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Consumer behavior
- 2. Chapter Questions • How do consumer characteristics influence buying behavior? • What major psychological processes influence consumer responses to the marketing program? • How do consumers make purchasing decisions? • How do marketers analyze consumer decision making?
- 3. Tata Steel used steeljunction® to encourage consumers to go steel shopping and to develop deeper understanding of individual and household customers.
- 4. Figure 6.1 Model of Consumer Behavior
- 5. What Influences Consumer Behavior? Cultural Factors Social Factors Personal Factors
- 6. What is Culture? Culture is the fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions.
- 7. Subcultures Nationalities Religions Racial groups Geographic regions
- 8. Social Classes Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers
- 9. Characteristics of Social Classes • Within a class, people tend to behave alike • Social class conveys perceptions of inferior or superior position • Class may be indicated by a cluster of variables (occupation, income, wealth) • Class designation is mobile over time
- 10. Social Factors Reference Family groups Social Statuses roles
- 11. Reference Groups Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups
- 12. Provogue uses teenage icons as brand ambassadors and a youth targeted website to connect to its customers
- 13. Radio Shack Targets Women with Female Store Managers
- 14. Roles and Status What degree of status is associated with various occupational roles?
- 15. Personal Factors Age Self- Life cycle concept stage Lifestyle Occupation Values Wealth Personality
- 16. The Family Life Cycle
- 17. Brand Personality Sincerity Excitement Competence Sophistication Ruggedness
- 18. Lifestyle Influences Multi-tasking Time-starved Money-constrained
- 19. Faysal Bank of Pakistan has extended banking hours for time- pressed executives.
- 20. Table 6.2 LOHAS (Lifestyles of Health and Sustainability) Market Segments • Sustainable Economy • Healthy Lifestyles • Ecological Lifestyles • Alternative Health Care • Personal Development
- 21. Key Psychological Processes Motivation Perception Learning Memory
- 22. Motivation Maslow’s Herzberg’s Freud’s Hierarchy Two-Factor Theory of Needs Theory Behavior Behavior Behavior is is guided by is driven by guided by subconscious the lowest, motivating motivations unmet need and hygiene factors
- 23. Maslow’s Hierarchy of Needs
- 25. Perception Selective Attention Selective Retention Selective Distortion Subliminal Perception
- 26. Figure 6.3 State Farm Mental Map
- 27. Figure 6.4 Consumer Buying Process Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior
- 29. Sources of Information Personal Commercial Public Experiential
- 30. Figure 6.5 Successive Sets Involved in Consumer Decision Making
- 31. Table 6.8 Sales and Product Life Cycle
- 32. Figure 6.6 Stages between Evaluation of Alternatives and Purchase
- 33. Non-Compensatory Models of Choice • Conjunctive • Lexicographic • Elimination-by-aspects
- 34. Perceived Risk Functional Physical Financial Social Psychological Time
- 35. Figure 6.7 How Customers Use and Dispose of Products
- 36. Rural Consumer Behaviour • Rural consumers are more brand loyal • Restrictions on consumption • Collective consumption behaviour: for family rather than individual • Seasonality of consumption based on seasonality of agricultural production/income • Specific patterns in the five-stage buying decision process
- 37. Other Theories of Consumer Decision Making Involvement Decision Heuristics • Elaboration • Availability Likelihood Model • Representativeness • Low-involvement • Anchoring and marketing adjustment strategies • Variety-seeking buying behavior
- 38. Mental Accounting • Consumers tend to… – Segregate gains – Integrate losses – Integrate smaller losses with larger gains – Segregate small gains from large losses
- 39. Marketing Debate Is target marketing ever bad? Take a position: 1. Targeting minorities is exploitive. or 2. Targeting minorities is a sound business practice.
- 40. Marketing Discussion Do you have rules you employ in spending money? Do you follow Thaler’s four principles in reacting to gains and losses?