Consumer Behavior

1
Consumer Behavior
2
Customer vs. Consumer Behavior

• Customer behavior a broad term that covers both
  individual consumers who buy goods and services
  for their own use and organizational buyers who
  purchase business products
• Consumer behavior the process through which the
  ultimate buyer makes purchase decisions

3
UNIT 4. CONSUMER BEHAVIOUR

• Factors Influencing Buyer Behavior
• Buyer Decision Process
• Consumer Psychology
• Industrial Buyer Behavior Vs. domestic Buyer
  Behavior
• Customer Satisfaction Vs. Customer Delight

4
Consumer Behavior
Consumer behavior consists of the actions a
person takes in purchasing and using products and
services, including the mental and social
processes that come before and after these
actions.
5
Importance of understanding Consumer Behavior
Understand
Predict
Influence
6
Factors affecting Consumer Behavior

• Model of Consumer Behavior
• Factors affecting Buyer Behavior
• Types of Buying Decisions

7
Model of Consumer Behavior
Marketing and Other Stimuli
Product Price Place Promotion
Economic Technological Political Cultural
Buyers Black Box
Factors Affecting Consumer Behavior
Buyers Decision Process
Buyers Response
Purchase Timing Purchase Amount
Product Choice Brand Choice Dealer Choice
8
Factors Affecting Consumer Behavior
Cultural
Social
Personal
Psychological
Buyer
9
Factors Affecting Consumer BehaviorCultural
Culture
Subculture
Social class
10
Culture

• Culture is a whole set of values, traditions,
  beliefs, attitudes and ways of doing things of a
  reasonably homogeneous set of people.

11

• Cultural Influences
• Culture values, beliefs, perceptions,
  preferences, and tastes handed down from one
  generation to the next.
• Indian Culture
• Children feel the responsibility of taking care
  of aged parents.
• A father owning the responsibility of getting his
  Daughter married in a well to do family.

12

• Core Values in the Culture
• While some cultural values change over time,
  basic core values do not
• Examples of core values include
• Importance of family and home life
• The way of dressing
• Working habits

Values are shared beliefs formed through
Socialization Acculturisation process
13
Subcultures
Subcultures are subgroups within the larger, or
national culture with unique values, ideas, and
attitudes, based on common life experiences.
14

• Subcultures subgroup of culture with its own,
  distinct modes of behavior
• Cultures are not homogeneous entities with
  universal values.
• Subcultures can differ by
• Religion
• Place of residence
• Subculture influences food preferences, clothing
  choices, recreation career aspirations.

15
Social class

• A group of people who have approximately equal
  social position as viewed by others in society.
  It can be related to occupation, education,
  community participation where a person lives.

16

• It comprises of relatively homogeneous enduring
  divisions in a society which are hierarchically
  ordered whose members share similar values,
  interests and behavior.
• E.g. Caste-system in India

17

• Social classes groups whose rankings are
  determined by occupation, income, education,
  family background, and residence location

• W. Lloyd Warner identifiedsix classes
• Lower class
• Upper-upper
• Lower-upper
• Upper-middle
• Lower-middle
• Working class

18

• Social classes show distinct product brand
  preferences in many areas such as clothing,
  furnishings, leisure etc.

19
SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR
20
Bonne Bell Cosmetics Why target the African
American women market?
21
Hersheys Kisses Why use Spanish language ads in
the U.S.?
22
Factors Affecting Consumer BehaviorSocial

• Reference Groups

Family
Social Factors
Roles and Status
23
Reference Groups
Reference groups are people to whom an individual
looks as a basis forself-appraisal or as a
source of personal standards.
24

• Reference groups groups whose value structures
  and standards influence a persons behavior
• Requires two conditions
• The purchased product must be one that others can
  see and identify
• The purchased item must be conspicuous it must
  stand out as something unusual, a brand or
  product that not everyone owns

25

• Reference Groups

• Membership Group ( primary, secondary)

• Aspiration Group (like to belong)

• Dissociative Group (like not to belong)

26

• Reference groups influence in at least three
  ways.
• 1.Expose individual to new behavior lifestyle
• 2.Influence a persons attitude self-concept.
• 3.Create pressures for conformity-actual
  product/brand choice.

