Transcript Consumer Behavior

ENT4310
Business Economics and Marketing
Consumer Behavior
Arild Aspelund
IØT, NTNU
1
Outline
• A model for consumer behavior
• Factors influencing consumer behavior
• Theories of motivation
• The buying decision process
– A five-step model
2
A Model for Consumer Behavior
3
Key Factors Influencing Consumer Behavior
Cultural Factors
Social Factors
Personal Factors
4
Culture
The fundamental determinant of
a person’s wants and behaviors
acquired through socialization
processes with family
and other key institutions
5
Subculture influence
Nationalities
Religions
Racial groups
Geographic regions
Special interests
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Social Factors
• Reference groups
– A reference group is all individuals or institutions that have direct or
indirect influence on a person’s attitudes or behavior
• Family
– The most influential reference group
– Influence varies over a person’s life time
• Social roles and statuses
– Individuals belong to several groups
– To each group one is associated with a certain social role and status
7
Reference Groups
Membership groups
Primary groups
Secondary groups
Aspirational groups
Dissociative groups
8
Personal Factors
Age
Selfconcept
Life cycle
stage
Lifestyle
Occupation
Values
Wealth
Personality
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Key Psychological Processes
10
Motivation
Perception
Learning
Memory
Motivation
11
Freud’s
Theory
Maslow’s
Hierarchy
of Needs
Herzberg’s
Two-Factor
Theory
Behavior
is guided by
subconscious
motivations
Behavior
is driven by
lowest,
unmet need
Behavior is
guided by
motivating
and hygiene
factors
Motivation - Maslow’s Hierarchy of Needs
12
Motivation - Herzberg’s Two-Factor Theory
13
Perceptions
• Selective attention
– A cognitive screening process to save your brain from information
overload
• Selective distortion
– Tendency to interpret information to fit with your preconceptions
• Selective retention
– Tendency to remember the good about the things you like, and forget the
good about those you don’t
• Subliminal perception
– Messages to your subconscious
14
Buying Decision Processes
- A Five-Stage Model
15
Problem
Information
Evaluation of
Purchase
Postpurchase
recognition
search
alternatives
decision
behavior
Successive Sets
16
Buying Decision Processes
- Conversion Rates
Awareness
Familiarity
84
95
Consideration
50
80
Purchase
50
40
Loyalty
60
20
Ambassador
41
12
5
73
15
17
11
Summary and Continuation
• Summary
– In this lecture we have presented some factors that influence consumer
behavior
• Culture
• Social
• Personal
– We have also presented some fundamental theories of motivation
• Freud
• Maslow
• Herzberg
– Finally, we have presented a five-step model to the purchase decision
process
• Continuation
– Segmentation and targeting
18