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Consumer behavior. Appreciate the wide scope of consumer behavior studies, including the three consumer roles and analysis of consumer wants and needs Describe the psychological bases of consumer behavior, including perception, learning, and motivation.

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slide2

Appreciate the wide scope of consumer behavior studies, including the three consumer roles and analysis of consumer wants and needs

  • Describe the psychological bases of consumer behavior, including perception, learning, and motivation
slide3

Explain how psychographics seeks to explain consumer behavior by discussing such aspects as values, lifestyles, and self-concepts

Identify the steps in a typical consumer decision process

Describe how households make group consumer decisions

the scope of consumer behavior
THE SCOPE OF CONSUMER BEHAVIOR

Consumer behavior is the process by which individuals or groups select, use, or dispose of goods, services, ideas, or experiences to satisfy needs or wants.

three consumer roles
Three Consumer Roles

User

Buyer

Payer

wants versus needs
Wants Versus Needs
  • Needs – unsatisfactory condition of the consumer that prompt him or her to action that will make the condition better.
  • Wants – desires to obtain more satisfaction than is absolutely necessary to improve an unsatisfactory condition.
psychological bases of consumer behavior
PSYCHOLOGICAL BASES OF CONSUMER BEHAVIOR
  • Perception – the process by which an individual senses, organizes, and interprets information received from the environment.
psychological bases of consumer behavior8
PSYCHOLOGICAL BASES OF CONSUMER BEHAVIOR
  • Learning – a change in the content of long-term memory.
psychological bases of consumer behavior9
PSYCHOLOGICAL BASES OF CONSUMER BEHAVIOR
  • Motivation – the state of drive or arousal that moves us toward a goal-object.
consumer needs
Consumer Needs
  • Maslow’s Hierarchy of Needs
consumer needs11
Consumer Needs

Maslow’s Hierarchy of Needs

Self Actualization

Esteem

Social/

Belongingness

Safety

Physiological

consumer needs12
Consumer Needs

Physiological

  • Products:
    • Limited in the United States. Generic foods, medicines, special drinks, and foods for athletes
  • Specific themes:
    • Campbell’s Soup - “Soup is good food,” with advertising copy that stresses the nutritional benefits of soup
    • Raisins - “Thank goodness I found a snack kids will sit for. And mothers will stand for.”
consumer needs13
Consumer Needs

Maslow’s Hierarchy of Needs

Self Actualization

Esteem

Social/

Belongingness

Safety

Physiological

consumer needs14
Consumer Needs

Safety

  • Products:
    • Smoke detectors, preventive medicines, insurance, social security, seat belts, safes
  • Specific themes:
    • Sleep Safe - “We’ve designed a travel alarm that might wake you in the middle of the night… You see, ours is a smoke alarm as well as an alarm clock”
    • Alka Seltzer - “Will it be there when you need it?”
consumer needs15
Consumer Needs

Maslow’s Hierarchy of Needs

Self Actualization

Esteem

Social/

Belongingness

Safety

Physiological

consumer needs16
Consumer Needs

Social/Belongingness

  • Products:
    • Personal grooming, foods, entertainment, clothing, and many others.
  • Specific themes:
    • Oil of Olay - “When was the last time you and your husband met for lunch?”
consumer needs17
Consumer Needs

Maslow’s Hierarchy of Needs

Self Actualization

Esteem

Social/

Belongingness

Safety

Physiological

consumer needs18
Consumer Needs

Esteem

  • Products:
    • Clothing, furniture, liquors, hobbies, stores, cars, and many others
  • Specific themes:
    • Sheaffer - “Your hand should look as contemporary as the rest of you”
    • St. Pauli Girl - “People who know the difference in fine things know the difference between imported beer and St. Pauli Girl…”
consumer needs19
Consumer Needs

Maslow’s Hierarchy of Needs

Self Actualization

Esteem

Social/

Belongingness

Safety

Physiological

consumer needs20
Consumer Needs

Self-Actualization

  • Products:
    • Education, hobbies, sports, some vacations, gourmet foods, museums
  • Specific themes:
    • U.S. Army - “Be all you can be”
    • U.S. Home - “Make the rest of your life… the best of your life”
consumer emotions and moods
Consumer Emotions and Moods
  • Emotions – strong, relatively uncontrolled feelings that affect our behavior.
  • Moods – emotions that are less intense and transitory.
involvement
Involvement

The degree of personal relevance of a product to a consumer.

values
Values
  • Self-respect
  • Self-fulfillment
  • Security
  • Sense of belonging
  • Excitement
  • Sense of accomplishment
  • Fun and Enjoyment
  • Being well respected
  • Warm relationships with others
slide25
VALS
  • Figure 5.2
consumer motivation
Consumer Motivation

