CONSUMER BEHAVIOR

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CONSUMER BEHAVIOR

• MARKETING

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Cultural Factors

• Deepest influence on consumer behavior
• It is learned
• Growing up in a society a child learns
• Basic values
• Perceptions
• Wants
• Behaviors
• US children are exposed to values
• Achievement, success, involvement, efficiency,
  progress, individualism, freedom, fitness, health

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Culture cont.

• Cultural influences buying behavior
• Varies from country to country
• So businesses need to adjust to these differences
• Marketers try to spot cultural shift in order to
  discover new products
• Health/fitness huge demand for exercise
  equipment
• Casual Friday demands for casual clothing

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Subculture

• Each culture contain smaller subcultures
• People who have shared value systems based on
  life experiences/situations
• Subcultures Include
• Nationalities, religions, racial groups

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Hispanic Consumers!

• Marketers market Hispanics for food, beverages,
  and household care products.
• They are also a good market for computers,
  financial services, photography equipment, large
  appliances, life insurance, and cars!

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Hispanic Consumers (continued)

• Sears makes a big effort to market towards
  Hispanics
• They have bright colors and different sizes
  because that is what the Hispanics wear!

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African American Consumers

• 218 billion total purchasing power
• Spend more money on clothing, personal care, home
  furnishings and fragrances

• Brand loyal
• Sears, Proctor Gamble, Coca-Cola and JC Penny
  have started going after this market

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Asian American Consumers

• Fastest-growing and most affluent U.S.
  demographic segment
• Chinese-largest
• Filipinos, Japanese, Asian Indians and Korean
• Language and cultural traditions stop marketers
  from going after them
• Packaged goods firms, automobile companies,
  retail companies and fast food chains have
  started marketing to them.

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Mature Consumers

• Ages 65 and older
• They spend around 200 Billion each year
• They have 2x as much disposable income.

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Mature Consumers (Cont.)

• Most are healthy and active
• Dont want to be stereotyped
• Like things that are geared towards them

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Social Class

• Societys relatively permanent and ordered
  divisions whose members share similar values,
  interests, and behaviors.

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Social Class Cont.

• Measured as a combination of occupation, income,
  education, wealth, etc.
• People can move to a higher social class or fall
  to a lower one (in USA).
• People in different social classes tend to
  exhibit similar buying habits.
• Social classes show distinct product and
  brand preferences such as clothing, home
  furnishings, leisure activity, and automobiles.

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Three of Seven Major American Social Classes

• Upper Uppers- Consist of what we consider as the
  social elite. They occupy only 1 percent of U.S.
  pop. A long with their wealth they have well
  known and distinguished family backgrounds. At
  times they really want to show their wealth by
  purchasing expensive products. But then at times
  there are kind of conservatively about their
  wealth by dressing down and driving everyday
  pickup trucks.

• The Lower- Are 2 percent of the U.S. pop. They
  have earned their wealth from their success in
  their profession. Which is usually white collared
  and business related. Since they werent always
  at this point of status they tend to want to show
  it more by keeping up with the trends, and as
  well as buying whats the best on the market.

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Three of Seven Major American Social Classes

• Upper Middles- Hold 12 percent of the U.S. pop.
  Though they are considered to be pretty well of.
  They still remain primarily concerned with their
  carrier. They continue to strive hard at work to
  get ahead and attain better positions. They also
  stress the importance of education to their
  children. As well as purposely avoid excessively
  spending money on anything.

• All of these classes consist of Americas top 15
  percent. So they have plenty of money to spend.
  They are conservative about they wealth. And they
  recognize where they came from. So they have o
  conscious on how much money they spend and what
  they spend it on.

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The Middle Class(32 percent)

• Made up of average-pay white- and blue-collar
  workers who live on the the better side of town
  and try to do the proper things..
• To keep up with the trends, they often buy
  products that are popular.
• Most are concerned with fashion, and are seeking
  brand names.
• They live in a nice neighborhood with good
  schools.

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Working Class (38)

• The working class consists of those who lead a
  working-class lifestyle, whatever their income,
  school background, or job.
• They depend heavily on relatives for economic
  and emotional support, for advice on purchases,
  and for assistance in times of trouble.
• The working class maintains sharper sex role
  divisions and stereotyping.

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Lower Lowers (7 )

• Welfare
• Poverty stricken
• Dependent on public aid/charity
• Homes, clothes, possessions
• Dirty, raggedy, broken down

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Upper lowers (9)

• Upper lowers are working (are not on welfare)
• Their living standards are just above poverty.
• They perform unskilled work for little pay and
  they strive for more.
• They often lack education.
• They still maintain some effort at cleanliness.

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Groups

• Behaviors are influenced by many small groups.
• Membership Groups
• Have direct influence and creates belonging
• Primary Groups
• Have regular formal interaction

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Groups (cont.)

