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Scope of Consumer Buying Behavior

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					• Consumer behavior
Appreciate the wide scope of consumer
behavior studies, including the three consumer
roles and analysis of consumer wants and
needs

Describe the psychological bases of consumer
behavior, including perception, learning, and
motivation
Explain how psychographics seeks to explain
consumer behavior by discussing such aspects
as values, lifestyles, and self-concepts

Identify the steps in a typical consumer
decision process

Describe how households make group
consumer decisions
THE SCOPE OF CONSUMER BEHAVIOR



   Consumer behavior is the process by which
     individuals or groups select, use, or
     dispose of goods, services, ideas, or
     experiences to satisfy needs or wants.
Three Consumer Roles
                 Wants Versus Needs



• Needs – unsatisfactory condition of the
  consumer that prompt him or her to
  action that will make the condition better.

• Wants – desires to obtain more
  satisfaction than is absolutely necessary
  to improve an unsatisfactory condition.
       PSYCHOLOGICAL BASES OF
           CONSUMER BEHAVIOR


• Perception – the process by which an
  individual senses, organizes, and
  interprets information received from the
  environment.
       PSYCHOLOGICAL BASES OF
           CONSUMER BEHAVIOR


• Learning – a change in the content of
  long-term memory.
       PSYCHOLOGICAL BASES OF
           CONSUMER BEHAVIOR


• Motivation – the state of drive or arousal
  that moves us toward a goal-object.
                 Consumer Needs


• Maslow’s
  Hierarchy of
  Needs
                       Consumer Needs



Maslow’s Hierarchy of Needs
         Self Actualization

              Esteem

               Social/
           Belongingness

              Safety


           Physiological
                           Consumer Needs



                Physiological
• Products:
   Limited in the United States. Generic foods,
    medicines, special drinks, and foods for
    athletes
• Specific themes:
   Campbell’s Soup - “Soup is good food,” with
    advertising copy that stresses the nutritional
    benefits of soup
   Raisins - “Thank goodness I found a snack kids
    will sit for. And mothers will stand for.”
                       Consumer Needs



Maslow’s Hierarchy of Needs
         Self Actualization

              Esteem

               Social/
           Belongingness

              Safety


           Physiological
                           Consumer Needs


                   Safety
• Products:
  Smoke detectors, preventive medicines,
   insurance, social security, seat belts, safes
• Specific themes:
  Sleep Safe - “We’ve designed a travel
   alarm that might wake you in the middle of
   the night… You see, ours is a smoke alarm
   as well as an alarm clock”
  Alka Seltzer - “Will it be there when you
   need it?”
                       Consumer Needs



Maslow’s Hierarchy of Needs
         Self Actualization

              Esteem

               Social/
           Belongingness

              Safety


           Physiological
                        Consumer Needs



          Social/Belongingness
• Products:
   Personal grooming, foods, entertainment,
    clothing, and many others.
• Specific themes:
   Oil of Olay - “When was the last time you and
    your husband met for lunch?”
                       Consumer Needs



Maslow’s Hierarchy of Needs
         Self Actualization

              Esteem

               Social/
           Belongingness

              Safety


           Physiological
                           Consumer Needs


                   Esteem
• Products:
  Clothing, furniture, liquors, hobbies, stores,
   cars, and many others
• Specific themes:
  Sheaffer - “Your hand should look as
   contemporary as the rest of you”
  St. Pauli Girl - “People who know the
   difference in fine things know the
   difference between imported beer and St.
   Pauli Girl…”
                       Consumer Needs



Maslow’s Hierarchy of Needs
         Self Actualization

              Esteem

               Social/
           Belongingness

              Safety


           Physiological
                        Consumer Needs



              Self-Actualization
• Products:
   Education, hobbies, sports, some vacations,
    gourmet foods, museums
• Specific themes:
   U.S. Army - “Be all you can be”
   U.S. Home - “Make the rest of your life… the
    best of your life”
  Consumer Emotions and Moods



• Emotions – strong, relatively uncontrolled
  feelings that affect our behavior.



