Consumer Behavior & Marketing Fundamentals

Jamie Bute

Caroline Mutonyi

Lisa Schoborg

Morgan Wortham

December 1, 2014

Agenda

Consumer purchase decision making process

Consumer behavior

Psychological Influences

Personal Influences

Social Influences

Cultural Influences

Consumer Purchase Decision Making Process

Consumer behavior“The actions a person takes in purchasing and using products and services”

Psychological Influences

Helps marketers understand why consumers purchase or do not purchase

Motivation

Perception

Learning

Beliefs & Attitudes

Motivation

“The energizing force that stimulates behavior to satisfy a need”

Marketers need to stimulate this need to move to purchase

Perception

“The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world”

Learning

Behavioral learning

Developing automatic responses to situations built through repeated experience

Stimulus generalization: response by one stimulus is generalized to another

Ex. Using packaging similar to a popular brand

Stimulus discrimination: ability to perceive differences in stimuli

Cognitive learning

Learn by thinking and reasoning

Brand loyalty

A favorable attitude toward a brand in which the consumer consistently buys the same brand over others

Personal Influences - Personality

Personality is the inner psychological characteristics that determines and reflects how a person responds to his or her environment.

The Nature of Personality

Personality varies from person to person

Personality is consistent and enduring

Personality can change with time

Raymond Cattell

Reduced the number of main personality traits from a list of over 4,000 down to 16 by means of a statistical technique called factor analysis

1905-1998

Hans Eysenck

Developed a model of personality based on preferences for different forms of factor analysis. He came upon with 3 universal traits.

1916-1997

Theories of Personality

Introversion/Extraversion

Introversion involves directing attention on inner experiences, while extraversion relates to focusing outward on other people and the environment.

Neuroticism/Emotional Stability

This is related to moodiness versus even temperedness. Neuroticism refers to an individual’s tendency to become upset or emotional, while stability refers to the tendency to remain emotionally constant.

Psychoticism

Individuals who have difficulty dealing with reality and may be antisocial, hostile, non-empathetic, and manipulative.

Personality Determinants

Heredity

Environment

Culture

Family and social background

Purchase Based On Age and Life Cycle

Purchase Based On Occupation

Purchase Based On Lifestyle

Purchase Based On Economic Situation

Q. What factors affect the economy?

Social Influences

Reference Groups

Norms

Rules

Status

Conformity

Membership Groups

Formal

Informal

Non-membership groups

Aspirational

Avoidance

Social Factors

Reference Groups

The Initiator

The Influencer

The Decision-Maker

The Buyer

Social Factors

Social roles and status

Family

MOST INFLUENTIAL

Family Life Cycle

Beliefs & Attitudes

Attitudes are shaped by our values and beliefs, which are learned

Create favorable or unfavorable ideas about a product or brand

Attitudes and Attitude Change

They are learned

They are predispositions

They are consistent

They are the link between perception and behavior

They are a “hypothetical construct”

Marketing Approaches to Attitude Change

Change beliefs about brand attributes

Healthy

Change perceived importance of attributes

Made from sustainable material

Add new attributes

Different kinds/styles

Attitudes

Source credibility

Source physical attractiveness

Source likeability

Message factors

Receiver emotions

Attitudes

Receiver's Emotions

Emotional Security

Assurance of Worth

Ego Gratification - https://www.youtube.com/watch?v=1UzoO_n8Neo

Creative Outlets

Love Objects - https://www.youtube.com/watch?v=LRpmFk8aXOU

Sense of Power - http://www.denverpost.com/news/ci_25048554/top-five-2014-super-bowl-commercials

Sense of Roots - http://www.ispot.tv/ad/7nDR/budweiser-red-white-and-blue-summer-song-by-miike-snow 

Immortality

Cultural Influences

Culture is defined as the learned patterns of traditions, beliefs, values, norms, meanings, and symbols that serve to regulate the behavior of members of a particular society.

Culture and Consumer Behavior

Culture is the ‘lens’ through which people view products and try to make sense of their own and other people’s consumer behavior.

The relationship between consumer behavior and culture is an exchange.

Subculture

Subculture

African American

Hispanic American

Asian American

Ethnic & Racial Subcultures

High-context Culture

De-ethnicization

What Kind of Consumer Does This Ad Target?

Kluckholn Theory on Culture

Theory of Culture

Value Orientations

Dominant Value System

Kluckholm Theory on Culture

Relation to Environment

Time

Nature of People

Activity

Responsibility

Space

Any Questions?