consumer behavior. appreciate the wide scope of consumer behavior studies, including the three...
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Appreciate the wide scope of consumer behavior studies, including the three consumer roles and analysis of consumer wants and needs
Describe the psychological bases of consumer behavior, including perception, learning, and motivation
Explain how psychographics seeks to explain consumer behavior by discussing such aspects as values, lifestyles, and self-concepts
Identify the steps in a typical consumer decision process
Describe how households make group consumer decisions
THE SCOPE OF CONSUMER BEHAVIOR
Consumer behavior is the process by which individuals or groups select, use, or dispose of goods, services, ideas, or experiences to satisfy needs or wants.
Wants Versus Needs
• Needs – unsatisfactory condition of the consumer that prompt him or her to action that will make the condition better.
• Wants – desires to obtain more satisfaction than is absolutely necessary to improve an unsatisfactory condition.
PSYCHOLOGICAL BASES OF CONSUMER BEHAVIOR
• Perception – the process by which an individual senses, organizes, and interprets information received from the environment.
PSYCHOLOGICAL BASES OF CONSUMER BEHAVIOR
• Motivation – the state of drive or arousal that moves us toward a goal-object.
EsteemEsteem
Self ActualizationSelf Actualization
SafetySafety
PhysiologicalPhysiological
BelongingnessBelongingnessSocial/Social/
Consumer Needs
Maslow’s Hierarchy of Needs
Consumer Needs
Physiological • Products:
Limited in the United States. Generic foods, medicines, special drinks, and foods for athletes
• Specific themes: Campbell’s Soup - “Soup is good food,” with
advertising copy that stresses the nutritional benefits of soup
Raisins - “Thank goodness I found a snack kids will sit for. And mothers will stand for.”
Esteem
Self Actualization
Safety
Physiological
BelongingnessSocial/
Consumer Needs
Maslow’s Hierarchy of Needs
Consumer Needs
Safety • Products:
Smoke detectors, preventive medicines, insurance, social security, seat belts, safes
• Specific themes:Sleep Safe - “We’ve designed a travel
alarm that might wake you in the middle of the night… You see, ours is a smoke alarm as well as an alarm clock”
Alka Seltzer - “Will it be there when you need it?”
EsteemEsteem
Self ActualizationSelf Actualization
SafetySafety
PhysiologicalPhysiological
BelongingnessBelongingnessSocial/Social/
Consumer Needs
Maslow’s Hierarchy of Needs
Consumer Needs
Social/Belongingness • Products:
Personal grooming, foods, entertainment, clothing, and many others.
• Specific themes: Oil of Olay - “When was the last time you and
your husband met for lunch?”
EsteemEsteem
Self ActualizationSelf Actualization
SafetySafety
PhysiologicalPhysiological
BelongingnessBelongingnessSocial/Social/
Consumer Needs
Maslow’s Hierarchy of Needs
Consumer Needs
Esteem• Products:
Clothing, furniture, liquors, hobbies, stores, cars, and many others
• Specific themes:Sheaffer - “Your hand should look as
contemporary as the rest of you”St. Pauli Girl - “People who know the
difference in fine things know the difference between imported beer and St. Pauli Girl…”
EsteemEsteem
Self ActualizationSelf Actualization
SafetySafety
PhysiologicalPhysiological
BelongingnessBelongingnessSocial/Social/
Consumer Needs
Maslow’s Hierarchy of Needs
Consumer Needs
Self-Actualization• Products:
Education, hobbies, sports, some vacations, gourmet foods, museums
• Specific themes: U.S. Army - “Be all you can be” U.S. Home - “Make the rest of your life… the
best of your life”
Consumer Emotions and Moods
• Emotions – strong, relatively uncontrolled feelings that affect our behavior.
• Moods – emotions that are less intense and transitory.
