Transcript phmy 529 - consumer behavior

MKTG 504 - CONSUMER
BEHAVIOR
WHO, WHEN, HOW,
WHERE.........
Dr. Dennis Pitta
University of Baltimore
CONSUMER BEHAVIOR
The subject of human
behavior that is concerned
with the decisions and acts
of individuals in purchasing
and using products.
BUYING BEHAVIOR
The decision processes
and actions of individuals
involved in buying and
using products.
The First Buyer Behavior
Model: Simple Response
Stimulus
Organism
Response
ECONOMIC (HU) MAN MODEL
Income is spent on goods providing
UTILITY
MARGINAL UTILITY CONCEPT
PROBLEMS WITH THE MODEL:
MAN NOT ALWAYS RATIONAL
NO PERFECT INFORMATON
USES FOR THE ECONOMIC
HUMAN MODEL
USEFUL FOR EXPENSIVE GOODS
PROVIDES ANALYSIS OFECONOMIC
VARIABLES FOR WHCIH DATA
EXISTS.
(E.G., ELASTICITY - at what price will
utility decrease?)
Downward sloping demand curve
LEARNING THEORY MODEL PAVLOVIAN
DRIVE
CUE
RESPONSE
REINFORCEMENT
USES FOR LEARNING THEORY
MODEL
MANY: BRAND LOYALTY
BRAND NAMES
PROBLEMS WITH THE LEARNING
THEORY MODEL
NEGLECTS:
PERCEPTIONS
INTERPERSONAL INFLUENCES
SUBCONCIOUS
MOTIVATION MODEL: FREUDIAN
(SYMBOLIC PRODUCT)
Uses PROJECTIVE TECHNIQUES
MOTIVATIONAL RESEARCH
PROBLEMS WITH THE MODEL:
COSTLY
INTERPRETATION???
A projective test - the Thematic
Apperception Test
Typical directions….
Study the picture on the right until
your imagination begins to form a story
about it. There are no rules except
that your story should have a beginning
(what has happened in the story so
far), middle (what is happening now),
and an end (how things turn out).
Another example of
projective techniques...
Describe the person who composed this
shopping list (List A or List B)
10 pounds of potatoes
5 pound of sugar
3 pounds of ground round
1 lb of ground coffee <--> 16oz instant
1 loaf of white bread
2 pounds of carrots
1 box of laundry detergent
1 pound of tomatoes
2 qts milk
Influences on Consumer
Behavior
Personal Influences
Age and Family Life
Cycle Stage
Occupation &
Economic Circumstances
Lifestyle
Personality &
Self-Concept
Family Life Cycle stages
Single
Young Full
Married Nest I
Full
Nest II
Empty
Nest
Sole
Survivor
Consumption in Family Life Cycle stages
Single
CAR
Small
HOME
Apartment
Vacations
Other
Young Full
Married Nest I
Small 4 door
Apartment
China
Full
Nest II
Minivan
Small Larger
house house
Toys + Bail
cribs
Empty
Nest
Sports
car
Smaller
house
Vacations
Sole
Survivor
Nursing
home
Health
care
SOCIAL PSYCHOLOGICAL MODEL
MANY FACTORS AFFECT BEHAVIOR:
INDIVIDUAL
FAMILY
REFERENCE GROUPS
(Opinion Leadership)
SOCIAL CLASS
CULTURE
Personal Influence : PERSONALITY
Personality = The
collection of relatively
permanent tendencies to
behavior in consistent
ways in certain situations.
Personal Influence: ATTITUDES
Attitudes = Enduring feelings, evaluations,
and responses - tendencies directed toward
an object or idea.
May be positive or negative.
Attitudes does not equal buying intentions.
Resistant to changes.
Components of attitudes
BELIEFS about an object (bi)
EVALUATION of those beliefs as good
or bad (e i)
Ao=biei
My attitude toward spinach
Aspinach= b1e1+b2e2+b3e3+b4e4
1 - it is good for me
2 - it is low calorie
3 - it reduces cholesterol??
4 - it tastes bad
Aspinach= (1)(+1)+ (1)(+1)+ (0)(+10)+ (1)(-6)
=-4
How do you change a person’s
attitude?
Change the beliefs - not the evaluation
Example: 9 out of 10 doctors eat
spinach to lower their cholesterol
Do you see the black dots?
Personal Influence : Perceptions?
Personal Influence: PERCEPTION
Perception = The process through which an
individual selects relevant stimuli from the
environment, organizes them and assigns
meaning to them.
