Transcript Ch004

McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
● Completing
Transition from class website to
Facebook for Announcement by this week
● RSRP, Grades
● Review
Evaluative criteria/ Consideration Set
Cognitive Dissonance/Miser
● Extended/Limited/Routine
Problem Solving depending on
the level of involvement & product knowledge
FIGURE 4-4 Influences on the consumer
purchase decision process from both
internal and external sources
*5 Situational influence
(at bottom)
1) Purchase task (gift,
social visibility,
buyer’s own)
2) Social surroundings
(with kids, buy
more)
3) Physical
surroundings
(décor, music, …)
4) Temporal effects
(time of day or time
availability)
5) Antecedent states
(mood, cash on hand)
4-3
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO:
LO1
LO2
Describe the stages in the consumer
purchase decision process.
Distinguish among three variations of
the consumer purchase decision
process: routine, limited, and extended
problem solving.
LO3
Identify major psychological influences
on consumer behavior.
LO4
Identify major sociocultural influences
on consumer behavior.
4-4
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
MOTIVATION
is the energizing force that stimulates
behavior to satisfy a need  markers try
to arouse these needs.

Motivation

Hierarchy of Needs
• Physiological Needs (food, water,…)
• Safety Needs (2 things: smoke detector, insurance,…)
• Social Needs (dating sites, fragrance companies,…)
• Personal Needs (prestige, respect; Brooks Brothers Colothier)
• Self-Actualization Needs (US Army, “Be all you can be”)
4-5
FIGURE 4-5 Hierarchy of needs
Match.com
Maslow’s hierarchy of needs
4-6
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
LO3
PERSONALITY

Personality
A person’s consistent
behaviors or response
to recurring situations;
it guides and directs
behaviors

Traits enduring
characteristics within a
person or in his or her
relationships with others

Self-Concept
The way people see themselves vs. Ideal-self concept
(Lenovo - notebook self expression?)
4-7
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
PERCEPTION

Perception the process by which an individual selects,
organizes, and interprets information to create a meaningful
picture of the world.
• Selective Perception- brain attempts to organize & interpret
Information with process
• Selective Exposure – attention to the consistent, ignore to
Inconsistent; likely to see McDonald Ad when you are hungry
• Selective Comprehension – Toro’s Snow Pup
• Selective Retention – limited cognitive capability

Subliminal Perception - you see or hear message without
being aware of them
4-8
LO3
MAKING RESPONSIBLE DECISIONS
The Ethics of Subliminal Messages
4-9
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
PERCEIVED RISK

Strategies to Reduce Perceived Risk – “The anxiety felt
when a consumer cannot anticipate possible negative outcome
of a purchase”; Thus, perceived risk affects consumer
behavior (ex: information search, purchase,…)
• Obtain Seals of Approval- Good Housekeeping seal for Fresh
Step cat litter
• Secure Endorsements – 9 out of 10 cardiologists
• Provide Free Trials/Samples – Mary Kay’s Velocity fragrance
• Give Extensive Instructions – Clairol hair coloring products
• Provide Warranties/Guarantees – Kia 10 yrs/100K miles warranty
4-10
LO3
Fresh Step and Mary Kay Velocity
What strategy is used to reduce perceived risk?
4-11
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
LEARNING


Learning - behaviors that result from repeated
experience and reasoning
Behavioral Learning – the process of developing
automatic response to a situation built upon
through repeated exposure to it.
• Drive (Hunger)
• Response
• Cue
• Reinforcement
Being hungry (drive), a consumer see a cue (a billboard), takes
action (buys a sandwitch) and receives a reward (= reinforcement,
taste)
4-12
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
LO3
LEARNING

Behavioral Learning - is the process of developing
automatic response to a situation built up through repeated
exposure to it.
• Stimulus Generalization – occurs when a response elicited
By one stimulus (cue) is generalized to another stimulus.
(Tylenol Cold & Flu vs. Tylenol PM)
• Stimulus Discrimination – refers to a person’s ability to
Perceive differences in stimuli. (light beers vs. Bud Light)
 Cognitive Learning-also learn through thinking,
reasoning, and mental problem solving w/o direct experience
(making a connection between two – brand (Advil) and idea
(pain reliever)

Brand Loyalty - a favorable attitude toward and consistent
Purchase of a single brand over time
4-13
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
VALUES, ATTITUDES AND BELIEFS

Attitude Formation
• Attitude – a tendency to respond to something in a
consitently favorable or unfavorable way
• Values – personal values affect attitudes by influencing
The importance assigned to specific product attributes
• Beliefs - A consumer’s perception of how a product or
Brand performs
4-14
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
VALUES, ATTITUDES AND BELIEFS

Attitude Change
1. Change Beliefs about the extent to which a brand has certain
Attributes (ex: Mayo’s Omega 3 content)
2. Change Perceived Importance of Attributes: Pepsi stamped
Freshness dates
3. Add New Product Attributes (new antibacterial ingredient)
4-15
LO3
Colgate and Hellmann's
How did these ads change attitudes?
4-16
LO3
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
CONSUMER LIFESTYLE

Lifestyle – a mode of
living that is identified by
how people spend their time
and resources

Psychographics
4-17
FIGURE 4-B VALS™ identifies eight
consumer segments
INNOVATORS
Sophisticated,
Change Leading,
Active, Take Charge
ACHIEVERS
Successful, Career &
Family Oriented,
Moderate
THINKERS
EXPERIENCERS
Information Seeking,
Satisfied,
Reflective
Risk Seeking,
Enthusiastic,
Impulsive
BELIEVERS
MAKERS
Conservative,
Conventional,
Traditional
Homegrown, Self
Sufficient, Macho,
Family Oriented
STRIVERS
Trendy, Approval,
Seeking,
Disenfranchised
SURVIVORS
Passive,
Risk Averse,
Constrained
Copyright © 2010 by Strategic Business Insights. All rights reserved.
4-18
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
LO4
PERSONAL INFLUENCE

