consumer behavior brief
TRANSCRIPT
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Consumer Behavior
Dr. Mary Wolfinbarger
Marketing 300
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Topics
Classes of buying decisions
Decision process
Motivations for Buying: MaslowsHierarchy
Major influences on CB
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Classes of Buying Decisions
Routine DM
Limited DM
Extensive DM
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outine Decision Making
Consumer mindlessness
Typically choose from an evoked orconsideration set
Often purchased lower priced items
Little thought, search or time
May stick with one brand
Buy first, evaluate later
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outine Decision Making/Marketers Task
For current customers:
maintain brands quality, stockand value
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outine Decision Making/Marketers Task
For non-customers
break normal buying habits
How?
Use promo to call attention to brand,USP
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outine Decision Making/Marketers Task
In general:
ads/promos focus on one message
messages are repeated often
initial trial occurs due to brandrecognition or variety seeking, notbrand evaluation
can raise purchase involvement level(The Gillette Mach series blades TheBest a Man can Get)
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Limited Decision Making
Low to medium levels of involvement
Low to moderate cost goods
Buyers may reduce risk through someinformation gathering
New brands may be considered for eachpurchase
Short to moderate time to decide
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Limited Decision Making
Marketers Task
provide reasons for buying brand (notjust reminder advertising)
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Extensive Decision Making
Products may be
new
expensive complex
important to consumer
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Extensive Decision Making
may be many choices
may not know criteria to use
high level of involvement longer time frame to make decision
Example: computers, houses, cars
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Extensive Decision Making
Buyers will search for info
Personal selling promo messages can be
longer/ more informative Consumers may perceive risk
marketers must work to reduce thisperception
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The Decision Process
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The Decision Process
Model most relevant for extensive DM
Some of these 5 steps exist in anydecision
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Need Recognition
Cues:
social cues
new life situation marketing cues
Marketing communications
See a superior product
physical drive stock-out/ worn product
emergency
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Information Search
Reduces risks of DM
Financial
Performance Social
Time
Physical
Psychological
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Information Search
Two types:
Internal Search: Past experiences/knowledge
External Search: several sources
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Information Search
Sources of external search:
marketing
consumers: word of mouth or wordof mouse, the internet (CGM consumer generated media)
neutral sources: Consumer Reports,news reports
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Information Evaluation
Example: Friday nights date
important attributes -- looks, personality, cash
relative importance of attributes -- looks, cash,
personality acceptable tradeoffs -- less good personality
may be compensated by cash
attributes wont tradeoff -- need a level of
minimal acceptable looks (no amount of cashor personality will compensate!)
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Purchase Decision
To buy or not to buy?
Best alternative is chosen
Choose place/method of purchase
Out-of-stock prompts more evaluation
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Post-purchase Behaviors
Evaluation of satisfaction
Cognitive dissonance -- the feeling thatsome other choice would have been
better, including not buying at all More likely when choice is inconsistent with
values and opinions and/or
More likely when choices were close
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Post-purchase Behavior
Complaint behavior, grudge-holding
Positive/negative word of mouth
More purchases if satisfied
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More issues for the 5-step model
Some researchers argue that many CBdecisions occur spontaneously itsimply seems right
Part way through the evaluationprocess consumers now often addalternatives for consideration
Read Is the purchase funnel dead?
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More issues for the 5-step model
Consumers may explain their behavioremphasizing factors that are rational andlogical
Do we make decisions with our reptilian minds?(MOTL)
Read The Culture Code
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Why do people shop?Two general motivations:
Goal oriented shopping to buy orfind specific information
Experiential or hedonic shopping to
shop These two motivations are seen in
retailing and in online shopping
The five step model is most consistent with
which
motivation? Which motivation is more likely in online
shopping (except at eBay)?
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Maslows Hierarchy
Suggests five types of needs:
Physiological
Safety
Social
Esteem
Self-Actualization
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Maslows Hierarchy
Physiological Needs
Basic needs for food, rest, shelter
Mostly taken for granted in U. S., butare the basis for some ad appeals
Examples: Gatorade, For that deepdown body thirst
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SafetyNeeds
The need to protect ones self fromanything threatening
U.S. is a relatively risk-averse society Alarms, insurance, health, tires, cars,
medications.
Michelin Tires Because so much is riding
on your tires
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Social Needs
Needs for friendship and belonging
Products: cosmetics, clothing, cigarettes
and beer A pervasive ad appeal
Sometimes the appeal is wrong choicewill not be accepted by friends or
family Example: JIF
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Comments on Maslows Hierarchy
Needs arent fulfilled one at a time in order
There may be other needs
Need for self-expression
Need for complexity
Need for novelty
Other models e.g. Schwartz
Circle of Values (much more recent)
Focuses on basic values rather than needs Has been applied to 75,000 people in 68 countries
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Ads to what motivations do they play?
Apple Ad?
BomChickaWahWah? (Axe)
Loreal (Because Im worth it)
Original Coke ad Id like to teach theworld to sing?
AFLAC Goat
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ReadyMade
To what value on the Circle of Valuesdoes the ReadyMade magazine appeal? How did the founders get the idea for the
business?
How is the magazine designed to appealto their target audience(s)?
How do they choose advertisers?
What postpurchase behavior that ocurredafter the publication of the first issue doesthe film mention?
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Major Influences onConsumer Behavior
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Cultural Characteristics
Fundamental/ubiquitous
Cultures shift, but only slowly
Ones own culture is tacit
Example: shaving?
Example: Deodorant commercial withoctopus shown to Japanese businessmen
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Reference Groups/Group Membership
Primary: family, close friends,neighbors, workmates
Secondary: professional/fraternalorgs
Aspirational groups: sports heroes,movie stars, CEOs?
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Reference Groups
Different groups influence differentdecisions
casual clothes?
career clothing? Tennis shoes?
Music?
Food?
Furniture? Refrigerator? TV?
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Lifestyle, Self-Concept
Lifestyle: pattern of living
Ex: health nut, soccer mom, Nascar Dad,Netizen
Self-concept: -- buy a product becauseits me!
Ex: cars, clothing
Ex: Rich people in East Africa who drive a
Mercedes Benz are called WaBenzi members of the Mercedes Benz tribe
Ideal self-concept: Dove ad uses thisidea subversively
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Branding and Self-Concept
Branding enables us to define ourselvesin terms of recognized standards andsymbols. Lexus, Tommy Hilfigermake
precise and easily recognizedstatements about who they are and byinference about us, the people who buythem.--Wally Olins, Branding consultant
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Other Concepts to Read About Perception
Selective exposure
Selective distortion
Selective retention
Learning Stimulus generalization and discrimination
Beliefs and Attitudes (and changing them) Example: Technology Optimism, attitude towards
a brand
Personality Example: Curiosity, self-efficacy, innovativeness,
materialism
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An example of attitudes and personality
How would you predict thattechnology optimism is related toadoption of the internet by seniors?
How about curiosity?How aboutinnovativeness? Self-efficacy?
Which would you anticipate has moreof an impact?Technology optimism orcuriosity?