Perspectives on Consumer Behavior

1. Advertising Management Lecture 4: Perspectives on Consumer Behavior

4. All Consumers Are Human Affected By: Sociocultural Factors Social Class Reference Groups

6. Factors that Affect Decision-Making (Social class) Poor, unemployed Lower The “working poor”, who perform unskilled labor and menial work for minimal wages Upper lower Lower-middle class or blue-collar workers who earn an average pay Working class Professionals, small-business owners, corporate managers with comfortable incomes Middle Professionals & businesspeople who have achieved financial success Upper (2% of pop) The highest class, “old rich”, well-known families Upper, upper (1% of pop)

8. Reference Group Categories Counterculture, gangs, antisocial people Disassociative Famous Entertainers, athletes, politicians Aspirational Opinion leaders, consultant, leading professionals Experts Clubs, churches, schools Membership Family, friends, co-workers Personal

10. Maslow’s Hierarchy of Needs Marketing & IMC Implications Needs Survival necessities, utilities, medicines, basic food products Physiological: water, sleep, food, shelter Insurance, alarm systems, cavity protection, retirement, investments Safety: security, shelter, protection, order, discipline Lifestyle products, clothing, grooming aids, restaurants, and clubs Belongingness: love, friendship, acceptance Status appeal of cars, furniture, upscale electronics, country clubs, liquor, first class Esteem: prestige, status, accomplishment, respect, recognition Promote the enriching experience of travel, education, hobbies Self-actualization: self-fulfillment, creative expression

16. Elaboration Likelihood Model Peripheral route process is based on such message factors as imagery, emotions, associations, celebrity spokespeople & music which creates interest in a message even if there is little interest in the product itself. Peripheral Route Central Route BRAND DECISION High involvement: cognitive analysis of brand features and benefits Low involvement: Emotional analysis of situation & feelings

17. How Brand Decision Making Works Problems And Opportunities Post- Purchase Evaluation and learning Cognitive Path (central processing) Emotional Path (peripheral processing) Habit/Repeat Path Search for Information Evaluate Choices Evaluate feelings and experiences Habit and loyalty Purchase or take some other action Step 1 Step 2 Evaluation of Brand Alternatives Step 3 Step 4

21. Three paths to a brand decision B2B supplies, routine purchases, repeat purchases leading to brand loyalty Do / think /feel Habit/repeat processing Snacks, beverages, cigarettes, small household items / Restaurants, sporting events, trade shows, new products where sampling & demo are impt. Do / feel / think and Feel / do / think Experiential processing; impulse, experiences Car, major appliances, high-involvement and new products Think / feel / do Cognitive processing Products Route Type of decision making