• Moods – emotions that are less intense
  and transitory.
                          Involvement



The degree of personal relevance of a
  product to a consumer.
PSYCHOGRAPHICS: DESCRIBING
       CONSUMER BEHAVIOR


• Values

• Self-Concept

• Lifestyle
                                     Values



•   Self-respect
•   Self-fulfillment
•   Security
•   Sense of belonging
•   Excitement
•   Sense of accomplishment
•   Fun and Enjoyment
•   Being well respected
•   Warm relationships with others
               VALS



• Figure 5.2
            Consumer Motivation




VALS2
Groupings
                 Consumer Motivation

                    Fulfillers
            Mature, home oriented,
           well educated
           professionals
              High incomes
              Value-oriented
           Open to new ideas
VALS2
Groupings
                  Consumer Motivation

                     Achievers
               Work oriented
               Successful
               High job satisfaction
              Respect authority, and
            favor the status quo
VALS2      Demonstrate success

Groupings through their purchase
                Consumer Motivation

                 Experiencers
             Main component of
            action-oriented segment
            Youngest in VALS2,
            median age is 25 years
            Active in both physical
            and social activities
VALS2
           Favor new products
Groupings
                  Consumer Motivation

                     Believers
             Family and community
            oriented people
               Modest means
               Brand loyal
             Favor American-made
VALS2       products

Groupings
                  Consumer Motivation

                     Strivers
               Lower-income people
             Values similar to
            achievers
              Style is important in
            lifestyle.

VALS2
Groupings
                  Consumer Motivation

                       Makers
             Main component of
            action-oriented segment
            along with experiencers
               Self-sufficient group
             Practical with little
VALS2       interest in most material
            possessions
Groupings
                Consumer Motivation

                 Actualizers
             Posses both high
            income and self-
            esteem
             Indulge in a variety
            of self-orientations

VALS2
Groupings
                  Consumer Motivation

                    Strugglers
               Have few resources
             Do not fit into the
            regular VALS2
            categories
            Brand loyal to the
            extent possible
VALS2
Groupings
                                Attitude



Attitudes are learned predispositions to
respond to an object or class of objects in
a consistently favorable or unfavorable
way.
INDIVIDUAL CONSUMER DECISION
                     MAKING


 • Figure 5.3
   Step 1: Problem Recognition



Problem recognition occurs when
consumers realize that they need to do
something to get back to a normal state
of comfort.
      Step 2: Information Search



• Awareness set

• Evoked set

• Consideration set
   Step 3: Alternative Evaluation



• Compensatory models

• Noncompensatory models
   Step 3: Alternative Evaluation



• Table 5.1
                     Step 4: Purchase



• Purchase is the stage when transaction
  terms are arranged, title of ownership is
  transferred, the product is paid for, and
  the consumer takes possession of the
  product from the seller.
Step 5: Postpurchase Evaluations



• Cognitive Dissonance
 HOUSEHOLD DECISION MAKING



• Families and Households

• Children’s Influence

• Conflict in Family Decisions
             Family Buying Decisions



•   Initiation of the purchase decision
•   Gathering and sharing of information
•   Evaluating and deciding
•   Shopping and buying
•   Conflict management
Supplemental Material
                            Needs and Wants




• Needs
   Unsatisfactory conditions of the consumer
    that lead him or her to actions that will make
    the conditions better
• Wants
   Desires to obtain more satisfaction than is
    absolutely necessary to improve
    unsatisfactory conditions
                 Determination of Needs

Individual   Genetics     Biogenics     Psychogenics

             • Determination of Needs
                3 physical characteristics of the
                 individual person
                  • Genetics
                  • Biogenics
                  • Psychogenics
                  Determination of Needs

Individual    Genetics    Biogenics   Psychogenics

             • Genetics
                Heredity and chemical/biological
                 characteristics of organisms
                Habits and needs vary with gene
                 types
                  Determination of Needs

Individual    Genetics     Biogenics   Psychogenics

             • Biogenics
                Biological characteristics that
                 people possess at birth (gender,
                 race, age, etc.)
                For example, older people have
                 different needs
                 Determination of Needs

Individual   Genetics     Biogenics     Psychogenics

             • Psychogenics
                Individual states and traits induced
                 by a person’s brain functioning
                Moods, emotions, perceptions,
                 experiences
                     Determination of Needs

• Determination of Needs
   3 physical characteristics of the
    environment
     • Climate
     • Topography
     • Ecology




 Ecology     Topography      Climate    Environment
                     Determination of Needs

• Ecology
   Environmental influences of
    humans
   Quality of air, food chain, etc.