27

• Personal Influence

• Opinion Leadership

• Opinion Leaders

• Word of Mouth

28
Opinion Leaders
Opinion leaders are individuals who exert direct
or indirect social influence over others.
29

• Opinion leaders trendsetters who purchase new
  products before others in a group and then
  influence others in their purchases

30
Pierce Brosnan and Anna Kournikova Why use
celebrity spokespersons?
31
Word of Mouth
Word of mouth is the influencing of people during
conversations.
32
Family

• Family Influence

• Consumer Socialization

• Family Life Cycle

• Family Decision Making

• Information Gatherer

• Purchaser

• Influencer

• User

• Decision Maker

33
Family Life Cycle
The family life cycle describes the distinct
phases that a family progresses through from
formation to retirement, each phase bringing with
it identifiable purchasing behaviors.
34
Haggar Clothing What role do women play in this
purchase?
35

• Family Influences
• Husband-dominant role is when the husband makes
  most of the decisions.
• Wife-dominant role is when the wife makes most of
  the decisions.
• Syncratic role is when both partners jointly make
  most decisions.

36

• Children and Teenagers in Family Purchases
• Growing numbers are assuming responsibility for
  family shopping
• They also influence what parents buy

37
Roles Status

• Roles define behavior that members of a group
  expect of individuals who hold specific positions
  within the group
• Status is the relative position of any
  individual member in a group. Each role carries a
  Status

38

• Roles influence Buyer behavior. People choose
  products that communicate their role status in
  society.
• Marketers should be aware of the status symbol
  potential of products brands.

39
Factors Affecting Consumer BehaviorPersonal
Personal Influences
Lifestyle Identification
Occupation
Age and Life Cycle Stage
Personality Self-Concept
Economic Situation
Activities
Opinions
Interests
40
Age life-cycle stage

• Affects choice of food, clothes, furniture,
  recreation etc.

41
Occupation

• Affects consumption pattern .
• e.g. Purchasing patterns of white collar
  workers will be different from those of blue
  collar workers.

42
Economic circumstances

• Spendable income
• Savings assets
• Debts
• Borrowing power
• Attitude towards spending savings

43
Personality

• A persons distinguishing psychological
  characteristics that lead to relatively
  consistent enduring responses to environment

44

• Based on traits people can be described as
• Confident
• Warm
• Loving
• Caring
• Outgoing
• Introvert
• Extrovert
• Aggressive
• Not Responsible

45

• Personality types affect product/brand choices. A
  Marketer should adapt his selling style to suit
  the customers personality.

46
Self-concept

• Self-concept (Self-image)
• Marketers try to develop brand images that match
  the target markets self-image.

47

• Actual self-concept
• Ideal self- concept
• Others self -concept
• It sometimes may become difficult to answer which
  self will one try to satisfy while choosing a
  product.

48
Lifestyle

• It is the persons pattern of living as expressed
  in the persons activities , interests
  opinions.
• Lifestyle portrays whole person interacting with
  the environment.

49

• Achievement-oriented
• Belongingness-oriented

50
VALS 2
Abundant Resources
Actualizers
Principle Oriented
Status Oriented
Action Oriented
Achievers
Fulfilleds
Experiencers
Strivers
Believers
Makers
Minimal Resources
Strugglers
51
Factors Affecting Consumer BehaviorPsychological
Motivation
Psychological Factors
Perception
Beliefs and Attitudes
Learning
52
Maslows Hierarchy of Needs
Self Actualization (Self-development)
Esteem Needs (self-esteem, status)
Social Needs (sense of belonging, love)
Safety Needs (security, protection)
Physiological Needs (hunger, thirst)
53
Types of Buying Decisions

• Involvement
• Differences between brands

54
Involvement
Involvement consists of the personal, social, and
economic significance of the purchase to the
consumer.
55
Types of Buying Decisions
Complex Buying Behavior
Variety- Seeking Behavior
High Involvement
Low Involvement
Dissonance- Reducing Buying Behavior
Habitual Buying Behavior
Significant differences between brands
Few differences between brands
56
The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior

57
The Buyer Decision Process
The buyer decision process is the stages a buyer
passes through in making choices about which
products and services to buy.
58
Consumer Buying Decisions Process for a Wireless
Phone
2. Search for Information (about wireless
service providers and phones)
1. Recognition of a Need (for reliable mobile
telephone communication)
3. Evaluation of Alternatives (narrow down
to consideration set)
4. Choice/ Purchase (choosing one alternative
provider and phone from the set)
6. Disposition(Discard phone, cancel wireless
service when no longer wanted or needed)
5. Post-purchase Evaluation (actual versus
expected satisfaction with both phone and service
provider)
59
The Buyer Decision ProcessStep 1. Need
Recognition
Need Recognition Difference between an actual
state and a desired state

• External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
• Stimuli in the
• environment

• Internal Stimuli
• Hunger
• Thirst
• A persons normal
• needs

60
Need recognition the process that occurs
whenever the consumer sees a significant
difference between his or her current state of
affairs and some desired or ideal state.