Values
• Self-respect• Self-fulfillment• Security• Sense of belonging• Excitement• Sense of accomplishment• Fun and Enjoyment• Being well respected• Warm relationships with others
VALS2 VALS2
GroupingsGroupings
Consumer MotivationConsumer Motivation
FulfillersFulfillers Mature, home oriented, Mature, home oriented, well educated well educated professionalsprofessionals
High incomesHigh incomes
Value-orientedValue-oriented
Open to new ideasOpen to new ideas
FulfillersFulfillers Mature, home oriented, Mature, home oriented, well educated well educated professionalsprofessionals
High incomesHigh incomes
Value-orientedValue-oriented
Open to new ideasOpen to new ideas
VALS2 VALS2
GroupingsGroupings
Consumer MotivationConsumer Motivation
AchieversAchievers Work orientedWork oriented
SuccessfulSuccessful
High job satisfactionHigh job satisfaction
Respect authority, and Respect authority, and favor the status quofavor the status quo
Demonstrate success Demonstrate success through their purchasethrough their purchase
AchieversAchievers Work orientedWork oriented
SuccessfulSuccessful
High job satisfactionHigh job satisfaction
Respect authority, and Respect authority, and favor the status quofavor the status quo
Demonstrate success Demonstrate success through their purchasethrough their purchase
VALS2 VALS2
GroupingsGroupings
Consumer MotivationConsumer Motivation
ExperiencersExperiencers Main component of Main component of action-oriented segment action-oriented segment
Youngest in VALS2, Youngest in VALS2, median age is 25 yearsmedian age is 25 years
Active in both physical Active in both physical and social activitiesand social activities
Favor new productsFavor new products
ExperiencersExperiencers Main component of Main component of action-oriented segment action-oriented segment
Youngest in VALS2, Youngest in VALS2, median age is 25 yearsmedian age is 25 years
Active in both physical Active in both physical and social activitiesand social activities
Favor new productsFavor new products
VALS2 VALS2
GroupingsGroupings
Consumer MotivationConsumer Motivation
BelieversBelievers Family and community Family and community oriented peopleoriented people
Modest meansModest means
Brand loyalBrand loyal
Favor American-made Favor American-made productsproducts
BelieversBelievers Family and community Family and community oriented peopleoriented people
Modest meansModest means
Brand loyalBrand loyal
Favor American-made Favor American-made productsproducts
VALS2 VALS2
GroupingsGroupings
Consumer MotivationConsumer Motivation
StriversStrivers Lower-income peopleLower-income people
Values similar to Values similar to achieversachievers
Style is important in Style is important in lifestyle.lifestyle.
StriversStrivers Lower-income peopleLower-income people
Values similar to Values similar to achieversachievers
Style is important in Style is important in lifestyle.lifestyle.
VALS2 VALS2
GroupingsGroupings
Consumer MotivationConsumer Motivation
MakersMakers
Main component of Main component of action-oriented segment action-oriented segment along with experiencersalong with experiencers
Self-sufficient groupSelf-sufficient group
Practical with little Practical with little interest in most material interest in most material possessionspossessions
MakersMakers
Main component of Main component of action-oriented segment action-oriented segment along with experiencersalong with experiencers
Self-sufficient groupSelf-sufficient group
Practical with little Practical with little interest in most material interest in most material possessionspossessions
VALS2 VALS2
GroupingsGroupings
Consumer MotivationConsumer Motivation
ActualizersActualizers Posses both high Posses both high income and self-income and self-esteemesteem
Indulge in a variety Indulge in a variety of self-orientationsof self-orientations
ActualizersActualizers Posses both high Posses both high income and self-income and self-esteemesteem
Indulge in a variety Indulge in a variety of self-orientationsof self-orientations
VALS2 VALS2
GroupingsGroupings
Consumer MotivationConsumer Motivation
StrugglersStrugglers Have few resourcesHave few resources
Do not fit into the Do not fit into the regular VALS2 regular VALS2 categoriescategories
Brand loyal to the Brand loyal to the extent possibleextent possible
StrugglersStrugglers Have few resourcesHave few resources
Do not fit into the Do not fit into the regular VALS2 regular VALS2 categoriescategories
Brand loyal to the Brand loyal to the extent possibleextent possible
Attitude
Attitudes are learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way.
