consumer behavior. –the study of how individuals, groups, and organizations select, buy, use, and...
TRANSCRIPT
Consumer Behavior
Consumer Behavior
– The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants
Model of Consumer Behavior
• Culture is often the most powerful cause of a person's needs, wants and behavior.
• Characteristics of Culture– Culture is learned– Cultural shifts create opportunities– Subcultures are often of greater interest to
marketers than cultures
Culture
• Society’s relatively permanent and ordered divisions
• Social Class Members share similar values, interests, and purchase behaviors
• Indentify by: income, occupation, education, wealth, and other variables
• Opportunity: “Social Mobility” products
Social Class
The Major American Social Classes
Social Factors
Reference groups
Cliques
Family
Roles and status
Reference Groups
• Membership groups– Primary vs. Secondary
• Aspirational groups
• Dissociative groups
• Opinion leaders
Family
• Family of Orientation• Family of Procreation
Toyota caters to family buying influences.
• Age and Life-Cycle Stage– Tastes and preferences change over time.
• Occupation / Roles / Status– Influences the purchase of clothing, cars, memberships, etc.
• Economic Situation– Income-sensitive goods– Counter-cyclical goods
Personal Factors
Personal Factors
• Lifestyle:– Pattern of living (AIO)
• Activities• Interests• Opinions
• VALS:– Classifies consumers with
respect to motivation and resources.
• Predicts purchase behavior
Key Psychological Processes
Motivation
Perception
LearningEmotions
Memory
Motivation
Freud’sTheory
Behavioris guided by subconsciousmotivations
Maslow’sHierarchyof Needs
Behavioris driven by
lowest, unmet need
Herzberg’sTwo-Factor
Theory
Behavior isguided by
dissatisfiersand
satisfiers
Maslow’s Hierarchy Of Needs
• Personality– One Definition: Unique psychological characteristics that lead to relatively consistent and
lasting responses to one’s environment.
• “Big 5” - OCEAN– Openness– Conscientiousness– Extraversion– Agreeableness– Neuroticism (Anxiousness)
• Brands as expressions of identity
• Ideal Self vs. Actual Self
Personality and Self-Concept
Perception
Process by which people select, organize, and
interpret information to form a meaningful picture of the
world.
People can form different perceptionsof the same stimulus.
Selective Attention
People screen out most stimuli.
Selective Distortion vs. Retention
• Selective Distortion– Interpreting information in a way that supports what you already
believe.
• Selective Retention– Remembering the good aspects of something you like and forgetting
the bad aspects of something you dislike.
• One Definition:– A relatively permanent change in behavior due to experience.
• Classical Conditioning: Stimulus-response chains
• Operant Conditioning: Consequences drive behavior– Behaviors with satisfying results are repeated.– Behaviors with unsatisfying results are avoided.– Stimulus Generalization and discrimination
• Different from Deliberation
Learning
Attitudes
• A person’s consistently favorable or unfavorable feelings, evaluations, and tendencies toward an object or idea.
• Attitudes have lots of staying power.– Cognitive economy/efficiency– Emotional anchors– Advertising may try to modify beliefs and
attitudes (“Got Milk” campaign)
The Buying Decision Process
Need Recognition
Buyers recognize a need or problem as a result of internal or external stimuli.
Marketing communications often stimulate need recognition.
Hungry yet?
Triggering Need Recognition
Information Search
• High vs. Low Involvement Purchases
• Cost vs. Benefit Model• Cognitive Economy• “Big-Ticket” Anomolies• Preference Reversals• Non-Linear Search Processes
Information Sources
– Personal• Family, friends, neighbors, and casual or work acquaintances
– Commercial• Advertising, salespeople, dealers, Web sites, packaging, and displays
– Public• Social Media, Mass media,
Internet searches, Consumer rating organizations
– Experiential• Using, handling, examining or
sampling the product
Which source is most influential?
