Transcript Consumer Behavior - Nanhua University

Chapter 6: Families and Households
 A family household is
defined as a household
consisting of a family and
any unrelated people
residing in the same
housing unit.
The Household Life Cycle
The Household Life Cycle
 The traditional view of the American household
life cycle was quite simple. People married by
their early 20s (in 1960, the median age was 20.3
for women and 22.8 for men); they had several
children; these children grew up and started their
own families; the original couple retired; and the
male would eventually die, followed after a view
years by the female.
Family Decision Making
 Family decision making is the process by which decisions
that directly or indirectly involve two or more family
members are made.
The Nature of Family Purchase Roles
 The six roles that frequently occur in family
decision making, using a cereal purchase as an
example. It is important to not that individuals will
play various roles for different decisions.
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Initiator
Information gatherer
Influencer
Decision maker
Purchaser
User
The Nature of Family Purchase Roles
 Family decision making has been categorized as
husband-dominant, wife-dominant, or
individualized.
 Until recently, most studies have ignored the
influence of children. Yet children, particularly
teenagers, often exert a substantial influence on
family purchase decisions.
 Thus, we need to recognize that child-dominant,
and various combinations of husband, wife, and
childe joint decisions are also common.
The Nature of Family Purchase Roles
 Conclusions on family decision making:
 Different family members are often involved at
different stages of the decision process.
 Different family members often evaluate different
attributes of a product or brand.
 The direct involvement of family members in each
stage of the decision process represents only a
small part of the picture.
 The product category is important because it is
closely related to who uses the product.
 Over conflicts in decision making are less common
than agreement.
Consumer Socialization
 Consumer socialization is the process by which
young people acquire skills, knowledge, and
attitudes relevant to their functioning as
consumers in the marketplace.
 The content of consumer learning can be broken
down into three categories: consumer skills,
consumption-related preference, and consumptionrelated attitudes.
 The process of consumer socialization
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Instrumental training, modeling, mediation
Consumer Socialization
 The supermarket as a
classroom
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Observing
Making requests
Making selections
Making assisted
purchases
Making independent
purchases
Chapter 7: Group Influences on
Consumer Behavior
 A reference group is a group whose presumed
perspectives or values are being used by an
individual as the basis for his or her current
behavior.
 Strength of social tie
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Primary group and secondary group
 Type of contact
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Direct and indirect
Reference Groups Change as the
Situation Changes
Reference Group Influences on the
Consumption Process
 The nature of reference group influence
 Information influence; Normative influence; Identification
influence
 Degree of reference group influence
 Group influence is strongest when the use of product or brand is
visible to the group.
 Group influence is higher the less of a necessity an item is.
 In general, the more commitment an individual feels to a group,
the more the individual will conform to the group norms.
 The more relevant a particular activity is to the group’s
functioning, the stronger he pressure to conform to the group
norms concerning that activity.
 The final factor that effects the degree of reference group
influence is the individual’s confidence in the purchase situation.
Reference Group Influences on the
Consumption Process
Reference Group Influences on the
Consumption Process
Reference Group Influences on the
Consumption Process
Asch Phenomenon
 Eight subjects are shown four straight lines on a
board-three unequal lines are grouped close
together, and another appears some distance from
them.
 Seven of the subjects are working for the
experimenter, and they announce incorrect
matches. The order of announcement is arranged
so that the native subject responds last. The Native
subject almost always agrees with the incorrect
judgment of the others. This is known as the Asch
phenomenon.
Asch Phenomenon
Reference Groups Change as the
Situation Changes
Reference Groups Change as the
Situation Changes
Reference Group Influences on the
Consumption Process
Word-of-mouth (WOM)
Communications
 Word-of-mouth communication, individuals
sharing information with other individuals, are
critical influence on consumer decisions and
business success.
 Wal-Mart has become America’s largest retailer.
However, it spends just 0.5 percent of its sales on
advertising, compared to 2.5 percent for Kmart.
Clearly, positive word-of-mouth communications
are worth a great deal to a firm.
Word-of-mouth (WOM)
Communications
Likelihood of Seeking an Opinion
Leader
Opinion Leader Characteristics
 The most salient characteristic is greater long-term
involvement with the product category than the
non-opinion leaders in the group. This is referred
to as enduring involvement, and it leads to
enhanced knowledge about and experience with
the product category or activity.
 Thus, an individual tends to be an opinion leader
only for specific product or activity clusters.
Opinion Leader Characteristics
 Advertising
 Advertising attempts to
both stimulate and
simulate opinion
leadership. Stimulation
involves themes designed
to encourage current
owners to talk about the
product/brand or
prospective owners to
ask current owners for
their impressions.
Opinion Leader Characteristics
 Product sampling
 Sampling-sending a
sample of a product to
a group of potential
consumers-is an
effective meads of
generating
interpersonal
communications
concerning the product.
Opinion Leader Characteristics
 Creating Buzz
 Buzz can be defined as
the exponential
expansion of WOM. It
happens when “word
spreads like wildfire”
with no or limited mass
media advertising
supporting it.
 In fact, creating buzz is a
key aspect of guerrilla
marketing.
Diffusion of Innovations
 An innovation is an idea, practice, or product
perceived to be new by the relevant individual or
group.
 Categories of innovations
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Continuous innovation
Dynamically continuous innovation
Discontinuous innovation
Diffusion of Innovations
 Continuous innovation
 Adoption of this type of
innovation requires
relatively minor changes
in behavior or changes in
behavior that are
unimportant to the
consumer.
Diffusion of Innovations
 Dynamically continuous
innovation
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Adoption of this type of
innovation requires a
moderate change in an
important behavior or a
major change in a
behavior of low or
moderate importance to
the individual.
Diffusion of Innovations
 Discontinuous
innovation
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Adoption of this type of
innovation required
major changes in
behavior of significant
importance to the
individual or group.
Adoption Process and Extended
Decision Making
Diffusion Process
 The diffusion process is
the manner in which
innovations spread
throughout a market.
 The term spread refers to
purchase behavior in
which the product is
purchased with some
degree of regularity.
Factors Affecting the Spread of
Innovations
 Type of group
 Type of decision
 Marketing effort
 Fulfillment of felt need
 Compatibility
 Relative advantage
 Complexity
 Observability
 Trialability
 Perceived risk
Factors Affecting the Spread of
Innovations
 Perceived risk is a function
of three dimensions
 The probability that the
innovation will not
perform as desired
 The consequence of its
not performing as desired
 The ability to reverse,
and the cost of reversing,
any negative
consequences.
Diffusion Rate for Popular Consumer
Electronics
Adoptions of an Innovation Over Time
 Next figure reemphasize the fact that a few
individuals adopt an innovation very quickly,
another limited group is reluctant to adopt the
innovation, and the majority of the group adopts at
some time in between the two extremes.
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Innovators 2.5%
Early adopters 13.5%
Early majority 34%
Late majority 34%
Laggards 16%
Adoptions of an Innovation Over Time
Adoptions of an Innovation Over Time
Treasure
Impossible
I’m possible