Chapter 5 Consumer Behavior

1. Chapter 5 Consumer Behavior

2. Objectives • Differentiate between customer behavior and consumer behavior. • Explain how marketers classify behavioral influences on consumer decisions. • Describe cultural, group, and family influences on consumer behavior. • Describe each of the personal determinants of consumer behavior; needs and motives, perceptions, attitudes, and self-concept theory. • Discuss the difference between high-involvement and low-involvement purchase decisions. • Outline the steps in the consumer decision process. • Differentiate among routinized response behavior, limited problem solving, and extended problem solving by consumers.

3. Customer vs. Consumer Behavior Customer behaviorincludes both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products. Consumer behavioris the process through which the ultimate buyer makes purchase decisions.

4. Three Broad Categories of Consumer Behavior • Cultural • Social • Family Influences

5. This ad is from the early 1900’s demonstrating how culture changes over time. The ad states like every woman her primary ambition was to marry…” and discusses the need for fresh breath. Other fresh breath products on this web site demonstrate how some things change and some things stay the same.

6. Cultural Influences • Culture can be defined as the values, beliefs, preferences, and tastes handed down from one generation to the next. It is the broadest environmental determinant of consumer behavior. • It is important to recognize the concept of ethnocentrism, or the tendency to view your own culture as the norm, as it relates to consumer behavior.

7. Core Values in U.S. Culture • Education • Individualism • Freedom youthfulness • Activity • Humanitarianism • Efficiency • Practicality

8. One of the core values in the U.S. culture is family and another one is efficiency. This ad plays to both of those values. By visiting the web site for Stouffers you will discover they started in 1922. You will also find their basic vision for the company.

9. Subcultures • Groups with their own distinct modes of behavior. • Cultures are not homogeneous entities with universal values. • Subcultures differ by: • Ethnicity • Nationality • Age • Rural versus urban location • Religion • Geographic distribution

10. Ethnic and Racial Minorities 0.40% 1.80% 0.70% 3.10% Hispanic American 12.50% African Americans Asian American Native American Two or More Races Other 12.10% Note: Percentages have been rounded. SOURCE: Data from Roger Simon and Angie Cannon, “An Amazing Journey,” U.S. News & World Report, August 6. 2001, p. 12.

11. Subculture This web site is designed to meet the needs of the growing Hispanic population who prefer Spanish-Language Programs.

12. Social Influences Group membership influences an individual’s purchase decisions and behavior in both overt and subtle ways. • Norms are the values, attitudes, and behaviors that a group deems appropriate for its members. • Status is the relative position of any individual member in a group. • Roles define behavior that members of a group expect of individuals who hold specific positions.

13. Reference Groups – Member’s Purchases Requires two conditions: • The purchased product must be one that others can see and identify. • The purchased item must be conspicuous; it must stand out as something unusual, a brand or product that not everyone owns.

14. Celebrity Endorsers • Nike Suspends 2007 release of Nike Air Zoom Vick V football shoe tied to Michael Vick • “Nike is concerned by the serious and highly disturbing allegations made against Michael Vick and we consider any cruelty to animals inhumane and abhorrent.”

15. Social Classes W. Lloyd Warner identified six classes: • Upper-upper • Lower-upper • Upper-middle • Lower-middle • Working class • Lower class • Class rankings are determined by: • Occupation • Income • Education • Family background • Residence location

16. Personal Determinants of Consumer Behavior Unique Needs Self Concepts Determinants Personal Determinants Motives Attitudes Learned Responses Perception

17. Perceptions Perception is the meaning that a person attributes to incoming stimuli gathered through the five senses—sight, hearing, touch, taste, and smell. Two types of factors: • Stimulus factors—characteristics of the physical object such as size, color, weight, and shape. • Individual factors—unique characteristics of the individual, including not only sensory processes but also experiences with similar inputs and basic motivations and expectations.

18. Aromatherapy in Candle Market • Vanilla, fruits, vloral • Growth in edibles category (sugar cookie, apple pie, mocha, coffee) & fantasy (fresh laundry, ocean breeze, new car) • Basil: headache, stress • Eucalyptus: anti-viral • Geranium: stress, aging skin • Lavendar: calming & pleasant • Peppermint: stimulating, cooling • Sandalwood, aphrodisiac • Tangerine: calming • Tea tree: antibacterial, antiviral, antifungal

19. Subliminal Perception • Almost 50 years ago, a New Jersey movie theater tried to boost concession sales by flashing the words Eat Popcorn and Drink Coca-Cola. • Subliminal advertising is aimed at the subconscious level of awareness. • Subliminal advertising has been universally condemned as manipulative, and is exceedingly unlikely that it can induce purchasing. • Research has shown that subliminal messages cannot force receivers to purchase goods that they would not consciously want.

20. Attitude Components • The cognitive component refers to the individual’s information and knowledge about an object or concept. • The affective component deals with feelings or emotional reactions. • The behavioral component involves tendencies to act in a certain manner.

21. Changing Consumer Attitudes • Attempt to produce consumer attitudes that will motivate purchase of a particular product. • Evaluate existing consumer attitudes and then make the product features appeal to them.

22. Integrated Model of the Consumer Decision Process

23. Three Categories of Problem-Solving Behavior • Routinized Response Behavior • Consumers make many purchases routinely by choosing a preferred brand or one of a limited group of acceptable brands. • Limited Problem Solving • Affected by the number of evaluative criteria and brands, the extent of external search, and the process for determining preferences. • Extended Problem Solving • Results when brands are difficult to categorize or evaluate.