Step 1: Problem Recognition
Problem recognition occurs when consumers realize that they need to do something to get back to a normal state of comfort.
Step 4: Purchase
• Purchase is the stage when transaction terms are arranged, title of ownership is transferred, the product is paid for, and the consumer takes possession of the product from the seller.
HOUSEHOLD DECISION MAKING
• Families and Households
• Children’s Influence
• Conflict in Family Decisions
Family Buying Decisions
• Initiation of the purchase decision• Gathering and sharing of information• Evaluating and deciding• Shopping and buying• Conflict management
Needs and Wants
• Needs Unsatisfactory conditions of the consumer
that lead him or her to actions that will make the conditions better
• Wants Desires to obtain more satisfaction than is
absolutely necessary to improve unsatisfactory conditions
Determination of Needs
• Determination of Needs 3 physical characteristics of the
individual person
• Genetics
• Biogenics
• Psychogenics
IndividualIndividual GeneticsGenetics BiogenicsBiogenics PsychogenicsPsychogenics
Determination of Needs
• Genetics Heredity and chemical/biological
characteristics of organisms Habits and needs vary with gene
types
IndividualIndividual GeneticsGenetics BiogenicsBiogenics PsychogenicsPsychogenics
Determination of Needs
• Biogenics Biological characteristics that
people possess at birth (gender, race, age, etc.)
For example, older people have different needs
IndividualIndividual GeneticsGenetics BiogenicsBiogenics PsychogenicsPsychogenics
Determination of Needs
• Psychogenics Individual states and traits induced
by a person’s brain functioning Moods, emotions, perceptions,
experiences
IndividualIndividual GeneticsGenetics BiogenicsBiogenics PsychogenicsPsychogenics
Determination of Needs
• Determination of Needs 3 physical characteristics of the
environment
• Climate
• Topography
• Ecology
EnvironmentEnvironmentClimateClimateTopographyTopographyEcologyEcology
Determination of Needs
• Ecology Environmental influences of
humans Quality of air, food chain, etc.
EnvironmentEnvironmentClimateClimateTopographyTopographyEcologyEcology
Determination of Needs
• Topography Physical condition of the location
on earth, spatial profile, and presence of bodies of water
People in the mountains may need hiking boots, people near water may need boats
EnvironmentEnvironmentClimateClimateTopographyTopographyEcologyEcology
Determination of Needs
• Climate Conditions that affect consumers’
need for food, clothing, shelter Temperature, altitude, rainfall
EnvironmentEnvironmentClimateClimateTopographyTopographyEcologyEcology
Types of Needs
Physiological • The fundamentals of survival, including hunger, thirst, and
other bodily needs
PowerAchievement Self-expression
Affiliation
Physiological
Cognition Variety Seeking
Attribution
Safety
PowerAchievement Self-expression
SafetySafety Affiliation
Physiological
Cognition Variety Seeking
Attribution
Types of Needs
Safety • Concern over physical survival and safety
PowerAchievement Self-expression
Physiological
Cognition Variety Seeking
Attribution
Safety AffiliationAffiliation
Types of Needs
Affiliation and Belongingness• A need to be accepted by others, to be an important person
to them
Power Self-expression
Affiliation
Physiological
Cognition Variety Seeking
Attribution
AchievementAchievement
Safety
Types of Needs
Achievement • A basic desire for success in meeting personal goals
Self-expression
Affiliation
Physiological
Cognition Variety Seeking
Attribution
Safety
Achievement PowerPower
Types of Needs
Power • A desire to gain control over one’s destiny as well as that of
others
Power
Affiliation
Physiological
Cognition Variety Seeking
Attribution
Safety
Achievement Self-expressionSelf-expression
Types of Needs
Self-expression • The need to develop freedom in self-expression and to be
perceived by others as significant
Power Self-expression
Affiliation
Physiological
Variety Seeking
Attribution
Safety
Achievement
CognitionCognition
Types of Needs
Cognition • The desire to self-actualize through knowing, constructing a
value system
Power Self-expression
Affiliation
Physiological
Cognition
Attribution
Safety
Achievement
Variety SeekingVariety Seeking
Types of Needs
Variety Seeking • Maintenance of a preferred level of physiological arousal and
stimulation
Power Self-expression
Affiliation
Physiological
Cognition Variety Seeking
Safety
Achievement
AttributionAttribution
Types of Needs
Attribution • Estimation or attribution of the causality of events and
actions
Determination of Wants
• Personal Context Personal worth Institutional relationships Cultural surroundings
Personal ContextPersonal Context
Environmental ContextEnvironmental Context
Determination of Wants
• Personal worth Financial resources available to consumers Income assets, inheritance, borrowing
power, etc. Social class classifications (capitalist,
middle class, working poor, etc.)
