CB Module II

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    Module IIModule II

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    Model of Buyer BehaviorModel of Buyer Behavior

    Marketing andOther Stimuli

    MarketingProductPricePlacePromotion

    OtherEconomicTechnologicalPoliticalCultural

    Buyers Black Box

    Buyer CharacteristicsBuyer Decision Process

    Buyer Responses

    Product ChoiceBrand Choice

    Purchase TimingPurchase Amount

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    Factors InfluencingFactors InfluencingConsumer BehaviorConsumer Behavior

    Social

    Referencegroups

    Family

    Rolesand

    status

    PersonalAge andlife-cycle

    Occupation

    Economicsituation

    LifestylePersonality

    andself-concept

    Psycho-logical

    MotivationPerceptionLearning

    Beliefs andattitudes

    Buyer

    Culture

    Sub-culture

    Socialclass

    Cultural

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    Factors Affecting ConsumerFactors Affecting ConsumerBehavior: CultureBehavior: Culture

    Culture is the Most Basic Cause of a Person'sWants and Behavior.

    Culture is the set ofbasic values,perceptions, wants andbehaviors learned by a

    member from family,place of residence andother importantinstitutions

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    Factors Affecting Consumer Behavior:Factors Affecting Consumer Behavior:CultureCulture

    Subculture provides morespecific identification andsocialization for membersbelonging to a particularreligion, racial group andgeographic regions

    This gave rise to multi culturalmarketing

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    GroupsMembershipReference

    Family (most important)Husband, wife, kidsInfluencer, buyer, user

    Roles and Status

    Social Factors

    Factors Affecting ConsumerFactors Affecting ConsumerBehavior: SocialBehavior: Social

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    Factors Affecting Consumer Behavior:Factors Affecting Consumer Behavior:SocialSocial

    Social factors heavily influence the consumersmindset

    Social Class Societys relatively permanent

    & ordered divisions whosemembers share similar values,interests, and behaviors.

    Measured by: Occupation,Income, Education, Wealth andOther Variables.

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    Pers l I fl encesPers nal Infl ences

    A eand Lifeycle tage

    Ageand Lifeycle tage Occ ati nOcc ati n Pers nalityelf- nceptPers nalityelf- nceptc nomicitation

    Economicitation

    ActivitiesActivities InterestsInterests

    Lifestyle IdentificationLifestyle Identification

    OpinionsOpinions

    Factors Affecting ConsumerFactors Affecting ConsumerBehavior: PersonalBehavior: Personal

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    Factors Affecting ConsumerFactors Affecting ConsumerBehavior: PsychologicalBehavior: Psychological

    PsychologicalFactorsffectingBuyersChoices

    Motivation

    Perception

    Learning

    Beliefs andttitudes

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    Psychological factorsPsychological factors

    MOTIVATION

    It is the internal feeling that makes a

    person to buy a certain product Motivation research is based on

    Freud; Looks for hidden andsubconscious motivation

    Maslow ordered needs based on howpressing they are to the consumer

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    Psychological Factors: PerceptionPsychological Factors: Perception

    Perception is the process by which peopleselect, organize, and interpret information

    Perception Includes:

    Selective attentionConsumersscreen out information

    Selective distortion

    People interpret to support beliefs

    Selective retention

    People retain points to support attitudes

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    Psychological Factors LearningPsychological Factors Learning

    Learning describes changes in anindividuals behavior arising fromexperience

    Learning occurs through: Drives

    Internal stimulus that calls for action

    Stimuli Objects that move drive to motive

    C

    ues Minor stimuli that affect response Reinforcement

    Feedback on action

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    Psychological Factors BeliefsPsychological Factors Beliefsand Attitudesand Attitudes

    Belief

    a descriptive thought about a brand orservice

    may be based on real knowledge, opinion,or faith

    Attitude

    describes a persons evaluations, feelings

    and tendencies toward an object or idea They are difficult to change

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    Needs and MotivationNeeds and Motivation

    Needs are the essence of themarketing concept. Marketers donot create needs but can makeconsumers aware of needs.

    Motivation is the driving force withinindividuals that impels them to

    action.

