Consumer Behaviour Silvia Cacho Elizondo November 8, 2005

Consumer Behaviour

Silvia Cacho Elizondo

November 8, 2005

Interpersonal level Silvia Cacho-Elizondo ISC 2005

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The collective character of consumption

Review : Attitudes & Preferences

The interpersonal level

Case study presentation “Microsoft: The xbox dream”


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Learning objective

Understand the factors and theories explaining consumer behaviour at the interpersonal level :

Consumer SocializationReference groupsOpinion leadership, lead users

Review


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Factors explaining consumption at the Individual

level

Socio-Demographic Variables Motivational Theories Involvement Psychology of Perception Learning / Experience/ Memory Attitudes and Preferences

Attitudes


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Attitude definition

- A person’s point of view toward « something », such as a person, a brand or a service.

- Learned beliefs, feelings and reactions tendencies which are formed in the process of information acquisitions and experiences


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Functional theory of attitudes

This theory was initially developed by the psychologist Daniel Katz to explain how attitudes facilitate social behaviour.

According to this approach attitudes are determined by a person’s motives. Two persons can have the same attitude toward an object but for different reasons.

It is then important for a marketer to know why an attitude is held before attempting to change it.


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Attitudes’ components

CognitiveAffectiveBehavioral


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Qualifying attitudes…

Attitudes are learned but some human dispositions are inborn

Attitudes are shaped by experience but they are more or less stable overtime

they are not so easily to change Attitudes are a multidimensional

construct


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Why are attitudes important?

Everyday life is full of words connected with attitudes (opinions, beliefs, convictions, desires, feelings, wishes…)

There is a link between attitudes and behaviour ?

Attitude measurement could help to predict and understand behaviour


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Attitude formation processes

a) Classical or respondent conditioning ( conditioned stimulus linked to conditioned response)

b) Instrumental or operant conditioning (Compliance to gain reward or avoid punishment)

c) Identification (To allow the person to fit in or to be similar to others)

d) Internalization(Attitudes became part of a person’s value system)


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Hierarchies of effects

AFFECT

HEDONIC EXPERIENCE

BEHAVIOURAL LEARNING PROCESS

COGNITIVE-INFORMATION PROCESSING

BELIEF BELIEF

BEHAVIOUR BEHAVIOUR AFFECT

AFFECT BEHAVIOUR BELIEF

low-involvement high-involvement Experiential


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Consumer preferences

When we analyze consumer behaviour, we are usually assessing how consumer make purchase decisions.

Consumer preferences are important for product policy (eg. Product attributes and new product launchs) and pricing decisions.


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Two proven procedures for the actionable analysis of Consumer

Preferences

Concept testing Conjoint Analysis


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Do one of the following exercises

http://elab.vanderbilt.edu/conjoint_movie/conjoint_movie.htm

http://elab.vanderbilt.edu/conjoint_airline/conjoint_airline.htm

Attitudes & Preferences

TIP: read What is conjoint analysis ? at dobney.com


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Conjoint Analysis

…a tool that allows a subset of the possible combinations of product features to be used to determine the relative importance of each feature in the purchasing decision.

… based on the fact that the relative values of attributes considered jointly can be better be measured than when considered in isolation


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Basic principles to apply conjoint analysis

Products must be able to be specified as a collection of attributes

We know or find out what attributes are salient in the product category

Respondents can reasonable rate products The firm should be able to act upon the output

of the conjoint by constructing products that deliver the attribute levels used in the analysis


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Steps in developing a Conjoint Analysis

1. Choose product attributes 2. Choose the value or options for each attribute3. Define products as a combination of attribute options 4. Choose the form in which the combinations of

attributes are to be presented to the respondents (verbal presentation, paragraph description, pictorial presentation..)

5. Decide how responses will be aggregated (use individual responses, pool all responses into a single utility function, define segments of respondents with similar preferences)

6. Select the technique to analyze the collected data.


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Factors explaining buying and consumption

behaviour

1. Individual level

2. Interpersonal level

3. Socio-cultural level


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Case Study Presentation

Microsoft : The xbox dream


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Consumer Socialization

The process by which young people acquire

skills, knowledge and attitudes

relevant to their functionning in the market place


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The group influence


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Typology of groups

Size Purpose Structure Status


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Classification of groups by Size (degree of contact)

1) Primary groups (limited size) highest contact

Ex. The family

2) Secondary groups (sub-groups) lower contact

Ex. Social classes Cultural communities Groups of sport fans Professional associations


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Classification of groups by Purpose

1)Socio-groups the group is a means to achieve an

objective

2)Psycho-groups group interaction is an end in itself


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Classification of groups according to their Structure

1) Formal rules and rituals

2) Informal norms communally established but

not easy to detect


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Classification of groups considering their Status

1) Membership groups the individual is part of the group voluntary or not

2) Reference Groups an actual or imaginary group having

relevance upon individual evaluations and behaviour


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Reference Groups

It is an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations or behaviour.

A group need at least two people but the term reference group is used more loosely to describe any

external influence that provides social cues.


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Forms of influence

Normative or utilitarian influence when an individual fulfills others’ expectations to gain a direct reward or to avoid a sanction.

Value-expressive or identification influence when individuals use others’ norms, values and behaviours as a guide for their own attitudes, values and behaviour. Implicit in this type of influence is the desire for psychologicial association or social affilitation with others.

Informational social influence when an individual uses the values, norms, and behaviours of others as credible, and needed evidence about reality


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Group influence on product and brand

(Dubois, page 142)

Influence on the Product

Influence

On theBrand

Weak Strong

Strong

Clothes, furniture, magazines

Cars, beer, hi-fi equipments, sport equipment

Weak Soaps, detergents, refrigerators

Video discs, electronic games


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When reference groups are important..

1) When the purchases are luxuries rather than necessities

2) When purchases are consumed socially or visible to others rather than privately


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Types of Reference Groups

Avoidance Negative,

nonmembership

Aspirational Positive, nonmembership

Disclaimant Negative, membership

Contractual Positive, membership


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How the endorsement of a product by an aspirational group could

affect consumer attitudes and intentions?

• Social desirability of product consumption

• Perceived visibility of early adoption behaviour

• Perception of quality

One explanation for this type of aspirational group influence is provided by the model of meaning transfer. The focus of this model is on the transfer of culturally relevant meanings from the endorser to the product


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The nature of Opinion Leadership

An opinion leader is a person who is frequently able to influence others’ attitudes and behaviours


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Why are opinion leaders considered as valuable information sources?

Involvement, Expertise and Experience in a product category

Product category pioneers Empathy and Neutrality High Credibility


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Some categories of opinion leaders

JournalistsSpecialistsProfessionalsLead-users


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The role of lead users

Word of Mouth communicationThe diffusion of Innovations


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Companies’ strategies:

Simulate by product use a « leader » Developing the idea that others are buying Granting the status of a leader to a potential

customer to trigger a feeling of pride Stimulating personal influence Supplying local opinion leaders with the

product Getting people to talk about a product


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Culture & Lifestyles

How culture & lifestyles influence consumption patterns?


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Home exercise VALS site

http://www.sric-bi.com

Look for representative projects Answer the VALS questionnaire to know

your VALS type Print the questionnaire and your VALS

types

See you next class!

Documents

Consumer Behaviour Silvia Cacho Elizondo November 8, 2005