8. Psychological Factors
Motivation
Perception
The process by which an individual
selects, organizes, and interprets inputs
to create a meaningful picture of the
world.
Selective Exposure
Selective Distortion
Selective Retention
9. Psychological Factors
Motivation
Perception
Learning
Changes in an individual’s behavior
arising form experience
10. Psychological Factors
Motivation
Perception
Learning
Beliefs
Descriptive thoughts that a person holds
about something
11. Psychological Factors
Motivation
Perception
Learning
Beliefs
Attitudes
Enduring favorable or unfavorable
cognitive evaluations emotional feelings
and action tendencies
12. Functional Factors
“Needs”
Need over wants. Delivers to a
real “need” to have something.
13. Social Class
Relatively homogenous, enduring
divisions in a society,
hierarchically ordered with
members sharing similar values,
interests, and behaviors.
14. American Social Classes
Upper Upper 1%
Lower Upper 2%
Upper Middle 12%
Middle 32%
Working 38%
Upper Lower 9%
Lower Lower 7%
15. Group Influences
Brand Choice
Strong Weak
Product Choice
Public Luxuries Private Luxuries
Strong Golf Clubs TV Video Games
Snow Skis Ice Makers
Sail Boat Trash Compactors
Public Private
Weak Necessities Necessities
Wrist Watch Mattresses
Automobiles Floor Lamps
Dress Clothes Refrigerators
18. Examples of Buying Motives:
Psychological or Functional?
A senior wants to impress his
date at the prom .
His primary motive is …?
Psychological
19. Examples of Buying Motives:
Psychological or Functional?
A girl wants to remember her
grandmother on her birthday.
Her primary motive is…?
Psychological
20. Examples of Buying Motives:
Psychological or Functional?
A homemaker needs a new washing
machine and has had good
experiences with Sears.
Her primary motive is …?
Functional
21. Examples of Buying Motives:
Psychological or Functional?
A teacher wants to buy a practical
car to be used for family
transportation.
Her/His primary motive is …?
Functional
22. Examples of Buying Motives:
Psychological or Functional?
A career woman always buys Liz
Claiborne clothes.
Her primary motive is…?
Psychological
23. Examples of Buying Motives:
Psychological or Functional?
An overweight 40 year old man wants
to loose weight so that he can reduce
his blood pressure.
His primary motive is…?
Functional
24. Examples of Buying Motives:
Psychological or Functional?
A homeowner needs to mow their
lawn.
Their primary motive is…?
Functional
25. Consumer Buying Behavior Competency
Functional Psychological
Motive Motive
The price is 40
cents off the
regular price.
It never needs
ironing.
Diamonds are
forever.
Serving you since
1971.
Ninety-day
warranty.
26. Consumer Buying Behavior Competency
Functional Psychological
Motive Motive
Running shoe with
built-in arch.
It’s all the rage—
colored action wear
and style.
Wheaties—the
breakfast of
champions!
Steel-belted radial
tires warranted for
40,000 miles
A watch—a gift she
will treasure
always.
27. Learning Objectives--
Reviewed
Understand the major factors
influencing consumer behavior
Know and recognize the types of
buying decision behavior
Understand the stages in the buying
decision process
29. Welcome to Mark529
Professor: Jaideep Sengupta
PhD: UCLA
MBA; BTech (Electrical Engg)
Teaching in the MBA program the last few years
(including Shenzhen)
Taught executives in UCLA, HK (Kellogg-HKUST EMBA)
Telephone: 852-2358-7718
Email: mkjaisen@ust.hk
Course packet available with MBA office
30. Example 3….
In the US, the Marlboro cowboy is
usually shown alone
Ad….
31.
32. Example 3….
In Japan, the Marlboro cowboy is
usually shown as part of a group…
Ad….
35. Solution….
Culture has an influence on consumer
behavior
US culture = importance of individual; not
true in Asia
Japanese consumers think a single cowboy
looks “lonely” and “poor”
Just an ordinary worker on a farm
36. GETTING TO KNOW THE
AUTOMOBILE CUSTOM(H)ER
AND INFLUENC(H)ER
Definition of Buying Behavior: Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand: Why consumers make the pruchases that they make? What factors influence consumer purchases? The changing factors in our society.
Lifestyle refers to the way people live, how they spend their time and money, what activities they pursue, and what their attitudes and opinions are about the world they live in.
Selective Exposure-selects inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies a current need, intensity of input changes (sharp price drop). Selective Distortion – Changing/twisting current received information,m inconsistent with beliefs. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example…MCI and AT&T…do you ever get confused? Selective Retention—remember inputs that support beliefs, forgets those that don’t. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes—60% of purchases are unplanned. Exposed to 1500 advertisements per day. Can’t be expected to be aware of all these inputs, and certainly will not retain many.
Individuals learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm’s marketing strategy.
Social class influences many aspects of our lives. Social class determines to some extent, the types, quality, quantity of products that a person buys or uses. Upper Upper—inherited wealth, aristocratic names Lower Upper—newer social elite, from current professionals and corporate elite. Upper Middle—college graduates, mangers and professionals Middle—average pay white collar workers and blue collar friends Working—average blue collar workers Upper Lower—working,not on welfare Lower Lower—on welfare Important point to bring up is that income distribution of the United States is becoming polarized. This means that more people are leaving the middle-income groups and spreading to the upper and lower income groups.
Women make the majority of the purchasing decisions (Wife-Dominant).
New car buyers have fairly well-defined evaluative criteria. This chart shows what the top six criteria or factors are. It is noteworthy to mention that warranty/guarantee has grown in importance over the years while style/look of the brand has declined as being “most important.”
