3 consumer behaviour
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Consumer Behavior
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Customer vs. Consumer Behavior
Customer behavior:Customer behavior: a broad term
that covers both individual consumers
who buy goods and services for theirown use and organizational buyers who
purchase business products
Consumer behavior:Consumer behavior: the process
through which the ultimate buyer
makes purchase decisions
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UNIT: 4. CONSUMER BEHAVIOUR
Factors Influencing Buyer Behavior
Buyer Decision Process
Consumer Psychology
Industrial Buyer Behavior Vs. domestic
Buyer Behavior
Customer Satisfaction Vs. Customer
Delight
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Consumer Behavior
Consumer behavior consists of the
actions a person takes in purchasing andusing products and services, including the
mental and social processes that come
before and after these actions.
Consumer behavior consists of the
actions a person takes in purchasing andusing products and services, including the
mental and social processes that come
before and after these actions.
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Factors affecting Consumer
Behavior Model of Consumer Behavior
Factors affecting Buyer Behavior
Types of Buying Decisions
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Model of Consumer BehaviorModel of Consumer BehaviorMarketing andOther Stimuli
Marketing andOther Stimuli
Buyers Black BoxBuyers Black Box
Buyers ResponseBuyers Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
BuyersDecisionProcess
Product Choice
Brand Choice
Dealer Choice
PurchaseTiming
PurchaseAmount
Factors
AffectingConsumer
Behavior
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Factors Affecting
Consumer Behavior
Factors Affecting
Consumer Behavior
BuyerBuyer
Cultural
Social
Personal
Psychological
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Factors Affecting Consumer Behavior:
Cultural
Factors Affecting Consumer Behavior:
Cultural
Culture
Subculture
Social class
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Culture is a whole set of values,
traditions, beliefs, attitudes and waysof doing things of a reasonably
homogeneous set of people.
Culture is a whole set of values,
traditions, beliefs, attitudes and waysof doing things of a reasonably
homogeneous set of people.
Culture
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Cultural InfluencesCultural Influences Culture: values, beliefs, perceptions, preferences, and
tastes handed down from one generation to the next.
Indian Culture:
Children feel the responsibility of taking care of agedparents.
A father owning the responsibility of getting his Daughter
married in a well to do family.
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Core Values in the CultureCore Values in the Culture
While some cultural values change over time, basiccore values do not
Examples of core values include: Importance of family and home life
The way of dressing
Working habits
Values are shared beliefs formed through Socialization& Acculturisation process
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Subculturesare subgroups within the
larger, or national culture with uniquevalues, ideas, and attitudes, based on
common life experiences.
Subculturesare subgroups within the
larger, or national culture with unique
values, ideas, and attitudes, based on
common life experiences.
Subcultures
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Subcultures:Subcultures: subgroup of culture with itsown, distinct modes of behavior
Cultures are not homogeneous entities withuniversal values.
Subcultures can differ by: Religion
Place of residence
Subculture influences foodpreferences, clothing choices,recreation & career aspirations.
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A group of people who haveapproximately equal social position as
viewed by others in society. It can berelated to occupation, education, &community participation where a personlives.
Social class
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It comprises of relatively homogeneous
& enduring divisions in a society which
are hierarchically ordered & whosemembers share similar values, interests
and behavior.
E.g. Caste-system in India
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Social classes:Social classes: groups whose
rankings are determined by occupation,
income, education, family background,and residence location
W. Lloyd Warner identifiedsix classes:
1. Lower class
2. Upper-upper
3. Lower-upper4. Upper-middle
5. Lower-middle
6. Working class
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Social classes show distinct product &
brand preferences in many areas such
as clothing, furnishings, leisure etc.
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SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR
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Bonne Bell CosmeticsWhy target the African American women market?
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Hersheys KissesWhy use Spanish language ads in the U.S.?
F Aff i C B h i
http://www.hersheys.com/kisses/products/index.asphttp://www.hersheys.com/kisses/products/index.asp -
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Factors Affecting Consumer Behavior
Social
Factors Affecting Consumer Behavior:
Social
Reference GroupsReference Groups
FamilyFamily
Social FactorsSocial Factors
Roles and Status
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Reference groupsare people to whom
an individual looks as a basis forself-appraisal or as a source of personal
standards.
Reference groupsare people to whom
an individual looks as a basis for
self-appraisal or as a source of personal
standards.
