consumer behavior. consumer behavior: consists of the actions a person takes in purchasing and using...

Consumer Behavior

Consumer behavior: consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

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FIGURE 4-4FIGURE 4-4 Influences on the consumer purchase decision process from both internal and external sources

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Perception

Perception is the process by which an individual selects, organizes, and interprets information to create ameaningful picture of the world.

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In marketing:

“Perception is reality.”

In art:“Is all what we see or seem but a dream within a dream.”Edgar Allan Poe

In politics:“Power is the ability to define phenomena.”Huey Newton

Stimulus Receptor

SIS

Codes

SIS Filter

AttentionExpectationsMotivesAttitudes

Gestalt

OrganizationClosure Common FateProximity Figure-ground

PH

Perceptual Hypothesis

Perception

Memory

Feedback

Principles of Sensation1.Only change is recognized2.The ability to detect is based on the amount of the stimulus

Thresholds:AbsoluteJND (Just noticeable difference)

S. S. Stevens

Package volume and price

Perceptual Defense

Smoking study

Sherif’s TheorySubliminal Advertising

Perceptual Defense

Sherif’s Theory

Perceptual Defense

Subliminal advertising

Perceptual Defense

Jean PiagetSchemataAssimilationAccommodation

Perceptual Equilibrium

Cognitive Dissonance

Other perceptual factors

Color


SizeSquare Root Law

Impact


Social factorsHalo effect

Being attractive is goodJane is attractive

Therefore Jane is good!


Social factorsStereotypes


Social factorsSimilarity


Social factorsInitial impressions

Strategies to Reduce Perceived Risk

• Secure Endorsements

• Provide Free Trials/Samples

• Give Extensive Instructions

• Provide Warranties/Guarantees

• Obtain Seals of Approval

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Learning

• Cue

• Response

• Reinforcement

Behavioral Learning

• Drive (Hunger)

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Classical conditioningOperant conditioning

A relatively permanent change in behavior due to prior experience.

• Stimulus Discrimination

• Stimulus Generalization

Cognitive Learning

Brand Loyalty

Behavioral Learning

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Attitudes and Attitude Change

Attitudes: Learned predispositions torespond to an object or class of objects

in a consistently favorable or unfavorable way.

Attitudes and Attitude Change1.They are learned

FamilyFriends (peers)Teachers (infleuncers … media

Attitudes and Attitude Change1.They are learned2.They are predispositions

Long-lasting and important

Attitudes and Attitude Change1.They are learned2.They are predispositions3.They are consistent

Attitudes and Attitude Change1.They are learned2.They are predispositions3.They are consistent4.They are the link between perception and behavior Perception Attitudes Behavior

Attitudes and Attitude Change1.They are learned2.They are predispositions3.They are consistent4.They are the link between perception and behavior5. They are a “hypothetical construct”

Why do customers have them?1.Organize knowledge2.Ego-defense3.Value 4.Utilitarian (tools)

Why do customers have them?1.Organize knowledge2.Ego-defense3.Value 4.Utilitarian (tools)

Changing attitudes1.Consistency2.Communications

Consistency

1. Reactance TheoriesEstablishing and maintaining freedom

Consistency

2. Cognitive DissonanceFestinger (grasshoppers)Pro-Obama article Post purchase dissonance

Consistency

2. Cognitive DissonancePro-Obama article

Consistency

2. Cognitive DissonancePost purchase dissonance

Consistency

3. Social judgment theoriesSherifHeider’s Balance Theory

Consistency

4. Congruity theoriesLinkage to positive or negatives

Attitude Change and Communication


1.Source credibilityExpertise and familiarityThe “Sleeper Effect”


2. Source physical attractivenessHalo Effect

Why?Gets attentionGives informationMinimizes cognitive

dissonanceWorks


3. Source likeabilityFactors

Similarity (unless….)Speed of speakingErrorsKnown factors

(As seen on TV!)


4. Message factors Repetition (two factor theory)Words vs PicturesVivid or Abstract


4. Message factors ComparativeOne-sided vs. two-sidedDrawing conclusionsPrimacy or Recency Effects


5. Receiver Emotions a. Feeling goodHumor (What is funny?)AttractivenessSex… food….MusicFlatteryGood news


5. Receiver Emotions a. Feeling badWorks or doesn’t work?Protection Racket

Hierarchy of Effects

Learning Hierarchy

Cognition Affect Behavior


Emotion Hierarchy

Affect Behavior Cognition


Emotion Hierarchy

Behavior Affect Cognition


Emotion Hierarchy

Affect Behavior Cognition

Customer Decision Making

Involvement & Decision Complexity

Low Involvement

• Maintain Product Quality

• Avoid Stockouts

• Reduce CognitiveDissonance with Ads

High Involvement

• Use Comparative Ads

• Use Personal Selling4-60


Involvement

Low High

Complexity

High

Low

ImpulseBuying


Involvement

Low High

ComplexityHigh

Low

ImpulseBuying

Inertia


Involvement

Low High

ComplexityHigh

Low

ImpulseBuying

Inertia Brand Loyalty


Involvement

Low High

ComplexityHigh

Low

ImpulseBuying

Inertia Brand Loyalty

ComplexDecision Making

FIGURE 4-3FIGURE 4-3 Comparison of problem-solving variations: extended, limited, and routine

