Transcript Consumer Behavior

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What is Consumerism?
Why is understanding consumer behavior
important?
How does Marketing influence spending/
consuming behavior?
What is the role of the individual in the
process of consumerism?
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Consumerism-Social and economic system that
emphasizes continuous purchasing
Consumer Culture-Values, beliefs and customs
about what to purchase
◦ Consumption-Gives opportunity to display identity
 How you view yourself and how others see you
◦ Value
◦ False Needs vs. Real Needs
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Consumerism/ Capitalism can condition us to
accept/ conform to certain standards
◦ Rejecting established goods = Not a good thing for
business
 Non-conformity is generally seen as dysfunctional,
strange and deviant
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Marketing begins w/ understanding
customers and their needs/ wants
Consumer Behavior-Study of how consumers
make decisions
◦ What motivates them to do what they do?
◦ Final Consumers vs. Business Consumers
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1. Pre-Industrial Revolution
2. Industrial Revolution
◦ A. Pre-1880s = Image + Text w/ straightforward
message
 Products were NEEDS!
◦ B. Post-1880s = Associative Learning
 Products were WANTS!
 Small/ local producers to large corporations (They fear
people may stop buying)
 Consumers = Increasing incomes
 Name Brands emerge
 Target Audiences
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3. Radio Advertising-(1920s) Advertisements
become part of culture
◦ Famous celebrities (Actors from films) begin
endorsing products (Generally scripted)
◦ Magazines become widespread
◦ Slogans and jingles emerge
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4. Television Era-(1950s-Present)
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Consumerism rises and is supported by Gov’t
Psychological tactics from radio era are enhanced
Internet becomes a major factor
Consumers bombarded w/ marketing
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John Pemberton-(1886) Pharmacist who
created Coca-Cola and began selling it at his
drug store for 5 cents
Aggressive ads begin following his death
◦ Singers and coupons for free trials
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Today it is the second most universal symbol
and it owns 400 brands
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1. Advertising increased b/c Consumerism emerged
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2. Psychology has played powerful role in the tactics
used to influence buyer behavior
◦ Psychology-Scientific study of human behavior and mental
processes
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3. We tend to remember ad better than product
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4. Society is continually being bombarded by ads
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5. Ads tend to prey on insecurities, fears and
emotions to improve yourself w/ product
◦ Ex. Ads for women use self-hate, inadequacy and doubt
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Motivation = Incentive to do something
Abraham Maslow-Am Psychologist who
helped create Humanistic Perspective
Humanistic Perspective-Human beings are
ultimately good and use “free will” to achieve
goals/ happiness (They are not simply
products of their environment or
unconscious)
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1. Physiological and Biological-Basic life
needs
◦ Food, water, shelter, warmth, sex, etc.
◦ Items at this level:
 Items to stay alive (Cheaper price and lower quality)
 Need to satisfy needs to simply survive
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2. Safety-Protection for present and future
◦ Items at this level:
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Eye glasses for work
Defense class
Gun
Home security
Insurance (Loss, Theft, etc.)
Health Care
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3. Belonging and Love-Building relationships/
affection (Love, friends, comradeship, etc.)
◦ Items at this level:
 Items to build connections with friends, team,
family
 Acceptance/ fitting in (Not being alone)
 Follow trends
 Name brands, trendy clothes, magazines, selfimprovement, etc.
 Actions and purchases are to fit in!
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4. Esteem-Building of self-confidence and
individual actions/ goal-setting
◦ Different from Belonging phase b/c what you do is to
make yourself better (Not just fitting in)
◦ People trying to be leader and be looked up to
 “Wow, that guy is superior!”