A consumer’s purchase are often
Influenced by others’ view, opinion,
and behaviors

Opinion Leaders – individuals who
have social influence over others


Word of Mouth (WOM) – people
influencing each other in
personal conversations.
Negative WOM
• Buzz – popularity created by
Consumers’ WOM
4-19
LO4
MARKETING MATTERS
BZZAgent—The Buzz Experience
4-20
LO4
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
REFERENCE GROUPS

Reference Groups – people to whom an individual looks as a
basic for self-appraisal or as a source of personal standards
• Membership Group – is one to which a person actually belongs,
Including fraternities/sororities, social clubs, and family
• Aspiration Group – is one that a person wishes to be a member
Of or wishes to be identified with
• Dissociative Group – on that a person wishes to maintain a distance
From because of differences in values or behaviors
4-21
LO4
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
FAMILY INFLUENCE



Consumer Socialization – The process by which
people acquire the skills, knowledge, and attitude
necessary to function as consumers is called XXX
Children learn how to purchase 1) interaction, 2)
through direct experience
Family Life Cycle
• Traditional Family – married couple
With children younger than 18 years – 21%
US household
4-22
FIGURE 4-6 Modern family life cycle stages
and flows
4-23
LO4
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
FAMILY INFLUENCE

Family Decision-Making
• Styles
 Spouse-Dominant – either
 Joint – decisions by both
• Family Member Roles
 Information Gatherer
 Purchaser
 Influencer
 User
 Decision Maker
4-24
LO4
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
FAMILY INFLUENCE
• 89% of wives either influence or make outright
purchases of men’s clothing
• Women are often the grocery decision maker, not
necessarily the purchaser (51% men)
•Preteens and teenagers are the information
gatherers, influencers, decision makers, and
purchasers of products and services for the family,
given the prevalence of working parents and
single-parent households. Spending $200billion
annually
4-25
LO4
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
CULTURE AND SUBCULTURE
 Culture
 Subcultures - subgroups within the larger, or
Nissan Ad
national, culture with unique values, ideas, and attitudes
• Hispanic
Buying
Patterns
Why
challengeable?
• African
American
Buying
Patterns
• Asian
American
Buying
Patterns
Socioeconomics status
Assimilated
Asian American
Nonassimilated
Asian American
4-26
LO4
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
SOCIAL CLASS

Social Class
• Upper Class
• Middle Class
• Working/Lower Class
4-27
VIDEO CASE 4
GROUPON: HELPING CONSUMERS
WITH PURCHASE DECISIONS
4-28
VIDEO CASE 4
GROUPON
1.
2.
3.
4.
5.
6.
7.
8.
9.
Branding: GROUPON
What is the unmet needs of consumers?
The predecessor (?) was successful? What they learned?
Win-Win for everyone? Why?
GROUPON’s Marketing Mix (Offering: product price
promotion place?; External Changes?)
What is Groupon Promise? What’s the influence on
Perceived Risk?
5 stages
What is the target market? Its demographic?
SWOT
4-29
VIDEO CASE 4
GROUPON
1. How has an understanding
of consumer behavior helped
Groupon grow from 400
subscribers in Chicago in 2008
to 60 million subscribers in 40
countries today?
4-30
VIDEO CASE 4
GROUPON
2. What is the Groupon Promise?
How does the Promise affect a
consumer’s perceived risk and
cognitive dissonance?
4-31
VIDEO CASE 4
GROUPON
3. Describe the five-stage purchase
decision process for a typical
Groupon user.
4-32
VIDEO CASE 4
GROUPON
4. What are possible psychological
and sociological influences on the
Groupon consumer purchase
decision process?
4-33
VIDEO CASE 4
GROUPON
5. What challenges does Groupon
face in the future? What actions
would you recommend related to
each challenge?
4-34
Motivation
Motivation is the energizing force
that stimulates behavior to satisfy
a need.
4-35
Personality
Personality is a person’s
consistent behaviors or responses
to recurring situations.
4-36
Perception
Perception is the process by
which an individual selects,
organizes, and interprets
information to create a
meaningful picture of the world.
4-37
Perceived Risk
Perceived risk is the anxiety
felt because the consumer cannot
anticipate the outcomes of a
purchase but believes that there
may be negative consequences.
4-38
Learning
Learning consists of those
behaviors that result from
(1) repeated experience and
(2) reasoning.
4-39
Brand Loyalty
Brand loyalty is a favorable
attitude toward and consistent
purchase of a single brand over
time.
4-40
Attitude
An attitude is a learned
predisposition to respond to an
object or class of objects in a
consistently favorable or
unfavorable way.
4-41
Beliefs
Beliefs are a consumer’s
subjective perception of how a
product or brand performs on
different attributes based on
personal experience, advertising,
and discussions with other people.
4-42
Opinion Leaders
Opinion leaders are individuals
who exert direct or indirect social
influence over others.
4-43
Word of Mouth
Word of mouth involves the
influencing of people during
conversations.
4-44
Reference Groups
Reference groups consists of
people to whom an individual
looks as a basis for self-appraisal
or as a source of personal
standards.
4-45
Family Life Cycle
A family life cycle consists of
the distinct phases that a family
progresses through from
formation to retirement, each
phase bringing with it identifiable
purchasing behaviors.
4-46
Subcultures
Subcultures are the subgroups
within the larger, or national,
culture with unique values, ideas,
and attitudes.
4-47