consumer chater 6

7/31/2019 Consumer Chater 6

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CHAPTER

6

CONSUMERBEHAVIOR

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Why Study Consumer Behavior?

Marketing applications of

consumer behavior:

Market segmentation

Target market selection

Positioning

Product or service

decisionsPricing decisions

Distribution decisions

Promotion decisions


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THE SEVEN MAGIC QUESTIONS

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5

WHO

The target market


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6

WHO

The target market Their thoughts and actions


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7

WHO


Our actions


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8

WHO

Why?

What?

Product


Our actions


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WHO

Why?

How? What?

When?

ProductPromotion


Our actions


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WHO

Why?

How? What?

When?

Where?

Product

Place

Promotion


Our actions


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WHO

Why?

How? What?

When? How much?

Where?

Product

PricePlace

Promotion


Our actions


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Consumer Buying Behavior

Consumer Buying Behavior refers tothe buying behavior of finalconsumers (individuals &

households) who buy goods andservices for personal consumption.

Study consumer behavior to answer:

How do consumers respond tomarketing efforts the company mightuse?

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Defining Consumer Behavior

Consumer Behavior is the Process

Involved When Individuals or GroupsSelect, Use, or Dispose of Products,

Services, Ideas or Experiences

(Exchange) to Satisfy Needs andDesires.

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Organizational Consumer

A business, government

agency, or other institution

(profit or nonprofit) that buys

the goods, services, and/or

equipment necessary for theorganization to function.

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C ff C


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Characteristics Affecting ConsumerBehavior

Buyer

Psychological

Personal

Social

Culture

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Factors Influencing Consumer Behavior

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Culture

Culture is often the most powerful causeof a person's needs, wants and behavior.

Characteristics of Culture

Culture is learned.Certain aspects of culture never

change.

Cultural shifts create opportunities.Subcultures can be of even greater

interest to marketers than cultures.

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Solution.

Influence of culture on consumerbehavior

US culture = importance of individual;not true in Asia

Japanese consumers think a singlecowboy looks lonely and poor

Just an ordinary worker on a farm24

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Cultural Influences

Culture: values, beliefs, preferences, and tastes

handed down from one generation to the next

It is important to recognize the concept of

ethnocentrism, or the tendency to view your

own culture as the norm, as it relates to

consumer behavior.

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Core Values in the U.S. Culture

While some cultural valueschange over time, basic corevalues do not

Examples of American core valuesinclude:Importance of family and home life

Education

Youthfulness

Individualism

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International Perspective on CulturalInfluences

Cultural differences are

particularly important forinternational marketers

Successful strategies in onecountry often cannot extend toother international marketsbecause of cultural variations

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Subcultures: subgroup of culture withits own, distinct modes of behavior

Cultures are not homogeneous entitieswith universal values.

Subcultures can differ by: Traditions or Nationality

Age or Gender Religion

Social class or Profession

Figure (next slide)

Ethnic and Racial Minorities as aPercentage of the Total U.S. Population

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Bonne Bell CosmeticsWhy target the African American women market?

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Social InfluencesGroup membership influences an

individuals purchase decisions andbehavior in both overt and subtle ways.Norms: are the values, attitudes, and

behaviors that a group deems appropriate

for its membersStatus: is the relative position of any

individual member in a group

Roles define behavior that members of agroup expect of individuals who holdspecific positions within the group

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GroupsMembershipReference

Family (most important)Husband, wife, kidsInfluencer, buyer, user

Roles and Status

Social Factors

Factors Affecting Consumer

Behavior: Social

Family Buying Influence

Children can exert a

strong influence onfamily buying decisions.

Johnson & Johnson remindscustomers of its commitment

to the American Family.

What other companies usechildren to influence

family buying decisions?

Click or press spacebar to return 35

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Social Factors

Groups: - Primary groups

Reference Groups Direct faceto face or indirect influence on

their attitudes or behavior

Membership groups groups

have direct influence.

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Social factors

Dissociative or Disclaimant group

individual holds a membership but doesnot belong to and therefore, all hisactions would be opposed to that of thegroup.

Aspirational Groups this is the groupto which the individual does not hold

any membership but desires to belongto that group. He tries to copy theattitudes of buying behavior

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Secondary groups


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Secondary groups

Opinion Leaders are perceived aspeople with special skills, knowledge,

personality,. These persons influence theactions or attitudes of others informally.

trendsetters who purchase new productsbefore others in a group and then influence

others in their purchases

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Pierce Brosnan and Anna KournikovaWhy use celebrity spokespersons?

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Family - Its a small reference group buta strong influencer. As family go through

different stages of life cycle each stage itis prominent in influencing.

Roles and Status- role means theactivities he do and each role carries a

status.

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Toyota caters to family buying influences.

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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Social Influences Affect Consumer Behavior

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Social classes: groups whoserankings are determined by occupation,

income, education, family background,and residence location

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W. Lloyd Warner identified

six classes:

1. Upper-upper

2. Lower-upper

3. Upper-middle

4. Lower-middle

5. Working class

6. Lower class


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The Major American Social Classes

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Personal Factors

Age and Life-Cycle Stage Tastes and preferences change over time.