SELECTIVE EXPOSURE
SELECTIVE DISTORTION
SELECTIVE RETENTION
Is this perceived?
Personal Influence: MOTIVATION
Motivation = The driving force that causes a
person to take action to satisfy specific
needs or wants.
Example: Maslow’s hierarchy.
Physiological
Safety
Love and belonging
Esteem
Self-esteem
How believable is Maslow?
There is no evidence that needs
beyond safety needs exist widely
throughout society.
Personal Influence: LEARNING
Learning = The process
through which a relatively
permanent change in
behavior results from the
consequences of past
behavior.
Source of Learning
Direct Experience = actual use
Indirect Experience =
information obtained from
others or observation of the
behavior of others.
Result of Learning
Brand Loyalty -> learned
through positive
reinforcement.
Extinction -> weakening of
well-established habit by
unsatisfactory experiences.
Social Factors
Reference
Groups
Family
Roles &
Statuses
Cultural Factors
Culture
Subculture
Social Class
Buyer
Diffusion of Innovation
CONCERNED WITH THE
ADOPTION OF NEW
PRODUCTS
How do products diffuse
through the
population over time?
The Diffusion of Innovations through a
market
34%
Early
majority
2 1/2%
Innovators
13 1/2%
Early
adopters
34%
Late
majority
16%
Laggards
Time of adoption innovations
Which group pays the most
money for a product or service?
Which group expects to pay the
least money for a product or
service?
Buying is work - let’s look at the
effort needed to buy
something….
How much effort do you
spend to buy gum?
________________________________
How much effort do you
spend to buy a new
textbook?
________________________________
How much effort do you
spend to buy your first
house?
________________________________
CONSUMER BEHAVIOR
When the product is familiar but not
important - ROUTINE RESPONSE
BEHAVIOR
When the product is unfamiliar and not
important - LIMITED DECISION
MAKING
When the product is IMPORTANT ($$) EXTENSIVE DECISION MAKING
When ya gotta have it - IMPULSE
BUYING
When your car blows blue
smoke, makes a funny very
loud noise and dies….what
do you do?
Consumer Decision Process
PROBLEM RECOGNITION
INFORMATION SEARCH
ALTERNATIVE EVALUATION
PURCHASE DECISION
POSTPURCHASE EVALUATION
Consumer Buying
Process
Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior
Four Types of Buying
Behavior
High
Involvement
Low
Involvement
Significant
differences
between
brands
Complex
Buying
Behavior
VarietySeeking
Behavior
Few
differences
between
brands
DissonanceReducing Buying
Behavior
Habitual
Buying
Behavior
How does organization
buying behavior differ from
consumer buyer behavior?
Organizational Buying Behavior
CHARACTERISTICS
Derived Demand
Fewer Buyers
More Concentrated Geographically
Greater $ per Transaction
Organizational Buying Behavior
DIFFERENCES FROM CONSUMER
BEHAVIOR
More Rational (Value Analysis)
Large Volume Purchases
Many Individuals Involved
Evaluation Specific
Service and Leasing Important
Organizational Buying Behavior
“THE BUYING CENTER”
BASED ON ROLES
 USER - ACTUALLY USES IT
 BUYER - BUYS IT (PROCESSES THE
PAPERWORK)
 INFLUENCER - SHAPES THE EXPECTATIONS
FOR IT
 GATEKEEPER - INFLUENCES THE FLOW OF
INFORMATION ABOUT THE DECISION
 DECIDER - ACTUALLY MAKES THE DECISION
Which role is the most
important?
Organizational Buying Behavior
BUY TASKS
NEW TASK - NEW PRODUCT- NEW
VENDOR
STRAIGHT REBUY - OLD PRODUCT NEW VENDOR
MODIFIED REBUY - NEW PRODUCT OLD VENDOR/ OR OLD PRODUCT NEW VENDOR
Organizational Buying Behavior
NAIS( old SIC) CODE - STANDARD
INDUSTRIAL CLASSIFICATION
A WAY OF LUMPING LIKE COMPANIES
TOGETHER
EXAMPLE
27 -> PRINTING, PUBLISHING, AND ALLIED
INDUSTRIES
272 -> PERIODICALS: PUBLISHING,
PUBLISHING AND PRINTING
2721 -> COMIC BOOKS, MAGAZINES,
PERIODICALS, STATISTICAL REPORTS,
TRADE JOURNALS
UPCOMING TOPIC
PRODUCT