Chapter 5Chapter 5

Consumer Consumer BehaviorBehavior

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Chapter ObjectivesChapter Objectives1. Distinguish between customer behavior and

consumer behavior.2. Explain how marketers classify behavioral influences

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

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

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

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

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

limited problem solving, and extended problem solving by consumers.

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Customer vs. Consumer BehaviorCustomer vs. Consumer Behavior

Customer behavior:Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own 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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Interpersonal Determinants ofInterpersonal Determinants ofConsumer BehaviorConsumer Behavior

Why People Buy New Products

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Cultural InfluencesCultural InfluencesCulture: values, beliefs, preferences, and

tastes handed down from one generation to the next

It is important to recognize the concept of ethnocentrism, or the tendency to view your own culture as the norm, as it relates to consumer behavior.

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Core Values in the U.S. Core Values in the U.S. CultureCultureWhile some cultural

values change over time, basic core values do not

Examples of American core values include:Importance of

family and home lifeEducationYouthfulnessIndividualism

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Milton BradleyMilton BradleyParker BrothersParker BrothersEmphasizing the

Importance of Family and Home Life

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International Perspective on Cultural International Perspective on Cultural InfluencesInfluencesCultural differences are particularly important

for international marketersSuccessful strategies in one country often

cannot extend to other international markets because of cultural variations

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Subcultures:Subcultures: subgroup of culture with its own, distinct modes of behaviorCultures are not homogeneous entities with

universal values.Subcultures can differ by:

Ethnicity or NationalityAge or GenderReligionSocial class or Profession

Ethnic and Racial Minorities as a Percentage of the Total U.S. Population

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Population TrendsPopulation Trends

White [non-Hispanic] Americans will become a minority by the year 2050

By 2050 the projected Hispanic population of the U.S. will be 24% of the nation’s total at 88 million

The African-American population is expected to double in size by 2050 to 62 million [17%]

The Asian and Pacific population is expected to triple in size by 2050 to 41 million [11%]

Sources: Wikipedia, Philip Kotler, Text

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Hispanic-American Hispanic-American ConsumersConsumers The 40 million Hispanics in the

U.S., coming from a wide range of countries, are not homogenous

There are important differences in acculturation – the degree to which newcomers have adapted to the U.S. culture

The Hispanic market is large and fast-growing

Hispanics tend to be younger than the general U.S. population

Hispanics are geographically concentrated

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African-American African-American ConsumersConsumersAfrican-American

buying power is rising rapidly compared to U.S. consumers in general

Family structures may differ for African-American consumers, creating differences in preferences for clothing, music, cars, and many other products

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Asian-American Asian-American ConsumersConsumersMarketing to Asian-

Americans presents many of the same challenges as reaching Hispanics

Asian-Americans are spread among culturally diverse groups, including Chinese, Japanese, Indians, Koreans, Filipinos, and Vietnamese--many retaining their own languages

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Social InfluencesSocial InfluencesGroup membership influences an individual’s purchase decisions and behavior in both overt and subtle ways.Norms: are the values, attitudes, and

behaviors that a group deems appropriate for its members

Status: is the relative position of any individual member in a group

Roles define behavior that members of a group expect of individuals who hold specific positions within the group

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The Asch Phenomenon:The Asch Phenomenon: the effect of a reference group on individual decision-making, individuals will conform to majority rule, even if majority rule went against their beliefs

Reference groups:Reference groups: groups whose value structures and standards influence a person’s behaviorRequires 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, a brand or product that not everyone owns

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JordacheJordacheAdvertisement

Illustrating the Influence of Friendship Groups on Purchase Decisions

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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. Upper-upper

2. Lower-upper

3. Upper-middle

4. Lower-middle

5. Working class

6. Lower class

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Opinion leaders:Opinion leaders: trendsetters who purchase new products before others in a group and then influence others in their purchases

Figure 5.4Figure 5.4: Alternative Channels for Communications Flow

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Family InfluencesFamily InfluencesAutonomic role is when the partners

independently make equal numbers of decisions.

Husband-dominant role is when the husband makes most of the decisions.

Wife-dominant role is when the wife makes most of the decisions.

Syncratic role is when both partners jointly make most decisions.

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Children and Children and Teenagers in Teenagers in Family PurchasesFamily PurchasesGrowing numbers

are assuming responsibility for family shopping

They also influence what parents buy

They represent over 50 million consumers in their own right

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Personal Determinants of Personal Determinants of Consumer BehaviorConsumer Behavior

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Needs and MotivesNeeds and MotivesNeed: an imbalance between a consumer’s

actual and desired statesMotives: inner states that direct a person

toward the goal of satisfying a felt need

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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Self-Actualization

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Physiological Needs

Products Vitamins, herbal supplements, medicines, food, exercise equipment, fitness clubs

Marketing themes

Pepcid antacid—”Just one and hearburn’s done”

Puffs facial tissues—”A nose in need deserves Puffs indeed”

Ocean Spray cranberry juice—”Crave the wave”

Safety Needs

Products Cars and car accessories, burglar alarm systems, retirement investments, insurance, smoke and carbon-monoxide detectors, medicines

Marketing themes

Fireman’s Fund insurance—“License to get on with it.”

American General Financial Group—“Live the life you’ve imagined.”

Volvo—“Protect the body. Ignite the soul.”