• Needs are biologically determined (food, water,
  shelter) while wants are learned responses to
  satisfying those needs.
• Marketers want to know how consumers learn so
  that they can attempt to influence this process.

61
The Buyer Decision ProcessStep 2. Information
Search
Personal Sources
Commercial Sources

• Family, friends, neighbors
• Most influential source of
• information

Public Sources

• Advertising, salespeople
• Receives most information
• from these sources

Experiential Sources

• Mass Media
• Consumer-rating groups

• Handling the product
• Examining the product
• Using the product

62
Information search the process whereby a
consumer searches for appropriate information
needed to make a reasonable decision.

• Information search takes place
• Internally our own memory bank.
• Externally everywhere else.
• The Internet has enabled this process by huge
  leaps and bounds.
• Information search can be
• Purposeful looking for it.
• Passively acquired.
• Of key interest is what influences the amount and
  quality of search?

63
The Buyer Decision ProcessStep 3. Evaluation of
Alternatives
Product Attributes Evaluation of Quality, Price,
Features
Degree of Importance Which attributes matter most
to me?
Brand Beliefs What do I believe about each
available brand?
Total Product Satisfaction Based on what Im
looking for, how satisfied would I be with each
product?
Evaluation Procedures Choosing a product (and
brand) based on one or more attributes.
64
Evaluation of alternatives the process whereby a
consumer evaluates the different purchase
alternatives identified.

• Evaluation criteria the dimensions that
  consumers use to compare competing product
  alternatives.
• Students choosing a university may use many
  different selection criteria, such as size,
  reputation, costs, location, programs, living
  accommodations, or social life.
• Some criteria are more important than others, so
  we still need to know how the decision will be
  made.

65

• Product choice the process whereby a consumer
  makes a choice between the different purchase
  alternatives identified.
• Heuristics a mental rule of thumb that leads to
  a speedy decision by simplifying the process.

66
Heuristics

• The human mind seeks to simplify the amount of
  decision making required whenever possible.
• We hold attitudes for the same reason, and we
  apply them to purchase decisions.
• Does higher price equal more quality? If it is a
  Rolex, yes.
• What happens when it doesnt in the short and
  long run?

67
Brand Loyalty

• Brand loyalty a pattern of repeat product
  purchases, accompanied by an underlying positive
  attitude toward the brand, which is based on the
  belief that the brand makes products superior to
  its competition.
• Brand names can serve as an expectation of
  performance and can be used to facilitate new
  product acceptance.

68

• Brand equity the value of the brand names
  acceptance.
• Companies use brand equity to facilitate new
  product acceptance.

69
The Buyer Decision ProcessStep 4. Purchase
Decision

• Purchase Intention
• Desire to buy the most preferred brand

Unexpected situational factors
Attitudes of others

• Purchase Decision

70
The Buyer Decision Process Step 5. Post purchase
Behavior

• Consumers Expectations of
• Products Performance

• Products Perceived
• Performance

Dissatisfied Customer
Satisfied Customer!
Cognitive Dissonance
71

• Post-purchase evaluation the process whereby a
  consumer evaluates the quality of the purchase
  decision made, as a result of consumption and
  learning.
• Customer (dis)satisfaction the overall feelings
  or attitude a person has about a product after
  purchasing it.

72
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
73
Adoption of Innovations
Early Majority
Late Majority
Percentage of Adopters
Early Adopters
Laggards
Innovators
34
34
16
13.5
Time of Adoption
2.5
Late
Early
74
Influences on the Rate of Adoptionof New Products
Relative Advantage Is the innovation superior to
existing products?
Communicability Can results be easily observed
or described to others?
Product Characteristics
Compatibility Does the innovation fit the values
and experience of the target market?
Divisibility Can the innovation be used on a
trial basis?
Complexity Is the innovation difficult
to understand or use?
75
Consumer Psychology

• Perception
• Learning
• Motivation
• Beliefs Attitudes
• Lifestyles

76
Perception

• What is Perception
• Images
• Process
• Sensation Perception
• Picturing the Perceptual Process
• Psychological influences on consumer behavior

77
What is Perception?

• Process to recognize, organize, and make sense of
  sensations.