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FIGURE 4-AFIGURE 4-A Consumers use search, experience, and credence properties to evaluate services

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FIGURE 4-1FIGURE 4-1 The purchase decision process consists of five stages

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Ideal

ActualOpportunity

Need

2. Information Search

Internal SearchAwareness Sets

Evoked set

50% to 70% of all purchases

2. Information Search

External SearchHow much: InvolvementPerceived RiskTime PressuresCustomer CharacteristicsFamiliarity and Expertise

Ignorance paradox

3. Alternatives Evaluation

Models:Compensatory

Non-compensatoryConjunctive Bottom upLexicographic Top downHeuristic Satisficing

4. Purchase5. Post-Purchase Experience

All products are evaluated!Expectancy Disconfirmation model

Equity Theory What is fair?Cognitive DissonanceContrast Effects

Post-Purchase Experience

ReactanceDissonance

Buyer’s Regret +

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Time

Va

len

ce

PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

PERSONALITY

Personality

Traits

Self-Concept

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Personality and Lifestyle

FIGURE 4-BFIGURE 4-B VALS™ identifies eight consumer segments

Copyright © 2010 by Strategic Business Insights. All rights reserved.

INNOVATORSSophisticated,

Change Leading,Active, Take Charge

THINKERSInformation Seeking,

Satisfied,Reflective

BELIEVERSConservative,Conventional,

Traditional

STRIVERSTrendy, Approval,

Seeking,Disenfranchised

ACHIEVERSSuccessful, Career &

Family Oriented,Moderate

EXPERIENCERSRisk Seeking,Enthusiastic,

Impulsive

MAKERSHomegrown, SelfSufficient, Macho,Family Oriented

SURVIVORSPassive,

Risk Averse,Constrained

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http://www.strategicbusinessinsights.com/vals/surveynew.shtml

Take the VAL’s Test

http://www.strategicbusinessinsights.com/vals/presurvey.shtml

Take a personality test

http://personality-testing.info/tests/BIG5.php

http://www.strategicbusinessinsights.com/vals/presurvey.shtml

http://personality-testing.info/tests/BIG5.php

FIGURE 4-5FIGURE 4-5 Hierarchy of needs

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Social Class

A social stratification of persons withshared values, attitudes, and behaviors.

PrivilegeIn U.S.

EducationOccupation

SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR

PERSONAL INFLUENCE

Opinion Leaders

Word of Mouth

• Buzz

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REFERENCE GROUPS

• Dissociative Group

Reference Groups

• Aspiration Group

• Membership Group

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FAMILY INFLUENCE

Consumer Socialization

Family Life Cycle

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FIGURE 4-6FIGURE 4-6 Modern family life cycle stages and flows

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SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIORCULTURE AND SUBCULTURE

Culture

• HispanicBuyingPatterns

Subcultures

• AfricanAmericanBuyingPatterns

• AsianAmericanBuyingPatterns

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Social Class

• Working/Lower Class

• Middle Class

• Upper Class

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Culture

Hofstrede

1.Individualism vs. collectivism 2.Large vs small power distance3.High vs low uncertainty avoidance4.Masculinity vs femininity5.Abstract vs associative

Kluckhohn

1.Individual relation with natureSubjugatedIn harmony withMastery over

Kluckhohn

2. TimePast-present-future orientationMono vs poly timeBasic nature of time

LinearCircularProcedural

Kluckhohn

3. Personal activityBeingBecomingDoing

Kluckhohn

4. Individual relation to othersTraditionalDemocraticIndividualistic

Rituals

Sacred and Profane

Some definitions

Motivation

Motivation is the energizing force that stimulates behavior to satisfy a need.

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Brand Loyalty

Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.

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Beliefs

Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.

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Opinion Leaders

Opinion leaders are individuals who exert direct or indirect social influence over others.

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Word of Mouth

Word of mouth involves the influencing of people during conversations.

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Reference Groups

Reference groups consists of people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.

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Family Life Cycle

A family life cycle consists ofthe distinct phases that a family progresses through fromformation to retirement, each phase bringing with it identifiable purchasing behaviors.

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Subcultures

Subcultures are the subgroups within the larger, or national, culture with unique values, ideas, and attitudes.

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