◦ Items at this stage:
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Working out
Nice clothes for praise and to improve your self-confidence
Books and magazines to become better
Nice Homes/ Vehicles
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5. Self-Actualization-Self-growth and fulfillment
in life
◦ Most never reach this level
◦ People are happy w/ themselves and their lives
◦ Intent for actions = Reaching fullest potential and
enjoying life to fullest
◦ Items at this level:
 Trips
 Art
 Returning to college again
 Edward Bernays-(“Father of Public
Relations”) Sigmund Freud’s nephew
◦ Believed humans were stupid and could be easily
manipulated
◦ Believed humans should be controlled b/c they have
Animal Spirits which can lead to instability
 Russian Rev, WWI, etc.
◦ Humans are not rational (Go off Animal Spirits)
 Adam Smith believed in Animal Spirits as well
 Intellect doesn’t get people to buy, but emotions do!
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Mastered the art of propaganda/ public relations through
tapping 1 or more of the following:
 1. Self-Preservation
 2. Aggression
 3. Security
 4. Sex
If you control one of these, you can nudge/ manipulate
the masses to do whatever you want
People are not very rational b/c they can be easily guided
by emotions (Especially fear!)
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Prior to 1920s women could not smoke
Lucky Strikes cigarettes hired Bernays to help
them appeal to a women
Problems:
◦ 1. Smoking was taboo for women (An in NYC it was
illegal)
◦ 2. Green design was too expensive to change
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Outcomes:
◦ 1. Bernays hired people to make green the color of
the time
◦ 2. Women’s Liberation March in NYC use cigarettes
as “Torches of Liberty”
◦ 3. Cigarettes associated w/ equality and
emancipated women (Also used as a phallic symbol)
◦ 4. Cigarette sales grow drastically
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As Europe began entering in WWI, US
President Woodrow Wilson realize US
involvement was necessary
US Committee on Public Information-Used
propaganda to suede US opinion on war
◦ Bernays was a major player
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Outcomes:
◦ 1. 4-Minute Men spoke at community rallies and
spoke for 4-min. in support of war
 4 min. was the believed attention span
◦ 2. Public support drastically increases as 4-Minute
Men and Propaganda grow
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Prior to 1950s, the typical US breakfast was
light (Toast and coffee)
Beech Nut Company hired Bernays to increase
their sales of bacon
Bernays sends carefully worded letter
specifically mentioning bacon and eggs to
5,000 doctors asking if they prefer light or
hardy breakfast
Advertisements sent out to public
Outcomes:
◦ 1. 4,500 doctors support hardy breakfast
◦ 2. Bacon and eggs becomes major US breakfast
◦ 3. Many businesses have emerged b/c of this idea
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1. Exposure Effect-More frequently we see/
hear something, the more likely we are to like
it/ believe it
2. “Tuned Out” Effect-When we take ads for
granted, they tend to work better
◦ Relaxation = Ads permeate our consciousness more
(Thinking critically/ paying attention closely helps
to stop this)
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1. Violating Reality
2. Humor
3. Sex
4. Commitment and Consistency
5. Fear
6. Greenwashing
7. Marginalizing Postures
8. Copy in 3’s
9. Principle of Social Proof
10. Stereotypes
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11. Testimonials (Celebrity and Common
People)
12. Bandwagon Effect
13. Generalities
14. Emotional Connection
15. Scientific Appeal
16. Reciprocation
17. Scarcity
18. Liking
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Color plays an important role in our emotions
and how we perceive the world
They can grab our attention and influence our
mood/ behavior
 List
5 colors and brainstorm
how you think they
influence our mood and
behavior!
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New Psychological Phase connecting Psychology
and Marketing
Neuromarketing-Studying brain patterns of
consumers to reveal effectiveness of advertising
tactics
Methods:
◦ 1. EEG-(Electroencephalogram) Cap w/ electrodes on it
that measure brain waves
◦ 2. fMRI-(Functional Magnetic Resonance Imaging)
Computerized brain image showing brain activity during
various tasks
◦ 3. Eye Tracking-Records eye movements to measure
effectiveness of ads
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Helpful in determining effectiveness of ads
Glasses w/ cameras are put on and record
where eyes are drawn to and reaction
◦ Pupils will get larger if you attracted to something