Ecology     Topography       Climate   Environment
                     Determination of Needs

• Topography
   Physical condition of the location
    on earth, spatial profile, and
    presence of bodies of water
   People in the mountains may
    need hiking boots, people near
    water may need boats




 Ecology     Topography      Climate     Environment
                    Determination of Needs

• Climate
   Conditions that affect consumers’
    need for food, clothing, shelter
   Temperature, altitude, rainfall




 Ecology    Topography      Climate     Environment
                                               Types of Needs

                           Physiological
• The fundamentals of survival, including hunger, thirst, and
  other bodily needs




                             Physiological


                  Safety                      Affiliation


   Achievement                  Power                       Self-expression


                 Cognition                  Variety Seeking


                              Attribution
                                              Types of Needs

                              Safety
• Concern over physical survival and safety




                             Physiological


                  Safety                     Affiliation


   Achievement                  Power                      Self-expression


                 Cognition                 Variety Seeking


                             Attribution
                                               Types of Needs

            Affiliation and Belongingness
• A need to be accepted by others, to be an important person to
  them




                             Physiological


                  Safety                      Affiliation


   Achievement                  Power                       Self-expression


                 Cognition                  Variety Seeking


                              Attribution
                                              Types of Needs

                           Achievement
• A basic desire for success in meeting personal goals




                             Physiological


                  Safety                      Affiliation


   Achievement                  Power                       Self-expression


                 Cognition                   Variety Seeking


                              Attribution
                                               Types of Needs

                              Power
• A desire to gain control over one’s destiny as well as that of
  others




                             Physiological


                  Safety                      Affiliation


   Achievement                  Power                       Self-expression


                 Cognition                  Variety Seeking


                              Attribution
                                               Types of Needs

                       Self-expression
• The need to develop freedom in self-expression and to be
  perceived by others as significant




                             Physiological


                  Safety                      Affiliation


   Achievement                  Power                       Self-expression


                 Cognition                  Variety Seeking


                              Attribution
                                               Types of Needs

                             Cognition
• The desire to self-actualize through knowing, constructing a
  value system




                             Physiological


                  Safety                      Affiliation


   Achievement                  Power                       Self-expression


                 Cognition                  Variety Seeking


                              Attribution
                                               Types of Needs

                      Variety Seeking
• Maintenance of a preferred level of physiological arousal and
  stimulation




                             Physiological


                  Safety                      Affiliation


   Achievement                  Power                       Self-expression


                 Cognition                  Variety Seeking


                              Attribution
                                                Types of Needs

                             Attribution
• Estimation or attribution of the causality of events and
  actions




                              Physiological


                  Safety                       Affiliation


   Achievement                   Power                       Self-expression


                 Cognition                   Variety Seeking


                               Attribution
               Determination of Wants

Personal Context


     • Personal Context
        Personal worth
        Institutional relationships
        Cultural surroundings




                    Environmental Context
                   Determination of Wants

Personal Context


  • Personal worth
     Financial resources available to consumers
     Income assets, inheritance, borrowing
      power, etc.
     Social class classifications (capitalist, middle
      class, working poor, etc.)




                        Environmental Context
       Determination of Wants
                                     Social Class

Personal Context
  • Capitalists Class     • Top 1% with income
                            from assets earned or
  • Upper Class             inherited

  • Middle Class

  • Working Class

  • Working Poor

  • The Under Class


  Capitalists
  1%
      Determination of Wants
                                   Social Class

Personal Context
 • Capitalists Class    • Upper managers,
                          professionals, and
 • Upper Class            medium level business
                          people. Income
 • Middle Class           nearly twice the
                          national average.
 • Working Class

 • Working Poor

 • The Under Class


   Upper Class
      14%
      Determination of Wants
                                            Social Class

Personal Context
 • Capitalists Class            • Middle-level white-
                                  collar and top level
 • Upper Class                    blue-collar workers.
                                  Income somewhat
 • Middle Class                   above the national
                                  average.
 • Working Class

 • Working Poor

 • The Under Class


                       Middle
                       Class
                        33%
      Determination of Wants
                                    Social Class

Personal Context
 • Capitalists Class    • Middle-level blue-
                          collar and lower-level
 • Upper Class            white-collar workers.
                          Income and
 • Middle Class           educational level
                          slightly below national
 • Working Class          level.

