Chapter 4 Perspectives on Consumer Behavior. Last Class Organization of the advertising agency.

transcript

Chapter 4

Perspectives on Consumer Behavior

Last Class

Organization of the advertising agency

Today’s Objectives Consumer Behavior

Culture Subculture

Social Class Small groups Family Social roles & status

Personal Factors Life style Personality

Psychological Factors Motivation Perception Learning Beliefs & Attitudes

Types of Buying Behavior Consumer Decision Making Process

What is Consumer Behavior?

The process and activities people engage in when

searching for, selecting, purchasing, using, evaluating, and disposing of

products and services so as to satisfy their needs and desires

Why consumer behavior?

Markets have to be understood before strategies can be developed.

World consumer consists of more than 6 billion people. Consumers vary tremendously in: age,

income, education level and tastes. Consumer Behavior is influenced by

buyer’s decisions process.

Information Search Perception

Postpurchase Evaluation Learning

Purchase Decision Integration

Alternative Evaluation Attitude Formation

Problem Recognition Motivation

Purchase Decision Integration

Consumer Decision MakingDecision StageDecision Stage Psychological ProcessPsychological Process

Alternative Evaluation Attitude Formation

Information Search Perception

Problem Recognition Motivation

Out of StockOut of Stock

Sources of Problem Recognition

DissatisfactionDissatisfaction New Needsor Wants

New Needsor Wants

Related ProductPurchase

Market-InducedRecognition

NewProducts

Ads Help Consumers Recognize Problems

Safety needs (security, protection)Safety needs (security, protection)

Social needs (sense of belonging, love)Social needs (sense of belonging, love)

Esteem needs (self-esteem, recognition, status)

Self-actualization needs (self-development, realization)

Physiological needs (hunger, thirst)Physiological needs (hunger, thirst)

Maslow’s Hierarchy of Needs

Safety needs (security, protection)Safety needs (security, protection)

Social needs (sense of belonging, love)Social needs (sense of belonging, love)

Esteem needs (self-esteem, recognition, status)

Physiological needs (hunger, thirst)Physiological needs (hunger, thirst)

Nurturance, Love and Belonging

consumer's novelty-seeking behavior In saturated markets manufacturers should

come up with new offerings

Example -Honey Maid graham crackers /sticks

What Consumers Want?

Depth Interviews

Association Tests

Focus GroupsFocus GroupsProjective Methods

Projective Methods

Depth Interviews

Association Tests

Focus GroupsFocus Groups

Probing the Minds of Consumers

No One Knows You Better

Highlights Importance of

Symbolic Factors

Reveals HiddenFeelings, Drives

and Fears

Shifts Attention from “What” to

“How” and “Why”

Varying, Subjective

Interpretations

Varying, Subjective

Interpretations

Qualitative Results from Very

Small Samples

Difficult or Impossible to

Verify or Validate

Difficult or Impossible to

Verify or Validate

Varying, Subjective

Interpretations

Varying, Subjective

Interpretations

Small Samples

Symbolic Factors

and Fears

“MR” Not All Positive or All Negative

Motivation Research

ProsPros ConsCons

Information Search

PersonalSources

MarketSourcesPublicSources

PersonalExperience

Perception

You can see a white vase as figure against a black background, or two black faces in profile on a white background

Do you see the flashing dots?

The flashing is all in your head.

What do you see?

Now what do you see?

Perception

Müller-Lyer Illusion– The two lines above are the same length, but the diagonals

extending outward from both ends of the lower line make it look longer than the upper line

Selective RetentionSelective Retention

Selective ComprehensionSelective Comprehension

Selective AttentionSelective Attention

Selective ExposureSelective Exposure

Selective ComprehensionSelective Comprehension

Selective AttentionSelective Attention

Selective ExposureSelective Exposure

The Selective Perception Process

Doing two things at a time

Pick a card

I’ve removed your card

KIRMIZI

Tell me the colors?

TURUNCU

Tell me the colors again?

ORANGE

VIOLETT

SCHWARZ

Tell me the colors now?

A memory test:

1. Please listen carefully to the following list of words.

2. Please DO NOT write the words down. Just listen carefully.

3. In a little while, I’ll ask you to remember the words.

Now count backwards with me slowly, by threes, from 45

45, 42 … 3

1. Write down each word below:

ghost cake blanket sweet rabbit candy

2. Circle only the words you heard on the list.

3. If you VIVIDLY remember hearing a word, circle it twice.

sour candy sugar bitter good taste tooth nice honey soda chocolate

Now examine the list carefully:

TO THINK ABOUT OR DISCUSS : Should this make us worry about eyewitness testimony?

heart cake tart pie

Now we are going to do a simple activity involving letters of the alphabet.

Based on your gut feelings, quickly write down:

1.Your six FAVORITE letters

2.Your six LEAST FAVORITE letters

Look over each list and circle all of the letters that occur in your own first name. Count the number of circled letters in each list.

Which list included more of theletters from your own first

name??

The preference for the letters in one’sown name is the name letter effect.

TO THINK ABOUT: Would people bemore likely to purchase a product if the

product resembled his or her name?

Should the musician depicted here like M&Ms more than the average person does?