Personal ContextPersonal Context
Environmental ContextEnvironmental Context
• Middle Class
• Working Class
• Working Poor
• The Under Class
• Capitalists Class• Capitalists Class
CapitalistsCapitalists1%1%
CapitalistsCapitalists1%1%
• Top 1% with income from assets earned or inherited
Determination of Wants Social Class
• Upper Class
Personal ContextPersonal Context
• Middle Class
• Working Class
• Working Poor
• The Under Class
Upper ClassUpper Class14%14%
Upper ClassUpper Class14%14%
• Upper managers, professionals, and medium level business people. Income nearly twice the national average.
• Capitalists Class
• Upper Class• Upper Class
Determination of Wants Social Class
Personal ContextPersonal Context
• Upper Class
• Working Class
• Working Poor
• The Under Class
• Middle-level white-collar and top level blue-collar workers. Income somewhat above the national average.
• Capitalists Class
• Middle Class• Middle Class
Middle Middle ClassClass33%33%
Middle Middle ClassClass33%33%
Determination of Wants Social Class
Personal ContextPersonal Context
• Upper Class
• Middle Class
• Working Poor
• The Under Class
• Middle-level blue-collar and lower-level white-collar workers. Income and educational level slightly below national level.
• Capitalists Class
• Working Class• Working Class
Working Working ClassClass33%33%
Working Working ClassClass33%33%
Determination of Wants Social Class
Personal ContextPersonal Context
• Upper Class
• Middle Class
• Working Class
• The Under Class
• Low paid workers (minimum wage). Income just above the poverty line. Most have some high school education
• Capitalists Class
• Working Poor• Working Poor
Working PoorWorking Poor11-12%11-12%
Working PoorWorking Poor11-12%11-12%
Determination of Wants Social Class
Personal ContextPersonal Context
• Upper Class
• Middle Class
• Working Class
• Working Poor
• Depend primarily on welfare systems. Standard of living below poverty line. Lack regular employment and education
• Capitalists Class
• The Under Class• The Under Class
The Under The Under ClassClass8-9%8-9%
The Under The Under ClassClass8-9%8-9%
Determination of Wants Social Class
Personal ContextPersonal Context
Determination of Wants
• Institutional relationships Groups and organizations to which a person
belongs Institutional context includes workplace,
religious and educational institutions, family and friends, and peer groups
Personal ContextPersonal Context
Environmental ContextEnvironmental Context
Determination of Wants
• Cultural surroundings Culture’s influence on consumers Some cultures value age, some value youth,
some value possessions, some value the inner self, etc.
Personal ContextPersonal Context
Environmental ContextEnvironmental Context
Determination of Wants
• Environmental Context Economy Technology Public policy
Personal ContextPersonal Context
Environmental ContextEnvironmental Context
Determination of Wants
• Economy Economic development and business cycles
in a nation’s economy Economic level of a nation, inflation,
unemployment rate, income growth, etc.
Personal ContextPersonal Context
Environmental ContextEnvironmental Context
Determination of Wants
• Technology Man-made inventions and devices used to
sustain, facilitate or enhance human life and activities
Energy, telecommunications, education, etc.