VALS2

Groupings

consumer motivation27
Consumer Motivation
  • Fulfillers
  • Mature, home oriented, well educated professionals
  • High incomes
  • Value-oriented
  • Open to new ideas

VALS2

Groupings

consumer motivation28
Consumer Motivation
  • Achievers
  • Work oriented
  • Successful
  • High job satisfaction
  • Respect authority, and favor the status quo
  • Demonstrate success through their purchase

VALS2

Groupings

consumer motivation29
Consumer Motivation
  • Experiencers
  • Main component of action-oriented segment
  • Youngest in VALS2, median age is 25 years
  • Active in both physical and social activities
  • Favor new products

VALS2

Groupings

consumer motivation30
Consumer Motivation
  • Believers
  • Family and community oriented people
  • Modest means
  • Brand loyal
  • Favor American-made products

VALS2

Groupings

consumer motivation31
Consumer Motivation
  • Strivers
  • Lower-income people
  • Values similar to achievers
  • Style is important in lifestyle.

VALS2

Groupings

consumer motivation32
Consumer Motivation
  • Makers
  • Main component of action-oriented segment along with experiencers
  • Self-sufficient group
  • Practical with little interest in most material possessions

VALS2

Groupings

consumer motivation33
Consumer Motivation
  • Actualizers
  • Posses both high income and self-esteem
  • Indulge in a variety of self-orientations

VALS2

Groupings

consumer motivation34
Consumer Motivation
  • Strugglers
  • Have few resources
  • Do not fit into the regular VALS2 categories
  • Brand loyal to the extent possible

VALS2

Groupings

attitude
Attitude

Attitudes are learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way.

step 1 problem recognition
Step 1: Problem Recognition

Problem recognition occurs when consumers realize that they need to do something to get back to a normal state of comfort.

step 2 information search
Step 2: Information Search
  • Awareness set
  • Evoked set
  • Consideration set
step 3 alternative evaluation
Step 3: Alternative Evaluation
  • Compensatory models
  • Noncompensatory models
step 4 purchase
Step 4: Purchase
  • Purchase is the stage when transaction terms are arranged, title of ownership is transferred, the product is paid for, and the consumer takes possession of the product from the seller.
household decision making
HOUSEHOLD DECISION MAKING
  • Families and Households
  • Children’s Influence
  • Conflict in Family Decisions
family buying decisions
Family Buying Decisions
  • Initiation of the purchase decision
  • Gathering and sharing of information
  • Evaluating and deciding
  • Shopping and buying
  • Conflict management
needs and wants
Needs and Wants
  • Needs
    • Unsatisfactory conditions of the consumer that lead him or her to actions that will make the conditions better
  • Wants
    • Desires to obtain more satisfaction than is absolutely necessary to improve unsatisfactory conditions
determination of needs
Determination of Needs

Individual

Genetics

Biogenics

Psychogenics

  • Determination of Needs
    • 3 physical characteristics of the individual person
      • Genetics
      • Biogenics
      • Psychogenics
determination of needs48
Determination of Needs

Individual

Genetics

Biogenics

Psychogenics

  • Genetics
    • Heredity and chemical/biological characteristics of organisms
    • Habits and needs vary with gene types
determination of needs49
Determination of Needs

Individual

Genetics

Biogenics

Psychogenics

  • Biogenics
    • Biological characteristics that people possess at birth (gender, race, age, etc.)
    • For example, older people have different needs
determination of needs50
Determination of Needs

Individual

Genetics

Biogenics

Psychogenics

  • Psychogenics
    • Individual states and traits induced by a person’s brain functioning
    • Moods, emotions, perceptions, experiences
determination of needs51
Determination of Needs
  • Determination of Needs
    • 3 physical characteristics of the environment
      • Climate
      • Topography
      • Ecology

Ecology

Topography

Climate

Environment

determination of needs52
Determination of Needs
  • Ecology
    • Environmental influences of humans
    • Quality of air, food chain, etc.

Ecology

Topography

Climate

Environment

determination of needs53
Determination of Needs
  • Topography
    • Physical condition of the location on earth, spatial profile, and presence of bodies of water
    • People in the mountains may need hiking boots, people near water may need boats

Ecology

Topography

Climate

Environment

determination of needs54
Determination of Needs
  • Climate
    • Conditions that affect consumers’ need for food, clothing, shelter
    • Temperature, altitude, rainfall

