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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?

    http://www.bonnebell.com/http://www.bonnebell.com/
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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?

    http://www.omegawatches.com/http://www.omegawatches.com/
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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?

    http://www.haggar.com/http://www.haggar.com/
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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

    http://www.colgatetotal.com/http://www.bayeraspirin.com/http://www.colgatetotal.com/
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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

    http://www.sric-bi.com/http://www.sric-bi.com/
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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