Consumer Behaviour

Variables involved in understanding Consumer BehaviourStimulus ads, products.Response physical/mental reaction to the stimulusIntervening variables mood, knowledge, attitude, values, situations, etc.

Overall Model of Consumer BehaviourSelf-Concept&LearningDecision ProcessesExternal InfluencesInternal InfluencesCultureSubcultureDemographicsSocial statusReference groupsFamilyMarketing ActivitiesPerceptionLearningMemoryMotivesPersonalityEmotionsAttitudesProblem RecognitionInformation SearchAlt Eval & SelectionOutlet select & PurchasePostpurchase Processes

**Roles in the decision process

Each role can be acted by parent, children or other members of the buying centre.

Each actor may display multiple roles when buyinga toy a housea washing machinean armoured vehiclea sound systemcomputer software

Infants, teenagers, working women, husbands?

Influencing Strategies

expert influencingsubtle (incl. use of rewardsemotional combination

Who isinitiatorinfluencerdeciderbuyeruser

Consumer Decision MakingDecision StagePsychological Process

Motivation factors that compel a consumer to take a particular actionPerception the process by which consumers receives, selects, organizes, and interprets information to create a meaningful picture of the worldAttitude formation overall feeling toward or an evaluation of an objectIntegration the way product knowledge, meanings, and beliefs are combined to evaluate two or more alternativesLearning process by which individuals acquire the purchase and consumption knowledge they apply to future related behavior

1. Sources of Problem Recognition

Market Induced Problem Recognition

Motives : which are factors that compel a consumer to take a particular actionBetter understood by Maslows Theory

Safety needs (security, protection)Social needs (sense of belonging, love)Esteem needs (self-esteem, recognition, status)Self-actualization needs (self-development, realization)Physiological needs (hunger, thirst)Maslows Hierarchy of NeedsSafety needs (security, protection)Social needs (sense of belonging, love)Esteem needs (self-esteem, recognition, status)Physiological needs (hunger, thirst)

Observations : Lower-level needs are an ongoing source of motivation for consumer purchase behavior

It is unlikely people move through the needs hierarchy in a stair step manner

Lower level needs are met in most developed countries, marketers often sell products that fill basic physiological needs by appealing to consumers higher level needs

Advertising : used to show how a brand can fulfill these needs

What need is this ad associated with ?What does the brand say ?Social Need / Security need : Nurturance, Love and Belonging

How do we probe a consumers mind? In-depth interviews unstructured interviews where the participant is encouraged to speak freely. Designed to obtain insights into motives, ideas, and opinions.Projective techniques projecting internal states upon external objects. Designed to gain insights into values, motives, attitude, or needs.

Association tests participant is asked to respond to the first thing that comes to mind when they are presented with a stimulus (picture, word)Focus groups small groups brought together to discuss particular products, ideas, or issues.

2. Information Search

Perception Process by which individuals receives, selects, organizes, and interprets information to create a meaningful picture of the world.

Selective exposure occurs as consumers choose whether to make themselves available to information

Selective attention occurs when the consumer chooses whether to focus attention on certain stimuli while excluding others.

Selective comprehension occurs when consumers interpret information on the basis of their own attitudes, beliefs, motives, and experiences.Selective retention occurs as consumers cannot recall all of the information they receive but may choose to retain information of particular relevance

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

Evaluation of AlternativesBrand BBrand EBrand IBrand MBrand F

Different Perspectives: Consumers ViewHow does it cutthe taller grass?How close can Iget to the shrubs?Will the neighborsbe impressed withmy lawn? Is it going to be asfun to use later thissummer?Will I enjoy havingmore time for golf?Will it pull thatlittle trailer I saw at the store?

SubcultureSubcultureExternal Influences on Consumers

**Influences on Consumer BehaviourCulturalBroadest & deepest influenceCultures & subcultureSocial classesSocialFamilySocial roles and status (multiple)Reference groupsMembership - primary vs. secondary Aspirational vs. dissociative

PersonalAgeLife cycle stageOccupationEconomic circumstancesLifestylePersonalitySelf-conceptPsychologicalMotivationPerceptionLearningBeliefsAttitudes