Reference Groups
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Reference groups:Reference groups: groups whose valuestructures and standards influence apersons behavior
Requires two conditions: The purchased product must be one that
others can see and identify The purchased item must be conspicuous; it
must stand out as something unusual, abrand or product that not everyone owns
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Reference Groups
Membership Group ( primary, secondary)
Aspiration Group (like to belong)
Dissociative Group (like not to belong)
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Reference groups influence in at leastthree ways.
1.Expose individual to new behavior &lifestyle
2.Influence a persons attitude & self-
concept.3.Create pressures for conformity-actualproduct/brand choice.
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Personal Influence
Opinion Leadership
Opinion Leaders
Word of Mouth
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Opinion leadersare individuals who
exert direct or indirect social influenceover others.
Opinion leadersare individuals who
exert direct or indirect social influence
over others.
Opinion Leaders
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OpinionOpinionleaders:leaders:
trendsetterswho purchasenew productsbefore others
in a group andthen influenceothers in theirpurchases
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Pierce Brosnan and Anna KournikovaWhy use celebrity spokespersons?
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Word of mouthis the influencing of
people during conversations.
Word of mouthis the influencing of
people during conversations.
Word of Mouth
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Family
Family Influence
Consumer Socialization
Family Life Cycle
Family Decision Making
Information Gatherer
Influencer
Decision Maker
Purchaser
User
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Thefamily life cycle describes the
distinct phases that a family progresses
through from formation to retirement,
each phase bringing with it identifiable
purchasing behaviors.
Thefamily life cycle describes the
distinct phases that a family progresses
through from formation to retirement,
each phase bringing with it identifiable
purchasing behaviors.
Family Life Cycle
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Haggar ClothingWhat role do women play in this purchase?
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Family InfluencesFamily Influences
Husband-dominantrole is when thehusband makes most of the decisions.
Wife-dominantrole is when the wife makesmost of the decisions.
Syncraticrole is when both partners jointlymake most decisions.
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Children and Teenagers in FamilyChildren and Teenagers in Family
PurchasesPurchases
Growing numbers are assumingresponsibility for family shopping
They also influence what parents buy
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Roles define behavior that members of agroup expect of individuals who holdspecific positions within the group
Status: is the relative position of anyindividual member in a group. Each rolecarries a Status
Roles & Status
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Roles influence Buyer behavior. People
choose products that communicate
their role & status in society. Marketers should be aware of the
status symbol potential of products &
brands.
F t Aff ti C B h i
Factors Affecting Consumer Behavior:
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Factors Affecting Consumer Behavior
Personal
Factors Affecting Consumer Behavior:
Personal
Personal InfluencesPersonal Influences
Age and Life CycleStage
Age and Life CycleStage Occupation
Occupation
Economic SituationEconomic Situation
Lifestyle IdentificationLifestyle Identification
ActivitiesActivities OpinionsOpinions
InterestsInterests
Personality & Self-ConceptPersonality & Self-Concept
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Affects choice of food, clothes,
furniture, recreation etc.
Age & life-cycle stage
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Affects consumption pattern .
e.g. Purchasing patterns of white collar
workers will be different from those ofblue collar workers.
Occupation
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A persons distinguishing psychological
characteristics that lead to relatively
consistent & enduring responses toenvironment
Personality
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Based on traits people can be described as
Confident
Warm Loving Caring
Outgoing
Introvert
Extrovert Aggressive
Not Responsible
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Personality types affect product/brand
choices. A Marketer should adapt his
selling style to suit the customerspersonality.
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Self-concept (Self-image)
Marketers try to develop brand images
that match the target markets self-image.
Self-concept
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Actual self-concept
Ideal self- concept
Others self -concept
It sometimes may become difficult to answer which
self will one try to satisfy while choosing a product.
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It is the persons pattern of living as
expressed in the persons activities ,
interests & opinions. Lifestyle portrays whole person
interacting with the environment.
Lifestyle
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Achievement-oriented
Belongingness-oriented
VALS 2
VALS 2
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VALS 2VALS 2
PrincipleOriented StatusOriented ActionOriented
AchieversAchievers
ActualizersActualizers
StrugglersStrugglers
StriversStrivers
FulfilledsFulfilleds
BelieversBelievers
ExperiencersExperiencers
MakersMakers
Abundant ResourcesAbundant Resources
Minimal ResourcesMinimal Resources
Factors Affecting Consumer Behavior:
Factors Affecting Consumer Behavior:
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Factors Affecting Consumer Behavior:
Psychological
Factors Affecting Consumer Behavior:
Psychological
PsychologicalFactors
MotivationMotivation
PerceptionPerception
LearningLearning
Beliefs andAttitudes
Beliefs andAttitudes
Maslows Hierarchy of Needs
Maslows Hierarchy of Needs
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Maslow s Hierarchy of NeedsMaslow s Hierarchy of Needs
Esteem Needs(self-esteem, status)
Social Needs(sense of belonging, love)
Safety Needs(security, protection)
Physiological Needs(hunger, thirst)
Self
Actualization(Self-development)
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Types of Buying Decisions
Involvement
Differences between brands
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Involvement
Involvement consists of the personal,
social, and economic significance of the
purchase to the consumer.