 • Working Poor

 • The Under Class

                        Working
                         Class
                         33%
      Determination of Wants
                                   Social Class

Personal Context
 • Capitalists Class    • Low paid workers
                          (minimum wage).
 • Upper Class            Income just above the
                          poverty line. Most
 • Middle Class           have some high school
                          education
 • Working Class

 • Working Poor

 • The Under Class


                               Working Poor
                                 11-12%
      Determination of Wants
                                   Social Class

Personal Context
 • Capitalists Class    • Depend primarily on
                          welfare systems.
 • Upper Class            Standard of living
                          below poverty line.
 • Middle Class           Lack regular
                          employment and
 • Working Class          education

 • Working Poor

 • The Under Class


                                     The Under
                                          Class
                                         8-9%
                   Determination of Wants

Personal Context


  • Institutional relationships
     Groups and organizations to which a person
      belongs
     Institutional context includes workplace,
      religious and educational institutions, family
      and friends, and peer groups




                        Environmental Context
                  Determination of Wants

Personal Context


  • Cultural surroundings
     Culture’s influence on consumers
     Some cultures value age, some value youth,
      some value possessions, some value the
      inner self, etc.




                      Environmental Context
                  Determination of Wants

Personal Context




        • Environmental Context
           Economy
           Technology
           Public policy




         Environmental Context
                  Determination of Wants

Personal Context



   • Economy
      Economic development and business cycles
       in a nation’s economy
      Economic level of a nation, inflation,
       unemployment rate, income growth, etc.




          Environmental Context
                   Determination of Wants

Personal Context



   • Technology
      Man-made inventions and devices used to
       sustain, facilitate or enhance human life and
       activities
      Energy, telecommunications, education, etc.




           Environmental Context
                     Determination of Wants

Personal Context



   • Public policy
      Governmental laws and regulations that
       control human behavior
      Business practices like product safety,
       pricing, etc. are regulated




          Environmental Context
Consumer Perception
                      Information Processing


                        • When relevant
 • Exposure               marketplace
                          information (e.g. an
                          advertisement)
 • Attention              reaches one or more
                          of the consumer five
                          senses.
 • Comprehension


 • Acceptance


 • Retention
Consumer Perception
                      Information Processing


                        • To attend is to focus
 • Exposure               mental effort on a
                          particular stimulus
                          from all that are
 • Attention              physically present.


 • Comprehension


 • Acceptance


 • Retention
Consumer Perception
                      Information Processing


                        • Comprehension is the
 • Exposure               interpretation or
                          perception, of what
                          the stimulus means,
 • Attention              implies, or represents.


 • Comprehension


 • Acceptance


 • Retention
Consumer Perception
                      Information Processing


                        • Acceptance is the
 • Exposure               extent to which a
                          consumer agrees with
                          marketing message
 • Attention              that has been
                          attended and
                          comprehended.
 • Comprehension


 • Acceptance


 • Retention
Consumer Perception
                      Information Processing


                        • Retention represents
 • Exposure               the transfer of
                          marketplace
                          information into long
 • Attention              term memory.


