Understanding Consumer Behavior

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Understanding Consumer Behavior
Social Influences
Situational Influences
Marketing Strategy
PsychologicalInfluences

• To conceptualize social and psychological
  influences on consumer behavior
• Part 2 of 3

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Simplified Model of Buyer Behavior
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Expanded Model of The Black Box
(Complex (Mental) Decision Processes)
Target Audience Responses
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Perception Influences Buying Behavior

• Perception . . The process of interpreting
  giving meaning to stimuli
• Selective Exposure
• Selective Interpretation
• Selective Retention
• Closure

That fish was at least 8 pounds
Reality is what you perceive
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Stimuli
Perception
Sensory Receptors

• Buy Large BLOCKS of Advertising
• Bookend Ads yada, yada, yada Bookend Ads
• Putting Ads in . . . .

Unconventional Places
Creating Contrast
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Influences on Perception

• Mental Physical abilities to experience
  sensation (ex. IQ-height)
• Stimulus Intensity and Context in which the
  stimulus was encountered.
• The persons personality, moods, needs, and wants.

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Maslows Hierarchy of Needs
Motivation InfluencesBuying Behavior
(Majority)
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• Hidden Motives (S. Freud)
• Behavior is not simple, there are Hidden motives
  to all situations (subconscious)
• Buyers are motivated by symbolic product concerns
  ( economic-functional)
• Hidden motives require motivation research

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1970 Retro Toys are Back
Applied Marketing

• 1st created in 1970s, The Strawberry Shortcake
  and Care Bear brands were dormant for years.

• Re-launched in 2002, it now reaches a larger
  demographic audience is projected to grow to
  100 mil. over next 4-5 yrs.
• People enjoy recalling their childhood years
• Retailers feel merchandise is viewed as
  timeless and ageless a classic look

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Learning Influences Buying Behavior

• Cognitive learning Theory produces changes in
  ones knowledge or behavior caused by information
  or interpretation of experiences.

Repetition Reinforcement ( -)
Satisfying behaviors are
likely to be repeated.
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Classical Conditioning(Pairing of Two Unrelated
Stimuli)

• Unconditioned Stimulus
• Conditioned Stimulus
• Conditioned Response

• Pairing a stimulus that elicits the desired
  response
• A neutral stimulus

Song Happy

• Repeat Pairings over time to condition
  association
• Decay (wear out) - Association weakens if not
  reinforced

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• Observational Learning watching the behavior of
  others and noting the benefits received
  (Reference group Influence)

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Multiple Levels of Product Learning
Product Class
Product Form
Brand
Model/Feature
Folgers Maxwell House
Ground Instant
1-pound can 8-ounce jar
Coffee
Lipton Celestial
Regular Decaf
1 regular 2 Herbal Flavors
Tea
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• Operant Conditioning rewards punishment for
  behavior (positive/negative reinforcement)

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Learning product attributes leads to product
attitudes

• Attitude a pre disposition to act toward X your
  evaluation of and behavioral tendencies toward a
  product

Product Beliefs X Evaluations
Cognitions Knowledge of product attributes

• Beliefs

Affect (liking/disliking) toward attributes
(feelings emotions)

• Evaluation

• Attitude may be a weak predictor of behavior due
  to attitude centrality or mediators (good
  diagnostic tool)

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Beliefs, Attitude, and Behaviors
Beliefs about Pizza Hut
Behaviors toward Pizza Hut

• Has pan pizzas
• Has super supreme
• pizzas
• Has a salad bar
• Serves beer
• Is more expensive than
• Dominos
• Has convenient
• location
• Has free parking
• Has pleasant
• employees
• Has nice atmosphere

• Go to Pizza Hut on
• Friday night
• Order a large pan pizza
• Complain to manager
• Ignore Pizza Hut ad on
• TV
• Use a Pizza Hut coupon
• for a free soft drink
• Recommend Pizza Hut
• to boss
• Read Pizza Hut menu

Attitude toward Pizza Hut Ao
Feedback (time situation specific)
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Salient beliefs and Attitude
Freshens breath
Has mint flavor
Tastes good
Has fluoride
Prevents cavities
Comes in a gel
Has a red, white, and blue package
Is made by Procter Gamble
Crest
Comes in a pump
Approved by the American Dental Association
No mess
Has a tartar-control formula
Is what my parents use
Comes in tubes
Is more expensive than store brands
Gets teeth clean
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Means-End Chain A Product is a Means to an End
BRAND
ATTRIBUTES
CONSEQUENCES
VALUES (Benefits)
Spring suspension for twin blades
Be well groomed
Close shave
GilletteSensor Razor
Lubricating strip
Smooth, soft shave
Be comfortable
A means end chain is a consumers knowledge
structure that connects consumer meanings about
product attributes, consequences, and values.
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Means-End Chain
Product attributes can be evaluated differently
leading to more than one means-end chain
Spend too much
Have less to spend on other things
Waste of money
To Be well groomed
High Price
Good quality
Last a long time
Good value
To Be comfortable
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Personality Self Concept

• Personality
• A set of internal traits and distinct behavioral
  tendencies that result in consistent patterns of
  behavior in certain situations
• (extrovert introvert)
• Self-concept (self-image)
• Perception or view of oneself
• Lifestyles
• An individuals pattern of living expressed
  through activities, interests, and opinions

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Personality types influence the small business
buying

• Idealists (24)
• Optimizers (21)
• Hard Workers (20)
• Jugglers (20)
• Sustainers (15)
• www.pitney-works.com

Small Business Owners (2000)
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Psychological Influences help explain the
decision process leading to behavior
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Behavior
Expectations