Involvement consists of the personal,
social, and economic significance of the
purchase to the consumer.
Types of Buying Decisions
Types of Buying Decisions
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Types of Buying DecisionsTypes of Buying Decisions
Complex
BuyingBehavior
Dissonance-Reducing Buying
Behavior
Variety-
SeekingBehavior
HabitualBuying
Behavior
HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement
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The Buyer Decision ProcessThe Buyer Decision Process
Need RecognitionNeed Recognition
Information SearchInformation Search
Evaluation of AlternativesEvaluation of Alternatives
Purchase DecisionPurchase Decision
Postpurchase BehaviorPostpurchase Behavior
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The Buyer Decision Process
The buyer decision process is the stages
a buyer passes through in making choicesabout which products and services to buy.
The buyer decision process is the stages
a buyer passes through in making choicesabout which products and services to buy.
C B i D i i
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2. Search forInformation
(about wireless
service providers
and phones)
1. Recognitionof a Need
(for reliable
mobile telephone
communication)
3. Evaluationof Alternatives
(narrow down to
consideration set)
6. Disposition(Discard phone,
cancel wireless
service when nolonger wanted
or needed)
4. Choice/Purchase(choosing one
alternativeprovider andphone fromthe set)
5. Post-purchaseEvaluation(actual versus
expectedsatisfaction with
both phone and
service
provider)
Consumer Buying Decisions
Process for a Wireless Phone
The Buyer Decision Process
The Buyer Decision Process
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The Buyer Decision ProcessStep 1. Need Recognition
yStep 1. Need Recognition
External Stimuli
TV advertising
Magazine ad
Radio slogan
Stimuli in theenvironment
External StimuliTV advertising
Magazine ad
Radio slogan
Stimuli in theenvironment
Internal Stimuli
Hunger
Thirst
A persons normalneeds
Internal Stimuli
Hunger
Thirst
A persons normalneeds
Need RecognitionDifference between an actualstate and a desiredstate
Need RecognitionDifference between an actualstate and a desiredstate
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Need recognition: the process that
occurs whenever the consumer sees a
significant difference between his or hercurrent state of affairs and some desired
or ideal state.
Needs are biologically determined (food,
water, shelter) while wants are learned
responses to satisfying those needs. Marketers want to know how consumers learn
so that they can attempt to influence this
process.
The Buyer Decision Process
The Buyer Decision Process
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The Buyer Decision ProcessStep 2. Information Search
The Buyer Decision ProcessStep 2. Information Search
Family, friends, neighborsMost influential source of information
Advertising, salespeopleReceives most information
from these sources
Mass MediaConsumer-rating groups
Handling the productExamining the productUsing the product
Personal SourcesPersonal Sources
Commercial SourcesCommercial Sources
Public SourcesPublic Sources
Experiential SourcesExperiential Sources
Information search: the process whereby a
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Information search: the process whereby a
consumer searches for appropriate information
needed to make a reasonable decision.
Information search takes place:
Internally: our own memory bank.
Externally: everywhere else.
The Internet has enabled this process by huge leapsand bounds.
Information search can be:
Purposeful: looking for it.
Passively acquired. Of key interest is what influences the amount and
quality of search?
The Buyer Decision Process
The Buyer Decision Process
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The Buyer Decision ProcessStep 3. Evaluation of Alternatives
The Buyer Decision ProcessStep 3. Evaluation of Alternatives
Product AttributesEvaluation of Quality, Price, & Features
Product AttributesEvaluation of Quality, Price, & Features
Degree of ImportanceWhich attributes matter most to me?
Degree of ImportanceWhich attributes matter most to me?
Brand BeliefsWhat do I believe about each available brand?
Brand BeliefsWhat do I believe about each available brand?
Total Product SatisfactionBased on what Im looking for, how satisfied
would I be with each product?
Total Product Satisfaction
Based on what Im looking for, how satisfiedwould I be with each product?
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
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Evaluation of alternatives: the process
whereby a consumer evaluates the different
purchase alternatives identified. Evaluation criteria:the dimensions that
consumers use to compare competingproduct alternatives.