78
Perception
Perception is the process by which an individual
selects, organizes, and interprets information to
create a meaningful picture of the world.
79
Look at this picture what do you see?
Images nearby ... and far away
80
How many Horses can you find in this picture?
81
Find faces in this tree
82
Can you find hidden images?
83
Find the baby
84
PERCEPTION
85
Sensation and Perception

• Sensation Conscious outcome of sense organs and
  projection regions. (I detect something, not
  necessarily conscious, and not necessarily
  meaningful)
• Perception Means by which information acquired
  from the environment via the sense organs is
  transformed (organized) into experiences of
  objects, events, sounds, tastes, etc. (I know,
  recognize, appreciate what I am sensing, and it
  means something to me)

86
Picturing the Perceptual Process
Three steps in the sensation and perception of
a stimulus
87

• Perceptions the meaning that a person attributes
  to incoming stimuli gathered through the five
  senses sight, hearing, touch, taste, and smell.
• Perceptual screens the filtering processes
  through which all inputs must pass

88
Psychological Influences of consumer behavior

• Selective perception
• Subliminal Perception
• Perceived Risk

89
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

• Perception

• (Three perceptual processes)

• Selective Attention

• Selective Distortion

• Selective Retention

• Subliminal Perception

90

• Subliminal Perception subconscious receipt of
  information
• Almost 50 years ago, a New Jersey movie theater
  tried to boost concession sales by flashing the
  words Eat Popcorn and Drink Coca-Cola.
• Subliminal advertising is aimed at the
  subconscious level of awareness.
• Subliminal advertising has been universally
  condemned as manipulative, and is exceedingly
  unlikely that it can induce purchasing.
• Research has shown that subliminal messages
  cannot force receivers to purchase goods that
  they would not consciously want.

91
Perceived Risk
Perceived risk represents the anxieties felt
because the consumer cannot anticipate the
outcomes of a purchase but believes that there
may be negative consequences.
92
Perceived risk the belief that use of a product
has potentially negative consequences, either
financial, physical, or social.

• The consequences of making a bad choice may vary
  from minimal (chocolate bar) to severe
  (university program or choice of mate!).
• Risk is perceptual, therefore it can be
  influenced. How do marketers reduce the risk
  perceived by consumers?
• What do consumers do to reduce their perceived
  risk?
• Mostly, they look for information.

93
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

• Perception

• Perceived Risk

• Obtain Seals of Approval

• Secure Endorsements from Influential People

• Provide Free Trials of the Product

• Give Extensive Usage Instructions

• Provide Warranties and Guarantees

94
Learning

• Meaning
• Learning - I Classical Conditioning
• Learning -2 Operant Conditioning
• Psychological Influences on Consumer Behavior

95
What is learning?

• any relatively enduring change in behavior as
  the result of experience

96
Learning
Learning refers to those behaviors that result
from (1) repeated experience and (2) reasoning.
97

• Learning a relatively permanent change in
  behavior caused by acquiring information or
  experience. Consumers must learn how to satisfy
  their needs.
• Learning can be either deliberate or vicarious.

98

• Behavioral learning theories theories of
  learning that focus on how consumer behavior is
  changed by external events or stimuli.
• The consumer forms connections between the things
  that happen to them or within their range of
  perception.
• Freud had a few things to say about these
  connections.

