Transcript PPT

Consumer Behavior:
How and Why People Buy
Chapter Objectives
• Define consumer behavior and explain why consumers
buy what they buy
• Describe the prepurchase, purchase, and postpurchase
activities that consumers engage in when making
decisions
• Explain how internal factors influence consumers’
decision-making processes
• Show how situational factors at the time and place of
purchase influence consumer behavior
• Explain how consumers’ relationships with other people
influence their decision-making processes
• Show how the Internet offers consumers opportunities to
participate in consumer-to-consumer marketing
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Real People, Real Choices
• Meet Daniel Grossman at Wild Planet
• Creating brands/products that parents
endorse and kids find cool
• Future direction of Room Gear product line
 Option 1: acknowledge that Wild Planet missed the
mark and drop the line
 Option 2: retain line concept and develop products
similar to those already selling
 Option 3: reposition the line toward either boys or girls
WILD PLANET
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Decisions, Decisions
• Consumer behavior:
The process we use to
select, purchase, use,
and dispose of goods,
services, ideas, or
experiences to satisfy
needs/desires
• Internal, situational,
and social influences
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Steps in Consumer
Decision Process
• Extended problem-solving versus habitual
decision-making
• Involvement: relative importance of
perceived consequences of the purchase
• Perceived risk: choice of product has
potentially negative consequences
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Decision-Making Process
Problem Recognition
Brandon is fed up with
driving old clunker
Information Search
Brandon talks to friends,
visits car showrooms, etc.
Evaluation of Alternatives
Brandon looks at 3 models
with good/bad features
Product Choice
Brandon chooses one car
based on feature/image
Postpurchase Evaluation
Figure 5.1 (Abridged)
Brandon drives car and is
happy with choice
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Step 1: Problem Recognition
• Occurs when
consumer sees a
significant difference
between current state
and ideal state
• Marketers can develop
ads that stimulate
problem recognition
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Group Activity
• Marketing activities can create problem
recognition, by showing consumers
benefits of a new product or pointing out
problems with products they already own
• For the following, suggest a creative way
to stimulate problem recognition through
marketing :
 Videogames
 A hamburger
An airline
Furniture
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Step 2: Information Search
• Consumers need adequate information to make
a reasonable decision
• Search memory and the environment for
information
• Internet: search engines, portals, or “shopping
robots”
• Behavioral targeting: Marketers deliver ads for
products consumers look for, by watching what
they do
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Internet Options for
Information Search
• Shopping portals
YAHOO!
• Search engines
EXCITE.COM
• “Shop-bots”
MYSIMON.COM
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Step 3: Evaluation of Alternatives
• Consumers are interested in a small number of
products, then narrow choices and compare
pros/cons
• Evaluative criteria: product characteristics
consumers use to compare competing
alternatives
• Marketers point out their brand’s superiority on
most important evaluative criteria.
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Discussion
• Do you agree that having too many
choices is a bigger problem than not
having enough choices?
• Is it possible to have too much of a good
thing?
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Step 4: Product Choice
• Deciding on one product
and acting on choice
• Heuristic: a mental rule of
thumb used for a speedy
decision, such as:
Price equals quality
Brand loyalty
Country of origin
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Step 5: Postpurchase Evaluation
• Consumer satisfaction/dissatisfaction after
purchase of product
• Expectations of product quality are
met/exceeded or not
• Ads/communications must create accurate
expectations of product
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Discussion
• How important is it to
be able to voice your
satisfaction with a
product? How about
dissatisfaction?
• What are the effects of
such voicing?
PLANETFEEDBACK.COM
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Figure 5.4: Influences on Consumer
Decision Making
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Internal Influences
on Consumer Behavior
• Factors that cause us
each to interpret
information about the
outside world differently:
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Perception
Motivation
Learning
Attitudes
Personality
Age group
The family life cycle
Lifestyle
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Perception
• Process by which we select, organize, and
interpret information from outside world
• Necessary for perception to occur
• Exposure: capable of registering a
stimulus
• Attention: mental processing activity
• Interpretation: assigning meaning to a
stimulus
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Discussion
• Most researchers believe
subliminal techniques are
not much use in
marketing.
• Assuming some forms of
subliminal persuasion
may influence
consumers, do you think
their use is ethical? Why
or why not?
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Motivation
• Internal state that drives us to satisfy
needs by activating goal-oriented behavior
SOLOFLEX.COM
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Figure 5.5: Maslow’s Hierarchy of
Needs and Related Products
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Learning
• A change in behavior caused by
information or experience
• Behavioral learning
 Classical conditioning
 Operant conditioning
 Stimulus generalization
American Express
Video
• Cognitive learning
 Observational learning
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Discussion
• Some fans were upset when the Rolling Stones
sold Microsoft rights to “Start Me Up” for $4
million, to promote its Windows 95 launch. Other
rock legends refuse to play the commercial
game. What’s your take on this issue?
 How do you react when one of your favorite songs turns
up in a commercial?
 Is this use of nostalgia an effective way to market a
product? Why or why not?