Students choosing a university may usemany different selection criteria, such as:size, reputation, costs, location, programs,living accommodations, or social life.
Some criteria are more important thanothers, so we still need to know how thedecision will be made.
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Product choice: the process whereby a
consumer makes a choice between the
different purchase alternatives identified.
Heuristics: a mental rule of thumb that leads
to a speedy decision by simplifying the
process.
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Heuristics
The human mind seeks to simplify theamount of decision making requiredwhenever possible.
We hold attitudes for the same reason, andwe apply them to purchase decisions.
Does higher price equal more quality? If it is aRolex, yes.
What happens when it doesnt in the shortand long run?
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Brand Loyalty
Brand loyalty:a pattern of repeat productpurchases, accompanied by an underlying
positive attitude toward the brand, which isbased on the belief that the brand makes
products superior to its competition.
Brand names can serve as an expectation of
performance and can be used to facilitate newproduct acceptance.
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Brand equity: the value of the brandnames acceptance.
Companies use brand equity tofacilitate new product acceptance.
The Buyer Decision Process
The Buyer Decision Process
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The Buyer Decision ProcessStep 4. Purchase Decision
The Buyer Decision ProcessStep 4. Purchase Decision
Purchase IntentionDesire to buy the most preferred brand
Purchase IntentionDesire to buy the most preferred brand
Purchase DecisionPurchase Decision
Attitudesof others
Unexpectedsituationalfactors
The Buyer Decision Process
The Buyer Decision Process
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yStep 5. Post purchase BehaviorStep 5. Post purchase Behavior
Consumers Expectations ofProducts Performance
Consumers Expectations ofProducts Performance
DissatisfiedCustomer
DissatisfiedCustomer
SatisfiedCustomer!
SatisfiedCustomer!
Products Perceived
Performance
Products Perceived
Performance
Cognitive Dissonance
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Post-purchase evaluation:theprocess whereby a consumer evaluatesthe quality of the purchase decision made,
as a result of consumption and learning.
Customer (dis)satisfaction:theoverall feelings or attitude a person has
about a product after purchasing it.
tages in the Adoption Processt
ages in the Adoption Process
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tages in the Adoption Processg p
AwarenessAwareness
InterestInterest
EvaluationEvaluation
TrialTrial
AdoptionAdoption
Adoption of Innovationsd
option of Innovations
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Adoption of Innovationsp
Percenta
geofA
dopters
Time of Adoption
Early Late
Innovato
rs
EarlyAdopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
nfluences on the Rate of Adoptionf
luences on the Rate of Adoption
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nfluences on the Rate of Adoption
of New Products
p
of New Products
DivisibilityCan the innovation
be used on atrial basis?
CompatibilityDoes the
innovationfit the values and
experience of thetarget market?ComplexityIs the innovation
difficult tounderstand or use?
Relative AdvantageIs the innovation
superior to existingproducts?
CommunicabilityCan results be easily
observed or describedto others?
ProductCharacteristics
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Consumer psychology
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Consumer Psychology
Perception
Learning
Motivation
Beliefs & Attitudes
Lifestyles
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Perception
What is Perception
Images
Process
Sensation & Perception
Picturing the Perceptual Process
Psychological influences on consumer
behavior
Wh t i P ti ?
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What is Perception?
Process to recognize, organize,and make sense of sensations.
P ti
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Perception
Perception is the process by which an
individual selects, organizes, and
interprets information to create a
meaningful picture of the world.
Perception is the process by which an
individual selects, organizes, and
interprets information to create ameaningful picture of the world.
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Look at this picture: what do you see?
Images nearby ... and far away
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How many Horses can you find in this picture?
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Find faces
in this tree
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Can you
find
hiddenimages?
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Find the baby
PERCEPTION
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S ti d P ti
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Sensation and Perception
Sensation: Conscious outcome of senseorgans and projection regions. (I detectsomething, not necessarily conscious, andnot necessarily meaningful)
Perception: Means by which informationacquired from the environment via the senseorgans is transformed (organized) intoexperiences of objects, events, sounds,
tastes, etc. (I know, recognize, appreciatewhat I am sensing, and it means something tome)
Picturing the Perceptual Process
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Three steps in the sensation and
perception of a stimulus
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Perceptions:Perceptions: the meaning that aperson attributes to incoming stimuli
gathered through the five senses sight, hearing, touch, taste, and smell.
