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CONSUMER BEHAVIOUR
Milanka Slavova,
Sandrine Heitz,Neva Yalman
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Two Consumer Entities
Personal Consumer
The individual whobuys goods andservices for his or herown use, forhousehold use, forthe use of a familymember, or for afriend.
OrganizationalConsumer
A business,government agency,or other institution(profit or nonprofit)that buys the goods,services, and/orequipment necessaryfor the organization tofunction.
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Consumer buyer behavior refers to the buying
behavior of final consumersindividuals and
households who buy goods and services for personal
consumption
The study of the processes involved when individuals
or groups select, purchase, use, or dispose ofproducts, services ideas, or experiences to satisfy
needs and desires
DEFINITION
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Consumers Impact on Marketing
Understandingpeople/organizations to satisfy
consumers needs
Knowledge and data about
customers: Help to define the
market
Help to take marketing
mix decisions Identify
threats/opportunities to
a brand, etc.
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The Consumer as a Black Box
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Model of Consumer Behavior
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What is culture?
An integrated sum total of a learned behavior.
Comprises the shared values, understandings,assumptions, and goals that are learned from earlier
generations, imposed by present members of a society,
and passed on to succeeding generations.
Cultural Factors
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Cultural values and behavior patterns are:
learned and not biologically determined
shared with other members of the group
Interrelated
Culture includes both abstract ideas and material
objects and services
Cultural Factors
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Culture and Its Effects on Business
Once upon a time there was a great
flood, and involved in this flood were
two creatures, a monkey and a fish.
The monkey, being agile and
experienced, was lucky enough toscramble up a tree and escape the
raging waters. As he looked down
from his safe perch, he saw the poor
fish struggling against the swift current.
With the best of intentions, he reacheddown and lifted the fish from the water.
The result was inevitable.
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Subculture
A distinct cultural group
that exists as an
identifiable segment
within a larger, more
complex society.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall12
Chapter Twelve Slide
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African Americans in Advertising
Many national brands routinely use AfricanAmerican models.
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Stronger preference for well-established brands
Prefer to shop at smaller stores
Some are shifting food shopping to non-ethnic
American-style supermarkets
Youths are more fashion conscious than non-
Hispanic peers
Nationality Subculture
- Hispanic
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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide
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Want to live life to the full.
Will live in a digitised future that lacks warmth.
View 24 hour commerce as a mechanism that can only
add more stress.
Phones are essential pieces of communicationequipment.
Are a visually literate generation with clearunderstanding of commercial aims.
A generation that has brand awareness and is branddismissive.
Results of European study into
the teens credo (500 of 1420 year olds)
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Rituals are sets of multiple,
symbolic behaviors that
occur in a fixed sequence
and that tend to be repeatedperiodically
Many consumer activities
are ritualistic Trips to Starbucks
Sunday brunch
Rituals
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Grooming rituals Gift-giving rituals
Holiday rituals
Rites of passage
Specific Ritual Types
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Social Class
The division ofmembers of a society
into a hierarchy of
distinct status classes,
so that members of
each class have either
higher or lower status
than members of otherclasses.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall18
Chapter Ten Slide
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Social Classes
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Occupationhierarchies of occupational prestige tend to
be quite stable over time and tend to be similar in different
societies.
Incomeis of great interest to marketers as itdetermines, which groups have the greatest buying power
and market potential. The way the money is spent is more
telling than income per se.
Educational attainment.
Place of residence.
Cultural interests.
Components of social class
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Upward mobility
Downward mobility
Rags to riches?
Social Class Mobility
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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 21Chapter Ten Slide
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Reference group: an actual or imaginaryindividual/group conceived of having significant
relevance upon an individuals evaluations,
aspirations, or behavior
Influences consumers in three ways:
Informational
Utilitarian
Value-expressive
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Reference Groups
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Group Influences
Group pressure often influences our clothing
choices.
