Consumer behavior. Appreciate the wide scope of consumer behavior studies, including the three...

• Consumer behavior

Appreciate the wide scope of consumer behavior studies, including the three consumer roles and analysis of consumer wants and needs

Describe the psychological bases of consumer behavior, including perception, learning, and motivation

Explain how psychographics seeks to explain consumer behavior by discussing such aspects as values, lifestyles, and self-concepts

Identify the steps in a typical consumer decision process

Describe how households make group consumer decisions

THE SCOPE OF CONSUMER BEHAVIOR

Consumer behavior is the process by which individuals or groups select, use, or dispose of goods, services, ideas, or experiences to satisfy needs or wants.

Three Consumer Roles

UserUser

Payer

Payer Buyer

Buyer

Wants Versus Needs

• Needs – unsatisfactory condition of the consumer that prompt him or her to action that will make the condition better.

• Wants – desires to obtain more satisfaction than is absolutely necessary to improve an unsatisfactory condition.

PSYCHOLOGICAL BASES OF CONSUMER BEHAVIOR

• Perception – the process by which an individual senses, organizes, and interprets information received from the environment.


• Learning – a change in the content of long-term memory.


• Motivation – the state of drive or arousal that moves us toward a goal-object.

Consumer Needs

• Maslow’s Hierarchy of Needs

EsteemEsteem

Self ActualizationSelf Actualization

SafetySafety

PhysiologicalPhysiological

BelongingnessBelongingnessSocial/Social/

Consumer Needs

Maslow’s Hierarchy of Needs

Consumer Needs

Physiological • Products:

Limited in the United States. Generic foods, medicines, special drinks, and foods for athletes

• Specific themes: Campbell’s Soup - “Soup is good food,” with

advertising copy that stresses the nutritional benefits of soup

Raisins - “Thank goodness I found a snack kids will sit for. And mothers will stand for.”

http://www.campbellsoup.com/

Esteem

Self Actualization

Safety

Physiological

BelongingnessSocial/

Consumer Needs


Consumer Needs

Safety • Products:

Smoke detectors, preventive medicines, insurance, social security, seat belts, safes

• Specific themes:Sleep Safe - “We’ve designed a travel

alarm that might wake you in the middle of the night… You see, ours is a smoke alarm as well as an alarm clock”

Alka Seltzer - “Will it be there when you need it?”

http://www.alkaseltzer.com/

EsteemEsteem


SafetySafety



Consumer Needs


Consumer Needs

Social/Belongingness • Products:

Personal grooming, foods, entertainment, clothing, and many others.

• Specific themes: Oil of Olay - “When was the last time you and

your husband met for lunch?”

http://www.olay.com/

EsteemEsteem


SafetySafety



Consumer Needs


Consumer Needs

Esteem• Products:

Clothing, furniture, liquors, hobbies, stores, cars, and many others

• Specific themes:Sheaffer - “Your hand should look as

contemporary as the rest of you”St. Pauli Girl - “People who know the

difference in fine things know the difference between imported beer and St. Pauli Girl…”

EsteemEsteem


SafetySafety



Consumer Needs


Consumer Needs

Self-Actualization• Products:

Education, hobbies, sports, some vacations, gourmet foods, museums

• Specific themes: U.S. Army - “Be all you can be” U.S. Home - “Make the rest of your life… the

best of your life”

http://www.ushome.com/

Consumer Emotions and Moods

• Emotions – strong, relatively uncontrolled feelings that affect our behavior.

• Moods – emotions that are less intense and transitory.

Involvement

The degree of personal relevance of a product to a consumer.

PSYCHOGRAPHICS: DESCRIBING CONSUMER BEHAVIOR

• Values

• Self-Concept

• Lifestyle

Values

• Self-respect• Self-fulfillment• Security• Sense of belonging• Excitement• Sense of accomplishment• Fun and Enjoyment• Being well respected• Warm relationships with others

• Figure 5.2

VALS

VALS2 VALS2

GroupingsGroupings

Consumer MotivationConsumer Motivation

VALS2 VALS2

GroupingsGroupings


FulfillersFulfillers Mature, home oriented, Mature, home oriented, well educated well educated professionalsprofessionals

High incomesHigh incomes

Value-orientedValue-oriented

Open to new ideasOpen to new ideas

FulfillersFulfillers Mature, home oriented, Mature, home oriented, well educated well educated professionalsprofessionals

