MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 1

Consumer Behavior

Influences on consumer behavior Psychological

Decision making Attitudes and

attitude change Sociocultural

Reference groups Family decision

making Culture and

subculture

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 2

Consumer Problems and Recognition

Consumer problem: Discrepancy between ideal and actual state--e.g., consumer: has insufficient hair is hungry has run out of ink in his or her inkjet

cartridge

Problems can be solved in several ways--e.g., stress reduction <----- vacation, movie, hot bath, medication

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 3

CONSUMER DECISIONS:Theory and Reality in Consumer Buying

InformationSearch

ProblemRecognition

Evaluation ofAlternatives

Purchase

PostpurchaseEvaluation/Behaviors

Theory

Complications

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 4

Approaches to Search for Problem Solutions

INTERNAL

EXTERNAL

MemoryThinking

Word of mouth, media,store visits, trial

CATALOG

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 5

Cost vs. Benefits of Search

Market Characteristics

Product Characteristics

Consumer Characteristics

Situation Characteristics

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 6

Decision Issues

Types of decisions Routinized response

(e.g., gas, sodas) Limited problem

solving (e.g., car service, fast food)

Extended problem solving (e.g., new car, computer, medical procedures)

Type of evaluation: Compensatory:

Decision based on overall value of alternatives (good attribute can outweigh bad ones)

Non-compensatory: Absolutely must meet at least one important criterion (e.g., car must have automatic transmission)

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 7

Variety Seeking and Variety Seeking and Impulse BuyingImpulse Buying

Variety seeking» need varies among

consumers by optimal stimulation level (OSL)

» Use innovativeness Impulse purchases

» Motivation» Consequences“Don’t give me that

same old cola, thatsame old cola--I want a rock’n’roller!”

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 8

Psychological Influences

Motivation Personality Perception

Attention and competition for attention

Selective perception

Subliminal influence?

Perceived risk Learning

Change in behavior

May or may not be conscious

Values, beliefs, and attitudes

Lifestyle—e.g., VALS2

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 9

Attitude Change Strategies Change Affect

Classical conditioning Attitude toward the ad Mere exposure

Change behavior (e.g., sampling)

Change Belief Component Change existing beliefs Change importance of attributes Add beliefs Change ideal

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 10

One-sided vs. two sided appeals One-sided: only

saying what favors your side

Two-sided: stating your case but also admitting points favoring the other side Why is this

effective?

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 11

Sociocultural Influences

Personal Influence Opinion leadership Word of mouth

and rumors Reference groups

Associative: “We’re the Pepsi generation…”

Dissociative: “It’s not your father’s car.”

Aspirational

Culture Subculture

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 12

Potential Family Life Cycle Stages

YOUNGSINGLE

BLENDED

SINGLE PARENT

FULL NEST I/II/III

EMPTY NESTI/II

OLDERSINGLE

YOUNGCOUPLE

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 13

Economic/Marketing Implications of Household Cycles

Income tends to increase with time

But children/ obligations add cost

Divorce increases costs may change

income distribution marriage

Product demand due to singles with low

expenses new couples divorced families children empty nesters --

> more income

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 14

Household Decision Making

Roles/influence Information

gatherers/holders Influencers Decision makers Purchasers Users

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 15

More Sociocultural Influences Social class

In the U.S. Positioning

strategies: “Upward Pull” “At Level”

In other cultures Culture: “Share

meanings”

Subculture Ethnic Generational Regional Religious groups

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 16

Organizational Buyers

Types Industrial Reseller Government and

non-profit organizations

Characteristics Greater

involvement Bureaucracy Long term

relationships

MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 17

The Means-End Chain

Large engine

Fast acceleration

Performance

Feeling of power

Self-esteemAim promotion/

positioning at higherlevels of chain!

Attributes

Consequences

Values