*Relation to text This slide relates to material on p. 105 and Figure 4-1 of the text. Summary Overview This slide shows the stages in the consumer decision making process and the relevant internal psychological processes that relate to each stage. These stages include:Problem recognition consumer perceives a problem or need or want and becomes motivated to solve or satisfy itInformation search search for information needed to make a decisionAlternative evaluation evaluation of various brands or alternatives under consideration Purchase decision actual purchase of the product or servicePostpurchase evaluation compares level of performance with expectations and results in consumer becoming satisfied or dissatisfiedAlso included in this slide are the relevant internal psychological processes that occur at each stage of the decision process. These include:Motivation factors that compel a consumer to take a particular actionPerception the process by which consumers receives, selects, organizes, and interprets information to create a meaningful picture of the worldAttitude formation overall feeling toward or an evaluation of an objectIntegration the way product knowledge, meanings, and beliefs are combined to evaluate two or more alternativesLearning process by which individuals acquire the purchase and consumption knowledge they apply to future related behaviorUse of this slide This slide can be used to introduce the consumer decision making process and the relevant internal psychological processes that occur during each stage of this process. *Relation to text This slide relates to material on pp. 107-109 of the text.Summary Overview The causes of problem recognition may be simple or complex and may result from changes in the consumers current and/or desired state. These causes can be influenced by both internal and external factors. Some of the sources of problem recognition are:Out of stock consumers use their existing supply and it must be replenishedDissatisfaction consumers become dissatisfied with the current state of affairs and/or product being usedNew needs/wants changes in consumers lives often result in new needs/wantsRelated product purchase other needs are stimulated by the purchase of a productMarket-induced recognition marketers attempt to encourage consumers not to be content with their current situation and try to create new needs and wantsNew products innovative products are introduced and brought to the attention of consumersUse of this slide This slide can be used to show the various sources of problem recognition. Advertisers attempt to respond to as well as influence problem recognition as this is where the consumer purchase process begins.*Relation to text This slide relates to material on pp.109-110 and Figure 4-2 of the text.Summary Overview To better understand the reasons underlying consumer purchases behavior, marketers devote considerable attention to examining motives which are factors that compel a consumer to take a particular action. One of the most popular approaches to understanding consumer motivations is based on the classical theory of human motivation by Abraham Maslow. His hierarchy of needs theory postulates five basic levels of human needs, arranged in a hierarchy based on their importance. This slide shows the five needs:Physiological, Safety and securitySocial needs (love and belonging)Self-esteemSelf-actualizationUse of this slide This slide can be used to introduce Maslows hierarchy of needs. There are several points regarding this theory of motivation that should be made.Lower-level needs are an ongoing source of motivation for consumer purchase behaviorIt is unlikely people move through the needs hierarchy in a stair step manner.Since basic lower level needs are met in most developed countries, marketers often sell products that fill basic physiological needs by appealing to consumers higher level needs.Advertising can be used to show how a brand can fulfill these needs.

*Relation to text This slide relates to material on pp 109-111 and Exhibit 4-5 of the text.Summary Overview This slide shows an ad for Pampers baby wipes product. Procter & Gamble is marketing this product by focusing on the love between a parent and child (social needs) in addition to the gentleness of the product.Use of slide This slide can be used as an example of how marketers appeal to different types of needs that consumers might have through their advertising. *Relation to text This slide relates to material on pp. 112-113 of the text.Summary Overview The second stage of the consumer decision making process is information search. Once consumers perceive a problem or need they begin to search for information needed to make a purchase decision. The various sources of information are shown on this slide.Personal sources friends, relative, co-workersMarket sources information from advertisers, salespeople, in-store displays and the InternetPublic sources articles in magazines or newspapersPersonal experience handling, examining, or using the productUse of this slide This slide can be used to show the various sources consumers use in the information search stage of the decision process. Determining how much and which sources of external information to use involves several factors, including the importance of the purchase decision, the effort needed to acquire information, the amount of past experience, the degree of perceived risk associated with the purchase, and the time available. *Relation to text This slide relates to material on pp. 113-114 and Exhibit 4-9 of the text.Summary Overview Advertisers use a variety of creative techniques to attract the attention of consumers. This ad for Tropicana Orange Juice shows the use of the splash of color technique whereby a bright color is used against a black and while background to make the product stand out and thus get the attention of the consumer.Use of this slide This slide can be used to show an example of a creative tactic used to get the attention of the consumer. Marketers often use this splash of color technique to make their products stand out and get noticed. *Relation to text This slide relates to material on pp. 114-117 of the text which discusses the alternative evaluation process. Summary Overview After acquiring information during the information search stage the decision process, the consumer moves to alternative evaluation. In this stage the consumer compares the various brands or products he or she has identified as being capable of solving the consumption problem and satisfying needs. The various brands identified as purchase options to be considered during this stage are referred to as the consumers evoked set. The evoked set will only include a subset of all the available brands and usually only a manageable number of brands which can be compared more closely. Use of this slide This slide can be used to discuss the alternative evaluation process and the concept of the evoked set. The goal of most advertising and promotional strategies is to increase the likelihood that a brand will be included in the consumers evoked set and be considered during alternative evaluation. Advertisers use top of mind awareness and reminder advertising to help get their brands included in the evoked set of consumers.*Relation to text This slide relates to material on pp. 116-117 of the text.Summary Overview Consumers tend to think of products or services in terms of their consequences which are specific events or outcomes that consumers experience when they purchase and/or consume a product or service. The slide shows how a consumer might think about a riding lawn mower in terms of various functional and psychological consequences associated with the product. Use of this slide This slide can be used to show how the consumers view of products and services differs from that of the marketer, which was shown in the previous slide. The bubbles contain different thoughts consumers might have when evaluating a riding lawn mower. *Relation to text This slide relates to material on pp. 127-131 and figure 4-10 of the text.Summary Overview Consumers do not make purchase decisions in isolation. A number of external factors have been identified than may influence consumer decision making. This slide summarizes those influences.Culture is the learned meanings, values, norms, and customs shared by a society. It is the broadest and most abstract influence on buyer behavior.Subcultures are the smaller groups within cultures whose beliefs, values, norms, and patterns of behavior set them apart from the larger cultural mainstream. Subcultures can be based on age, geography, religion, and ethnicity.Social class homogenous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped.Reference groups a group whose presumed perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and actions. It is one of the primary factors influencing our purchase decisions.Situations the specific situation in which consumers make a purchase decision or plan to use the product or brand. Situational determinates include the usage situation, the purchase situation, and the communications situation.Use of this slide This slide can be use to explain the external factors than affect consumers purchase decisions. Marketers consider all of these influences in developing advertising and promotional strategies.