High incomesHigh incomes

Value-orientedValue-oriented

Open to new ideasOpen to new ideas

VALS2 VALS2

GroupingsGroupings


AchieversAchievers Work orientedWork oriented

SuccessfulSuccessful

High job satisfactionHigh job satisfaction

Respect authority, and Respect authority, and favor the status quofavor the status quo

Demonstrate success Demonstrate success through their purchasethrough their purchase

AchieversAchievers Work orientedWork oriented

SuccessfulSuccessful

High job satisfactionHigh job satisfaction

Respect authority, and Respect authority, and favor the status quofavor the status quo

Demonstrate success Demonstrate success through their purchasethrough their purchase

VALS2 VALS2

GroupingsGroupings


ExperiencersExperiencers Main component of Main component of action-oriented segment action-oriented segment

Youngest in VALS2, Youngest in VALS2, median age is 25 yearsmedian age is 25 years

Active in both physical Active in both physical and social activitiesand social activities

Favor new productsFavor new products

ExperiencersExperiencers Main component of Main component of action-oriented segment action-oriented segment

Youngest in VALS2, Youngest in VALS2, median age is 25 yearsmedian age is 25 years

Active in both physical Active in both physical and social activitiesand social activities

Favor new productsFavor new products

VALS2 VALS2

GroupingsGroupings


BelieversBelievers Family and community Family and community oriented peopleoriented people

Modest meansModest means

Brand loyalBrand loyal

Favor American-made Favor American-made productsproducts

BelieversBelievers Family and community Family and community oriented peopleoriented people

Modest meansModest means

Brand loyalBrand loyal

Favor American-made Favor American-made productsproducts

VALS2 VALS2

GroupingsGroupings


StriversStrivers Lower-income peopleLower-income people

Values similar to Values similar to achieversachievers

Style is important in Style is important in lifestyle.lifestyle.

StriversStrivers Lower-income peopleLower-income people

Values similar to Values similar to achieversachievers

Style is important in Style is important in lifestyle.lifestyle.

VALS2 VALS2

GroupingsGroupings


MakersMakers

Main component of Main component of action-oriented segment action-oriented segment along with experiencersalong with experiencers

Self-sufficient groupSelf-sufficient group

Practical with little Practical with little interest in most material interest in most material possessionspossessions

MakersMakers

Main component of Main component of action-oriented segment action-oriented segment along with experiencersalong with experiencers

Self-sufficient groupSelf-sufficient group

Practical with little Practical with little interest in most material interest in most material possessionspossessions

VALS2 VALS2

GroupingsGroupings


ActualizersActualizers Posses both high Posses both high income and self-income and self-esteemesteem

Indulge in a variety Indulge in a variety of self-orientationsof self-orientations

ActualizersActualizers Posses both high Posses both high income and self-income and self-esteemesteem

Indulge in a variety Indulge in a variety of self-orientationsof self-orientations

VALS2 VALS2

GroupingsGroupings


StrugglersStrugglers Have few resourcesHave few resources

Do not fit into the Do not fit into the regular VALS2 regular VALS2 categoriescategories

Brand loyal to the Brand loyal to the extent possibleextent possible

StrugglersStrugglers Have few resourcesHave few resources

Do not fit into the Do not fit into the regular VALS2 regular VALS2 categoriescategories

Brand loyal to the Brand loyal to the extent possibleextent possible

Attitude

Attitudes are learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way.

• Figure 5.3

INDIVIDUAL CONSUMER DECISION MAKING

Step 1: Problem Recognition

Problem recognition occurs when consumers realize that they need to do something to get back to a normal state of comfort.

Step 2: Information Search

• Awareness set

• Evoked set

• Consideration set

Step 3: Alternative Evaluation

• Compensatory models

• Noncompensatory models

• Table 5.1

Step 3: Alternative Evaluation

Step 4: Purchase

• Purchase is the stage when transaction terms are arranged, title of ownership is transferred, the product is paid for, and the consumer takes possession of the product from the seller.

Step 5: Postpurchase Evaluations

• Cognitive Dissonance

HOUSEHOLD DECISION MAKING

• Families and Households

• Children’s Influence

• Conflict in Family Decisions

Family Buying Decisions

• Initiation of the purchase decision• Gathering and sharing of information• Evaluating and deciding• Shopping and buying• Conflict management

Supplemental Material

Needs and Wants

• Needs Unsatisfactory conditions of the consumer

that lead him or her to actions that will make the conditions better

• Wants Desires to obtain more satisfaction than is

absolutely necessary to improve unsatisfactory conditions

Determination of Needs

• Determination of Needs 3 physical characteristics of the

individual person

• Genetics

• Biogenics

• Psychogenics

IndividualIndividual GeneticsGenetics BiogenicsBiogenics PsychogenicsPsychogenics


• Genetics Heredity and chemical/biological

characteristics of organisms Habits and needs vary with gene

types



• Biogenics Biological characteristics that

people possess at birth (gender, race, age, etc.)