 • Comprehension


 • Acceptance

 • Retention
      Consumer Decision Making
                                            Individual


                 Problem      Information    Alternative
                Recognition     Search       Evaluation


• Individual Decision Making                 Purchase
  Mental budgeting
  Payer plays the most important               Post-
   role                                       purchase
                                             Experience
           Consumer Decision Making
                                                     Individual


                         Problem       Information    Alternative
                        Recognition      Search       Evaluation


• Internal and external stimuli
                                                      Purchase
  generate perceived state of
  discomfort
• Familiar problems - stock depletion                    Post-
                                                       purchase
• Novel problems - associated with life               Experience
  events
• Vivid problems - very visible problem
• Latent problems - not obvious, requires
  self-reflection or external agent to be
  discovered
         Consumer Decision Making
                                                Individual


                     Problem      Information    Alternative
                    Recognition     Search       Evaluation

 Awareness Set
                                                 Purchase


                                                    Post-
                     Brands NOT
   Evoked set                                     purchase
                      Recalled
                                                 Experience



                     Brands NOT
Consideration Set
                     Considered
       Consumer Decision Making
                                             Individual


                  Problem      Information    Alternative
                 Recognition     Search       Evaluation


• Information Sources
                                              Purchase
   Nonmarketer - personal
    sources, independent sources
                                                 Post-
   Marketer - under the marketer’s            purchase
    control                                   Experience
          Consumer Decision Making
                                                    Individual


                         Problem      Information    Alternative
                        Recognition     Search       Evaluation



                                                     Purchase
• Search Strategies
    Routine problem solving - no new info
     considered                                         Post-
    Extended problem solving - extensive and         purchase
     deliberate search                               Experience
    Limited problem solving - limited time and
     energy invested
    Heuristics strategy - broad inferences, past
     experiences, brand names
        Consumer Decision Making
                                                Individual


                     Problem      Information    Alternative
                    Recognition     Search       Evaluation


• Determinants of amount of searching
                                                 Purchase
    Performance risk
    Social risk
    Psychological risk                             Post-
    Financial risk                               purchase
    Obsolescence risk                           Experience
       Consumer Decision Making
                                             Individual


                  Problem      Information    Alternative
                 Recognition     Search       Evaluation


• Compensatory model                          Purchase
  Consumer considers all
   attributes and mentally trading
                                                 Post-
   off alternatives weaknesses
                                               purchase
   (Pros vs Cons)                             Experience
         Consumer Decision Making
                                                  Individual


                       Problem      Information    Alternative
                      Recognition     Search       Evaluation


• Noncompensatory models
                                                   Purchase
    Disjunctive - trade-offs between
     aspects of choice alternatives
    Lexicographic - rank-ordering of                 Post-
     alternatives                                   purchase
    Elimination by aspects - attributes in        Experience
     order of importance with cut-off
     values
         Consumer Decision Making
                                                Individual


                     Problem      Information    Alternative
                    Recognition     Search       Evaluation


• Choice identification
                                                 Purchase
• Purchase intent
• Purchase implementation
    Sometimes derailed by deviation from           Post-
     identified choice (out of stock, new         purchase
     information, financing, etc.)               Experience
       Consumer Decision Making
                                              Individual


                   Problem      Information    Alternative
                  Recognition     Search       Evaluation


• Cognitive dissonance -
                                               Purchase
  postpurchase doubt about the
  wisdom of the choice
• Usage outcome                                   Post-
                                                purchase
   Can generate exit, voice, or               Experience
    loyalty
  Consumer Decision Making
                              Family Buying Roles



                             • Family member who
• Initiator                    initiates thinking
                               about buying products
                               (gatekeeper)
• Influencer                 • Family member who
                               initiates information
                               gathering
• Decider


• Buyer


• User
  Consumer Decision Making
                              Family Buying Roles



                             • Family member whose
• Initiator                    opinion is sought
                               about purchases
                             • Provides information
• Influencer                   about brands and
                               evaluative criteria

• Decider


• Buyer


• User
  Consumer Decision Making
                              Family Buying Roles



                             • Family member who
• Initiator                    has financial authority
                               and/or power to
                               purchase the product
• Influencer


• Decider


• Buyer


• User
  Consumer Decision Making
                              Family Buying Roles



                             • Family member who
• Initiator                    acts as the purchasing
                               agent
                             • Performs the logistics
• Influencer                   (going to the store,
                               writing the check,
                               etc.) of the purchase
• Decider


• Buyer


• User
  Consumer Decision Making
                              Family Buying Roles



                             • Family member who
• Initiator                    actually uses or
                               consumes the product

• Influencer


• Decider


• Buyer


• User

				
DOCUMENT INFO
Description: Scope of Consumer Buying Behavior document sample