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MKTG 504 - CONSUMER BEHAVIOR by gph47207

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									 MKTG 504 - CONSUMER
 BEHAVIOR



WHO, WHEN, HOW,
WHERE.........

 Dr. Dennis Pitta
 University of Baltimore
CONSUMER BEHAVIOR

 The subject of human
 behavior that is concerned
 with the decisions and acts
 of individuals in purchasing
 and using products.
BUYING BEHAVIOR

 The decision processes and
 actions of individuals
 involved in buying and
 using products.
The First Buyer Behavior
Model: Simple Response



Stimulus   Organism   Response
ECONOMIC (HU) MAN MODEL

Income is spent on goods providing

UTILITY

MARGINAL UTILITY CONCEPT

PROBLEMS WITH THE MODEL:
MAN NOT ALWAYS RATIONAL
NO PERFECT INFORMATON
USES FOR THE ECONOMIC
HUMAN MODEL

USEFUL FOR EXPENSIVE GOODS
PROVIDES ANALYSIS OFECONOMIC
 VARIABLES FOR WHCIH DATA
 EXISTS.

(E.G., ELASTICITY - at what price will
 utility decrease?)
Downward sloping demand curve
LEARNING THEORY MODEL -
PAVLOVIAN

    DRIVE

    CUE

    RESPONSE

    REINFORCEMENT
USES FOR LEARNING THEORY
MODEL

MANY: BRAND LOYALTY
BRAND NAMES
PROBLEMS WITH THE LEARNING
THEORY MODEL

NEGLECTS:

PERCEPTIONS
INTERPERSONAL INFLUENCES
SUBCONCIOUS
MOTIVATION MODEL: FREUDIAN

(SYMBOLIC PRODUCT)
Uses PROJECTIVE TECHNIQUES
MOTIVATIONAL RESEARCH
PROBLEMS WITH THE MODEL:
COSTLY
INTERPRETATION???
A projective test - the Thematic
Apperception Test
Typical directions….

Study the picture on the right until
your imagination begins to form a story
about it. There are no rules except
that your story should have a beginning
(what has happened in the story so
far), middle (what is happening now),
and an end (how things turn out).
Another example of
projective techniques...
Describe the person who composed this
shopping list (List A or List B)

        10 pounds of potatoes
           5 pound of sugar
      3 pounds of ground round
1 lb of ground coffee <--> 16oz instant
         1 loaf of white bread
         2 pounds of carrots
     1 box of laundry detergent
         1 pound of tomatoes
              2 qts milk
Influences on Consumer
Behavior


           Personal Influences

 Age and Family Life         Lifestyle
     Cycle Stage

     Occupation &          Personality &
Economic Circumstances     Self-Concept
Family Life Cycle stages

    Single   Young Full       Full      Empty   Sole
             Married Nest I   Nest II   Nest    Survivor
Consumption in Family Life Cycle stages

        Single   Young Full      Full      Empty     Sole
                 Married Nest I  Nest II   Nest      Survivor
CAR     Small    Small 4 door    Mini-     Sports
                                 van       car
HOME    Apart-   Apart-   Small Larger     Smaller   Nursing
        ment     ment     house house      house     home
Other   Vaca-    China    Toys + Bail      Vaca-     Health
        tions             cribs            tions     care
SOCIAL PSYCHOLOGICAL MODEL

MANY FACTORS AFFECT BEHAVIOR:

INDIVIDUAL
FAMILY
REFERENCE GROUPS
 (Opinion Leadership)
SOCIAL CLASS
CULTURE
Personal Influence : PERSONALITY


    Personality = The
    collection of relatively
    permanent tendencies to
    behavior in consistent
    ways in certain situations.
Personal Influence: ATTITUDES

 Attitudes = Enduring feelings, evaluations,
 and responses - tendencies directed toward
 an object or idea.

 May be positive or negative.

 Attitudes does not equal buying intentions.

 Resistant to changes.
Components of attitudes

BELIEFS about an object (bi)
EVALUATION of those beliefs as good
 or bad (e i)


Ao=biei
My attitude toward spinach

Aspinach= b1e1+b2e2+b3e3+b4e4
  1 - it is good for me
  2 - it is low calorie
  3 - it reduces cholesterol??
  4 - it tastes bad



Aspinach= (1)(+1)+ (1)(+1)+ (0)(+10)+ (1)(-6)
 =-4
How do you change a person’s
attitude?

Change the beliefs - not the evaluation



Example: 9 out of 10 doctors eat
 spinach to lower their cholesterol
Do you see the black dots?
Personal Influence : Perceptions?
Personal Influence: PERCEPTION

 Perception = The process through which an
 individual selects relevant stimuli from the
 environment, organizes them and assigns
 meaning to them.