For example, older people have different needs



• Psychogenics Individual states and traits induced

by a person’s brain functioning Moods, emotions, perceptions,

experiences



• Determination of Needs 3 physical characteristics of the

environment

• Climate

• Topography

• Ecology

EnvironmentEnvironmentClimateClimateTopographyTopographyEcologyEcology


• Ecology Environmental influences of

humans Quality of air, food chain, etc.



• Topography Physical condition of the location

on earth, spatial profile, and presence of bodies of water

People in the mountains may need hiking boots, people near water may need boats



• Climate Conditions that affect consumers’

need for food, clothing, shelter Temperature, altitude, rainfall


Types of Needs

Physiological • The fundamentals of survival, including hunger, thirst, and

other bodily needs

PowerAchievement Self-expression

Affiliation

Physiological

Cognition Variety Seeking

Attribution

Safety


SafetySafety Affiliation

Physiological


Attribution

Types of Needs

Safety • Concern over physical survival and safety


Physiological


Attribution

Safety AffiliationAffiliation

Types of Needs

Affiliation and Belongingness• A need to be accepted by others, to be an important person

to them

Power Self-expression

Affiliation

Physiological


Attribution

AchievementAchievement

Safety

Types of Needs

Achievement • A basic desire for success in meeting personal goals

Self-expression

Affiliation

Physiological


Attribution

Safety

Achievement PowerPower

Types of Needs

Power • A desire to gain control over one’s destiny as well as that of

others

Power

Affiliation

Physiological


Attribution

Safety

Achievement Self-expressionSelf-expression

Types of Needs

Self-expression • The need to develop freedom in self-expression and to be

perceived by others as significant


Affiliation

Physiological

Variety Seeking

Attribution

Safety

Achievement

CognitionCognition

Types of Needs

Cognition • The desire to self-actualize through knowing, constructing a

value system


Affiliation

Physiological

Cognition

Attribution

Safety

Achievement

Variety SeekingVariety Seeking

Types of Needs

Variety Seeking • Maintenance of a preferred level of physiological arousal and

stimulation


Affiliation

Physiological


Safety

Achievement

AttributionAttribution

Types of Needs

Attribution • Estimation or attribution of the causality of events and

actions

Determination of Wants

• Personal Context Personal worth Institutional relationships Cultural surroundings

Personal ContextPersonal Context

Environmental ContextEnvironmental Context


• Personal worth Financial resources available to consumers Income assets, inheritance, borrowing

power, etc. Social class classifications (capitalist,

middle class, working poor, etc.)



• Middle Class

• Working Class

• Working Poor

• The Under Class

• Capitalists Class• Capitalists Class

CapitalistsCapitalists1%1%

CapitalistsCapitalists1%1%

• Top 1% with income from assets earned or inherited

Determination of Wants Social Class

• Upper Class


• Middle Class

• Working Class

• Working Poor

• The Under Class

Upper ClassUpper Class14%14%

Upper ClassUpper Class14%14%

• Upper managers, professionals, and medium level business people. Income nearly twice the national average.

• Capitalists Class

• Upper Class• Upper Class



• Upper Class

• Working Class

• Working Poor

• The Under Class

• Middle-level white-collar and top level blue-collar workers. Income somewhat above the national average.


• Middle Class• Middle Class

Middle Middle ClassClass33%33%

Middle Middle ClassClass33%33%



• Upper Class

• Middle Class

• Working Poor

• The Under Class

• Middle-level blue-collar and lower-level white-collar workers. Income and educational level slightly below national level.


• Working Class• Working Class

Working Working ClassClass33%33%

Working Working ClassClass33%33%



• Upper Class

• Middle Class

• Working Class

• The Under Class

• Low paid workers (minimum wage). Income just above the poverty line. Most have some high school education


• Working Poor• Working Poor

Working PoorWorking Poor11-12%11-12%

Working PoorWorking Poor11-12%11-12%



• Upper Class

• Middle Class

• Working Class

• Working Poor

• Depend primarily on welfare systems. Standard of living below poverty line. Lack regular employment and education


• The Under Class• The Under Class

The Under The Under ClassClass8-9%8-9%

The Under The Under ClassClass8-9%8-9%




• Institutional relationships Groups and organizations to which a person

belongs Institutional context includes workplace,

religious and educational institutions, family and friends, and peer groups




• Cultural surroundings Culture’s influence on consumers Some cultures value age, some value youth,

some value possessions, some value the inner self, etc.




