CONSUMER BEHAVIOR
Consumer Behavior - the process involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.
Consumers - people who buy or use products/services to satisfy needs/wants
Two types: 1) people who buy for themselves; and 2) people who buy for others
Consumer Behavior Research - aims to identify who the company’s customers and potential customers are and why they buy, what they buy, and how they buy.
Cultural and Social Influences
External Influences
Culture - is learned and passed on from one generation to the next,
material culture such as art, literature, buildings, furniture, music, clothes and
concepts such as morals, laws, customs.
A culture can be divided into subcultures on the basis of geographic regions or human characteristics such as age, values, or ethnic background…youth, retirees, Texans, musicians, working moms, etc.
Norms are the rules we learn that specify or prohibit certain behaviors
Values are what guide human behavior
Core Values:
1. A sense of belonging
2. Excitement
3. Fun and Enjoyment
4. Warm Relationships
5. Self-fulfillment
6. Respect from others
7. A sense of accomplishment
8. Security
9. Self-respect
Customs are culturally acceptable ways of behaving in specific situations
(Mother’s Day, Weddings, funerals, etc.)
Social Class - is the position you or your family occupy within your society.
Class is determined by income, wealth, education, occupation, family prestige, value of home or neighborhood.
Reference Groups - a collection of people that you use as a guide for behavior in specific situations - family, political parties, religious groups, racial or ethnic groups, clubs based on hobbies and informal affiliations such as fellow workers, students, or neighbors.
1. They serve as a means of comparison
2. They provide information
3. They offer guidance
Family - most important reference group because of longevity and intensity.
1) Provides economic resources
2) Provides emotional resources
3) Establishes a lifestyle for family members
Lifestyle - how you spend your time and money
Demographics
Age - people in different stages of life have different needs
Gender - differences between the sexes
1)primary - women’s ability to have children
2) secondary - associated with one sex more than the other
Education - the level of education you’ve obtained influences behavior
Occupation - most adults identify themselves by what they do
Income - discretionary income
Race and Ethnicity
Geographic location - where you live influences behavior
Psychological Influences
Psychographics - variables that shape your inner self
1. Perception - the process by which we receive information through our five senses and assign meaning to it. Selective Perception is the process of screening out information that does not interest us and retaining information that does. Selective Exposure - we seek out messages that are pleasant or sympathetic with our views and avoid those that are painful or threatening. Selective Distortion - when we “mishear” a message because it is different from what we believe. Selective Retention - the process we go through in trying to save information.
An advertiser must design a message that the consumer will be willing to receive, or else he or she will use the filter each individual possesses to avoid the message’s impact.
Cognitive dissonance - we want to reduce dissonance, to compensate for or justify the discrepancy between what we actually received and what we really received.
2. Learning - we cannot learn something unless we have accurately perceived the information and attached some meaning to it. Learning is often an unconscious activity.
Cognitive learning - stresses the importance of perception, problem solving and insight. Advertisers who adopt the cognitive learning approach try to motivate by providing information that will help a consumer’s decision making process.
Connectionism - people learn behavior by experiencing connections between stimuli.
People engage in a trial and error process that identifies which of their behaviors result in a more favorable response. Advertisers who adopt this view of learning tend to emphasize that their brand provides greater rewards than other brands.
Habit - a decision making shortcut. When we repeat a process many times and continue to be satisfied with the outcome, we develop a habit. Purchasing by habit reduces risk. Advertising should reinforce consumer habit through reminder messages, messages of appreciation and actual rewards such as coupons, frequent buyer freebies, etc.
Techniques used to improve learning:
· Music and jingles
· Testimonials by well liked spokespeople
· Humor because it reward for paying attention
· Creating a positive association with a brand name - energizer bunny
3. Motives - an internal force that stimulates you to behave in a particular manner.
Needs are basic forces that motivate you to do something. Innate needs - food, water, shelter, air and sex. Acquired needs - esteem, affection, power and learning.
Maslow’s Hierarchy of Needs
1. Self Actualization - self fulfillment, enriching experiences
2. Ego needs - prestige, status, accomplishment
3. Belongingness - love, friendship, acceptance by others
4. Safety - security, shelter, protection
5. Physiological - water, sleep and food
4. Attitudes - a learned predisposition, a feeling you hold toward an object, person or an idea that leads to a particular behavior. They are important to advertisers because they influence how consumers evaluate products. It is important to know how a consumer thinks about a product before developing an advertising strategy.
5. Personality - a collection of traits that makes a person distinctive.
6. Lifestyle - how you allocate your resources, spend your time, money and energy.
HOW DO CONSUMERS DECIDE TO BUY A PRODUCT OR SERVICE?
High involvement decision process - for expensive items/services and emotion laden products…automobiles, health care, clothes, homes and vacations.
Low involvement decision process - products purchased regularly - milk, gum, soda, etc.
High Involvement
1. need recognition
2. information search
3. evaluation of alternatives
4. purchase decision
5. postpurchase evaluation
Low Involvement
1. need recognition
2. evaluation of alternatives
3. purchase decision
4. postpurchase evaluation