Transcript Document

Consumer Behavior
Consumer behavior: consists of
the actions a person takes in
purchasing and using products
and services, including the mental
and social processes that come
before and after these actions.
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FIGURE 4-4 Influences on the consumer
purchase decision process from both
internal and external sources
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Perception
Perception is the process by
which an individual selects,
organizes, and interprets
information to create a
meaningful picture of the world.
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In marketing:
“Perception is reality.”
In art:
“Is all what we see or seem
but a dream within a dream.”
Edgar Allan Poe
In politics:
“Power is the ability to define
phenomena.”
Huey Newton
Stimulus
Receptor
SIS
Codes
SIS
Filter
Attention
Expectations
Motives
Attitudes
Gestalt
Organization
Closure
Proximity
Common Fate
Figure-ground
PH
Perception
Perceptual Hypothesis
Memory
Feedback
Principles of Sensation
1. Only change is recognized
2. The ability to detect is based on the amount of the stimulus
Thresholds:
Absolute
JND (Just noticeable difference)
S. S. Stevens
Package volume and price
Perceptual Defense
Smoking study
Sherif’s Theory
Subliminal Advertising
Perceptual Defense
Sherif’s Theory
Perceptual Defense
Subliminal advertising
Perceptual Defense
Jean Piaget
Schemata
Assimilation
Accommodation
Perceptual Equilibrium
Cognitive Dissonance
Perceptual Equilibrium
Cognitive Dissonance
Other perceptual factors
Color
Other perceptual factors
Size
Square Root Law
Impact
Other perceptual factors
Social factors
Halo effect
Being attractive is good
Jane is attractive
Therefore Jane is good!
Other perceptual factors
Social factors
Stereotypes
Other perceptual factors
Social factors
Similarity
Other perceptual factors
Social factors
Initial impressions

Strategies to Reduce Perceived Risk
• Obtain Seals of Approval
• Secure Endorsements
• Provide Free Trials/Samples
• Give Extensive Instructions
• Provide Warranties/Guarantees
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
Learning
A relatively permanent change in behavior due
to prior experience.

Behavioral Learning
Classical conditioning
Operant conditioning
• Drive (Hunger)
• Cue
• Response
• Reinforcement
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
Behavioral Learning
• Stimulus Generalization
• Stimulus Discrimination

Cognitive Learning

Brand Loyalty
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Attitudes and Attitude Change
Attitudes: Learned predispositions to
respond to an object or class of objects
in a consistently favorable or unfavorable way.
Attitudes and Attitude Change
1. They are learned
Family
Friends (peers)
Teachers (infleuncers … media
Attitudes and Attitude Change
1. They are learned
2. They are predispositions
Long-lasting and important
Attitudes and Attitude Change
1. They are learned
2. They are predispositions
3. They are consistent
Attitudes and Attitude Change
1. They are learned
2. They are predispositions
3. They are consistent
4. They are the link between
perception and behavior
Perception
Attitudes
Behavior
Attitudes and Attitude Change
1. They are learned
2. They are predispositions
3. They are consistent
4. They are the link between
perception and behavior
5. They are a “hypothetical construct”
Why do customers have them?
1. Organize knowledge
2. Ego-defense
3. Value
4. Utilitarian (tools)
Why do customers have them?
1. Organize knowledge
2. Ego-defense
3. Value
4. Utilitarian (tools)
Changing attitudes
1. Consistency
2. Communications
Consistency
1. Reactance Theories
Establishing and maintaining freedom
Consistency
2. Cognitive Dissonance
Festinger (grasshoppers)
Pro-Obama article
Post purchase dissonance
Consistency
2. Cognitive Dissonance
Pro-Obama article
Consistency
2. Cognitive Dissonance
Post purchase dissonance
Consistency
3. Social judgment theories
Sherif
Heider’s Balance Theory
Consistency
4. Congruity theories
Linkage to positive or negatives
Attitude Change and Communication
Attitude Change and Communication
1. Source credibility
Expertise and familiarity
The “Sleeper Effect”
Attitude Change and Communication
2. Source physical attractiveness
Halo Effect
Why?
Gets attention
Gives information
Minimizes cognitive
dissonance
Works
Attitude Change and Communication
3. Source likeability
Factors
Similarity (unless….)
Speed of speaking
Errors
Known factors
(As seen on TV!)
Attitude Change and Communication
4. Message factors
Repetition (two factor theory)
Words vs Pictures
Vivid or Abstract
Attitude Change and Communication
4. Message factors
Comparative
One-sided vs. two-sided
Drawing conclusions
Primacy or Recency Effects
Attitude Change and Communication
5. Receiver Emotions
a. Feeling good
Humor (What is funny?)
Attractiveness
Sex… food….
Music
Flattery
Good news
Attitude Change and Communication
5. Receiver Emotions
a. Feeling bad
Works or doesn’t work?
Protection Racket
Hierarchy of Effects
Learning Hierarchy
Cognition
Affect
Behavior
Hierarchy of Effects
Emotion Hierarchy
Affect
Behavior
Cognition
Hierarchy of Effects
Emotion Hierarchy
Behavior
Affect
Cognition
Hierarchy of Effects
Emotion Hierarchy
Affect
Behavior
Cognition
Customer Decision Making
Involvement & Decision Complexity

