BA320

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Consumer Behavior

• BA320
• Summer 2006

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Agenda for Today

• Understand the consumer market
• Identify the major factors that influence
  consumer buyer behavior.
• Discuss the stages in the buyer decision process.

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Consumer Buying Behavior

• Refers to the buying behavior of people who buy
  goods and services for personal use.
• These people make up the consumer market.
• The central question for marketers is
• How do consumers respond to various marketing
  efforts the company might use?

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Figure 5-1Model of Buyer Behavior (S-O-R Model)
Response
Stimuli
Organism
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Consumer Buying Behavior

• Factors influencing consumer behavior
• Cultural factors
• Culture, subculture, social class
• Social factors
• Reference groups, family, roles and status
• Personal factors
• Age/life-cycle, occupation, economic situation,
  lifestyle, personality and self-concept
• Psychological factors
• Motivation, perception, learning, beliefs, and
  attitudes

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Factors Affecting CB - Culture

• Culture is the most basic cause of a person's
  wants and behavior.
• Culture is to society what memory is for
  computers.
• Shared elements that provide standards for
  perceiving, believing, and acting among those who
  share a language in a certain region and at a
  certain time.
• Culture shapes needs into wants ? Opportunities
  for marketers

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Exercise
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Culture

• Broad-level Key cultural dimensions
• Individualism vs. collectivism.

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Social Class

• Societys relatively permanent and ordered
  divisions whose members share similar values,
  interests, and behaviors.
• Hierarchical vs. Egalitarian societies.
• The U.S. vs. Finland

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Social Factors

• Groups
• Membership, Reference (Opinion Leaders),
  Aspirational
• Family
• Most important consumer buying organization
• Roles and Status
• Role Expected activities
• Status Esteem given to role by society

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Marketing in Action
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Personal Factors

• Age and Life-Cycle Stage
• People change the goods they buy over their
  lifetimes.
• Occupation
• Occupation influences the purchase of clothing
  and other goods.
• Economic Situation
• Some goods and services are especially
  income-sensitive.

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Personal Factors

• Lifestyle
• Pattern of living as expressed in psychographics
• Activities
• Interests
• Opinions

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Marketing in Action
Lifestyle Marketing by American Express
The My Life, My Card campaign invites consumers
to choose the card and rewards that best fit
their lifestyles.
americanexpress.com
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Personality Self-Concept

• Personality refers to the unique psychological
  characteristics that lead to relatively
  consistent and lasting responses to ones own
  environment.
• Generally defined in terms of traits.
• Self-concept suggests that peoples possessions
  contribute to and reflect their identities.

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Exercise
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Psychological Factors -Motives and Needs
Higher Level/More difficult to articulate

• A motive (or drive) is a need that is
  sufficiently pressing to direct the person to
  seek satisfaction.

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Perception

• Process by which people select, organize, and
  interpret information to form a meaningful
  picture of the world.
• Selective attention
• Selective distortion
• Selective retention

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Learning

• A relatively permanent change in behavior due to
  experience.
• Interplay of drives, stimuli, cues, responses,
  and reinforcement.
• Strongly influenced by the consequences of an
  individuals behavior
• Behaviors with satisfying results tend to be
  repeated.
• Behaviors with unsatisfying results tend not to
  be repeated.

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Beliefs Attitudes

• A belief is a descriptive thought that a person
  holds about something.
• An attitude is a persons consistently favorable
  or unfavorable evaluations, feelings, and
  tendencies toward an object or idea.

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Lets Talk!
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Figure 5-5Buyer Decision Process

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior

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Sources of Information

• Personal
• Commercial
• Public
• Experiential

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Buying Decision Process

• Factors that influence purchase decision
• Attitudes of others
• Unexpected situational factors

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Buying Decision Process

• Consumer satisfaction is a function of consumer
  expectations and perceived product performance.
• Performance lt Expectations ----- Disappointment
• Performance Expectations ----- Satisfaction
• Performance gt Expectations ----- Delight

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Rest Stop Reviewing the Concepts

• Understand the consumer market
• Identify the major factors that influence
  consumer buyer behavior.
• Discuss the stages in the buyer decision process.