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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
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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
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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.
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