consumer behavior

           to me the most important thing in consumer behavior is value. the diffenrecne between perceived value And actual value doesn’t matter; the consumer will look for the best value and buy that product. This applies to low and high involvement products, if a consumer walks buy a product in a store and it is on sale for 10 for 5 dollars they might just buy it on impulse. Or when a consumer wants to buy a car they look for the car with the best value this doesn’t have to be the least expensive car it could be the most expensive car in the world if it holds the most value for that consumer he will buy it.

Because of the pretty good problem a lot of products are just as good as the others so the value has to be perceived through marketing. Brand named products show value through their brands so they can market their products at a higher price whereas  the quality of generic brand products are valued less by consumers so the product is sold for less.   

refernece group

http://www.youtube.com/watch?v=2Mc_e3PQABg&feature=related

The ad I chose to talk about as a reference group is an ad for a Nintendo game, the ad shows two friends sitting on a couch one friend shows the other a new video game. The reference group this ad shows is the friend. The friend in this ad trusts his friend to show him which video games are good and that trust makes it more likely for the friend to buy the certain game.  I think the freind is one of the most powerful refernce groups. People trust there freinds especially freinds they've had their entire lives for this reason markerteers use friends showing freinds new products in their ads in an affective way.