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    Model of the MotivationModel of the MotivationProcessProcess

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    Types of NeedsTypes of Needs

    Innate Needs

    Physiological (or biogenic) needs thatare considered primary needs ormotives

    Acquired Needs

    Learned in response to our culture orenvironment. Are generallypsychological and considered secondaryneeds

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    Consumer motivationConsumer motivation

    Motivation is an internalstate that drives us to satisfyneeds

    Once we activate a need, astate of tension exists thatdrives the consumer to somegoal that will reduce thistension and eliminate the

    need Consequently, only unmet

    needs motivate

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    The Motivation ProcessThe Motivation Process

    Motivation:The processes that lead people to

    behave as they do. It occurs when a

    need arises that a consumer wishes tosatisfy. Utilitarian need: Provides a functional

    or practical benefit

    Hedonic need:

    An experiential needinvolving emotional responses orfantasies

    Goal:

    The ends

    tate that is

    des

    ired by theconsumer.

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    The Motivation ProcessThe Motivation Process

    Drive:

    The degree of arousal present due to adiscrepancy between the consumers present

    state and some ideal state Want:

    A manifestation of a need created by personaland cultural factors.

    Motivation can be described in terms of: Strength: The pull it exerts on the consumer

    Direction: The particular way the consumerattempts to reduce motivational tension

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    Motivational DirectionMotivational Direction

    Needs Versus Wants: Want: The particular form of consumption

    used to satisfy a need.

    Types of Needs Biogenic needs: Needs necessary to maintain

    life

    Psychogenic needs: Culture-related needs (e.g.need for status, power, affiliation, etc.)

    Utilitarian needs: Implies that consumers willemphasize the objective, tangible aspects ofproducts

    Hedonic needs: Subjective and experientialneeds (e.g. excitement, self-confidence,fantasy, etc.)

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    Instant Gratification of NeedsInstant Gratification of Needs

    We expect todays technicalproducts to satisfy our needs

    instantly.

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    Goals Structure for WeightGoals Structure for WeightControlControl

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    Goals Structure for WeightGoals Structure for WeightControlControl

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    Motivational ConflictsMotivational Conflicts Approach-Approach Conflict:

    A person must choose between two desirablealternatives.

    Theory of Cognitive Dissonance: A state of

    tension occurs when beliefs or behaviorsconflict with one another.

    Cognitive Dissonance Reduction: Process bywhich people are motivated to reducetension between beliefs or behaviors.

    (product bundling)

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    Approach-Avoidance Conflict:

    Exists when consumers desire a goalbut wish to avoid it at the same time.(weight maintainance)

    Avoidance-Avoidance Conflict:

    Consumers face a choice between two

    undesirable alternatives. (buy new tvvs. get it fixed)

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    Motivations and GoalsMotivations and Goals

    Positive Motivation

    A driving forcetoward someobject orcondition

    Approach Goal A positive goal

    toward whichbehavior isdirected

    Negative Motivation

    A driving forceaway from someobject orcondition

    Avoidance Goal A negative goal

    from whichbehavior isdirected away

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    Solutions to ApproachSolutions to Approach--Avoidance ConflictAvoidance Conflict

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    Rational versus EmotionalRational versus EmotionalMotivesMotives

    Rationalityimplies that consumersselect goals based on totallyobjective criteria such assize,weight, price, or miles per gallon

    Emotionalmotives imply theselection of goals according to

    personal or subjective criteria

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    Maslows Hierarchy of NeedsMaslows Hierarchy of Needs

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    This ad reflects

    a need foraccomplishmen

    t

    with atoothpaste.

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    A Trio of NeedsA Trio of Needs

    Power individuals desire to control

    environment

    Affiliationneed for friendship, acceptance, and

    belonging

    Achievementneed for personal accomplishmentclosely related to egoistic and self-

    actualization needs

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    Criticisms of MaslowsCriticisms of MaslowsHierarchyHierarchy

    The application is too simplistic: It is possible forthe same product oractivity

    to satisfy every need.

    It is too culture-bound:

    The assumptions of the hierarchy may berestricted to Western culture

    It emphasizes individual needs over groupneeds

    Individuals in some cultures place more valueon the welfare of the group (belongingnessneeds) than the needs of the individual(esteem needs)

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    Mechanism of MotivationMechanism of Motivationarousalarousal

    Cognitive Activity

    - Prior knowledge, thinking andreasoning

    Situational Conditions

    - Advertisement of a soft drink

    Stimulus

    properties