Ecology

Topography

Climate

Environment

types of needs
Types of Needs

Physiological

  • The fundamentals of survival, including hunger, thirst, and other bodily needs

Physiological

Safety

Affiliation

Achievement

Power

Self-expression

Cognition

Variety Seeking

Attribution

types of needs56
Types of Needs

Safety

  • Concern over physical survival and safety

Physiological

Safety

Affiliation

Achievement

Power

Self-expression

Cognition

Variety Seeking

Attribution

types of needs57
Types of Needs

Affiliation and Belongingness

  • A need to be accepted by others, to be an important person to them

Physiological

Safety

Affiliation

Achievement

Power

Self-expression

Cognition

Variety Seeking

Attribution

types of needs58
Types of Needs

Achievement

  • A basic desire for success in meeting personal goals

Physiological

Safety

Affiliation

Achievement

Power

Self-expression

Cognition

Variety Seeking

Attribution

types of needs59
Types of Needs

Power

  • A desire to gain control over one’s destiny as well as that of others

Physiological

Safety

Affiliation

Achievement

Power

Self-expression

Cognition

Variety Seeking

Attribution

types of needs60
Types of Needs

Self-expression

  • The need to develop freedom in self-expression and to be perceived by others as significant

Physiological

Safety

Affiliation

Achievement

Power

Self-expression

Cognition

Variety Seeking

Attribution

types of needs61
Types of Needs

Cognition

  • The desire to self-actualize through knowing, constructing a value system

Physiological

Safety

Affiliation

Achievement

Power

Self-expression

Cognition

Variety Seeking

Attribution

types of needs62
Types of Needs

Variety Seeking

  • Maintenance of a preferred level of physiological arousal and stimulation

Physiological

Safety

Affiliation

Achievement

Power

Self-expression

Cognition

Variety Seeking

Attribution

types of needs63
Types of Needs

Attribution

  • Estimation or attribution of the causality of events and actions

Physiological

Safety

Affiliation

Achievement

Power

Self-expression

Cognition

Variety Seeking

Attribution

determination of wants
Determination of Wants

Personal Context

  • Personal Context
    • Personal worth
    • Institutional relationships
    • Cultural surroundings

Environmental Context

determination of wants65
Determination of Wants

Personal Context

  • Personal worth
    • Financial resources available to consumers
    • Income assets, inheritance, borrowing power, etc.
    • Social class classifications (capitalist, middle class, working poor, etc.)

Environmental Context

determination of wants social class
Determination of WantsSocial Class

Personal Context

  • Capitalists Class
  • Top 1% with income from assets earned or inherited
  • Upper Class
  • Middle Class
  • Working Class
  • Working Poor
  • The Under Class

Capitalists1%

determination of wants social class67
Determination of WantsSocial Class

Personal Context

  • Capitalists Class
  • Upper managers, professionals, and medium level business people. Income nearly twice the national average.
  • Upper Class
  • Middle Class
  • Working Class
  • Working Poor
  • The Under Class

Upper Class14%

determination of wants social class68
Determination of WantsSocial Class

Personal Context

  • Capitalists Class
  • Middle-level white-collar and top level blue-collar workers. Income somewhat above the national average.
  • Upper Class
  • Middle Class
  • Working Class
  • Working Poor
  • The Under Class

Middle Class33%

determination of wants social class69
Determination of WantsSocial Class

Personal Context

  • Capitalists Class
  • Middle-level blue-collar and lower-level white-collar workers. Income and educational level slightly below national level.
  • Upper Class
  • Middle Class
  • Working Class
  • Working Poor
  • The Under Class

Working Class33%

determination of wants social class70
Determination of WantsSocial Class

Personal Context

  • Capitalists Class
  • Low paid workers (minimum wage). Income just above the poverty line. Most have some high school education
  • Upper Class
  • Middle Class
  • Working Class
  • Working Poor
  • The Under Class

Working Poor11-12%

determination of wants social class71
Determination of WantsSocial Class

Personal Context

  • Capitalists Class
  • Depend primarily on welfare systems. Standard of living below poverty line. Lack regular employment and education
  • Upper Class
  • Middle Class
  • Working Class
  • Working Poor
  • The Under Class

The Under Class8-9%

determination of wants72
Determination of Wants

Personal Context

  • Institutional relationships
    • Groups and organizations to which a person belongs
    • Institutional context includes workplace, religious and educational institutions, family and friends, and peer groups

Environmental Context

determination of wants73
Determination of Wants

Personal Context

  • Cultural surroundings
    • Culture’s influence on consumers
    • Some cultures value age, some value youth, some value possessions, some value the inner self, etc.

Environmental Context

determination of wants74
Determination of Wants

Personal Context

  • Environmental Context
    • Economy
    • Technology
    • Public policy

Environmental Context

determination of wants75
Determination of Wants

Personal Context

  • Economy
    • Economic development and business cycles in a nation’s economy
    • Economic level of a nation, inflation, unemployment rate, income growth, etc.

Environmental Context

determination of wants76
Determination of Wants

Personal Context

  • Technology
    • Man-made inventions and devices used to sustain, facilitate or enhance human life and activities
    • Energy, telecommunications, education, etc.