Perceptual screens:Perceptual screens: the filtering
processes through which all inputsmust pass
P h l i l I fl f
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Psychological Influences of
consumer behavior Selective perception
Subliminal Perception
Perceived Risk
PSYCHOLOGICAL INFLUENCES
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ON CONSUMER BEHAVIOR
Perception
(Three perceptual processes)
Selective Attention
Selective Distortion
Selective Retention
Subliminal Perception
Subliminal Perception:Subliminal Perception: subconscious
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preceipt of information Almost 50 years ago, a New Jersey movie
theater tried to boost concession sales byflashing the words Eat Popcorn and DrinkCoca-Cola.
Subliminal advertising is aimed at the
subconscious level of awareness. Subliminal advertising has been universally
condemned as manipulative, and isexceedingly unlikely that it can induce
purchasing. Research has shown that subliminal
messages cannot force receivers to purchasegoods that they would not consciously want.
Perceived Risk
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Perceived Risk
Perceived riskrepresents the anxieties
felt because the consumer cannot
anticipate the outcomes of a purchase
but believes that there may be negative
consequences.
Perceived riskrepresents the anxieties
felt because the consumer cannot
anticipate the outcomes of a purchasebut believes that there may be negative
consequences.
Perceived risk: the belief that use of a product
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Perceived risk:the belief that use of a product
has potentially negative consequences, either
financial, physical, or social.
The consequences of making a bad choicemay vary from minimal (chocolate bar) tosevere (university program or choice of mate!).
Risk is perceptual, therefore it can beinfluenced. How do marketers reduce the riskperceived by consumers?
What do consumers do to reduce theirperceived risk?
Mostly, they look for information.
PSYCHOLOGICAL INFLUENCES
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ON CONSUMER BEHAVIOR
Perception
Perceived Risk
Obtain Seals of Approval
Secure Endorsements from Influential People
Provide Free Trials of the Product
Give Extensive Usage Instructions
Provide Warranties and Guarantees
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Learning
Meaning
Learning - I : Classical Conditioning
Learning -2: Operant Conditioning Psychological Influences on Consumer
Behavior
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What is learning?
any relatively enduring change inbehavior as the result of experience
Learning
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Learning
Learning refers to those behaviors that
result from (1) repeated experience and
(2) reasoning.
Learning refers to those behaviors that
result from (1) repeated experience and
(2) reasoning.
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Learning:a relatively permanentchange in behavior caused by acquiring
information or experience. Consumersmust learn how to satisfy their needs.
Learning can be either deliberate or
vicarious.
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Behavioral learning theories: theories oflearning that focus on how consumer behavioris changed by external events or stimuli.
The consumer forms connections between thethings that happen to them or within their rangeof perception.
Freud had a few things to say about these
connections.
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Learning I:Classical Conditioning
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Ivan Pavlov
1849-1936 (b. near Moscow)
Animal research using live animals
Early research on animal digestion in which taste
of food shown to trigger release of gastric juices
Pavlovs Research on Conditioning
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Pavlovs Research on Conditioning Animals had small
incision in jaw tocreate a channel(fistula) through whichsaliva would flow andbe collected &measured
Pavlov began toresearch what wouldhappen when he ranga bell or sounded a
gong just before heput meat powder in thedogs bowl
What is your reaction to this
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What is your reaction to this
photo?
What is your reaction to this blue
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What is your reaction to this blue
box?
What is happening here?
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What is happening here?
The blue box becomes
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The blue box becomes
associated with the lovers
++
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Signals
If done enough times, the neutral object or situation becomes a mentalsignal for the pleasant or attractive one. It signals that the naturallypleasant or attractive object or situation is about to appear on the scene
Take a naturally pleasant or attractiveTake a naturally pleasant or attractive
object or situationobject or situation
++ Associate it with a neutral object or situation
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Learning II:
Operant ConditioningB. F. Skinner
Skinner Box
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Skinner Box Lever or other target upon
which the animal will operate Signal such as a light
Source of reward such as afood pellet tray or apunishment such as anelectrical shock grid
Mechanism to record animalsbehavior (frequency counter)
First used with rats, then with
pigeons
New Language I:
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Contingencies Reinforcement = any consequence which increases the
likelihood that the behavior will occur again
Positive Reinforcement: a pleasant reward which leads to
an increase in a behavior
Having a good time on a Saturday night
Negative Reinforcement: removal of something aversive
or unpleasant which leads to increase in a behavior
Cops stopping loud music of kids outside
Punishment = Any consequence which decreases thelikelihood that the behavior will occur again
New Language II: Behavioral
C
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Control
Organisms acquire new behaviors The forms of behaviors are shapedby their
consequences
Behaviors are extinguishedby a lack of reinforcement
when they occur
Discriminative stimuliare cues (signals) that influence
behavior; they suggest the consequence of behavior
Generalized responses are behaviors which are similarto behaviors which have been rewarded or punished in
the past
LearningLearning
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LearningLearning An immediate or expected change in
behavior as a result of experience. The learning process includes the
component of: Drive Cue Response Reinforcement
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
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ON CONSUMER BEHAVIOR
Learning
Behavioral Learning
Drive
Response
Reinforcement
Stimulus Generalization
Stimulus Discrimination
Cognitive Learning
Brand Loyalty
Brand Loyalty
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y y
Brand loyalty is a favorable attitude
toward and consistent purchase of a single
brand over time.