• Elaboration Likelihood Model: Central vs. Peripheral Route processing
• Some Types of Evaluation Calculus:– Compensatory vs. Non-compensatory– Weighted Tally Processes (Fishbein Model)– Elimination-by-aspects– Lexicographic– “Checkbox Choice”– Affect Referral
Evaluation of Alternatives
Weighted Tally Process Example
Assume the consumer assigns importance weights to Memory, Graphics, Size/Weight and Price 30%, 20%, 40%, and 10%, respectively.
Computer A’s score would be: (30% x 8) + (20% x 9) + (40% x 6) + (10% x 4) = 7.4
Successive Sets
Purchase Decision
• Intentions to purchase are sometimes interrupted.
• Potential “Interrupters”:– Out of Stock– Attitudes & influences of others– Unexpected situational
factors– Buyer’s Remorse– Speed of decision
Postpurchase Behavior
• Consumer Satisfaction/Dissatisfaction results from gaps between expectations and perceived performance.
• Performance BELOW Expectations → Disappointment• Performance EQUALS Expectations → Satisfaction• Performance GREATER than Expectations → Delight• Performance MUCH GREATER than Expectations → Expectation Recalibration
• Cognitive Dissonance: “Did I make the right purchase? Should I have bought this?”
• Minimize dissonance by:– Offering mechanisms for making complaints
(Customer Service, Toll-Free Hotlines, E-mail, Chat, Social Media, etc.)– Being responsive to problems and questions– Advertising (remind consumer why choice made sense)– Minimizing the potential for product misuse (good product
instructions) and “Poke-Yoke”.
Cognitive Dissonance
Customer Product Use/Disposal
Question du Jour
Is this for real?
1. Awareness2. Interest3. Evaluation4. Trial5. Re-Trial6. Adoption
The Adoption Process
Not everyone adopts at the same pace.
• Innovators: venturesome, try new ideas at some risk.
• Early adopters: opinion leaders who adopt new ideas early, but carefully.
• Early majority: deliberate adopters, who adopt before the average person.
• Late majority: skeptical, adopt only after the majority of people have tried a product.
• Laggards: last to adopt, tradition bound, and skeptical of change.
Product Adopter Categories
Adopter Categorization Distribution
• Relative Advantage– Is the innovation perceived as superior to existing products?
• Compatibility– Does the innovation fit the values, behavior and experience of the
target market?
• Complexity– Is the innovation difficult to understand or use or perceived as such?
• Utility & Cost-Benefit– Can the innovation be used extensively or on a more limited basis?
• Communicability– Can results be easily observed and described to others?
Product Characteristics That Influence the Rate of Adoption
Question du Jour
Do consumers always know what they really want or need?
Other Consumer Behavior Models & Theories
Reactance
• Reactance is an emotional reaction in direct contradiction to rules or regulations that threaten or eliminate specific behavioral freedoms. - Wikipedia
Variety-Seeking vs. Habit Persistence
• Variety-Seeking– Often driven by need for arousal– Preference-testing utility– Consumers often overestimate their variety needs
• Habit Persistence– Different from “Loyalty”– Typically driven by risk aversion
Sunk Cost Bias
• Investing more resources in something you previously invested in, solely because you previously invested in it.
False Consensus Bias
• Not everyone thinks like you, expects what you expect, believes what you believe.
Very dangerous for marketers.
Decision Heuristics
• Anchoring & Adjustment– Reference Points
• Mood and Emotion– Mood Regulation
• Elevation• Maintenance
– Effects on Risk Taking
Prospect Theory
Mental Accounting
• The mental labeling of money• Consumers…
– Segregate gains– Integrate losses– Integrate smaller losses with larger gains– Segregate small gains from large losses
Implications for marketing strategy?
In-Class Activity – WHY WE BUY
Choose a product, product line, brand, or company and answer the following:
• What are the obvious (i.e. more superficial) reasons consumers buy these products? • What are the less obvious, more deep-seeded reasons consumers buy these products? • What are the obvious (i.e. more superficial) reasons consumers do not buy these
products? • What are the less obvious, more deep-seeded reasons consumers do not buy these
products?
• Choose one or more of the above reasons/motivations to buy or not buy and provide an appropriate implication for Marketing strategy.