Environmental Context

determination of wants77
Determination of Wants

Personal Context

  • Public policy
    • Governmental laws and regulations that control human behavior
    • Business practices like product safety, pricing, etc. are regulated

Environmental Context

consumer perception information processing
Consumer PerceptionInformation Processing
  • When relevant marketplace information (e.g. an advertisement) reaches one or more of the consumer five senses.
  • Exposure
  • Attention
  • Comprehension
  • Acceptance
  • Retention
consumer perception information processing79
Consumer PerceptionInformation Processing
  • Exposure
  • To attend is to focus mental effort on a particular stimulus from all that are physically present.
  • Attention
  • Comprehension
  • Acceptance
  • Retention
consumer perception information processing80
Consumer PerceptionInformation Processing
  • Exposure
  • Comprehension is the interpretation or perception, of what the stimulus means, implies, or represents.
  • Comprehension
  • Attention
  • Acceptance
  • Retention
consumer perception information processing81
Consumer PerceptionInformation Processing
  • Exposure
  • Acceptance is the extent to which a consumer agrees with marketing message that has been attended and comprehended.
  • Acceptance
  • Attention
  • Comprehension
  • Retention
consumer perception information processing82
Consumer PerceptionInformation Processing
  • Exposure
  • Retention represents the transfer of marketplace information into long term memory.
  • Retention
  • Attention
  • Comprehension
  • Acceptance
consumer decision making individual
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Purchase

  • Individual Decision Making
    • Mental budgeting
    • Payer plays the most important role

Post-purchase Experience

consumer decision making individual84
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Purchase

  • Internal and external stimuli generate perceived state of discomfort
  • Familiar problems - stock depletion
  • Novel problems - associated with life events
  • Vivid problems - very visible problem
  • Latent problems - not obvious, requires self-reflection or external agent to be discovered

Post-purchase Experience

consumer decision making individual85
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Awareness Set

Purchase

Post-purchase Experience

Evoked set

Brands NOT Recalled

Consideration Set

Brands NOT Considered

consumer decision making individual86
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Purchase

  • Information Sources
    • Nonmarketer - personal sources, independent sources
    • Marketer - under the marketer’s control

Post-purchase Experience

consumer decision making individual87
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Purchase

  • Search Strategies
    • Routine problem solving - no new info considered
    • Extended problem solving - extensive and deliberate search
    • Limited problem solving - limited time and energy invested
    • Heuristics strategy - broad inferences, past experiences, brand names

Post-purchase Experience

consumer decision making individual88
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Purchase

  • Determinants of amount of searching
    • Performance risk
    • Social risk
    • Psychological risk
    • Financial risk
    • Obsolescence risk

Post-purchase Experience

consumer decision making individual89
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Purchase

  • Compensatory model
    • Consumer considers all attributes and mentally trading off alternatives weaknesses (Pros vs Cons)

Post-purchase Experience

consumer decision making individual90
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Purchase

  • Noncompensatory models
    • Disjunctive - trade-offs between aspects of choice alternatives
    • Lexicographic - rank-ordering of alternatives
    • Elimination by aspects - attributes in order of importance with cut-off values

Post-purchase Experience

consumer decision making individual91
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Purchase

  • Choice identification
  • Purchase intent
  • Purchase implementation
    • Sometimes derailed by deviation from identified choice (out of stock, new information, financing, etc.)

Post-purchase Experience

consumer decision making individual92
Consumer Decision MakingIndividual

Problem Recognition

Information Search

Alternative Evaluation

Purchase

  • Cognitive dissonance - postpurchase doubt about the wisdom of the choice
  • Usage outcome
    • Can generate exit, voice, or loyalty

Post-purchase Experience

consumer decision making family buying roles
Consumer Decision MakingFamily Buying Roles
  • Family member who initiates thinking about buying products (gatekeeper)
  • Family member who initiates information gathering
  • Initiator
  • Influencer
  • Decider
  • Buyer
  • User
consumer decision making family buying roles94
Consumer Decision MakingFamily Buying Roles
  • Family member whose opinion is sought about purchases
  • Provides information about brands and evaluative criteria
  • Initiator
  • Influencer
  • Decider
  • Buyer
  • User
consumer decision making family buying roles95
Consumer Decision MakingFamily Buying Roles
  • Family member who has financial authority and/or power to purchase the product
  • Initiator
  • Influencer
  • Decider
  • Buyer
  • User
consumer decision making family buying roles96
Consumer Decision MakingFamily Buying Roles
  • Family member who acts as the purchasing agent
  • Performs the logistics (going to the store, writing the check, etc.) of the purchase
  • Initiator
  • Influencer
  • Decider
  • Buyer
  • User
consumer decision making family buying roles97
Consumer Decision MakingFamily Buying Roles
  • Family member who actually uses or consumes the product
  • Initiator
  • Influencer
  • Decider
  • Buyer
  • User