Low Involvement
• Maintain Product Quality
• Avoid Stockouts
• Reduce Cognitive
Dissonance with Ads

High Involvement
• Use Comparative Ads
• Use Personal Selling
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Customer Decision Making
Involvement
Low
High
Complexity
Low
Impulse
Buying
High
Customer Decision Making
Involvement
Low
High
Impulse
Buying
Low
Inertia
Complexity
High
Customer Decision Making
Involvement
Low
High
Impulse
Buying
Low
Inertia
Complexity
High
Brand Loyalty
Customer Decision Making
Involvement
Low
High
High
Impulse
Buying
Complex
Decision
Making
Low
Inertia
Brand Loyalty
Complexity
FIGURE 4-3 Comparison of problem-solving
variations: extended, limited, and routine
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FIGURE 4-A Consumers use search,
experience, and credence properties to
evaluate services
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FIGURE 4-1 The purchase decision process
consists of five stages
Ideal
Opportunity
Actual
Need
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2. Information Search
Internal Search
Awareness Sets
Evoked set
50% to 70% of all purchases
2. Information Search
External Search
How much:
Involvement
Perceived Risk
Time Pressures
Customer Characteristics
Familiarity and Expertise
Ignorance paradox
3. Alternatives Evaluation
Models:
Compensatory
Non-compensatory
Conjunctive Bottom up
Lexicographic Top down
Heuristic
Satisficing
4. Purchase
5. Post-Purchase Experience
All products are evaluated!
Expectancy Disconfirmation model
Equity Theory What is fair?
Cognitive Dissonance
Contrast Effects
Valence
Post-Purchase Experience
Buyer’s Regret
+
Reactance
Dissonance
Time
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
PERSONALITY

Personality


Traits
Self-Concept
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Personality and Lifestyle
Personality and Lifestyle
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.
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Take the VAL’s Test
http://www.strategicbusinessinsights.com/vals/presurvey.shtml
Take a personality test
http://personality-testing.info/tests/BIG5.php
FIGURE 4-5 Hierarchy of needs
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Social Class
A social stratification of persons with
shared values, attitudes, and behaviors.
Privilege
In U.S.
Education
Occupation
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
PERSONAL INFLUENCE

Opinion Leaders

Word of Mouth
• Buzz
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SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
REFERENCE GROUPS

Reference Groups
• Membership Group
• Aspiration Group
• Dissociative Group
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SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
FAMILY INFLUENCE

Consumer Socialization

Family Life Cycle
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FIGURE 4-6 Modern family life cycle stages
and flows
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SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
CULTURE AND SUBCULTURE

Culture
• Hispanic
Buying
Patterns

• African
American
Buying
Patterns
Subcultures
• Asian
American
Buying
Patterns
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
Social Class
• Upper Class
• Middle Class
• Working/Lower Class
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Culture
Hofstrede
1.
2.
3.
4.
5.
Individualism vs. collectivism
Large vs small power distance
High vs low uncertainty avoidance
Masculinity vs femininity
Abstract vs associative
Kluckhohn
1. Individual relation with nature
Subjugated
In harmony with
Mastery over
Kluckhohn
2. Time
Past-present-future orientation
Mono vs poly time
Basic nature of time
Linear
Circular
Procedural
Kluckhohn
3. Personal activity
Being
Becoming
Doing
Kluckhohn
4. Individual relation to others
Traditional
Democratic
Individualistic
Myths
Rituals
Sacred and Profane
Some definitions
Motivation
Motivation is the energizing force
that stimulates behavior to satisfy
a need.
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Brand Loyalty
Brand loyalty is a favorable
attitude toward and consistent
purchase of a single brand over
time.
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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.
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Opinion Leaders
Opinion leaders are individuals
who exert direct or indirect social
influence over others.
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Word of Mouth
Word of mouth involves the
influencing of people during
conversations.
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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.
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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.
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Subcultures
Subcultures are the subgroups
within the larger, or national,
culture with unique values, ideas,
and attitudes.
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