 SELECTIVE EXPOSURE

 SELECTIVE DISTORTION

 SELECTIVE RETENTION
Is this perceived?
Personal Influence: MOTIVATION

  Motivation = The driving force that causes a
  person to take action to satisfy specific
  needs or wants.

  Example: Maslow’s hierarchy.

  Physiological
  Safety
  Love and belonging
  Esteem
  Self-esteem
How believable is Maslow?

There is no evidence that needs
 beyond safety needs exist widely
 throughout society.
Personal Influence: LEARNING


   Learning = The process
   through which a relatively
   permanent change in
   behavior results from the
   consequences of past
   behavior.
Source of Learning

Direct Experience = actual use

Indirect Experience =
information obtained from
others or observation of the
behavior of others.
Result of Learning

 Brand Loyalty -> learned
 through positive
 reinforcement.

 Extinction -> weakening of
 well-established habit by
 unsatisfactory experiences.
Social Factors



             Reference
              Groups

                         Roles &
    Family
                         Statuses
Cultural Factors

             Culture
           Subculture
           Social Class

             Buyer
Diffusion of Innovation

 CONCERNED WITH THE
 ADOPTION OF NEW
 PRODUCTS
How do products diffuse
through the
population over time?
The Diffusion of Innovations through a
market




                          34%        34%
                          Early      Late
                         majority   majority
  2 1/2%       13 1/2%                           16%
Innovators      Early                          Laggards
              adopters



             Time of adoption innovations
Which group pays the most
money for a product or service?
Which group expects to pay the
least money for a product or
service?
Buying is work - let’s look at the
effort needed to buy
something….
How much effort do you
spend to buy gum?

________________________________
How much effort do you
spend to buy a new
textbook?



________________________________
How much effort do you
spend to buy your first
house?


________________________________
CONSUMER BEHAVIOR
When the product is familiar but not
 important - ROUTINE RESPONSE
 BEHAVIOR
When the product is unfamiliar and not
 important - LIMITED DECISION
 MAKING
When the product is IMPORTANT ($$) -
 EXTENSIVE DECISION MAKING
When ya gotta have it - IMPULSE
 BUYING
When your car blows blue
 smoke, makes a funny very
 loud noise and dies….what
 do you do?
Consumer Decision Process

PROBLEM RECOGNITION
INFORMATION SEARCH
ALTERNATIVE EVALUATION
PURCHASE DECISION
POSTPURCHASE EVALUATION
Consumer Buying
Process
  Problem
recognition

      Information
         search

              Evaluation of
               alternatives

                       Purchase
                       decision

                              Postpurchase
                                behavior
  Four Types of Buying
  Behavior

                     High           Low
                 Involvement    Involvement
Significant      Complex        Variety-
differences       Buying        Seeking
 between
  brands
                 Behavior       Behavior
    Few         Dissonance-     Habitual
differences   Reducing Buying
 between
                                 Buying
  brands         Behavior       Behavior
How does organization
buying behavior differ from
consumer buyer behavior?
Organizational Buying Behavior
CHARACTERISTICS
 Derived Demand
 Fewer Buyers
 More Concentrated Geographically
 Greater $ per Transaction
Organizational Buying Behavior
DIFFERENCES FROM CONSUMER
 BEHAVIOR
 More Rational (Value Analysis)
 Large Volume Purchases
 Many Individuals Involved
 Evaluation Specific
 Service and Leasing Important
Organizational Buying Behavior
         “THE BUYING CENTER”
BASED ON ROLES
 USER - ACTUALLY USES IT
 BUYER - BUYS IT (PROCESSES THE
  PAPERWORK)
 INFLUENCER - SHAPES THE EXPECTATIONS
  FOR IT
 GATEKEEPER - INFLUENCES THE FLOW OF
  INFORMATION ABOUT THE DECISION
 DECIDER - ACTUALLY MAKES THE DECISION
Which role is the most
important?
Organizational Buying Behavior

           BUY TASKS
NEW TASK - NEW PRODUCT- NEW
 VENDOR
STRAIGHT REBUY - OLD PRODUCT -
 NEW VENDOR
MODIFIED REBUY - NEW PRODUCT -
 OLD VENDOR/ OR OLD PRODUCT -
 NEW VENDOR
Organizational Buying Behavior
NAIS( old SIC) CODE - STANDARD
 INDUSTRIAL CLASSIFICATION
A WAY OF LUMPING LIKE COMPANIES
 TOGETHER
EXAMPLE
  27 -> PRINTING, PUBLISHING, AND ALLIED
   INDUSTRIES
  272 -> PERIODICALS: PUBLISHING,
   PUBLISHING AND PRINTING
  2721 -> COMIC BOOKS, MAGAZINES,
   PERIODICALS, STATISTICAL REPORTS,
   TRADE JOURNALS
UPCOMING TOPIC

PRODUCT

								
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