Week 8-Consumer Behaviour

7/30/2019 Week 8-Consumer Behaviour

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Week 8

Abdul Jalil Omar


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Model of Buyer Behavior


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Factors Influencing Consumer Behavior


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Culture

Culture is often the most powerful cause of a person'sneeds, wants and behavior.

Characteristics of Culture

Culture is learned.

Certain aspects of culture never change.

Cultural shifts create opportunities.

Subcultures can be of even greater interest to marketersthan cultures.


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Marketing to Subcultures

Procter & Gamble targetsHispanics using print and TVand has developed special

Spanish versions of some brands.


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Social Class

Societys 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


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The Major American Social Classes


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Social Factors Groups:

Reference Groups

Aspirational Groups

Dissociative Groups

Opinion Leaders

Family

Roles and Status


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Toyota caters to family buying influences.


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Personal FactorsAge and Life-Cycle Stage

Tastes and preferences change over time.

Occupation Occupation influences the purchase of clothing, cars, memberships, etc.

Economic Situation Income-sensitive goods

Counter-cyclical goods


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Personal Factors

Lifestyle:

Pattern of living (AIO) Activities

Interests

Opinions.

VALS:

Classifies consumers withrespect to motivation andresources. Predicts purchase behavior


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Personality and Self-Concept Personality One Definition: Unique psychological characteristics that lead to relativelyconsistent and lasting responses to ones environment.

Freudian Theory Subconscious motivations

Big 5 - OCEAN Openness Conscientiousness Extraversion Agreeableness Neuroticism

Brands as expressions of identity

Ideal Self vs. Actual Self


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Maslows Hierarchy of Needs


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PerceptionProcess by which people select,

organize, and interpretinformation to form ameaningful picture of the world.

People can form different perceptions

of 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 alreadybelieve.

Selective Retention Remembering the good aspects of something you like and

forgetting the bad aspects of something you dislike.


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Learning One Definition:

A relatively permanent change in behavior due to experience.

Driven by stimulus-response chains(conditioning).

Strongly influenced by behavioral consequences(Operant Conditioning) Behaviors with satisfying results are repeated.

Behaviors with unsatisfying results are avoided.

Different from deliberation


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Beliefs and Attitudes

Abeliefis a descriptive thought thata person holds about something.

An attitudeis a persons consistentlyfavorable or unfavorable feelings,evaluations, and tendencies towardan object or idea.

Both have lots of staying power. Emotional precedents

Advertising tries to modify beliefs andattitudes.


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The Buyer Decision Process


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Need Recognition

Buyers recognize a

need or problem as aresult 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. LowInvolvement Purchases

Cost vs. Benefit Model Big-Ticket Anomolies

Cognitive Economy

edmunds.com
http://www.edmunds.com/http://www.edmunds.com/


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Information Sources Personal

Family, friends, neighbors,

and casual or workacquaintances

Commercial Advertising, salespeople,

dealers, Web sites, packaging,

and displays

Public Mass media articles or news

programs, Internet searches,consumer rating organizations

Experiential Using, handling, examining or

sampling the product

Which source is most influential?


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Evaluation of Alternatives ELM: Central vs. Peripheral Route processing

Some Types of Evaluation Calculus: Compensatory vs. Non-compensatory

Weighted Tally Processes

Elimination-by-aspects

Lexicographic

Checkbox Choice

Affect Referral


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Weighted Tally Process Example

Assume consumer weighs Memory, Graphics, Size/Weight and Price 30%, 20%,

40%, and 10%, respectively.

Computer As score would be:

(30% x 10) + (20% x 8) + (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:

Attitudes & influences of others

Unexpected situationalfactors

Buyers Remorse

Speed of decision


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Postpurchase Behavior Consumer satisfaction/dissatisfaction results from gaps

between expectations and perceived performance.

Performance BELOW ExpectationsDisappointment

Performance EQUALS Expectations Satisfaction

Performance GREATER than Expectations Delight

Performance MUCH GREATER than Expectations

Expectation Recalibration


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Cognitive Dissonance Cognitive Dissonance: Did I make the right

purchase? Should I have bought this?

Minimize dissonance by: Offering mechanisms for making complaints

(Customer Service, 800 hotlines, e-mail, etc.)

Being responsive to problems and questions Advertising (remind consumer why choice made sense)

Minimizing the potential for product misuse (good productinstructions) and Poke-Yoke.


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The Adoption Process1. Awareness2. Interest

3. Evaluation

4. Trial

5. Re-Trial

6. Adoption


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Product Adopter CategoriesNot 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 themajority of people have tried a product. Laggards: last to adopt, tradition bound, and

skeptical of change.


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Adopter Categorization Distribution


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Product Characteristics That Influence the Rate

of Adoption 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 assuch?

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?


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QuestionDo consumers always know what

they really want or need?Customer always right?


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Other Consumer Behavior

Models & Theories


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Reactance Reactance is an

emotional reaction indirect contradiction to

rules or regulations thatthreaten or eliminatespecific behavioralfreedoms. - Wikipedia
http://en.wikipedia.org/wiki/Emotionhttp://en.wikipedia.org/wiki/Emotion


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Variety-Seeking vs. Habit

PersistenceVariety-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 youpreviously invested in it.


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Decision HeuristicsAnchoring & Adjustment

Reference Points

Emotion Mood Regulation

Elevation

Maintenance

Affect Evaluation Effects on Risk Taking


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Mental Accounting 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 ActivityWHY WE BUY?Choose a product, product line, brand, or company and answer the

following:

What are the obvious (i.e. more superficial) reasons why consumersbuy these products?

What are the not-so-obvious, more deep-seated reasons/motivationswhy consumers buy these products?

What are the obvious (i.e. more superficial) reasons why consumers donot buy these products?

What are the not-so-obvious, more deep-seated reasons/motivationswhy consumers do not buy these products?

Choose one or more of the above reasons/motivations to buy or not buyand provide an appropriate implication for Marketing strategy.

Week 8-Consumer Behaviour

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