99
Learning IClassical Conditioning
100
Ivan Pavlov

• 1849-1936 (b. near Moscow)
• Animal research using live animals
• Early research on animal digestion in which taste
  of food shown to trigger release of gastric juices

101
Pavlovs Research on Conditioning

• Animals had small incision in jaw to create a
  channel (fistula) through which saliva would flow
  and be collected measured
• Pavlov began to research what would happen when
  he rang a bell or sounded a gong just before he
  put meat powder in the dogs bowl

102
What is your reaction to this photo?
103
What is your reaction to this blue box?
104
What is happening here?
105
The blue box becomes associated with the lovers

106
Signals
Take a naturally pleasant or attractive object or
situation

Associate it with a neutral object or situation

• If done enough times, the neutral object or
  situation becomes a mental signal for the
  pleasant or attractive one. It signals that the
  naturally pleasant or attractive object or
  situation is about to appear on the scene

107
Learning IIOperant Conditioning

• B. F. Skinner

108
Skinner Box

• Lever or other target upon which the animal will
  operate
• Signal such as a light
• Source of reward such as a food pellet tray or a
  punishment such as an electrical shock grid
• Mechanism to record animals behavior (frequency
  counter)
• First used with rats, then with pigeons

109
New Language I Contingencies

• Reinforcement any consequence which increases
  the likelihood that the behavior will occur again
• Positive Reinforcement a pleasant reward which
  leads to an increase in a behavior
• Having a good time on a Saturday night
• Negative Reinforcement removal of something
  aversive or unpleasant which leads to increase in
  a behavior
• Cops stopping loud music of kids outside
• Punishment Any consequence which decreases the
  likelihood that the behavior will occur again

110
New Language II Behavioral Control

• Organisms acquire new behaviors
• The forms of behaviors are shaped by their
  consequences
• Behaviors are extinguished by a lack of
  reinforcement when they occur
• Discriminative stimuli are cues (signals) that
  influence behavior they suggest the consequence
  of behavior
• Generalized responses are behaviors which are
  similar to behaviors which have been rewarded or
  punished in the past

111

• Learning
• An immediate or expected change in behavior as a
  result of experience.
• The learning process includes the component of
• Drive
• Cue
• Response
• Reinforcement

112
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

• Learning

• Behavioral Learning

• Drive

• Stimulus Generalization

• Response

• Stimulus Discrimination

• Reinforcement

• Cognitive Learning

• Brand Loyalty

113
Brand Loyalty
Brand loyalty is a favorable attitude toward and
consistent purchase of a single brand over time.
114

• Applying Learning Theory to Marketing Decisions
• Shaping process of applying a series of rewards
  and reinforcements to permit more complex
  behavior to evolve over time

115
MOTIVATION PERSONALITY
116
Motivation
Motivation is the energizing force that
stimulates behavior to satisfy a need.
117
Personality
Personality refers to a persons consistent
behaviors or responses to recurring situations.
118
Motivation Personality

• Why do people do the things they do?
• Drive Reduction Theory
• Kinds of Drives
• Psychological Influences on Consumer Behavior

119
Motivation

• Why do people do the things they do?
• reflexes
• simple, unlearned responses to specific stimuli
• -often mediated by direct connections in spinal
  cord
• learned (conditioned) behaviors
• physiological needs ? drives ? increase
  likelihood of behavior
• cognition
• thoughts, beliefs and strategies about
  consciously directed behaviors that best satisfy
  drives

• What are the basic drives?
• Why are some things more motivating
  (reinforcing) than others?

120

• Motivation
• Drive-Reduction Theory
• the idea that a physiological need creates an
  aroused tension state (a drive) that motivates an
  organism to satisfy the need

121
Kinds of Drives

• regulatory
• primary biological maintenance
• survival
• regulated by homeostasis
• breathing, hunger, thirst, pain, sleep
• non-regulatory
• long-term maintenance
• attachment, nurture, novelty, aggression
• long-term comfort
• self-esteem, power, achievement,
  self-actualization

122
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

• Motivation and Personality

• Motivation

• Personality

• Physiological Needs

• Self-Concept

• Safety Needs

• Social Needs

• Personal Needs

• Self-Actualization Needs

123
Hierarchy of needs
124
Motivation an internal state that drives us to
satisfy needs by activating goal-oriented
behaviour.

• Example a homeless person is motivated to find
  shelter and food, while only the wealthy have the
  luxury of spending their time seeking
  self-fulfillment.

