consumerbehavior 1

7/27/2019 consumerbehavior 1

1/83

Consumer Behavior


2/83

What is Consumer Behaviour?

Those activities directly involved inobtaining , consuming and disposing

of products and services, includingthe decision processes that precedeand follow these actions


3/83

5-3

Customer vs. Consumer Behavior

Customer behavior: A broad term thatcovers both individual consumers who

buy goods and services for their own use

and organizational buyers who purchase business products

Consumer behavior: The processthrough which the ultimate buyer makes

purchase decisions


4/83

Need to study ?

You cannot take the consumer for grantedany more

Therefore a sound understanding of

consumer behaviour is essential for thelong run success of any marketing program


5/83

This study draws on concepts

from various other disciplines Psychology Sociology Anthropology Economics

Marketing


6/83

5-6

Module Objectives1. Distinguish between customer behavior and consumer

behavior.2. Explain how marketers classify behavioral influences on

consumer decisions.3. Describe cultural, group, and family influences on

consumer behavior.4. Explain each of the personal determinants of consumer

behavior; needs and motives, perceptions, attitudes, andself-concept theory.

5. Distinguish between high-involvement and low-involvement purchase decisions.

6. Outline the steps in the consumer decision process.7. Differentiate among routinized response behavior, limited

problem solving, and extended problem solving by

consumers.


7/83

Consumer Behavior you arewhat you buy


8/83

Think of a recent important purchase briefly draw a

flowchart of the steps you recall moving through fromthe awareness of need to post purchase

What influenced you at each step?


9/83

Examples of Buying Motives:Psychological or Functional?

A senior wants to impress his date atthe prom .His primary motive is ?

Psychological


10/83


A girl wants to remember her grandmother on her birthday.

Her primary motive is?

Psychological


11/83


A homemaker needs a new washingmachine and has had good experiences with

LG.Her primary motive is ?

Functional


12/83


A teacher wants to buy a practical car to beused for family transportation.

Her/His primary motive is ?

Functional


13/83


14/83


An overweight 40 year old man wants toloose weight so that he can reduce his blood

pressure.His primary motive is?

Functional


15/83


A homeowner needs to mow their lawn.Their primary motive is?

Functional


16/83

MEET THE NEWCONSUMER

and smile when you do becauseshe is your boss. It may not be

the person you thought youknew. Instead of choosing fromwhat you have to offer, she tells

you what she wants. You figure itout how to give it to her.

-Fortune Editor


17/83

Consumer Buying Behavior Competency

FunctionalMotive

PsychologicalMotive

The price is 40cents off theregular price.

It never needsironing.

Diamonds areforever.

Serving you since1971.

Ninety-daywarranty.


18/83

Consumer Buying Behavior Competency

FunctionalMotive PsychologicalMotiveRunning shoe withbuilt-in arch.Its all the rage

colored action wearand style.Kellogesthebreakfast ofchampions!

JK-belted radialtires warranted for40,000 milesA watch a gift shewill treasure

always.


19/83

Factors affectingConsumer involvement

Previous experience : low level involvement

Interest : high involvement

Perceived risk of negative consequences : high involvement

Situation : low to high due to risk

Social visibility : involvement increases with product visibility

Offer extensive information on high involvement products In-store promotion & placement is important for low involvement products Linking low-involvement product to high-involvement issue can increase sales

So


20/83

Types of consumer involvementand decision making

Routine Limited Extensive

Involvement Short Low tomoderate

High

Time Low Short tomoderate

Long

Cost Short Low to

moderate

High

InformationSearch

Internal only Mostlyinternal

Internal &external

Number of alternatives

one few many


21/83

5-21

Classifying Consumer Problem-SolvingProcesses Three categories of problem-solving behavior

