Post on 13-Jan-2016
Consumer Behaviour
Silvia Cacho Elizondo
November 8, 2005
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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The collective character of consumption
Review : Attitudes & Preferences
The interpersonal level
Case study presentation “Microsoft: The xbox dream”
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Learning objective
Understand the factors and theories explaining consumer behaviour at the interpersonal level :
Consumer SocializationReference groupsOpinion leadership, lead users
Review
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Factors explaining consumption at the Individual
level
Socio-Demographic Variables Motivational Theories Involvement Psychology of Perception Learning / Experience/ Memory Attitudes and Preferences
Attitudes
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Attitude definition
- A person’s point of view toward « something », such as a person, a brand or a service.
- Learned beliefs, feelings and reactions tendencies which are formed in the process of information acquisitions and experiences
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Functional theory of attitudes
This theory was initially developed by the psychologist Daniel Katz to explain how attitudes facilitate social behaviour.
According to this approach attitudes are determined by a person’s motives. Two persons can have the same attitude toward an object but for different reasons.
It is then important for a marketer to know why an attitude is held before attempting to change it.
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Attitudes’ components
CognitiveAffectiveBehavioral
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Qualifying attitudes…
Attitudes are learned but some human dispositions are inborn
Attitudes are shaped by experience but they are more or less stable overtime
they are not so easily to change Attitudes are a multidimensional
construct
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Why are attitudes important?
Everyday life is full of words connected with attitudes (opinions, beliefs, convictions, desires, feelings, wishes…)
There is a link between attitudes and behaviour ?
Attitude measurement could help to predict and understand behaviour
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Attitude formation processes
a) Classical or respondent conditioning ( conditioned stimulus linked to conditioned response)
b) Instrumental or operant conditioning (Compliance to gain reward or avoid punishment)
c) Identification (To allow the person to fit in or to be similar to others)
d) Internalization(Attitudes became part of a person’s value system)
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Hierarchies of effects
AFFECT
HEDONIC EXPERIENCE
BEHAVIOURAL LEARNING PROCESS
COGNITIVE-INFORMATION PROCESSING
BELIEF BELIEF
BEHAVIOUR BEHAVIOUR AFFECT
AFFECT BEHAVIOUR BELIEF
low-involvement high-involvement Experiential
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Consumer preferences
When we analyze consumer behaviour, we are usually assessing how consumer make purchase decisions.
Consumer preferences are important for product policy (eg. Product attributes and new product launchs) and pricing decisions.
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Two proven procedures for the actionable analysis of Consumer
Preferences
Concept testing Conjoint Analysis
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Do one of the following exercises
http://elab.vanderbilt.edu/conjoint_movie/conjoint_movie.htm
http://elab.vanderbilt.edu/conjoint_airline/conjoint_airline.htm
Attitudes & Preferences
TIP: read What is conjoint analysis ? at dobney.com
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Conjoint Analysis
…a tool that allows a subset of the possible combinations of product features to be used to determine the relative importance of each feature in the purchasing decision.
… based on the fact that the relative values of attributes considered jointly can be better be measured than when considered in isolation
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Basic principles to apply conjoint analysis
Products must be able to be specified as a collection of attributes
We know or find out what attributes are salient in the product category
Respondents can reasonable rate products The firm should be able to act upon the output
of the conjoint by constructing products that deliver the attribute levels used in the analysis
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Steps in developing a Conjoint Analysis
1. Choose product attributes 2. Choose the value or options for each attribute3. Define products as a combination of attribute options 4. Choose the form in which the combinations of
attributes are to be presented to the respondents (verbal presentation, paragraph description, pictorial presentation..)
5. Decide how responses will be aggregated (use individual responses, pool all responses into a single utility function, define segments of respondents with similar preferences)
6. Select the technique to analyze the collected data.
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Factors explaining buying and consumption
behaviour
1. Individual level
2. Interpersonal level
3. Socio-cultural level
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Case Study Presentation
Microsoft : The xbox dream
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Consumer Socialization
The process by which young people acquire
skills, knowledge and attitudes
relevant to their functionning in the market place
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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The group influence
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Typology of groups
Size Purpose Structure Status
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Classification of groups by Size (degree of contact)
1) Primary groups (limited size) highest contact
Ex. The family
2) Secondary groups (sub-groups) lower contact
Ex. Social classes Cultural communities Groups of sport fans Professional associations
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Classification of groups by Purpose
1)Socio-groups the group is a means to achieve an
objective
2)Psycho-groups group interaction is an end in itself
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Classification of groups according to their Structure
1) Formal rules and rituals
2) Informal norms communally established but
not easy to detect
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Classification of groups considering their Status
1) Membership groups the individual is part of the group voluntary or not
2) Reference Groups an actual or imaginary group having
relevance upon individual evaluations and behaviour
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Reference Groups
It is an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations or behaviour.
A group need at least two people but the term reference group is used more loosely to describe any
external influence that provides social cues.
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Forms of influence
Normative or utilitarian influence when an individual fulfills others’ expectations to gain a direct reward or to avoid a sanction.
Value-expressive or identification influence when individuals use others’ norms, values and behaviours as a guide for their own attitudes, values and behaviour. Implicit in this type of influence is the desire for psychologicial association or social affilitation with others.
Informational social influence when an individual uses the values, norms, and behaviours of others as credible, and needed evidence about reality
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Group influence on product and brand
(Dubois, page 142)
Influence on the Product
Influence
On theBrand
Weak Strong
Strong
Clothes, furniture, magazines
Cars, beer, hi-fi equipments, sport equipment
Weak Soaps, detergents, refrigerators
Video discs, electronic games
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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When reference groups are important..
1) When the purchases are luxuries rather than necessities
2) When purchases are consumed socially or visible to others rather than privately
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Types of Reference Groups
Avoidance Negative,
nonmembership
Aspirational Positive, nonmembership
Disclaimant Negative, membership
Contractual Positive, membership
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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How the endorsement of a product by an aspirational group could
affect consumer attitudes and intentions?
• Social desirability of product consumption
• Perceived visibility of early adoption behaviour
• Perception of quality
One explanation for this type of aspirational group influence is provided by the model of meaning transfer. The focus of this model is on the transfer of culturally relevant meanings from the endorser to the product
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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The nature of Opinion Leadership
An opinion leader is a person who is frequently able to influence others’ attitudes and behaviours
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Why are opinion leaders considered as valuable information sources?
Involvement, Expertise and Experience in a product category
Product category pioneers Empathy and Neutrality High Credibility
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Some categories of opinion leaders
JournalistsSpecialistsProfessionalsLead-users
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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The role of lead users
Word of Mouth communicationThe diffusion of Innovations
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Companies’ strategies:
Simulate by product use a « leader » Developing the idea that others are buying Granting the status of a leader to a potential
customer to trigger a feeling of pride Stimulating personal influence Supplying local opinion leaders with the
product Getting people to talk about a product
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Culture & Lifestyles
How culture & lifestyles influence consumption patterns?
Interpersonal level Silvia Cacho-Elizondo ISC 2005
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Home exercise VALS site
http://www.sric-bi.com
Look for representative projects Answer the VALS questionnaire to know
your VALS type Print the questionnaire and your VALS
types
See you next class!