OccupationOccupation influences the purchase of

clothing, cars, memberships, etc.

Life styleAn individual way of leading his life will

determine his life style. Its decided byweather the consumer is timely or money

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Personality and Self-Concept

Personality

One Definition: Unique psychologicalcharacteristics that lead to relatively

consistent and lasting responses to onesenvironment.

Brands as expressions of identity

Ideal Self vs. Actual Self

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Maslows Hierarchy of Needs

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Self-Actualization

Products

Education, cultural events, sports, hobbies,

luxury goods, technology, travel

Marketing

themes

GatoradeIs it in you?

Little EllyAs unique as your child

Social needs


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Products Beauty aids, entertainment, clothing, cars

Marketingthemes InoxLive the movieSyndicate bank your faithful and friendly financialpartners

Big BazaarIs se acha aur sastha kahin nahin

Wheel Bilkul budget mei

Esteem Needs

Product Clothing, cars, jewelry, hobbies, beauty spa services

Marketingthemes

Lexus automobilesThe relentless pursuit of perfection

Reliance JewelsBangles to cherish to past.

Tissot watchesmore than a watch.

Butterfly kitchen appliancesThe mart kitchen.

Physiological Needs


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Products Vitamins, herbal supplements, medicines, food,

exercise equipment, fitness clubs

Marketingthemes

Garnier hair colornourishing color treatment

NimboosEk dum asli Indian

Crocinyour trusted paracetomol

Safety Needs

Products Cars and car accessories, burglar alarm systems,retirement investments, insurance, smoke and carbon-

monoxide detectors, medicines

Marketingthemes

VolvoProtect the body. Ignite the soul.

ICICI life prudentialwe cover you, in every in life


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Factors Affecting Consumer

Behavior: Psychological

Psychological

Factors AffectingBuyers

Choices

Motivation

Perception

Learning

Beliefs and

Attitudes

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Perception

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Selective Attention

People screen out most stimuli.5-62


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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Appealing to Higher Income Consumers


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Selective Distortion vs. Retention

Selective Distortion Interpreting information in a way that

supports what you already believe.Selective RetentionRemembering the good aspects of

something you like and forgetting the badaspects of something you dislike.

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Learning An immediate or expected change in behavior as a

result of experience. The learning process includes the component of:

Drive

Cue

Response Reinforcement

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Beliefs and Attitudes

A belief is a descriptive thought that a person holds

about something.

An attitudeis a persons consistentlyfavorable or

unfavorable feelings, evaluations, and tendencies

toward an object or idea.

Both have lots of staying power.

Emotional precedent

Advertising tries to modify beliefs and attitudes.5-66

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Fresh Step Crystals Cat LitterWhy use the Good Housekeeping Seal?

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Colgate Total Toothpaste and


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Colgate Total Toothpaste andBayer Extra Strength Aspirin

How did these ads change attitudes?

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The Buyer Decision Process

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The Consumer Decision Process

Consumers complete a step-by-step

process when making purchase

decisions

High-involvement purchasedecisions are those with high levels ofpotential social or economic

consequences

Low-involvement decisions areroutine purchases that pose little risk

to the consumer


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Buyer Decision Process

Post PurchaseBehavior

Purchase

Decision

Information

Search

Need

Recognition

Evaluationof Alternatives

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Buyer Decision ProcessStep 1. Need Recognition

State Where the

Buyers Needs are

Fulfilled and the

Buyer is Satisfied.

Needs Arising From:

Internal Stimuli

Hunger

External Stimuli-

Friends

Buyer

Recognizes a

Problem or aNeed.

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Family, friends, neighborsMost effective source of

information

Advertising, salespeopleReceives most information from

these sources

Mass Media

Consumer-rating groups

Handling the productExamining the productUsing the product

Personal Sources

Commercial Sources

Public Sources

Experiential Sources

The Buyer Decision ProcessStep 2. Information Search

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Consumer May Use Careful

Calculations & Logical Thinking

Consumers May Buy on Impulse andRely on Intuition

Consumers May Make Buying Decisions

on Their Own.

Consumers May Make Buying DecisionsOnly After Consulting Others.

Marketers Must Study Buyers to Find Out HowThey Evaluate Brand Alternatives

The Buyer Decision Process

Step 4. Evaluation of Alternatives

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Purchase Intention

Desire to buy the most preferred brand

Purchase Decision

Unexpected

Situational

Factors

Attitudes

of Others

The Buyer Decision ProcessStep 5. Purchase Decision

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The Buyer Decision ProcessStep 6. Postpurchase Behavior

Consumers

Expectations of Products Performance.

Products Perceived

Performance.

Dissatisfied Customer

Satisfied Customer!

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The Dark Side of Consumer


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The Dark Side of Consumer

Behavior

Uncontrollable Consumption

Behavior is Not Done by ChoiceGratification is Short-LivedStrong Feelings of Regret or

Guilt Afterwards

Illegal Activities

> Consumer Theft (Shrinkage)

>Anti-consumption Culture Jamming Cultural Resistance

Consumed Consumers

> People Who Are Exploited for

Commercial Gain in theMarketplace.

Addictive Consumption

> Gambling

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