Routinized Response Behavior choosing a preferred brand

Limited Problem Solving encountering a new brand

Extended Problem Solving brands are difficultto categorize or evaluate


22/83

PurchaseReason

TimeAvailable

PurchaseReason

TimeAvailable

Individuals Are Affected bythe Purchase Situation

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

PhysicalSurroundings


23/83

Social Influences

Marketing Mixes

PsychologicalVariables

PurchaseSituation

All Other Stimuli

PersonMaking

Decision

Social InfluencesPsychologicalVariables

PurchaseSituation

Consumers Use Problem Solving Processes

Need-want Awareness

Information Search

Set Criteria

Decide on Solution

Purchase Product

Routinized Response

Feedback of Information

as Attitudes

PostpurchaseEvaluation

PostponeDecision

Response


24/83

Three Levels of Problem Solving Are Useful


RoutinizedResponseBehavior

Low involvementFrequently purchasedInexpensiveLittle riskLittle information

LimitedProblemSolving

ExtensiveProblemSolving

High involvementInfrequently purchased

ExpensiveHigh risk

Much informationdesired

Lowinvolvement

Highinvolvement


25/83


Limited or Extensive Problem Solving?

+


26/83

Awareness

Interest

Awareness

Interest

EvaluationEvaluation

TrialTrial

Decision

Confirmation

Decision

Problem Solving is a Learning Process

Dissonancemay set inafter thedecision!



27/83

High GrowthRateHigh GrowthRate

Ethnic Dimensions of the Indian Market


AvoidStereotypes

BuyDifferentlyBuyDifferently


28/83

Consumer Decision-MakingProcess

PostpurchaseBehavior

Purchase

Evaluationof Alternatives

Information Search

Need Recognition

Cultural, Social,Individual andPsychological

Factorsaffect

all steps


29/83

Complete model of consumer behavior

Stimuli(marketer dominated,other)

Externalsearch

Memory

Internalsearch

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Needrecognition

Alternativeevaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individualdifferences resources motivation &

involvement knowledge attitudes personality,

values, lifestyle

Influences culture social class family situation

Start


30/83

Factors Influencing Consumer

Behavior Personal Psychological Social Cultural


31/83

5-31

Cultural Influences Culture : values, beliefs, preferences, and tastes

handed down from one generation to the next It is important to recognize the concept of

ethnocentrism , or the tendency to view your own culture as the norm, as it relates toconsumer behavior.


32/83

think of an important purchasing decision

you have made

what are some of the thoughts you have hadfollowing your purchase? Any regrets?

what has influenced those thoughts?

how have you dealt with the discomfort?

how has the company anticipated or dealt withyour discomfort?


33/83

The information search stage

An internal search involves thescanning of one's memory to recall previousexperiences or knowledge concerningsolutions to the problem-- often sufficient for frequently purchased products.

An external search may be necessarywhen past experience or knowledge isinsufficient, the risk of making a wrongpurchase decision is high, and/or the cost of

gathering information is low.

Personal sources(friends and family)

Public sources (ratingservices like Consumer

Reports)

Marketer-dominated

sources (advertisingor sales people)

The evoked set: a group of brands from which the buyer can

choose


34/83

go back to your past purchase what were the

specific internal and external sources of information that influenced your decision?

how do you determine (and rate) the credibility of these sources?

what specific information influenced you?

l f


35/83

5-35

Interpersonal Determinants of Consumer Behavior

Why People Buy New Products


36/83

5-36

International Perspective on CulturalInfluences

Cultural differences are particularly important for international marketers

Successful strategies in one country often cannotextend to other international markets because of cultural variations


37/83

5-37

Subcultures: subgroup of culture with itsown, distinct modes of behavior

Cultures are not homogeneous entities withuniversal values. Subcultures can differ by:

Ethnicity or Nationality

Age or Gender Religion Social class or Profession

Ethnic and Racial Minorities as a Percentage of the Total U.S. Population(next slide)


38/83


The Family Life CycleExhibit 5-7

+


39/83

Empty NestersEmpty Nesters

Reallocation for teenagersReallocation for teenagers

Acceptance of new ideas

KeyIssues

Acceptance of new ideas

Family Life Cycle Implications


Senior Citizens


40/83

5-40

Family Influences

Autonomic role is when the partnersindependently make equal numbers of decisions.

Husband-dominant role is when the husbandmakes most of the decisions.

Wife-dominant role is when the wife makesmost of the decisions.

Syncratic role is when both partners jointly makemost decisions.


