5 Cons Behavior

7/28/2019 5 Cons Behavior

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Consumer Behavior


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Model of Buyer Behavior


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Factors Influencing Consumer Behavior


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Culture is often the most powerful cause of aperson's needs, wants and behavior.

Characteristics of Culture

Culture is learned.

Certain aspects of culture never change.

Cultural shifts create opportunities. Subcultures can be of even greater interest to

marketers than cultures.

Culture


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Marketing to Subcultures

Procter & Gamble targetsHispanics using print and TV andhas developed special Spanish

versions of some brands.


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Societys relatively permanent and ordered

divisions

Social Class Members share similar values,interests, and purchase behaviors

Indentify by: income, occupation, education,

wealth, and other variables

Opportunity: Social Mobility products

Social Class


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The Major American Social Classes


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Groups:

Reference Groups

Aspirational Groups

Dissociative Groups

Opinion Leaders

Family

Roles and Status

Social Factors


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Toyota caters to family buying influences.


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Age and Life-Cycle Stage Tastes and preferences change over time.

Occupation Occupation influences the purchase of clothing, cars, memberships, etc.

Economic Situation Income-sensitive goods

Counter-cyclical goods

Personal Factors


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Personal Factors

Lifestyle:

Pattern of living (AIO)

Activities

Interests

Opinions.

VALS:

Classifies consumers withrespect to motivation and

resources.

Predicts purchase behavior


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Personality One Definition: Unique psychological characteristics that lead to relatively consistent and lasting

responses to ones environment.

Freudian Theory Subconscious motivations

Big 5 - OCEAN Openness

Conscientiousness

Extraversion

Agreeableness

Neuroticism

Brands as expressions of identity

Ideal Self vs. Actual Self

Personality and Self-Concept


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Maslows Hierarchy of Needs


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Perception

Process by which people select,

organize, and interpretinformation to form a

meaningful picture of the world.

People can form different perceptions

of the same stimulus.


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Selective Attention

People screen out most stimuli.


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Selective Distortion vs. Retention

Selective Distortion Interpreting information in a way that supports what you already

believe.

Selective Retention Remembering the good aspects of something you like and forgetting

the bad aspects of something you dislike.


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One Definition: A relatively permanent change in behavior due to experience.

Driven by stimulus-response chains (conditioning).

Strongly influenced by behavioral consequences

(Operant Conditioning) Behaviors with satisfying results are repeated.

Behaviors with unsatisfying results are avoided.

Different from deliberation

Learning


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Beliefs and Attitudes

A beliefis a descriptive thought that aperson holds about something.

An attitudeis a persons consistentlyfavorable or unfavorable feelings,evaluations, and tendencies towardan object or idea.

Both have lots of staying power.

Emotional precedents

Advertising tries to modify beliefs andattitudes.


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The Buyer Decision Process


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Need Recognition

Buyers recognize a

need or problem as aresult of internal or

external stimuli.

Marketing communications often stimulate

need recognition.


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Hungry yet?

Triggering Need Recognition


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Information Search

High vs. Low

Involvement Purchases

Cost vs. Benefit Model Big-Ticket Anomolies

Cognitive Economy

edmunds.com
http://www.edmunds.com/http://www.edmunds.com/


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Information Sources

Personal Family, friends, neighbors,

and casual or workacquaintances

Commercial Advertising, salespeople,

dealers, Web sites,packaging, and displays

Public Mass media articles or news

programs, Internet searches,consumer rating organizations

Experiential Using, handling, examining or

sampling the product

Which source is most influential?


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ELM: Central vs. Peripheral Route processing

Some Types of Evaluation Calculus:

Compensatory vs. Non-compensatory

Weighted Tally Processes

Elimination-by-aspects

Lexicographic

Checkbox Choice

Affect Referral

Evaluation of Alternatives


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Weighted Tally Process Example

Assume consumer weighs Memory, Graphics, Size/Weight and Price 30%, 20%,

40%, and 10%, respectively.

Computer As score would be:

(30% x 10) + (20% x 8) + (40% x 6) + (10% x 4) = 7.4


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Successive Sets


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Purchase Decision

Intentions to purchase are sometimes

interrupted.

Potential Interrupters:

Attitudes & influences of others

Unexpected situational

factors

Buyers Remorse

Speed of decision


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Postpurchase Behavior

Consumer satisfaction/dissatisfaction results from gaps

between expectations and perceived performance.

Performance BELOW Expectations Disappointment

Performance EQUALS Expectations Satisfaction

Performance GREATER than Expectations Delight

Performance MUCH GREATER than Expectations

Expectation Recalibration


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Cognitive Dissonance: Did I make the right

purchase? Should I have bought this?

Minimize dissonance by: Offering mechanisms for making complaints

(Customer Service, 800 hotlines, e-mail, etc.)

Being responsive to problems and questions

Advertising (remind consumer why choice made sense) Minimizing the potential for product misuse (good product

instructions) and Poke-Yoke.

Cognitive Dissonance


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Question du Jour

Is this for real?


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1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Re-Trial

6. Adoption

The Adoption Process


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Not everyone adopts at the same pace.

Innovators: venturesome, try new ideas at somerisk.

Early adopters: opinion leaders who adopt new ideasearly, but carefully.

Early majority: deliberate adopters, who adoptbefore the average person.

Late majority: skeptical, adopt only after the majorityof people have tried a product.

Laggards: last to adopt, tradition bound, andskeptical of change.

Product Adopter Categories


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Adopter Categorization Distribution


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Relative Advantage Is the innovation perceived as superior to existing products?

Compatibility

Does the innovation fit the values, behavior and experience of thetarget market?

Complexity Is the innovation difficult to understand or use or perceived as such?

Utility & Cost-Benefit Can the innovation be used extensively or on a more limited basis?

Communicability Can results be easily observed and described to others?

Product Characteristics That Influence the

Rate of Adoption


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Question du Jour

Do consumers always know what

they really want or need?


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Other Consumer Behavior

Models & Theories


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Reactance

Reactance is an

emotional reaction in

direct contradiction to

rules or regulations thatthreaten or eliminate

specific behavioral

freedoms. - Wikipedia
http://en.wikipedia.org/wiki/Emotionhttp://en.wikipedia.org/wiki/Emotion


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Variety-Seeking vs. Habit Persistence

Variety-Seeking

Often driven by need for arousal

Preference-testing utility

Consumers often overestimate their variety needs

Habit Persistence

Different from Loyalty

Typically driven by risk aversion


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Sunk Cost Bias

Investing more resources in something you

previously invested in, solely because you previously

invested in it.


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False Consensus Bias

Not everyone thinks like you, expects what

you expect, believes what you believe.

Very dangerous for marketers.


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Decision Heuristics

Anchoring & Adjustment

Reference Points

Emotion

Mood Regulation

Elevation

Maintenance

Affect Evaluation

Effects on Risk Taking


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Prospect Theory


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Mental Accounting

Consumers

Segregate gains

Integrate losses

Integrate smaller losses with larger gains

Segregate small gains from large losses

Implications for marketing strategy?


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In-Class ActivityWHY WE BUY

Choose a product, product line, brand, or company and answer the following:

What are the obvious (i.e. more superficial) reasons why consumers buythese products?

What are the not-so-obvious, more deep-seated reasons/motivations why

consumers buy these products?

What are the obvious (i.e. more superficial) reasons why consumers donot buy these products?

What are the not-so-obvious, more deep-seated reasons/motivations why

consumers do not buy these products?

Choose one or more of the above reasons/motivations to buy or not buyand provide an appropriate implication for Marketing strategy.

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5 Cons Behavior