125

• Needs and Motives
• Need an imbalance between a consumers actual
  and desired states
• Motives inner states that direct a person toward
  the goal of satisfying a felt need

126
Self Concept
Definition
Self Concept the totality of an individuals
thoughts and feelings having reference
to him/herself as an object.
It is the personal or internal basis for
lifestyle but should not be perceived as devoid
of social influence.
127

• Self-Concept
• A persons multifaceted picture of himself or
  herself, composed of the
• Real self
• Self-image
• Looking-glass self
• Ideal self

128
Measurement Scales for Self-Concepts, Person
Concepts, and Product Concepts
1. Rugged ----------------- Delicate 2. Excitabl
e ----------------- Calm 3. Uncomfortable
------------ Comfortable 4. Dominating
--------------- Submissive 5. Thrifty ----------
------- Indulgent 6. Pleasant -----------------
Unpleasant 7. Contemporary -------------Non-conte
mporary 8. Organized -----------------
Unorganized 9. Rational -----------------
Emotional 10. Youthful -----------------
Mature 11. Formal -----------------
Informal 12. Orthodox -----------------
Liberal 13. Complex -----------------
Simple 14. Colorless -----------------
Colorful 15. Modest ----------------- Vain
129
The Relationship between Self-Concept and Brand
Image Influence
Product Brand Image
Satisfaction Purchase contributes to desired
self-concept
BehaviorSeek products and brands that improve or
maintain self-concept
Relationship Between self-concept and brand image
Consumer Self-concept
130
Lifestyle/ Psychographics
Lifestyle defined
A distinct mode of living -- including how one
spends time, , and places emphasis on numerous
aspects of their life.
Lifestyle patterns are influenced by several
internal and external factors like Income, age,
family size, social patterns, social attitude
changes, shifts in social views, legal changes,
background, and education.
131
Lifestyle/ Psychographics
Psychographics defined
A way of describing the psychological make-up or
lifestyle of a consumer or segment of consumers.
Lifestyle dimensions can come from analyzing
several activities/interests and opinion items.
This analysis --- a set of dimensions or
factors, next these factors are used in
formulation clusters or categories of the
consumer population.
132
Lifestyle and the Consumption Process

• Lifestyle
• Determinants
• Demographics
• Subculture
• Social class
• Motives
• Personality
• Emotions
• Values
• Household
• Culture
• Past experiences

• Lifestyle
• (How we live)
• Activities
• Interests
• Like/dislikes
• Attitudes
• Consumption
• Expectations
• Feelings

• Behavioral Impact
• Purchases
• How
• When
• Where
• What
• With whom
• Consumption
• Where
• With whom
• How
• When
• What

133
Impact of Lifestyle
Lifestyle ----- gt Choice/use/w.o.m
Direct Impact
Indirect Impact
Aspirational Impact
134
Impact of Lifestyle
Direct Impact
Adventuresome, fast-paced, live-for-now,
lifestyle ---gt higher desire for sports cars,
bungie jumping, travel.
135
Impact of Lifestyle
Indirect Impact
Modern conservative family, two career
professionals, wants to provide nice, safe home
and good future opportunities for children ---gt
lawn care service, auto maintenance contracts,
fast food services.
136
Impact of Lifestyle
Aspirational Impact
Low-income individual, young adult, college
graduate, profession seeking, wants a family,
(but later). Marketing messages tell him/her that
you need to dress for success look good ---gt
CZ ring, 18K gold plated watch, designer copy-cat
clothes, less-expensive but unique car.
137
Relationship of Self-concept and Lifestyle
Actual Lifestyle
Self concept
External Factors
Private Self
Social Self
Actual
Ideal
138
Measures of Lifestyle
Originally AIO inventory (200-350 items involving
Activities, Interests, and Opinions)
Problem Too long, too narrow in scope
More recent measures include Attitudes, Values,
Activities, Interests, Media Patterns, Usage
characteristics, Demographics and Geographics.
VALS VALS2 PRIZM
139
VALS
4 Base categories
Need Driven Groups
Survivors
Sustainers
Belongers Emulators Achievers
Outer directed Groups
I am me
Inner directed Groups
Experiential
Societally conscious
Both inner and outer directed
Integrated
140
VALS2 Lifestyle System
Actualizer
Status
Principle
Action
Abundant resources Minimal resources
Fulfilled
Achiever
Experiencer
Believer
Striver
Maker
Struggler
141
VALS2 Lifestyle System
Self concept is composed primarily of three
dimensions of self orientation Principle
oriented Choices guided by their own personal
beliefs, not feelings or others approval.
Status oriented Heavily influenced by actions,
approval, and the opinions of others Action
oriented Desire social activity Physical
activity variety and risk taking --
adventuresome.
142
Lifestyle Analysis of the Cosmetics Market
Cosmetic Lifestyle Segments
1. Self-aware concerned about appearance,
fashion, and exercise. 2. Fashion-direct
concerned about fashion and appearance, not
about exercise and sport. 3. Green goddesses
concerned about sport and fitness, less about
appearance. 4. Unconcerned neutral attitudes
to health and appearance. 5. Conscience-stricken
no time for self-realization, busy with
family responsibilities. 6. Dowdies
indifferent to fashion, cool on exercise, and
dress for comfort.
143
Intrapersonal and Interpersonal Determinants of
Consumer Behavior
Culture and Subculture
Measurement
Social class
Psychographics Activities, interests, opinions.
Preference groups
Family
Values
Personality
Lifestyles
Decisions Family Individual
General behavior
144
Intrapersonal and Interpersonal Determinants of
Consumer Behavior
General behavior
Benefits desired
Time budget expenditures
Money Budget expenditures
Product choices
Brands and store choices
Benefit delivery
145
Beliefs Attitudes