Brand loyalty is a favorable attitude
toward and consistent purchase of a single
brand over time.
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Applying Learning Theory toApplying Learning Theory to
Marketing DecisionsMarketing Decisions Shaping: process of applying a series of
rewards and reinforcements to permitmore complex behavior to evolve over
time
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MOTIVATION & PERSONALITY
Motivation
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Motivation is the energizing force that
stimulates behavior to satisfy a need.
Motivation is the energizing force that
stimulates behavior to satisfy a need.
Personality
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y
Personality refers to a persons
consistent behaviors or responses to
recurring situations.
Personality refers to a persons
consistent behaviors or responses to
recurring situations.
M i i & P li
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Motivation & Personality
Why do people do the things they do?
Drive Reduction Theory
Kinds of Drives Psychological Influences on Consumer
Behavior
Motivation
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Why do people do the things they do?
reflexes simple, unlearned responses to specific stimuli
-often mediated by direct connections in spinal cord
learned (conditioned) behaviors
physiological needs drives increase likelihoodof behavior
cognition
thoughts, beliefs and strategies about consciously
directed behaviors that best satisfy drives
What arethe basicdrives?
Why aresome things
moremotivating
(reinforcing)than others?
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Motivation Drive-Reduction Theory
the idea that a physiological need createsan aroused tension state (a drive) that
motivates an organism to satisfy the need
Kinds of Drives
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regulatory
primary biological maintenance
survival
regulated by homeostasis breathing, hunger, thirst, pain, sleep
non-regulatory
long-term maintenance
attachment, nurture, novelty, aggression long-term comfort
self-esteem, power, achievement, self-actualization
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
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ON CONSUMER BEHAVIOR
Motivation and Personality
Motivation
Physiological Needs
Safety Needs
Social Needs
Personal Needs
Self-Actualization Needs
Personality
Self-Concept
Hierarchy of needs
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Motivation:an internal state that drives
us to satisfy needs by activating goal-
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us to satisfy needs by activating goal
oriented behaviour.
Example: a homeless person is
motivated to find shelter and food, while
only the wealthy have the luxury ofspending their time seeking self-
fulfillment.
Needs and MotivesNeeds and Motives
N d i b l b t
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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
Self Concept
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Self Concept: the totality of an individuals
thoughts and feelings having reference tohim/herself as an object.
It is the personal or internal basis for
lifestyle but should not be perceived asdevoid of social influence.
Definition
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Self-ConceptSelf-Concept
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A persons multifaceted picture of himself or
herself, composed of the: Real self
Self-image
Looking-glass self
Ideal self
Measurement Scales for Self-Concepts,
Person Concepts, and Product Concepts
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1. Rugged ----------------- Delicate2. Excitable ----------------- Calm3. Uncomfortable ------------ Comfortable4. Dominating --------------- Submissive5. Thrifty ----------------- Indulgent
6. Pleasant ----------------- Unpleasant7. Contemporary -------------Non-contemporary8. Organized ----------------- Unorganized9. Rational ----------------- Emotional
10. Youthful ----------------- Mature
11. Formal ----------------- Informal12. Orthodox ----------------- Liberal13. Complex ----------------- Simple14. Colorless ----------------- Colorful15. Modest ----------------- Vain
p , p
The Relationship between Self-Concept and
Brand Image Influence
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ProductBrand Image
ConsumerSelf-concept
Relationshi
pBetweenself-concept
and brand
image
Behavior
Seek productsand brands
that improve
or maintain
self-concept
Satisfaction
Purchasecontributes todesired self-
concept
Lifestyle/ Psychographics
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A distinct mode of living -- including howone spends time, $, and places emphasis onnumerous aspects of their life.
Lifestyle defined:
Lifestyle patterns are influenced by several
internal and external factors like:
Income, age, family size, social patterns, social
attitude changes, shifts in social views, legal
changes, background, and education.
