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Consumer Behavior

Consumer Behavior. Definition. The study of the processes involved when people select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Before, during and after a purchase. C ross- C ultural C onsumer B ehavior Framework. P rocesses

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Consumer Behavior

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  1. Consumer Behavior

  2. Definition • The study of the processes involved when people select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. • Before, during and after a purchase

  3. Cross-Cultural Consumer Behavior Framework Processes “How” Income Attributes “Who” • Social processes • Motivation, Emotion • Group processes • Mental processes • Cognition, Learning • Language, Perception • Information processing • Communication • Decision making Personality Self-concept Identity Image Attitude Lifestyle Consumer The Person Values Culture Consumer Behavior Domains Product ownership and usage Adoption/diffusion of innovations Complaining behavior Brand loyalty Responses to advertising Media usage

  4. Attributes- Concept of Self • Who we are vs. who we want to be • Very individualistic and must be adapted • Collectivistic concept of self • Masculinity effects the concept of self esteem • Does not exist in feminine or collectivistic • Ego- boosting vs. respect

  5. Attributes- Personality & Identity • Personality- The qualities and characteristics of a person in an individualistic culture • Personality is thought to be the same always • Collectivism- continuous shaping of personality traits • Personalities are partially biologically bound • Asses themselves in terms of relationships • Identity- idea one has about oneself • Image- how we see and judge one another • Identity defined in desirable values

  6. Attributes- Attitude & Lifestyle • Lasting, general evaluation of people, objects, advertisements, issues • Attributes and functions • Emotions and experiences response • Behaviors can be predicted from attitudes • Shared values or tastes as reflected in consumptions patterns • Personal characteristics- raw ingredients • Explains behavior • Country specific

  7. Self-actualization = individualistic motive = USA motive In other cultures: Esteem security and belonging more important Social Safety Physiological Social Processes- Needs • Functional need vs social need • Maslow’s hierarchy of needs

  8. Social Processes- Emotion • Interactions between cognition and physiology • Responses that are learned (culture bound) • Facial expressions-don’t necessarily mean what they seem • Control of emotions differs • Several emotions are related to culture • Emotions in advertising • Using purely attributes and benefits leads to quick parities • Not suggested in global advertising Campbell's

  9. Social Processes- groups • Behavior is based partly on the personal and partly on the group • Individuals reinforce identity with groups • Collectivistic- members are part of identity • Decision making depends on collectivism, power distance and masculinity • Reference group- external influence • Private vs public consumption • Opinion leaders- influential • Start the word of mouth process

  10. Mental Processes • Language- phonetic vs. visual • Locus of control- outcome of behavior • Information processing-how information is used to assist choice behavior • Info has to be organized through existing schemata • Advertising will either fit schemata or not • Must be remembered to be used

  11. Mental Processes- Decision Making • Decisions happen vs decisions made • Need for more or less information • Control of time, action vs reaction • Consumer decision making style- mental characteristics • Consumer style inventory- don’t exist everywhere • Business decision making • Power of boss, stress of relationships

  12. Consumer Behavior DomainsProduct Usage • Values have direct and indirect effects on product ownership • Food • COL- food has a symbolic meaning • UAI- purity is important • MAS- concept of more • Electronics • IDV- need for variety and stimulation • Electronics can play part of image • UAI- correlates with PC ownership

  13. Consumer Behavior Domains • Complaining Behavior • Voice a complaint- COL rarely file complaint • Brand switching or negative word of mouth • Legal action-linked to IDV and MAS • Brand Loyalty • Collectivists are more loyal • Trying new requires risk • Large power distance implies status

  14. 34% 34% 13.5% 16% 2.5% Early Majority Late Majority Early Adopters Innovators Laggards Diffusion of innovations • Related to tolerance for ambiguity and deviant ideas

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