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Consumer Behavior

Consumer Behavior. How does psychology and behavior impact promotions?. Who Are Consumers?. People who buy products People who use products Example: Mom buys the cereal but the kids consume and influence decision. External Influences Culture Social Class Reference Groups Family.

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Consumer Behavior

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  1. Consumer Behavior How does psychology and behavior impact promotions?

  2. Who Are Consumers? • People who buy products • People who use products • Example: Mom buys the cereal but the kids consume and influence decision

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

  4. 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.

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

  6. 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

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

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

  9. 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

  10. Selective Exposure • Consumers choose whether or not to make themselves available to information. • Example: in the Golden Age of TV networks ads could reach 70% of audience

  11. Selective Attention • Consumer chooses to focus attention on certain stimuli while excluding others. • Example: average consumer exposed to 3,000 – 20,000 promotional messages a day

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

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

  14. Psychological Influences • Elaboration Likelihood Model • Attitudes • Behavioral Intentions • Involvement • Needs – Maslow’s Hierarchy of Needs

  15. 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

  16. 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

  17. 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

  18. 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

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

  20. Hedonic Needs • Attend to messages that make us feel good. • Hedonic Consumption • stimulus cues consumption of memories • I.e., perfume and an old girlfriend

  21. 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

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

  23. 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!

  24. Multi-Stage Memory Theory • Sensory Memory • Physical Property Analysis • Short Term Memory • Assign some meaning to the new input • Combines with long-term stores • Long-term Memory • Unlimited memory store

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

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

  27. 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

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