• Beliefs
• Attitudes
• Psychological Influences on Consumer Behavior

146
Beliefs
Beliefs are a consumers subjective perception of
how a product or brand performs on different
attributes based on personal experience,
advertising, and discussions with other people.
147
Attitude
An attitude is a learned predisposition to
respond to an object or class of objects in a
consistently favorable or unfavorable way.
148

• Attitudes
• A persons enduring favorable or unfavorable
  evaluations, emotional feelings, or action
  tendencies toward some object or idea
• Attitude components
• Cognitive
• Affective
• Behavioral

149

• Changing Consumer Attitudes
• Attempt to produce consumer attitudes that will
  motivate the purchase of a particular product
• Evaluate existing consumer attitudes and then
  make the product characteristics appeal to them
• Modifying the Components of Attitude
• Attitudes change in response to inconsistencies
  among the three components
• Marketers can work to modify attitudes by
  providing evidence of product benefits and by
  correcting misconceptions

150
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

• Values, Beliefs, and Attitudes

• Attitude Formation

• Attitude

• Beliefs

• Attitude Change

• Change Beliefs About a Brands Attributes

• Change Perceived Importance of Attributes

• Add New Attributes to the Product

151
Colgate Total Toothpaste andBayer Extra Strength
Aspirin How did these ads change attitudes?
152
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

• Lifestyle

• Psychographics

• VALS

• Thinkers

• Experiencers

• Believers

• Makers

• Achievers

• Innovators

• Strivers

• Survivors

153
VALS Consumer Segments How do consumers make
purchase decisions?
154
Industrial Buying Behavior

• Business Market
• Characteristics of Business Market
• Model of Business Buying Behavior
• Business Buying Situation
• Participants
• Major Buying Influences
• Stages

155
What is a Business Market?

• The Business Market - all the organizations that
  buy goods and services to use in the production
  of other products and services that are sold,
  rented, or supplied to others.
• Business markets involve many more dollars and
  items do consumer markets.

156
Characteristics of Business Markets
Market Structure and Demand

• Fewer, larger buyers
• Geographically concentrated
• Demand derived from consumers
• Inelastic demand
• Fluctuating demand

Nature of the Buying Unit

• More buyers
• More professional purchasing
• effort

Types of Decisions the Decision Process

• More complex decisions
• Process is more formalized
• Buyer and seller are more
• dependent on each other
• Build close long-term relationships
• with customers

157
Marketing and Other Stimuli
Model of Business Buyer Behavior
Product Price Place Promotion
Economic Technological Political Cultural
The Buying Organization
Interpersonal and Individual Influences
Organizational Influences
The Buying Center
Buying Decision Process
Buyers Response
Delivery Terms and Times Service Terms Payment
Product or Service Choice Supplier Choice Order
Quantities
158
Business Buying Situations
New Task Buying
Modified Rebuy

• Involved Decision Making

Straight Rebuy
159
Participants in the Business Buying Process The
Buying Center
Users
Gatekeepers
Buying Center
Deciders
Influencers
Buyers
160
Major Influences on Business Buying
Environmental Economic, Technological, Political,
Competitive Cultural
Organizational Objectives, Policies, Procedures,
Structure, Systems
Interpersonal Authority, Status, Empathy
Persuasiveness
Individual Age, Education, Job Position,
Personality Risk Attitudes
Buyers
161
Stages in the BusinessBuying Process
Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order Routine Specification
Performance Review