Ii consumer buying behavior

Consumer Behavior

Factors Influencing Consumer Behavior

PersonalPsychologicalSocialCultural

Personal Factors

AgeLife-Cycle Stage

Personal Factors

AgeLife-Cycle StageOccupationEconomic CircumstancesLife Style

Psychological Factors

“Wants”Based on a want or desire to have something. Not a necessity.

Psychological Factors

Motivation:Freud

IdEgoSuper Ego

MaslowHierarchy of Needs

Psychological Factors

MotivationPerceptionPerception

The process by which an individual selects, organizes, and interprets inputs to create a meaningful picture of the world.

Selective ExposureSelective DistortionSelective Retention

Psychological Factors

MotivationPerception

LearningLearningChanges in an individual’s behavior arising form experience

Psychological Factors

MotivationPerception Learning

BeliefsBeliefsDescriptive thoughts that a person holds about something

Psychological Factors

MotivationPerceptionLearningBeliefsAttitudesAttitudes

Enduring favorable or unfavorable cognitive evaluations emotional feelings and action tendencies

Functional Factors

“Needs”Need over wants. Delivers to a real “need” to have something.

Social Class

Relatively homogenous, enduring divisions in a society,

hierarchically ordered with members sharing similar

values, interests, and behaviors.

American Social Classes

Upper Upper 1%Lower Upper 2%Upper Middle 12%Middle 32%Working 38%Upper Lower 9%Lower Lower 7%

Group Influences

Public LuxuriesGolf ClubsSnow SkisSail Boat

Private LuxuriesTV Video GamesIce MakersTrash Compactors

Public NecessitiesWrist Watch AutomobilesDress Clothes

Private NecessitiesMattressesFloor LampsRefrigerators

Strong Weak

Strong

Weak

Brand Choice

Prod

uct C

hoice

Family Influence on Buying Behavior

Husband-DominantWife-DominantEqual

Adoption Process

1. Awareness2. Interest3. Evaluation4. Trial5. Decision6. Confirmation

Examples of Buying Motives:Psychological or Functional?

A senior wants to impress his date at the prom .His primary motive is …?

Psychological

Examples of Buying Motives:Psychological or Functional?

A girl wants to remember her grandmother on her birthday.Her primary motive is…?

Psychological

Examples of Buying Motives:Psychological or Functional?

A homemaker needs a new washing machine and has had good experiences with Sears.Her primary motive is …?

Functional

Examples of Buying Motives:Psychological or Functional?

A teacher wants to buy a practical car to be used for family transportation.Her/His primary motive is …?

Functional

Examples of Buying Motives:Psychological or Functional?

A career woman always buys Liz Claiborne clothes.Her primary motive is…?

Psychological

Examples of Buying Motives:Psychological or Functional?

An overweight 40 year old man wants to loose weight so that he can reduce his blood pressure.His primary motive is…?

Functional

Examples of Buying Motives:Psychological or Functional?

A homeowner needs to mow their lawn. Their primary motive is…?

Functional

Consumer Buying Behavior Competency

Functional Motive

Psychological Motive

The price is 40 cents off the regular price.

It never needs ironing.

Diamonds are forever.

Serving you since 1971.

Ninety-day warranty.

Consumer Buying Behavior Competency

Functional Motive

Psychological Motive

Running shoe with built-in arch.

It’s all the rage—colored action wear and style.

Wheaties—the breakfast of champions!

Steel-belted radial tires warranted for 40,000 miles

A watch—a gift she will treasure always.

Learning Objectives--Reviewed

Understand the major factors influencing consumer behaviorKnow and recognize the types of buying decision behaviorUnderstand the stages in the buying decision process

Consumer Buying Behavior

Welcome to Mark529

Professor: Jaideep Sengupta PhD: UCLA MBA; BTech (Electrical Engg)

Teaching in the MBA program the last few years (including Shenzhen)Taught executives in UCLA, HK (Kellogg-HKUST EMBA)

Telephone: 852-2358-7718Email: mkjaisen@ust.hk

Course packet available with MBA office

Example 3….

In the US, the Marlboro cowboy is usually shown alone

Ad….

Example 3….

In Japan, the Marlboro cowboy is usually shown as part of a group…

Ad….

WHY??

Solution….

Culture has an influence on consumer behavior

US culture = importance of individual; not true in Asia

Japanese consumers think a single cowboy looks “lonely” and “poor”

Just an ordinary worker on a farm

GETTING TO KNOW THE AUTOMOBILE CUSTOM(H)ER

AND INFLUENC(H)ER

FIGURE 5-2FIGURE 5-2 Consumer Report’s evaluation of portable MP3-capable CD players

FIGURE 5-AFIGURE 5-A What new car buyers consider most important in deciding what new car to buy

Consumer Purchase DecisionWhy is post purchase behavior important?

Pierce Brosnan and Anna Kournikova Why use celebrity spokespersons?

Hershey’s Kisses Why use Spanish language ads in the U.S.?