more likely to use one of those as your options for that evening for dinner. Then you would be to go and download another app and try to order from a whole different place for that night. That loyalty status also works when we look at behavioral. Then you have psychographics, lifestyle that might be attitudes. Here it has education level which can also be a demographic. You have class, you have personality. These are things that and it gives an example there of students who are interested in sustainability and environmental issues. These are things that people may make a decision based off of. For example, where you live might be a geographic but where you live might be dependent on your education level. If your education level is higher, you might want a more expensive house. You might want to live in a better neighborhood and that would be based on your psychographic if that makes sense. There we go. That's segmentation. In conclusion, these are the unit three learning outcomes. Today we looked at how the self-concept strongly influences consumer behavior, why products play a pivotal role in defining your self-concept, and then also how consumers' lifestyles are key in developing marketing strategies. Then we looked a little bit at psychographics and how they work in different segmentation. Okay and what's next? So we have unit four is on influencing consumer attitudes. My name is Dr. Marcy Stone and I just wanted to say thanks for listening.