Consumer Behavior Part1

8/13/2019 Consumer Behavior Part1

1/70

CONSUMER BEHAVIOUR

Milanka Slavova,

Sandrine Heitz,Neva Yalman


2/70


3/70

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.


4/70

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


5/70

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.


6/70

The Consumer as a Black Box


7/70

Model of Consumer Behavior


8/70


9/70

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


10/70

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


11/70

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.


12/70

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


13/70

African Americans in Advertising

Many national brands routinely use AfricanAmerican models.


14/70

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

14

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Twelve Slide


15/70

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)


16/70

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


17/70

Grooming rituals Gift-giving rituals

Holiday rituals

Rites of passage

Specific Ritual Types


18/70

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


19/70

Social Classes


20/70

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

21


21/70

Upward mobility

Downward mobility

Rags to riches?

Social Class Mobility

21

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 21Chapter Ten Slide


22/70


23/70

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

10-23

Reference Groups


24/70


25/70

Group Influences

Group pressure often influences our clothing

choices.


26/70

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

10-26

Brand Communities and

Consumer Tribes


27/70

Opinion leaders influenceothers attitudes and behaviors

Experts

Unbiased evaluation Socially active

Similar to the consumer

Among the first to buy

Opinion Leadership


28/70

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

10-28

The Market Maven


29/70

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!

10-29

The Surrogate Consumer


30/70

Characteristics Affecting Consumer

BehaviorSocial Factors

Family is the most

important consumer-buying organization in

society


31/70

Changes in family structure

Changes in concept of household (any

occupied housing unit)

The Modern Family


32/70

Defining the modern family


33/70

Women Manage Many Tasks

Women often

manage many taskswithin the family

that pull them in

many directions.


34/70

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.


35/70

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

11-35

Family Life Cycle


36/70

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.


37/70

To Which Stage of the Family Life Cycle

Does This Ad Apply, and Why?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall


38/70

BachelorhoodThe Target Consumer Is Not Yet Married

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Ten Slide


39/70

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


40/70

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

11-40

Nonhuman Family

Members


41/70

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?

11-41l

Who Makes Key Decisions in the Family?


42/70

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)

11-42

Children as Decision Makers


43/70

6-44


44/70

Personality: a persons unique psychological makeup

and how it consistently influences the way a person

responds to his/her environment

Personality

6-45


45/70

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


46/70

Different Appeals for Same Goal

Object


47/70

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


48/70

Ad

Portrayingthe Forces

of the Id

6-49

, .

Prentice Hall


49/70

Freudian Theory and

Product Personality

Consumer researchers using Freuds

personality theory see consumerpurchases as a reflection and extension ofthe consumers own personality


50/70

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

6-51


51/70

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

6-52

, .

Prentice Hall


52/70

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

, .

Prentice Hall


53/70

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

6-54

, .

Prentice Hall


54/70

Ad Targeting

Visualizers


55/70

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


56/70

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


57/70

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


58/70

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


59/70

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


60/70

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


61/70

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

6-61

High Status of Golf in Japan


62/70

High Status of Golf in Japan

Golf is a high status game in Japan, where land is

scarce and greens fees are extremely high.

6-63


63/70

VALS2TM

6-64

, .

Prentice Hall
http://www.sric-bi.com/VALS/presurvey.shtml


64/70

Global MOSAIC identifies segments across 19

countries

RISC measures lifestyles/sociocultural change in 40+

countries Exploration/Stability

Social/Individual

Global/Local

Global Psychographic

Typologies


65/70

Lifestyle of Bulgarian Consumers

The REJECTIVE

Market Compass 2011

Attitudetowards the

world and new

technologies

Sense of

belonging

Social status


66/70


The ACTIVE The CONTENT


67/70


The INDIFFERENT The PASSIVE


68/70


The POSSITIVE The CONFINED


69/70


70/70

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

Date post:	04-Jun-2018
Category:	Documents
Upload:	sadiya-azhar
View:	216 times
Download:	0 times

Consumer Behavior Part1

Documents