41/83

Family Influence on BuyingBehavior

Husband-Dominant Wife-Dominant

Equal


42/83

WifeDominant

HusbandDominant

Joint

100 50 075 25

Womensclothing

Pots & pans

Child clothing

groceries

vacations

TV sets

Family car Sport equipment

Lawn mower

Paint wallpaper

lamps

Mens leisure clothing

Mens business clothing

cameraFinancial planning

furniture

refrigerator

luggage

carpet

NonRx

Toys/games

stereo

hardware

Extent of role specialization

Relative influence of husbands & wives

Informationsearch

Finaldecision


43/83

5-43

Children andTeenagers in

Family Purchases Growing numbers

are assumingresponsibility for

family shopping They also influence

what parents buy They represent over

50 millionconsumers in their own right


44/83


Social Influences Affect Consumer Behavior

+


45/83


Social Class Affects Attitudes, Values, & Buying

+


46/83

Reference GroupsReference Groups

Opinion LeadersOpinion Leaders

Culture

Other Social Influences



47/83

Group Influences

Public Luxuries

Golf ClubsSnow SkisSail Boat

Private Luxuries

TV Video GamesIce MakersTrash Compactors

PublicNecessitiesWrist WatchAutomobiles

Dress Clothes

PrivateNecessitiesMattressesFloor Lamps

Refrigerators

Strong Weak

Strong

Weak

Brand ChoiceP r o

d u c t Ch

oi c e


48/83


Appealing to Minority Consumers

+


49/83

quickly list 10 items you have purchased in the past

month

reexamine how long it took you to make a decisionon each

why did such a difference in decision occur?

Personal Determinants of


50/83

5-50

Personal Determinants of Consumer Behavior


51/83

5-51

Needs and Motives Need: an imbalance between a consumers

actual and desired states Motives: inner states that direct a person toward

the goal of satisfying a felt need


52/83

Psychological Factors

Wants

Based on a want or desire to havesomething. Not a necessity.


53/83


54/83

Need Recognition

Preferred State

Marketing helpsconsumers recognize

(or create) an imbalance

between present statusand preferred state

When a current product isntperforming properly

When the consumer is runningout of an product

When another product seemssuperior to the one currently used


55/83

Physiological Needs

Several Needs at the Same Time


Safety Needs

Social Needs

PersonalNeeds


56/83

5-56

Physiological Needs

Products Vitamins, herbal supplements, medicines, food, exerciseequipment, fitness clubs

Marketingthemes

Pepcid antacid Just one and hearburns done Puffs facial tissues A nose in need deserves Puffs indeed Ocean Spray cranberry juice Crave the wave

Safety Needs Products Cars and car accessories, burglar alarm systems, retirement

investments, insurance, smoke and carbon-monoxide detectors,medicines

Marketing

themes

Firemans Fund insuranceLicense to get on with it.

American General Financial Group Live the life youve imagined. Volvo Protect the body. Ignite the soul.

B l i


57/83

5-57

Belongingness

Products Beauty aids, entertainment, clothing, cars

Marketingthemes

Old Navy Spring Break from coast to coast

Washington Mutual banks More human interest TJ Maxx clothing store You should go

Esteem Needs

Product Clothing, cars, jewelry, hobbies, beauty spa services

Marketingthemes

Lexus automobiles The relentless pursuit of perfection Van Cleef & Arpels The pleasure of perfection.

Accutron watches Perhaps its worthy of your trust. Jenn-Air kitchen appliances The sign of a great cook.

Self-Actualization

Products Education, cultural events, sports, hobbies, luxury goods,technology, travel

Marketingthemes

Gatorade Is it in you? DePaul University Turning goals into accomplishments Dodge cars and trucks Grab life by the horns


58/83

Marketing Strategies and Maslows Hierarchy

Discovering Purchase Motives


59/83

Discovering Purchase Motives

Manifest motives are those that areknown and acknowledged.

Latent motives are those that areeither unknown to the customer or ones that the customer are reluctant toacknowledge.

Researching latent motives oftenrequires use of projective techniques.


60/83

Latent and Manifest Motives


61/83

Motivation Research Techniques

h


62/83

What do you think of the new software thatthe companyinstalled?

I havent used itmuch yet, but...

Projective TechniqueExample


63/83

Projective Technique Example

Someone who drinks hot tea is ______________.

Tea is good to drink when __________________.