• Secondary Groups
• Have irregular formal interaction
• Reference Groups
• Form a persons attitudes and behavior
• Aspirational Groups
• Group which individual wishes to belong

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Leaders

• Opinion Leaders
• Within reference groups
• Have special skills, knowledge, and character
• Exert strong influence on others
• Huge targets for marketers

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Family

• wife traditionally has been purchasing agent
• women now work outside home
• this changes familys purchasing
• husband/wives make expensive joint purchases
• women buy 45 of cars
• men buy 40 of food

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Roles and Status

• Person belongs to family, clubs
• Role activities people perform according to
  people around them
• Status shows position in society

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Personal Factors / Age Life-Cycle Stage

• A buyers decisions are influenced by personal
  characteristics such as
• Age
• Life Cycle Stage
• Occupation
• Economic Situation
• Lifestyle

• Buying is shaped by the stage of the family life
  cycle
• Marketers are increasingly catering to a growing
  number of non-traditional stages such as
• Unmarried couples
• Couples marrying later in life
• Childless couples
• Single parents
• Extended parents

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Family Life Cycle Stages

• Young Middle-Aged Older
• Single Single Older Married
• Married w/o Children Married w/o Children
  Older Unmarried
• Married w/Children Married w/Children
• Divorced w/Children Married w/o dep. Children
• Divorced w/o Children
• Divorced w/Children
• Divorced w/Children
• Divorced w/o dep. Children

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Occupation

• Blue-collar workers tend to buy more rugged work
  clothes .
• Whit collar workers buy more business suits and
  nicer clothes.
• A company can even specialize in making products
  that are needed by a given occupational group.

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Economic Situation

• A persons economic situation will affect product
  choice.
• Marketers of income-sensitive goods watch trends
  in personal income, savings, and interest rates.
• If economic indicators point to a recession,
  marketers can take steps to redesign, reposition,
  and reprice their products.

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Lifestyle

• There are five live style stages which have a
  huge effect on the consumers during each stage
  their needs and wants change.
• Single
• Married
• Fullnest
• Empty nest
• Sole survivor

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Psychographics

• This involves peoples activities, interests, and
  opinions which effect their purchasing. Some of
  these categories consist there work, hobbies,
  sports, food, fashion, family, social issues,
  business, and more.
• Basically these things make us who we are and
  therefore tell companies how to advertise to us
  along with what to try to sell us. With out the
  Psychographics part of advertising companies
  would not know how to advertise to specifics
  types of people along with different age groups
  therefore making the add less efficient. For
  instance you would not always advertise to a 10
  year old the same way you would to a 50 year old.
  They just do not have the same values and guild
  lines for purchasing.

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Lifestyle

• Lifestyle- is a persons pattern of living as
  expressed in his or her psychographics. The
  technique used to measure ones lifestyle
  involves there AIO dimensions.

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How Marketers benefit

• When used carefully, the lifestyle concept can
  help the marketer.
• They understand the constant change of consumers
  values and there buying behavior.
• This is a good concept to understand, it makes
  the marketer easy to target the right group.

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Personality and Self-Concept

• Personality influences their buying behavior
• Described in terms of traits
• Such as self-confidence, sociability, dominance,
  etc.
• Marketers use a concept, related to personality
• Peoples possessions reflect their identities

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Personality

• Personality- useful to analyze behavior for
  products
• EX
• Heavy coffee drinkers tend to be highly sociable
• Thus, Maxwell house shows
• people relaxing and socializing with cup of coffee

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PERCEPTION

• Is the process by which people select, organize,
  and interpret information to form a meaningful
  picture of the world.
• People perceive the same situation differently.

• Different people have different perceptions.
• There are three perceptual processes
• Selective attention
• Selective distortion
• Selective retention

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PerceptualProcesses

• Selective Attention
• The tendency for people to screen out most of the
  information to which they are exposed
• Selective Distortion
• The tendency of people to interpret information
  in a way that will support what they already
  believe
• Selective Retention
• The tendency for people to retain information
  that supports their attitudes and beliefs.

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Learning

• Describes changes in an individuals behavior
• Drive-a strong internal stimulus that calls for
  action
• Cues-minor stimuli that determine the ws

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Beliefs and attitudes

• Belief-descriptive thought a person has about
  something
• Based on knowledge , opinion, or faith
• People believe in certain products
• Attitude-persons relatively consistent
  evaluations
• Buy the best
• Attitudes are very hard to change

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Belief

• A descriptive thought that a person has about
  something.
• Influences their buying power.
• Make up product and brand images.
• Ex A person thinks that a Nikon camera takes
  great pictures and stands up well under hard
  use. They will pay more for that camera b/c of
  their belief.

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Attitude

• Describes a persons relatively consistent
  evaluations, feelings, and tendencies regarding
  an object or idea.
• Put people in a frame of mind of liking or
  disliking
• Company should always adjust its products to
  existing attitude instead of trying to change
  attitudes.

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Motivation- Freuds Theory (TPS Report)

• A person fully does not understand his or her
  motivation.
• There is a deeper meaning behind why people buy
  things than what they say.
• Motivation researchers collect in-depth
  information from small samples of consumers to
  uncover the deeper motives for their product
  choices.

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Motivation- Freuds Theory (TPS Report)

• Researchers did a study on why consumers dont by
  prunes.
• They concluded that consumers resist prunes
  because they are wrinkled looking and remind
  people of sickness and old age.

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Maslows Hierarchy

• 1. Self-actualization needs Self-development and
  Realization
• 2a. Esteem Needs (Status)
• 2b. Social Needs (Belonging)
• 3. Safety Needs (Security)
• 4. Physiological Needs (Hunger/Thirst)

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Perception

• The process by which people select, organize, and
  interpret information to create a meaningful
  picture
• Three Perceptual processes
• Selective attention
• Selective distortion
• Selective retention