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A group of consumers who share a
set of social relationships based
upon usage or interest in a
product
Consumer tribes share emotions,
moral beliefs, styles of life, and
affiliated product Brandfests celebrated by
community
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Brand Communities and
Consumer Tribes
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Opinion leaders influenceothers attitudes and behaviors
Experts
Unbiased evaluation Socially active
Similar to the consumer
Among the first to buy
Opinion Leadership
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Market maven: actively involvedin transmitting marketplace
information of all types
Just into shopping and aware of
whats happening in the
marketplace
Overall knowledge of how and
where to get products
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The Market Maven
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Surrogate consumer: a marketing intermediary hiredto provide input into purchase decisions
Interior decorators, stockbrokers, professional
shoppers, college consultants
Consumer relinquishes control over decision-
making functions
Marketers should not overlook influence of
surrogates!
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The Surrogate Consumer
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Characteristics Affecting Consumer
BehaviorSocial Factors
Family is the most
important consumer-buying organization in
society
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Changes in family structure
Changes in concept of household (any
occupied housing unit)
The Modern Family
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Defining the modern family
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Women Manage Many Tasks
Women often
manage many taskswithin the family
that pull them in
many directions.
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Family Structures
Family structures continue to evolve, but some basicconflicts remain the same. This Italian ad for an antacid
product says, Certain things are hard to swallow.
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Factors that determine how couples spend
money:
Whether they have children
Whether the woman works
Family life cycle (FLC) concept combines
trends in income and family composition with
change in demands placed on income
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Family Life Cycle
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The family life cycle:
an updated view
Source: Adapted from Mary C. Gilly and Ben M. Enis, Recycling the Family Life Cycle: A Proposal for Redefinition, in
Andrew A. Mitchell, ed.,Advances in Consumer Research 9 (Ann Arbor, MI: Association for Consumer Research, 1982):
274, Figure 1.
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To Which Stage of the Family Life Cycle
Does This Ad Apply, and Why?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
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BachelorhoodThe Target Consumer Is Not Yet Married
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Ten Slide
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Sandwich generation:
adults who care for
their parents as well as
their own children
Boomerang kids: adult
children who return to
live with their parents Spend less on household
items and more on
entertainment
Sandwich Generation
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Pets are treated like family members
Spending on pets has doubled in the last
decade Pet-smart marketing strategies:
Name-brand pet products
Designer water for dogs Lavish kennel clubs, pet classes/clothiers
Pet accessories in cars
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Nonhuman Family
Members
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Autonomic decision: one family member
chooses a product
Syncretic decision: involve both partners
Used for cars, vacations, homes, appliances,
furniture, home electronics, interior design, phone
service
As education increases, so does syncretic decisionmaking
Who plays the role of family financial officer?
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Who Makes Key Decisions in the Family?
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Children make up three distinct markets:
Primary market: kids spend their own money
Influence market: parents buy what their kidstell them to buy (parental yielding)
Future market: kids grow up quickly and
purchase items that normally adults purchase(e.g., photographic equipment, cell phones)
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Children as Decision Makers
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Personality: a persons unique psychological makeup
and how it consistently influences the way a person
responds to his/her environment
Personality
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The Nature of Personality
Personality reflects individual differencesindividuals may be similar in terms of asingle characteristic but not in terms ofothers
Personality is consistent and enduring
Personality can change as a result of
- Major life event
- A gradual maturing process
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Different Appeals for Same Goal
Object
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Theories of Personality
Freudian theory Unconscious needs or drives are at the
heart of human motivation
Neo-Freudian personality theory Social relationships are fundamental to
the formation and development ofpersonality
Trait theory Personality is a set of psychological
traits
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Ad
