consumer behavior. –the study of how individuals, groups, and organizations select, buy, use, and...
TRANSCRIPT
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Consumer Behavior
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Consumer Behavior
– The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants
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Model of Consumer Behavior
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• Culture is often the most powerful cause of a person's needs, wants and behavior.
• Characteristics of Culture– Culture is learned– Cultural shifts create opportunities– Subcultures are often of greater interest to
marketers than cultures
Culture
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• Society’s relatively permanent and ordered divisions
• Social Class Members share similar values, interests, and purchase behaviors
• Indentify by: income, occupation, education, wealth, and other variables
• Opportunity: “Social Mobility” products
Social Class
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The Major American Social Classes
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Social Factors
Reference groups
Cliques
Family
Roles and status
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Reference Groups
• Membership groups– Primary vs. Secondary
• Aspirational groups
• Dissociative groups
• Opinion leaders
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Family
• Family of Orientation• Family of Procreation
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Toyota caters to family buying influences.
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• Age and Life-Cycle Stage– Tastes and preferences change over time.
• Occupation / Roles / Status– Influences the purchase of clothing, cars, memberships, etc.
• Economic Situation– Income-sensitive goods– Counter-cyclical goods
Personal Factors
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Personal Factors
• Lifestyle:– Pattern of living (AIO)
• Activities• Interests• Opinions
• VALS:– Classifies consumers with
respect to motivation and resources.
• Predicts purchase behavior
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Key Psychological Processes
Motivation
Perception
LearningEmotions
Memory
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Motivation
Freud’sTheory
Behavioris guided by subconsciousmotivations
Maslow’sHierarchyof Needs
Behavioris driven by
lowest, unmet need
Herzberg’sTwo-Factor
Theory
Behavior isguided by
dissatisfiersand
satisfiers
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Maslow’s Hierarchy Of Needs
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• Personality– One Definition: Unique psychological characteristics that lead to relatively consistent and
lasting responses to one’s environment.
• “Big 5” - OCEAN– Openness– Conscientiousness– Extraversion– Agreeableness– Neuroticism (Anxiousness)
• Brands as expressions of identity
• Ideal Self vs. Actual Self
Personality and Self-Concept
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Perception
Process by which people select, organize, and
interpret information to form a meaningful picture of the
world.
People can form different perceptionsof the same stimulus.
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Selective Attention
People screen out most stimuli.
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Selective Distortion vs. Retention
• Selective Distortion– Interpreting information in a way that supports what you already
believe.
• Selective Retention– Remembering the good aspects of something you like and forgetting
the bad aspects of something you dislike.
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• One Definition:– A relatively permanent change in behavior due to experience.
• Classical Conditioning: Stimulus-response chains
• Operant Conditioning: Consequences drive behavior– Behaviors with satisfying results are repeated.– Behaviors with unsatisfying results are avoided.– Stimulus Generalization and discrimination
• Different from Deliberation
Learning
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Attitudes
• A person’s consistently favorable or unfavorable feelings, evaluations, and tendencies toward an object or idea.
• Attitudes have lots of staying power.– Cognitive economy/efficiency– Emotional anchors– Advertising may try to modify beliefs and
attitudes (“Got Milk” campaign)
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The Buying Decision Process
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Need Recognition
Buyers recognize a need or problem as a result of internal or external stimuli.
Marketing communications often stimulate need recognition.
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Hungry yet?
Triggering Need Recognition
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Information Search
• High vs. Low Involvement Purchases
• Cost vs. Benefit Model• Cognitive Economy• “Big-Ticket” Anomolies• Preference Reversals• Non-Linear Search Processes
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Information Sources
– Personal• Family, friends, neighbors, and casual or work acquaintances
– Commercial• Advertising, salespeople, dealers, Web sites, packaging, and displays
– Public• Social Media, Mass media,
Internet searches, Consumer rating organizations
– Experiential• Using, handling, examining or
sampling the product
Which source is most influential?