Personal ContextPersonal Context
Environmental ContextEnvironmental Context
Determination of Wants
• Public policy Governmental laws and regulations that
control human behavior Business practices like product safety,
pricing, etc. are regulated
Personal ContextPersonal Context
Environmental ContextEnvironmental Context
• When relevant marketplace information (e.g. an advertisement) reaches one or more of the consumer five senses.
• Exposure• Exposure
• Attention
• Comprehension
• Acceptance
• Retention
Consumer Perception Information Processing
• To attend is to focus mental effort on a particular stimulus from all that are physically present.• Attention• Attention
• Exposure
• Comprehension
• Acceptance
• Retention
Consumer Perception Information Processing
• Comprehension is the interpretation or perception, of what the stimulus means, implies, or represents.
• Comprehension• Comprehension
• Exposure
• Attention
• Acceptance
• Retention
Consumer Perception Information Processing
• Acceptance is the extent to which a consumer agrees with marketing message that has been attended and comprehended.
• Acceptance• Acceptance
• Exposure
• Attention
• Comprehension
• Retention
Consumer Perception Information Processing
• Retention represents the transfer of marketplace information into long term memory.
• Retention• Retention
• Exposure
• Attention
• Comprehension
• Acceptance
Consumer Perception Information Processing
Consumer Decision Making Individual
• Individual Decision MakingMental budgetingPayer plays the most important
role
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
Consumer Decision Making Individual
• Internal and external stimuli generate perceived state of discomfort
• Familiar problems - stock depletion
• Novel problems - associated with life events
• Vivid problems - very visible problem
• Latent problems - not obvious, requires self-reflection or external agent to be discovered
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
Consumer Decision Making Individual
Awareness SetAwareness Set
Evoked setEvoked set Brands NOT Brands NOT RecalledRecalled
Consideration SetConsideration Set Brands NOT Brands NOT ConsideredConsidered
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
Consumer Decision Making Individual
• Information SourcesNonmarketer - personal
sources, independent sourcesMarketer - under the
marketer’s control
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
Consumer Decision Making Individual
• Search Strategies Routine problem solving - no new info
considered Extended problem solving - extensive and
deliberate search Limited problem solving - limited time and
energy invested Heuristics strategy - broad inferences, past
experiences, brand names
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
Consumer Decision Making Individual
• Determinants of amount of searching Performance risk Social risk Psychological risk Financial risk Obsolescence risk
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
Consumer Decision Making Individual
• Compensatory modelConsumer considers all
attributes and mentally trading off alternatives weaknesses (Pros vs Cons)
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
Consumer Decision Making Individual
• Noncompensatory models Disjunctive - trade-offs between
aspects of choice alternatives Lexicographic - rank-ordering of
alternatives Elimination by aspects - attributes in
order of importance with cut-off values
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
Consumer Decision Making Individual
• Choice identification• Purchase intent• Purchase implementation
Sometimes derailed by deviation from identified choice (out of stock, new information, financing, etc.)
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
Consumer Decision Making Individual
• Cognitive dissonance - postpurchase doubt about the wisdom of the choice
• Usage outcomeCan generate exit, voice, or
loyalty
Problem Problem RecognitionRecognition
Information Information SearchSearch
Alternative Alternative EvaluationEvaluation
PurchasePurchase
Post-Post-purchase purchase
ExperienceExperience
• Family member who initiates thinking about buying products (gatekeeper)
• Family member who initiates information gathering
• Initiator• Initiator
• Influencer
• Decider
• Buyer
• User
Consumer Decision Making Family Buying Roles
• Family member whose opinion is sought about purchases
• Provides information about brands and evaluative criteria
• Decider
• Buyer
• User
• Initiator
• Influencer• Influencer
Consumer Decision Making Family Buying Roles
• Family member who has financial authority and/or power to purchase the product
• Influencer
• Buyer
• Initiator
• User
• Decider• Decider
Consumer Decision Making Family Buying Roles
• Family member who acts as the purchasing agent
• Performs the logistics (going to the store, writing the check, etc.) of the purchase
• Influencer
• Decider
• User
• Initiator
• Buyer• Buyer
Consumer Decision Making Family Buying Roles
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