Portrayingthe Forces
of the Id
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Freudian Theory and
Product Personality
Consumer researchers using Freuds
personality theory see consumerpurchases as a reflection and extension ofthe consumers own personality
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Snack Food Personality Traits
Potato Chips:
Ambitious, successful, high achiever, impatient
Tortilla Chips:
Perfectionist, high expectations, punctual, conservational
Pretzels:
Lively, easily bored, flirtatious, intuitive
Snack Crackers:
Rational, logical, contemplative, shy, prefers time alone
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NEO-Freudian Theory
Social relationships are fundamental to theformation and the development of the personality
Karen Horney - Compliant versusdetached versus aggressive
Alfred Adler - Individuals are motivated toovercome feelings of inferiority
Harry Stack Sullivan - Personality evolvesto reduce anxiety
Carl Jung - Developed analyticalpsychology
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Trait Theory
Personality traits: identifiablecharacteristics that define a person
Trait - any distinguishing, relativelyenduring way in which one individual
differs from another
Personality is linked to how consumers
make their choicesor to consumption of abroad product category- not a specific
brand
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Prentice Hall
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Consumers low in
dogmatism (open-minded)
are more likely to prefer
innovative products to
established or traditionalalternatives
Highly dogmatic consumers
tend to be more receptive
to ads for new products orservices that contain an
appeal from an
authoritative figure
Personality Traits and Consumer Innovators
Innovativeness
Dogmatism
Social Character Need for uniqueness
Need for cognition
Variety-novelty seeking
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Prentice Hall
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Ad Targeting
Visualizers
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Brand Personality
Brand personality: set of traits peopleattribute to a product as if it were a person
Volvo - safety
Perdue - freshness
Nike - the athlete
BMW - performance
Levis 501 - dependable and rugged
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Self Concept:
The beliefs a person holds about his or her own
attributes and how he or she evaluates these
qualities
Consumer perceptions of self can be quite
distorted, particularly with regard to their
physical appearance.
Self Concept
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Different Self-Images
Actual Self-Image
how we see
ourselves
Ideal Self-Image-
how we would like
to see ourselves
Ideal Social
Self-Image- how we
would like others to see
us
Social Self-Image
how we feel others
see us
Expected
Self-Imagehow we
expect to see us at
some specific future
time
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Extended Self:
External objects that
consumers consider
a part of themselves
This Italian ad demonstrates that
our favorite products are part of
the extended self.
The Extended Self
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Possessions Act as Self-Extensions
By allowing the person to do things
that otherwise would be very difficult
By making a person feel better
By conferring status or rank
By bestowing feelings of immortality
By endowing with magical powers
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Lifestyle defines a pattern of consumption reflectinga persons choices of how one spends time and
money
Lifestyle marketing perspective: people sort
themselves into groups on the basis of:
What they like to do
How they spend leisure time
How they spend disposable income
Lifestyles
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Lifestyle Dimensions
Activities Interests Opinions Demographics
Work Family Themselves Age
Hobbies Home Social issues Education
Social events Job Politics Income
Vacation Community Business Occupation
Entertainment Recreation Economics Family size
Club membership Fashion Education Dwelling
Community Food Products Geography
Shopping Media Future City size
Sports Achievements Culture Stage in life cycle
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High Status of Golf in Japan
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High Status of Golf in Japan
Golf is a high status game in Japan, where land is
scarce and greens fees are extremely high.
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VALS2TM
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Global MOSAIC identifies segments across 19
countries
RISC measures lifestyles/sociocultural change in 40+
countries Exploration/Stability
Social/Individual
Global/Local
Global Psychographic
Typologies
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Lifestyle of Bulgarian Consumers
The REJECTIVE
Market Compass 2011
Attitudetowards the
world and new
technologies
Sense of
belonging
Social status
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Lifestyle of Bulgarian Consumers
The ACTIVE The CONTENT
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Lifestyle of Bulgarian Consumers
The INDIFFERENT The PASSIVE
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Lifestyle of Bulgarian Consumers
The POSSITIVE The CONFINED
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References
CONSUMER BEHAVIOR, 9eMichael R. Solomon
Copyright 2011 Pearson Education, Inc.publishing as Prentice Hall
CONSUMER BEHAVIOR, 10e Leon G. Schiffman, Leslie
Lazar Kanuk in collabaration with Joseph Wisenblit
Copyright 2010 Pearson Education, Inc.
publishing as Prentice Hall