Transcript MBA671_Chapter7_Consumer_Behavior

CONSUMER BEHAVIOR
Dr. S. Borna
MBA
671
Lecture Outline
1. Some basic terms related
to the consumer behavior.
2. Why study consumer
behavior?
3. A model of consumer
behavior.
Lecture Outline Cont.
4. Three building blocks of
C.B. Model:
a. Exogenous Variables
b. Individual Variables
c. Consumer Decision
Process
Marketer asks the following
questions:
1. Who is our market?
2. What does the market
buy or want?
3. Why does the market buy
certain products?
Questions Cont.
4. Who participates in the
buying?
5. When does the market buy?
6. Where does the market
buy (outlet questions)?
Consumer Behavior
Defined:
A. Those acts of individuals
(or decision units) directly
involved in obtaining and
using economic good and
services including the
decision process that
precede and determine these
acts.
Two key assumptions and
their ramifications
1. Consumer behavior
can be understood
through research.
2. Consumer behavior
can be influenced.
A diagram of the Black-Box approach
to infer about intervening variables
observable
Process
stimuli
Black Box
Observable
Responses
(outputs)
(inputs)
inference
Three Main Building Blocks of Our
Consumer Behavior Model
1. Exogenous variables
affecting consumer behavior.
2. Individual variables affecting
consumer variables.
3. Consumer decision process.
Exogenous Variables
Culture
Sub-culture
Social Class
Reference Groups
Family
Culture Defined
“A culture is the configuration
of learned behavior and the
results of behavior whose
component elements are
shared and transmitted by
the members of a particular
society.”
Cultural Values
Value
General
Feature
Relevant to
Marketing
Achievement Hard work is good Justification for
Success
Success follow
acquisition of
hard work
goods
Individualism Self-Reliance
Freedom
Customized
Products
Freedom of choice Differentiate P.
Cultural Values
Value
General
Feature
Relevant to
Marketing
Youthfulnes A State of mind Product that
that stresses being provide the
young
illusion of
being young
Progress
The acceptance
Stimulate
of change
desire for new
products
Values of Society
family
Media
Schools
Religious
Institutions
Individual Internalized Values
Sub-Culture
(micro-culture)
A sub-culture is a segment
of a culture that share
distinguishing patterns of
behavior.
Sub-Culture
Technically, the term “subculture” should be applied only
to groups that include both
sexes of all ages and have
institutions paralleling those of
the dominant society.
Social Class
A
number of people
who have
approximately equal
positions in a society.
Reference Group Defined
A
group that serves as a
frame of reference or
comparison for an
individual making a
consumption decision.
Types of Families
 Nuclear
Family
 Family of
Orientation
 Family of
Procreation
 Extended Family
Family Roles
1.
2.
3.
4.
5.
gather information
influences
decision maker
purchaser
consumer
Family Life Cycles
young singles
young married
full nest I, II, III
post parenthood
dissolution
joint
decisions
Limitations of FLC
 Unmarried
Couples.
 Mature individuals who
marry late in life.
 Childless Families
 Families broken up by
separation
Consumer Decision
Process
problem identification
search for information
alternative evaluation
decision (purchase)
retail outlet decisions
post-purchase evaluation
Problem Recognition
A
significant difference
between ideal state of
affairs and actual state
of affairs.
Information Search
INTERNAL
MARKET ER
CONTROLLED
EXTERNAL
NON-MARKET ER
SOURCE OF
INFORMATION
COST VS. BENEFITS OF
INFORMATION
DECISION DELAY
costs OPPORTUNITY COST
INFORMATION OVERLOAD
PSYCHOLOGICAL COST
FACTORS INFLUENCING
EXTERNAL SEARCH
A. NO. OF ALTERNATIVES
B. STORE
CONCENTRATION
C. INFORMATION
AVAILABILITY
FACTORS INFLUENCING
EXTERNAL SEARCH
PRODUCT CHARACTERISTICS
 PRICE
 PRODUCT
DIFFERENTIATION
 POSITIVE PRODUCT
CONT.
CONSUMER CHARACTERISTICS
PERCEIVED RISK
AGE, SEX,
SOCIAL STATUS
ALTERNATIVE EVALUATION
1. HOW TO IDENTIFY
EVALUATIVE CRITERIA
2. HOW TO MEASURE
EVALUATIVE CRITERIA
Alternative Evaluation cont.
3. CONSUMERS’ PERCEPTION
OF PERFORMANCE LEVEL
OF EACH EVALUATIVE
CRITERIA
4. IMPORTANCE ATTACHED
TO EACH EVALUATIVE
CRITERIA
ALTERNATIVE EVALUATION
(CONTINUED)
5. DECISION RULES USED
BY CONSUMERS IN
SELECTING DIFFERENT
ALTERNATIVES
DECISION RULES USED IN
ARRIVING AT A DECISION
A. COMPENSATORY
MODELS
B. NON-COMPENSATORY
MODELS:
CONJUNCTIVE
DISJUNCTIVE
LEXICOGRAPHIC
Perception Defined:
Perception
is the
process by which a
person selects,
organizes, and
interprets information.
Selective nature of
perception
selective exposure
selective attention
selective
comprehension
selective retention
Subliminal Advertising: What
is the controversy about
by: S.C. Dudley, Akron
Business and Economic
Review. (Summer 1987)
pp. 6-18.
Subliminal Perception
 Subliminal
perception refers to
the individuals ability to perceive
and respond to stimuli that are
below the “limen” or level of
consciousness.
awareness threshold (supraliminal)
subliminal
absolute threshold
Methods
 Briefly
presenting visual
stimuli (utilizing a
tachistoscope)
 Accelerating Speech ( low
volume auditory messages)
Methods cont.
•Embedding (print Media)
•Suggestive methods (picture
implies much more than a
quick glance would indicate)
Motivation
A
motive (or drive) is
a need that is
sufficiently pressing
to compel the person
to act.
Maslow’s Hierarchy of
Needs
5
Selfactualization
(self-development
and realization)
4 Esteem needs
(self-esteem, recognition)
Social needs
3 (sense of belonging, love)
2
1
Safety needs
(security, protection)
Psychological needs
(food, water, shelter)
Attitude Defined:
An attitude is an enduring
organization of motivational,
emotional, perceptual, and
cognitive process with
respect to some aspect of our
environment.
Tri- component model of
attribute
Cognition
Conation
Conation - Likelihood or tendency
to act.
Affect
Attitude Change Strategies
1. Changing the cognitive
component.
2. Changing the affective
component.
3. Changing the behavioral
component
Learning
Any change in the content and
organization of long-term
memory.
Learning Theories:
Classical Conditioning
Operant Conditioning
Cognitive Theories