Lifestyle/ Psychographics
Lifestyle/ Psychographics
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A way of describing the psychological make-
up or lifestyle of a consumer or segment of
consumers.
Psychographics defined:
Lifestyle dimensions can come from analyzing several
activities/interests and opinion items. This analysis ---
a set of dimensions or factors, next these factors areused in formulation clusters or categories of the
consumer population.
Lifestyle and the Consumption Process
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Lifestyle
Determinants Demographics
Subculture
Social class
Motives
Personality
Emotions
Values Household
Culture
Past experiences
Lifestyle
(How we live)
Activities
Interests
Like/dislikes
Attitudes
Consumption
Expectations
Feelings
BehavioralImpact
Purchases How
When Where What With whom
Consumption Where With whom How When What
Impact of Lifestyle
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Lifestyle ----- > Choice/use/w.o.m
Direct Impact
Aspirational Impact
Indirect Impact
Impact of Lifestyle
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Direct Impact
Adventuresome, fast-paced,live-for-now, lifestyle --->higher desire for sportscars, bungie jumping, travel.
Impact of Lifestyle
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Indirect Impact
Modern conservative family, two careerprofessionals, wants to provide nice, safehome and good future opportunities forchildren ---> lawn care service, auto
maintenance contracts, fast food services.
Impact of Lifestyle
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Aspirational Impact
Low-income individual, young adult,college graduate, profession seeking,
wants a family, (but later). Marketingmessages tell him/her that you need todress for success look good ---> CZ
ring, 18K gold plated watch, designercopy-cat clothes, less-expensive butunique car.
Relationship of Self-concept and
Lifestyle
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Lifestyle
Self concept ActualLifestyle
ExternalFactors
PrivateSelf
ActualIdeal
SocialSelf
Measures of Lifestyle
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Originally AIO inventory (200-350 itemsinvolving Activities, Interests, and Opinions)
Problem: Too long, too narrow in scope
More recent measures include: Attitudes, Values,
Activities, Interests, Media Patterns, Usage
characteristics, Demographics and Geographics.
VALS VALS2 PRIZM
VALS
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4 Base categories:Need DrivenGroups
Survivors
Sustainers
Outer directedGroups
BelongersEmulators
Achievers
Inner directed
Groups
I am me
ExperientialSocietally conscious
Both inner andouter directed
Integrated
VALS2 Lifestyle System
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Principle
Fulfilled
Believer
Achiever
Striver
Action
Experiencer
Maker
Actualizer
Struggler
Abundant resources
Minimal resources
Status
VALS2 Lifestyle System
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Self concept is composed primarily of threedimensions of self orientation:
Principle oriented: Choices guided by their own
personal beliefs, not feelings or others approval.
Status oriented:Heavily influenced by actions,approval, and the opinions of others
Action oriented: Desire social activity & Physicalactivity variety and risk taking -- adventuresome.
Lifestyle Analysis of the Cosmetics Market
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1. Self-aware: concerned about appearance, fashion, andexercise.
2. Fashion-direct: concerned about fashion and appearance,
not about exercise and sport.
3. Green goddesses: concerned about sport and fitness, less
about appearance.
4. Unconcerned: neutral attitudes to health and appearance.
5. Conscience-stricken: no time for self-realization, busy withfamily responsibilities.
6. Dowdies: indifferent to fashion, cool on exercise, and dress
for comfort.
Cosmetic Lifestyle Segments
Intrapersonal and Interpersonal Determinants of Consumer Behavior
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Measurement
Psychographics
Activities, interests,
opinions.
Culture and Subculture
Social classPreference groups
Family
Values Personality
Lifestyles
Decisions
Family
Individual
General behavior
Intrapersonal and Interpersonal Determinants of Consumer Behavior
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General behavior
Benefits desired
Time budget
expenditures
Money Budget
expenditures
Product choices
Brands and storechoices
Benefit delivery
Beliefs & Attitudes
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Beliefs & Attitudes
Beliefs
Attitudes
Psychological Influences on ConsumerBehavior
Beliefs
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Beliefs are a consumers subjective
perception of how a product or brand
performs on different attributes based onpersonal experience, advertising, and
discussions with other people.
Beliefs are a consumers subjective
perception of how a product or brand
performs on different attributes based onpersonal experience, advertising, and
discussions with other people.
Attitude
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An attitude is a learned predisposition
to respond to an object or class of objects
in a consistently favorable or unfavorableway.
An attitude is a learned predisposition
to respond to an object or class of objects
in a consistently favorable or unfavorableway.