Making hot tea is _________________________.

My friends think tea is.


64/83

Projective Technique Example

Results of a word association test with alternative brand names for a new fruit-flavored sparklingwater drink included the following:

Possible Brand Name Associated Words


65/83


66/83

Here is a typical chain or ladder obtained

from a secretary discussing why she would prefer to use an overnight package deliveryservice that has drop boxes available:Drop Box

ConvenientSave Time

Can Do MorePersonal Satisfaction

AccomplishmentSelf-Esteem

Most Ads appeal to Multiple


67/83

Most Ads appeal to MultipleMotives


68/83

Motivation Conflict Approach-Approach Conflict choice

between 2 attractive alternatives. Approach-Avoidance Conflict both +

and consequences in purchase of particular product.

Avoidance-Avoidance Conflict choice

between 2 undesirable alternatives.

Interacti e E ercise: Needs


69/83


Interactive Exercise: Needs

Personal Needs


70/83


Personal Needs

+


71/83

5-71

Harley-

DavidsonsAppeal toSelf-Actualization

Needs

Perceptions: the


72/83

5-72

Perceptions: themeaning that a personattributes to incomingstimuli gatheredthrough the fivesenses sight,

hearing, touch, taste,and smell.

Perception Determines What


73/83

SelectiveExposure

SelectivePerception

SelectiveExposure

SelectivePerception


Perception Determines WhatConsumers See and Feel

SelectiveRetention

Learning Determines What Response is Likely


74/83

DriveDrive

CuesCues

ResponseResponse

Learning Determines What Response is Likely


Reinforcement

Cue


75/83


Cue


76/83

5-76

Perceptual screens:

the filtering processes throughwhich all inputs

must pass

Sony Breaking Through

Perceptual Screens

Subliminal Perception: subconscious receipt


77/83

5-77

Subliminal Perception: subconscious receiptof information Almost 50 years ago, a New Jersey movie theater

tried to boost concession sales by flashing thewords Eat Popcorn and Drink Coca-Cola.

Subliminal advertising is aimed at thesubconscious level of awareness.

Subliminal advertising has been universallycondemned as manipulative, and is exceedinglyunlikely that it can induce purchasing.

Research has shown that subliminal messagescannot force receivers to purchase goods that theywould not consciously want.


78/83

5-78

Attitudes

A persons enduring favorable or unfavorableevaluations, emotional feelings, or actiontendencies toward some object or idea

Attitude components: Cognitive individuals information and knowledge

about an object or concept Affective components deal with feelings or emotional

reactions Behavioral involves tendencies to act in a certain

manner

Attitudes Relate to Buying


79/83

Attitude: apoint of view

Belief: anopinion

Attitude: apoint of view

Belief: anopinion

Ethical IssuesMay AriseEthical IssuesMay Arise

Work With

ExistingAttitudes

Work With

ExistingAttitudes

Need toUnderstandattitudes &Beliefs

Need toUnderstandAttitudes &Beliefs

Attitudes Relate to Buying


MeetingExpectationsIs Important

KeyConcepts


80/83

5-80

Changing ConsumerAttitudes Attempt to produce

consumer attitudes thatwill motivate the

purchase of a particular product

Evaluate existingconsumer attitudes andthen make the product

characteristics appealto them

d f h


81/83

5-81

Modifying theComponents of

Attitude Attitudes change inresponse toinconsistencies among

the three components Marketers can work tomodify attitudes by

providing evidence of product benefits and bycorrectingmisconceptions

Personality and Lifestyle Analysis


82/83

Interests

ActivitiesActivities

Interests

Personality and Lifestyle Analysis


Personality: howpeople see things

Opinions

L i


83/83

Learning An immediate or expected change in behavior as

a result of experience. The learning process includes the component of: Drive any strong stimulus that impels action [fear,

pride, hunger]

Cue

an object in the environment that determinesthe nature of the consumers response to a Drive [adfor a restaurant]

Response a reaction to a set of Drives and Cues [goto the restaurant]

Reinforcement a reduction in drive that resultsfrom a proper response

Date post:	02-Apr-2018
Category:	Documents
Upload:	rajesh-sharma
View:	217 times
Download:	0 times

consumerbehavior 1

Documents