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• Elaboration Likelihood Model: Central vs. Peripheral Route processing
• Some Types of Evaluation Calculus:– Compensatory vs. Non-compensatory– Weighted Tally Processes (Fishbein Model)– Elimination-by-aspects– Lexicographic– “Checkbox Choice”– Affect Referral
Evaluation of Alternatives
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Weighted Tally Process Example
Assume the consumer assigns importance weights to Memory, Graphics, Size/Weight and Price 30%, 20%, 40%, and 10%, respectively.
Computer A’s score would be: (30% x 8) + (20% x 9) + (40% x 6) + (10% x 4) = 7.4
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Successive Sets
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Purchase Decision
• Intentions to purchase are sometimes interrupted.
• Potential “Interrupters”:– Out of Stock– Attitudes & influences of others– Unexpected situational
factors– Buyer’s Remorse– Speed of decision
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Postpurchase Behavior
• Consumer Satisfaction/Dissatisfaction results from gaps between expectations and perceived performance.
• Performance BELOW Expectations → Disappointment• Performance EQUALS Expectations → Satisfaction• Performance GREATER than Expectations → Delight• Performance MUCH GREATER than Expectations → Expectation Recalibration
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• Cognitive Dissonance: “Did I make the right purchase? Should I have bought this?”
• Minimize dissonance by:– Offering mechanisms for making complaints
(Customer Service, Toll-Free Hotlines, E-mail, Chat, Social Media, etc.)– Being responsive to problems and questions– Advertising (remind consumer why choice made sense)– Minimizing the potential for product misuse (good product
instructions) and “Poke-Yoke”.
Cognitive Dissonance
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Customer Product Use/Disposal
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Question du Jour
Is this for real?
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1. Awareness2. Interest3. Evaluation4. Trial5. Re-Trial6. Adoption
The Adoption Process
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Not everyone adopts at the same pace.
• Innovators: venturesome, try new ideas at some risk.
• Early adopters: opinion leaders who adopt new ideas early, but carefully.
• Early majority: deliberate adopters, who adopt before the average person.
• Late majority: skeptical, adopt only after the majority of people have tried a product.
• Laggards: last to adopt, tradition bound, and skeptical of change.
Product Adopter Categories
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Adopter Categorization Distribution
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• Relative Advantage– Is the innovation perceived as superior to existing products?
• Compatibility– Does the innovation fit the values, behavior and experience of the
target market?
• Complexity– Is the innovation difficult to understand or use or perceived as such?
• Utility & Cost-Benefit– Can the innovation be used extensively or on a more limited basis?
• Communicability– Can results be easily observed and described to others?
Product Characteristics That Influence the Rate of Adoption
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Question du Jour
Do consumers always know what they really want or need?
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Other Consumer Behavior Models & Theories
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Reactance
• Reactance is an emotional reaction in direct contradiction to rules or regulations that threaten or eliminate specific behavioral freedoms. - Wikipedia
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Variety-Seeking vs. Habit Persistence
• Variety-Seeking– Often driven by need for arousal– Preference-testing utility– Consumers often overestimate their variety needs
• Habit Persistence– Different from “Loyalty”– Typically driven by risk aversion
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Sunk Cost Bias
• Investing more resources in something you previously invested in, solely because you previously invested in it.
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False Consensus Bias
• Not everyone thinks like you, expects what you expect, believes what you believe.
Very dangerous for marketers.
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Decision Heuristics
• Anchoring & Adjustment– Reference Points
• Mood and Emotion– Mood Regulation
• Elevation• Maintenance
– Effects on Risk Taking
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Prospect Theory
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Mental Accounting
• The mental labeling of money• Consumers…
– Segregate gains– Integrate losses– Integrate smaller losses with larger gains– Segregate small gains from large losses
Implications for marketing strategy?
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In-Class Activity – WHY WE BUY
Choose a product, product line, brand, or company and answer the following:
• What are the obvious (i.e. more superficial) reasons consumers buy these products? • What are the less obvious, more deep-seeded reasons consumers buy these products? • What are the obvious (i.e. more superficial) reasons consumers do not buy these
products? • What are the less obvious, more deep-seeded reasons consumers do not buy these
products?
• Choose one or more of the above reasons/motivations to buy or not buy and provide an appropriate implication for Marketing strategy.