AttitudesAttitudes
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AttitudesAttitudes
A persons enduring favorable or
unfavorable evaluations, emotional feelings,
or action tendencies toward some object or
idea
Attitude components: Cognitive
Affective
Behavioral
Changing Consumer AttitudesChanging Consumer Attitudes Attempt to produce consumer attitudes that
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Attempt to produce consumer attitudes thatwill motivate the purchase of a particular
product Evaluate existing consumer attitudes and
then make the product characteristics appealto them
Modifying the Components of AttitudeModifying the Components of Attitude Attitudes change in response to
inconsistencies among the three components Marketers can work to modify attitudes byproviding evidence of product benefits and bycorrecting misconceptions
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
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Values, Beliefs, and Attitudes
Attitude Formation
Attitude Beliefs
Attitude Change
Change Beliefs About a Brands Attributes
Change Perceived Importance of Attributes
Add New Attributes to the Product
Colgate Total Toothpaste andBayer Extra Strength Aspirin
H did th d h ttit d ?
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How did these ads change attitudes?
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
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Lifestyle
Psychographics
VALS
Thinkers
Believers
Achievers
Strivers
Experiencers
Makers
Innovators
Survivors
VALS Consumer SegmentsHow do consumers make purchase decisions?
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Industrial Buying Behavior
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Industrial Buying Behavior
Business Market
Characteristics of Business Market
Model of Business Buying Behavior
Business Buying Situation
Participants
Major Buying Influences
Stages
What is a Business Market?
What is a Business Market? The Business Market - all the
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The Business Market all theorganizations that buy goods and servicesto use in the production of other productsand services that are sold, rented, orsupplied to others.
Business markets involve many moredollars and items do consumer markets.
Characteristics of Business Markets
Characteristics of Business Markets
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Types of Decisions & the
Decision Process
Types of Decisions & the
Decision Process
Market Structure and DemandMarket Structure and Demand
Fewer, larger buyers Geographically concentrated Demand derived from consumers Inelastic demand Fluctuating demand
Fewer, larger buyers Geographically concentrated Demand derived from consumers Inelastic demand Fluctuating demand
Nature of the Buying UnitNature of the Buying Unit
More buyers More professional purchasing effort
More buyers More professional purchasing effort
More complex decisions Process is more formalized Buyer and seller are more
dependent on each other Build close long-term relationships
with customers
More complex decisions Process is more formalized Buyer and seller are more
dependent on each other Build close long-term relationships
with customers
Model of Business Buyer Behavior
Model of Business Buyer Behavior
Marketing andOth Sti li
Marketing andOther Stimuli
Product
P i
Economic
T h l i l
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The Buying OrganizationThe Buying Organization
Other StimuliOther Stimuli
Buyers ResponseBuyers Response
Price
PlacePromotion
Technological
PoliticalCultural
Interpersonal
and IndividualInfluences
Organizational
Influences
Product or ServiceChoice
Supplier Choice
Order Quantities
Delivery Termsand Times
Service Terms
Payment
The Buying Center
Buying DecisionProcess
Business Buying Situationsu
siness Buying Situations
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Straight RebuyStraight Rebuy
New Task BuyingNew Task Buying
Modified RebuyModified Rebuy
InvolvedDe
cisio
nMakin
g
Participants in the Business Buying ProcessThe Buying Center
Participants in the Business Buying Process:The Buying Center
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BuyingCenter
BuyingCenter
UsersGatekeepers
Deciders Influencers
Buyers
Major Influences on BusinessBuying
Major Influences on BusinessBuying
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y g
EnvironmentalEconomic, Technological, Political, Competitive & Cultural
EnvironmentalEconomic, Technological, Political, Competitive & Cultural
OrganizationalObjectives, Policies, Procedures,
Structure, & Systems
OrganizationalObjectives, Policies, Procedures,
Structure, & Systems
InterpersonalAuthority, Status, Empathy &
Persuasiveness
InterpersonalAuthority, Status, Empathy &
Persuasiveness
IndividualAge, Education, Job Position, Personality &
Risk Attitudes
IndividualAge, Education, Job Position, Personality &
Risk Attitudes
BuyersBuyers
Stages in the BusinessBuying Process
Stages in the BusinessBuying Process
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Problem RecognitionProblem Recognition
General Need DescriptionGeneral Need Description
Product SpecificationProduct Specification
Supplier SearchSupplier Search
Proposal SolicitationProposal Solicitation
Supplier SelectionSupplier Selection
Order Routine SpecificationOrder Routine Specification
Performance ReviewPerformance Review
Customer satisfaction Vs. Customer
Delight
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Delight