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Attitudes
• Lasting evaluations of a
person, object, or issue
• Three attitude components
Affect (feeling): emotional response
Cognition (knowing): beliefs or
knowledge
Behavior (doing): intention to do
something
• Marketers must decide which
attitude component will drive
consumer preferences
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Personality
• The set of unique
psychological characteristics
that consistently influences
the way a person responds to
situations in the environment
• Personality traits:
Innovativeness, materialism,
self-confidence, sociability,
need for cognition
• Self-concept
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Discussion/Group Activity
• Brands and stores are thought to have
their own particular “personalities”
 Pick a brand or store of interest and come up with a
description of its “personality”
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Age Group and Family Life Cycle
• Goods/services appeal to
specific age group
• Family Life Cycle: The
stages through which
family members pass as
they grow older
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Lifestyle
• Lifestyle: A pattern of
living that determines how
people choose to spend
their time, money, and
energy
• Psychographics: group
consumers according to
psychological and
behavioral similarities
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Situational Influences
on Consumer Decisions
• Physical environment
dimensions such as
décor, smells, and lighting
• Arousal and pleasure
determine consumers’
reaction to store
environment
• Time as a situational
factor
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Group Activity/Discussion
• Break into groups. Each group should
select a familiar store and brainstorm 1015 elements of the store’s physical
environment
 Read your list aloud to the class (and write it on the
board) without naming the store
 After all lists are on the board, everyone writes down
the name of each brand/store
 Tally correct answers and discuss
implications/insights of results
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Social Influences
on Consumer Decisions
• We are members of many groups that
influence our buying decisions:
 Culture/subcultures
 Social class
 Group memberships
 Opinion leaders
 Sex roles
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Culture
• The values, beliefs, customs,
and tastes produced or
practiced by a group of people
• Rituals such as weddings and
funerals
• Cultural values: deeply held
beliefs about right and wrong
ways to live
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Subcultures
• A group within a society
whose members share a
distinctive set of beliefs,
characteristics, or
common experiences
• Subcultures important to
marketers are racial and
ethnic groups.
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Social Class
• The overall rank or social standing of
groups of people within a society,
according to factors such as family
background, education, occupation, and
income.
• Status symbols such as luxury products
provide a way for people to flaunt their
membership in higher social classes.
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Group Memberships
• Reference group: a set of people
a consumer wants to please or
imitate and that thus has an effect
on an individual’s evaluations,
aspirations, or behavior
• Conformity means people change
behavior due to group pressure.
TUPPERWARE.COM
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Opinion Leaders
• People who influence others’ attitudes or
behaviors because others perceive them
as possessing expertise about the product
 Have high interest in product category
 Update knowledge by reading, talking with
salespeople, etc.
 Impart both positive and negative product information
 Are among the first to buy new products
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Individual Activity
• Think about a friend, associate, family
member, or celebrity who is an opinion
leader
 List and briefly explain the characteristics that relate
to this person’s opinion leadership.
 For what products is this person an opinion leader?
 What are some ways a business might use this
person to help sell its products?
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Gender Roles
• Society’s expectations regarding
appropriate attitudes, behaviors, and
appearance for men and women
• Consumers often associate “sex-typed”
products with one gender or the other.
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Group Activity
• Assume you’re an advertising account
executive, and your current client is an
auto maker. You know automobile
purchases are often influenced by a
variety of social or “other people” factors.
 List these social influences, explain why each is
important, and outline how you might use them in
developing an advertising campaign.
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Consumer-to-Consumer
E-Commerce
• Online communications and purchases that
occur among individuals without directly
involving the manufacturer or retailer
• Groups of “netizens” around the world with
similar interests, united via the Internet
• Popular online C2C formats
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Gaming
Chat rooms, rings, and lists
Boards
eBay
Blogs
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Discussion
• The Internet provides a unique opportunity
for consumers to communicate and make
purchases from each other.
 What do you think the future of C2C e-commerce is?
 How do you think it will affect traditional marketing
firms?
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Real People, Real Choices
• Wild Planet (Daniel
Grossman)
• Daniel chose option 3:
reposition the line toward
either boys or girls
 The firm renamed the line Girls
Livin’ in Style (GLS), which has
had moderate success.
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Marketing Plan Exercise
• Marketers must understand consumers and
how they select products. Pick a good or
service you like and have purchased in the
past. As part of developing a marketing plan
for this product:
 List what you need to know about consumers of your
product and how they make product decisions.
 How might you gather that information?
 How could you use that information in developing
successful marketing strategies?
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Marketing in Action Case:
You Make the Call
1. What decision must Facebook.com make?
2. What factors are important in understanding
this decision situation?
3. What are the alternatives?
4. What decision(s) do you recommend?
5. What are some ways to implement your
recommendation?
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Keeping It Real: Fast Forward to Next
Class Decision Time at PPG Industries
• Meet Vicki Holt, Senior VP, Glass & Fiber
Glass for PPG Industries, Inc.
• PPG’s Insulating Glazing Unit, or IGU,
has an aggressive competitor marketing a
complete IGU unit.
• The decision: How to react to the
competition.
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