• Environmental Context Economy Technology Public policy




• Economy Economic development and business cycles

in a nation’s economy Economic level of a nation, inflation,

unemployment rate, income growth, etc.




• Technology Man-made inventions and devices used to

sustain, facilitate or enhance human life and activities

Energy, telecommunications, education, etc.




• Public policy Governmental laws and regulations that

control human behavior Business practices like product safety,

pricing, etc. are regulated



• When relevant marketplace information (e.g. an advertisement) reaches one or more of the consumer five senses.

• Exposure• Exposure

• Attention

• Comprehension

• Acceptance

• Retention

Consumer Perception Information Processing

• To attend is to focus mental effort on a particular stimulus from all that are physically present.• Attention• Attention

• Exposure

• Comprehension

• Acceptance

• Retention


• Comprehension is the interpretation or perception, of what the stimulus means, implies, or represents.

• Comprehension• Comprehension

• Exposure

• Attention

• Acceptance

• Retention


• Acceptance is the extent to which a consumer agrees with marketing message that has been attended and comprehended.

• Acceptance• Acceptance

• Exposure

• Attention

• Comprehension

• Retention


• Retention represents the transfer of marketplace information into long term memory.

• Retention• Retention

• Exposure

• Attention

• Comprehension

• Acceptance


Consumer Decision Making Individual

• Individual Decision MakingMental budgetingPayer plays the most important

role

Problem Problem RecognitionRecognition

Information Information SearchSearch

Alternative Alternative EvaluationEvaluation

PurchasePurchase

Post-Post-purchase purchase

ExperienceExperience


• Internal and external stimuli generate perceived state of discomfort

• Familiar problems - stock depletion

• Novel problems - associated with life events

• Vivid problems - very visible problem

• Latent problems - not obvious, requires self-reflection or external agent to be discovered




PurchasePurchase




Awareness SetAwareness Set

Evoked setEvoked set Brands NOT Brands NOT RecalledRecalled

Consideration SetConsideration Set Brands NOT Brands NOT ConsideredConsidered




PurchasePurchase




• Information SourcesNonmarketer - personal

sources, independent sourcesMarketer - under the

marketer’s control




PurchasePurchase




• Search Strategies Routine problem solving - no new info

considered Extended problem solving - extensive and

deliberate search Limited problem solving - limited time and

energy invested Heuristics strategy - broad inferences, past

experiences, brand names




PurchasePurchase




• Determinants of amount of searching Performance risk Social risk Psychological risk Financial risk Obsolescence risk




PurchasePurchase




• Compensatory modelConsumer considers all

attributes and mentally trading off alternatives weaknesses (Pros vs Cons)




PurchasePurchase




• Noncompensatory models Disjunctive - trade-offs between

aspects of choice alternatives Lexicographic - rank-ordering of

alternatives Elimination by aspects - attributes in

order of importance with cut-off values




PurchasePurchase




• Choice identification• Purchase intent• Purchase implementation

Sometimes derailed by deviation from identified choice (out of stock, new information, financing, etc.)




PurchasePurchase




• Cognitive dissonance - postpurchase doubt about the wisdom of the choice

• Usage outcomeCan generate exit, voice, or

loyalty




PurchasePurchase



• Family member who initiates thinking about buying products (gatekeeper)

• Family member who initiates information gathering

• Initiator• Initiator

• Influencer

• Decider

• Buyer

• User

Consumer Decision Making Family Buying Roles

• Family member whose opinion is sought about purchases

• Provides information about brands and evaluative criteria

• Decider

• Buyer

• User

• Initiator

• Influencer• Influencer


• Family member who has financial authority and/or power to purchase the product

• Influencer

• Buyer

• Initiator

• User

• Decider• Decider


• Family member who acts as the purchasing agent

• Performs the logistics (going to the store, writing the check, etc.) of the purchase

• Influencer

• Decider

• User

• Initiator

• Buyer• Buyer


• Family member who actually uses or consumes the product

• Influencer

• Decider

• Buyer

• Initiator

• User• User


Consumer behavior. Appreciate the wide scope of consumer behavior studies, including the three...

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