Consumer Behavior

1. Consumer Behavior Without CB - I am Nothing!

2. Who Are Consumers? • People who buy products • People who use products • Example: Company selling a car to college-age students

3. Key Participants in the Marketing Process • Customers • Current Customers • Prospective Customers • Centers of Influence • Markets • Consumer Markets • Business Markets • Reseller Markets • Government Markets • Global Markets • Marketers

4. Consumer Needs and Utility • By definition marketers seek to establish a connection between the consumer’s needs and their product’s need satisfying ability • Utility • The product’s ability to satisfy functional and symbolic wants • Ads should communicate product’s utility

5. External Influences Culture Social Class Reference Groups Family Personal Influences Age Sex Family Status Occupation Psychological Influences Attitudes Perception Needs Major Influences on Consumers

6. A Basic Model of Consumer Decision Making Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 4-1 Figure 4-1

7. External Influences on Consumer Behavior • Culture • Subculture • Social class • Reference group • Opinion Leaders • Family

8. Culture • Complex of tangible items such as art, literature, clothing, music and intangibles such as law, values, customs that define a group of people and their way of life.

9. Social Class • Position that you and you family occupy within society • Determined by: • income • occupation • wealth • family prestige • value of home

10. Reference Groups • Collection of people that you use as a guide for behavior in specific situations. • 3 Functions • provide information • means of comparison • furnish guidance

11. Family • 2 or more people living in a house related by blood, marriage, or adoption • Provides economic, financial and emotional support • Determines Lifestyle

12. Age Gender Family Status Education Occupation Income Race and Ethnicity Personal Influences

13. Psychological Influences • Perception • Elaboration Likelihood Model • Attitudes • Behavioral Intentions • Involvement • Needs

14. Maslow’s Hierarchy of Needs • Motivation - internal force that stimulates the person to act in a certain manner. • Needs- the basis of motivated behavior

15. Maslow’s Hierarchy • Self-Actualization - Fulfillment • Ego Needs - success, achievement • Social Needs - affection, friendship • Safety and Security Needs - protection, order, stabilization • Physiological Needs - food, water, shelter, sex

16. Perception • The process by which an individual receives, selects, organizes and interprets information to create a meaningful picture of the world. • Individualized process where information is filtered and screened for interpretation

17. Processes Involved in Perception: • Sensation - how consumers sense external information • Selecting information - how they select and attend to various sources of information • Interpreting information- how this information is interpreted and given meaning Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 4-4

18. Selective Perception Process • Selective Exposure • Selective Attention • Selective Comprehension • Selective Retention

19. Selective Exposure • Consumers choose whether or not to make themselves available to information. • Example: change channels during a commercial

20. Selective Attention • Consumer chooses to focus attention on certain stimuli while excluding others. • Example: average consumer exposed to 1,500 ads a day and receives only 76!

21. Selective Comprehension • Consumers tend to interpret information in a manner that will support their own, attitudes, beliefs, motives, and experiences.

22. Selective Retention • Final screening process. • Consumers do not remember all that they see, hear, or read even after attending and comprehending it.

23. Attitudes • learned predisposition to think in a certain way about a person, product, service or idea • based on: • personal factors -social class • cultural factors -race • educational factors • familial roots • religious factors

24. Elaboration Likelihood Model • model that allows marketers to predict routes to persuasion • route to persuasion based on two moderating variables: • motivation (involvement) • ability to comprehend • central and peripheral routes are the ends of an elaboration continuum

25. ELM • Elaboration • amount of issue relevant thinking done by the consumer • Involvement • personal motivation to “think” • reflects risk and how close the issue ties to the ego

26. Peripheral Route • Affective Route - Zajonc • reflects lower levels of involvement or lack of ability to process • outcome is attitude toward the ad • attitudes less resistant or persistent than those formed centrally • relies on cues such as sex, celebrities, music color, visuals to persuade

27. Peripheral Route • Most effective forms of advertising will be: • tv • radio • celebrity endorsers • mood oriented print ads • sex

28. Techniques to Enhance Memorability • Repetition • Frequency • Jingles • Slogans • Taglines • Logos

29. Central Route • high levels of involvement • higher levels of ability to process • may reflect a natural desire to be cognitive • cognitive route to persuasion • outcome is an attitude toward the brand • attitudes formed centrally are more resistant and persistent

30. Central Route • reflected by the Fishbein Model of Attitude Formation • best forms of advertising • print • cognitive • product information provided

31. Fishbein Model Attitude Changes • Change a belief • Very difficult to change an initial negative impression • Change the Importance of the Evaluative Criteria • Add a new BiEi Combination • BEST! Improves your position and hurts everyone else!

32. Post Purchase Evaluation • Cognitive Dissonance • Post purchase feelings of uneasiness • Need reinforcement • Results from trade-offs made in decision making process