Can you spot the vertical white bar?

Pop Out Examples

Form: line orientation, length, width spatial orientation, added marks, numerosity (4)

Colour: hue, intensity

Motion: flicker, direction of motion

Spatial Position: stereoscopic depth, convex/concave shape

Orientation

Motion

Simple shading

Combining Color With Black-and-White Is Intended to Gain Attention

Memory

Try to remember the following words

First Group Recall Words Immediately

1. Vegetable2. Television3. Lampshade4. Statue5. Aluminium6. Picnic7. Comma8. Diary9. Photograph10 Bicycle11 Cabinet12 Tiger13 Window14 Medicine15 Factory

Serial Position for Presentation

Percentage of R

ecalled Words

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 150

Immediate Free Recall of words

Evaluation of AlternativesAll available brands

Brand A Brand B Brand C Brand D Brand E

Brand F Brand G Brand H Brand I Brand J

Brand K Brand L Brand M Brand N Brand O

Evoked Set of Brands

Brand B Brand E

Brand I

Brand M

Brand F

ObjectiveObjectiveObjectiveObjective

Two Forms of Evaluative Criteria

Evaluative CriteriaEvaluative Criteria

Warranty

Service

Warranty

Service

Appearance

SubjectiveSubjective

Different Perspectives: Marketer’s View

Enoughpower?

Traction okay?

Too pricy?

Product is seenas a bundle ofattributes orcharacteristics.

Product Is Seen As Product Is Seen As A Set of OutcomesA Set of Outcomes

FunctionalFunctionalFunctionalFunctional

Different Perspectives: Consumer’s ViewHow does it cutthe taller grass?

How close can Iget to the shrubs?

Will the neighborsbe impressed with

my lawn?

Is it going to be asfun to use later this

summer?

Will I enjoy havingmore time for golf?

Will it pull that

little trailer I saw at the

store?

PsychologicalPsychological

Heuristics

Depends on the consumer segment

Examples Never buy cat litter that does not contain a

deodorizing agent. Do not buy national brands of pet food. Use coupons for the purchase of all snack foods. Do not buy cake mixes that contain artificial color.

IndividualsIndividuals ProductsProducts

BrandsBrands

CompaniesCompanies

OrganizationsOrganizationsRetailersRetailers

MediaMediaMediaMedia

RetailersRetailers OrganizationsOrganizations

CompaniesCompanies

BrandsBrands

ProductsProductsIndividualsIndividuals

AdsAds

Consumer Attitudes Focus on Objects

Attitudes Toward: Attitudes Toward:

Change Perceptions or Beliefs About a Competing Brand

Add a New Attribute To the Attitude Formation Mix

Change Perceptions of the Value of An Attribute

Change Beliefs About An Important AttributeChange Beliefs About An Important Attribute

Add a New Attribute To the Attitude Formation Mix

Change Perceptions of the Value of An Attribute

Change Beliefs About An Important AttributeChange Beliefs About An Important Attribute

Ways to Change Attitudes

Adding Attributes Changes Attitudes

ConditioningConditioning

Based on conditioning

through association or reinforcement

Based on conditioning

through association or reinforcement

ThinkingThinking

Intellectual evaluation comparing

attributes with values

Intellectual evaluation comparing

attributes with values

ConditioningConditioningThinkingThinking

How Consumers Learn

ModelingModeling

Based on emulation

(copying) of respected examples

Based on emulation

(copying) of respected examples

Unconditionedstimulus(waterfall)

Conditionedstimulus

(Brita waterfiltration pitcher)

Conditionedstimulus

Unconditionedresponse

(freshness, purity)

Unconditionedstimulus(waterfall)

Conditionedstimulus

(freshness, purity)

Classical Conditioning Process

Association develops throughAssociation develops throughcontiguity and repetitioncontiguity and repetition

Conditionedresponse

(freshness, purity)

Conditionedresponse

(freshness, purity)

Classical Conditioning for Cosmetics

Increase or decrease in probability of repeat behavior

(purchase)

Increase or decrease in probability of repeat behavior

(purchase)

Positive or negativeconsequences occur

(reward or punishment)

Instrumental Conditioning Process

Behavior(consumer uses

product or service)

Purposive BehaviorPurposive Behavior

InsightInsight

Goal AchievementGoal Achievement

GoalGoal

InsightInsight

Purposive BehaviorPurposive Behavior

GoalGoal

Cognitive Learning Process

Culture

Subculture

Social class

Referencegroups

Situations

Culture :the complexity of learned meanings, values, norms,

and customs shared by members of the society

Subculture

Social class

Referencegroups

External Influences on Consumers

Subcultural Ads Appeal to Shared Beliefs, Values and Norms

Ogilvy Awards 2003 $7 million on research $100 million on

promoting “connect” brand image.

Revenues were up by 23% (to $3.23 billion)

Great Advertising Can Strike a Responsive Chord with Consumers

Wendy’s 1984

Summary

Consumer Behavior Culture Social Class Personal Factors Psychological Factors

Types of Buying Behavior Consumer Decision Making Process

Chapter 4 Perspectives on Consumer Behavior. Last Class Organization of the advertising agency.

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