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

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Chapter 4 Perspectives on Consumer Behavior
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Page 1: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Chapter 4

Perspectives on Consumer Behavior

Page 2: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Last Class

Organization of the advertising agency

Page 3: 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

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

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

Page 5: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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.

Page 6: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 7: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Out of StockOut of Stock

Sources of Problem Recognition

DissatisfactionDissatisfaction New Needsor Wants

New Needsor Wants

Related ProductPurchase

Related ProductPurchase

Market-InducedRecognition

Market-InducedRecognition

NewProducts

NewProducts

Page 8: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Ads Help Consumers Recognize Problems

Page 9: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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)

Esteem needs (self-esteem, recognition, status)

Self-actualization needs (self-development, realization)

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)

Esteem needs (self-esteem, recognition, status)

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

Page 10: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Nurturance, Love and Belonging

+

Page 11: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

come up with new offerings

Example -Honey Maid graham crackers /sticks

Page 12: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

What Consumers Want?

Page 13: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Depth Interviews

Depth Interviews

Association Tests

Association Tests

Focus GroupsFocus GroupsProjective Methods

Projective Methods

Depth Interviews

Depth Interviews

Association Tests

Association Tests

Focus GroupsFocus Groups

Probing the Minds of Consumers

Page 14: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

No One Knows You Better

Page 15: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Highlights Importance of

Symbolic Factors

Highlights Importance of

Symbolic Factors

Reveals HiddenFeelings, Drives

and Fears

Reveals HiddenFeelings, Drives

and Fears

Shifts Attention from “What” to

“How” and “Why”

Shifts Attention from “What” to

“How” and “Why”

Varying, Subjective

Interpretations

Varying, Subjective

Interpretations

Qualitative Results from Very

Small Samples

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

Qualitative Results from Very

Small Samples

Qualitative Results from Very

Small Samples

Shifts Attention from “What” to

“How” and “Why”

Shifts Attention from “What” to

“How” and “Why”

Highlights Importance of

Symbolic Factors

Highlights Importance of

Symbolic Factors

Reveals HiddenFeelings, Drives

and Fears

Reveals HiddenFeelings, Drives

and Fears

“MR” Not All Positive or All Negative

Motivation Research

Motivation Research

ProsPros ConsCons

Page 16: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Information Search

PersonalSources

MarketSourcesPublicSources

PersonalExperience

Page 17: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Perception

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

Page 18: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Do you see the flashing dots?

The flashing is all in your head.

Page 19: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

What do you see?

Now what do you see?

Page 20: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 21: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 22: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.
Page 23: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Doing two things at a time

Page 24: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Pick a card

Page 25: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

I’ve removed your card

Page 26: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

YESIL

MAVI

SARI

KIRMIZI

MAVI

SARI

KIRMIZI

MAVI

YESIL

KIRMIZI

Tell me the colors?

Page 27: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

TURUNCU

MAVI

YESIL

SARI

TURUNCU

YESIL

MOR

YESIL

SIYAH

SARI

Tell me the colors again?

Page 28: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

ORANGE

BLAU

GRUN

GELB

ORANGE

GRUN

VIOLETT

GRUN

SCHWARZ

GELB

Tell me the colors now?

Page 29: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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.

Page 30: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

to 3:

45, 42 … 3

Page 31: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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.

Page 32: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 33: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 34: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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??

Page 35: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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?

Page 36: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Can you spot the vertical white bar?

Page 37: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Can you spot the vertical white bar?

Page 38: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Can you spot the vertical white bar?

Page 39: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 40: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Color

Page 41: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Orientation

Page 42: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Motion

Page 43: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Simple shading

Page 44: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

+

Page 45: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Memory

Try to remember the following words

Page 46: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

First Group Recall Words Immediately

Page 47: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 48: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

10

20

30

40

50

60

70

80

90

100

Immediate Free Recall of words

Page 49: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.
Page 50: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.
Page 51: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 52: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

ObjectiveObjectiveObjectiveObjective

Two Forms of Evaluative Criteria

Evaluative CriteriaEvaluative Criteria

Price

Warranty

Service

Price

Warranty

Service

Style

Appearance

Image

Style

Appearance

Image

SubjectiveSubjective

Page 53: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Different Perspectives: Marketer’s View

Enoughpower?

Traction okay?

Too pricy?

Product is seenas a bundle ofattributes orcharacteristics.

Page 54: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 55: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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.

Page 56: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

IndividualsIndividuals ProductsProducts

BrandsBrands

CompaniesCompanies

OrganizationsOrganizationsRetailersRetailers

MediaMediaMediaMedia

RetailersRetailers OrganizationsOrganizations

CompaniesCompanies

BrandsBrands

ProductsProductsIndividualsIndividuals

AdsAds

Consumer Attitudes Focus on Objects

Attitudes Toward: Attitudes Toward:

Page 57: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Change Perceptions or Beliefs About a Competing Brand

Change Perceptions or Beliefs About a Competing Brand

Add a New Attribute To the Attitude Formation Mix

Add a New Attribute To the Attitude Formation Mix

Change Perceptions of the Value of An Attribute

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

Add a New Attribute To the Attitude Formation Mix

Change Perceptions of the Value of An Attribute

Change Perceptions of the Value of An Attribute

Change Beliefs About An Important AttributeChange Beliefs About An Important Attribute

Ways to Change Attitudes

Page 58: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Adding Attributes Changes Attitudes

+

Page 59: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 60: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Unconditionedstimulus(waterfall)

Unconditionedstimulus(waterfall)

Conditionedstimulus

(Brita waterfiltration pitcher)

Conditionedstimulus

(Brita waterfiltration pitcher)

Unconditionedresponse

(freshness, purity)

Unconditionedresponse

(freshness, purity)

Unconditionedstimulus(waterfall)

Unconditionedstimulus(waterfall)

Conditionedstimulus

(Brita waterfiltration pitcher)

Conditionedstimulus

(Brita waterfiltration pitcher)

Unconditionedresponse

(freshness, purity)

Unconditionedresponse

(freshness, purity)

Classical Conditioning Process

Association develops throughAssociation develops throughcontiguity and repetitioncontiguity and repetition

Conditionedresponse

(freshness, purity)

Conditionedresponse

(freshness, purity)

Page 61: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Classical Conditioning for Cosmetics

+

Page 62: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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)

Positive or negativeconsequences occur

(reward or punishment)

Positive or negativeconsequences occur

(reward or punishment)

Positive or negativeconsequences occur

(reward or punishment)

Instrumental Conditioning Process

Behavior(consumer uses

product or service)

Behavior(consumer uses

product or service)

Behavior(consumer uses

product or service)

Behavior(consumer uses

product or service)

Page 63: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Purposive BehaviorPurposive Behavior

InsightInsight

Goal AchievementGoal Achievement

GoalGoal

InsightInsight

Purposive BehaviorPurposive Behavior

GoalGoal

Cognitive Learning Process

Page 64: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

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

Page 65: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Subcultural Ads Appeal to Shared Beliefs, Values and Norms

+

Page 66: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

BP

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

promoting “connect” brand image.

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

Page 67: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Great Advertising Can Strike a Responsive Chord with Consumers

Wendy’s 1984

Page 68: Chapter 4 Perspectives on Consumer Behavior. Last Class  Organization of the advertising agency.

Summary

Consumer Behavior Culture Social Class Personal Factors Psychological Factors

Types of Buying Behavior Consumer Decision Making Process


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