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Belongingness

Products Beauty aids, entertainment, clothing, cars

Marketing themes

Old Navy—”Spring Break from coast to coast”

Washington Mutual banks—”More human interest”

TJ Maxx clothing store—”You should go”

Esteem Needs

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

Marketing themes

Lexus automobiles—The relentless pursuit of perfection”Van Cleef & Arpels—“The pleasure of perfection.”Accutron watches—“Perhaps it’s worthy of your trust.”Jenn-Air kitchen appliances—“The sign of a great cook.”

Self-Actualization

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

Marketing themes

Gatorade—“Is it in you?”DePaul University—”Turning goals into accomplishments”

Dodge cars and trucks—”Grab life by the horns”

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Figure 5.6Figure 5.6Harley-

Davidson’s Appeal to Self-Actualization Needs

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Perceptions:Perceptions: the meaning that a person attributes to incoming stimuli gathered through the five senses – sight, hearing, touch, taste, and smell.

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Perceptual screens:Perceptual screens: the filtering processes through which all inputs must pass

SonyBreaking Through

Perceptual Screens

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Subliminal Perception:Subliminal Perception: subconscious receipt of informationAlmost 50 years ago, a New Jersey movie

theater tried to boost concession sales by flashing the words Eat Popcorn and Drink Coca-Cola.

Subliminal advertising is aimed at the subconscious level of awareness.

Subliminal advertising has been universally condemned as manipulative, and is exceedingly unlikely that it can induce purchasing.

Research has shown that subliminal messages cannot force receivers to purchase goods that they would not consciously want.

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AttitudesAttitudesA person’s enduring favorable or

unfavorable evaluations, emotional feelings, or action tendencies toward some object or idea

Attitude components:Cognitive – individual’s information and

knowledge about an object or conceptAffective components deal with feelings

or emotional reactions Behavioral – involves tendencies to act in

a certain manner

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Changing Consumer Changing Consumer AttitudesAttitudesAttempt to produce

consumer attitudes that will motivate the purchase of a particular product

Evaluate existing consumer attitudes and then make the product characteristics appeal to them

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Modifying the Modifying the Components of Components of AttitudeAttitudeAttitudes change in

response to inconsistencies among the three components

Marketers can work to modify attitudes by providing evidence of product benefits and by correcting misconceptions

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LearningLearningAn immediate or expected change in

behavior as a result of experience.The learning process includes the

component of:Drive – any strong stimulus that impels

action [fear, pride, hunger]Cue – an object in the environment that

determines the nature of the consumer’s response to a Drive [ad for a restaurant]

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

Reinforcement – a reduction in drive that results from a proper response

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The Consumer Decision ProcessThe Consumer Decision Process Consumers complete a step-by-step

process when making purchase decisionsHigh-involvement purchase

decisions are those with high levels of potential social or economic consequences

Low-involvement decisions are routine purchases that pose little risk to the consumer

SearchSearch

Alternative Alternative EvaluationEvaluation

Purchase Purchase DecisionDecision

Purchase Purchase ActAct

Post-Post-purchase purchase

EvaluationEvaluation

Problem Problem Opportunity Opportunity RecognitionRecognition

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Problem or Opportunity RecognitionProblem or Opportunity RecognitionConsumer becomes aware of a

significant discrepancy between the existing situation and the desired situation

Motivates the individual to achieve the desired state of affairs

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SearchSearchConsumer gathers information related to

their attainment of the desired state of affairsIdentifies alternative means of problem

solutionMay cover internal or external sources of

informationBrands that a consumer actually considers

buying before making a purchase decision are known as the evoked set

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Evoked Set Evoked Set ModelModel

All All BrandsBrands

All All BrandsBrands

Unknown Unknown BrandsBrands

Unknown Unknown BrandsBrands

Known Known Brands Brands

Known Known Brands Brands

OverlookedOverlookedBrandsBrands

OverlookedOverlookedBrandsBrands

UnacceptableUnacceptableBrandsBrands

UnacceptableUnacceptableBrandsBrands

AcceptableAcceptableBrandsBrands

AcceptableAcceptableBrandsBrands

Rejected Rejected Brands Brands

Rejected Rejected Brands Brands

PurchasedPurchasedBrandBrand

PurchasedPurchasedBrandBrand

EvokedEvokedSetSet

EvokedEvokedSetSet

InertInertSetSet

InertInertSetSet

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Evaluation of AlternativesEvaluation of AlternativesConsumer evaluates the evoked setDifficult to completely separate the second

and third steps, since some evaluation takes place as the search progresses

Outcome of the evaluation stage is the choice of a brand or product (or possibly a decision to renew the search)

Evaluative criteria: features that a consumer considers in choosing among alternatives

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Purchase Decision and Purchase ActPurchase Decision and Purchase ActConsumer narrows the alternatives

down to oneThe purchase location is decided

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Post-purchase EvaluationPost-purchase EvaluationAfter the purchase, consumers are either

satisfied or experience post-purchase anxiety

Cognitive dissonance: Post-purchase anxiety that results from an imbalance among an individual’s knowledge, beliefs, and attitudes after an action or decision is taken

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MichelinMichelinAttempting to

relieve cognitive dissonance associated with the purchase decision to purchase tires

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Classifying Consumer Problem-Solving Classifying Consumer Problem-Solving ProcessesProcessesThree categories of problem-solving

behaviorRoutinized Response Behavior –

choosing a preferred brandLimited Problem Solving –

encountering a new brandExtended Problem Solving – brands

are difficult to categorize or evaluate

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End of Chapter FiveEnd of Chapter Five