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Behavior
Organizational Behavior:
How individuals act within organizations?
Psychology:
Study of mind and social behavior
Sociology:
Study of society (Groups)
Anthropology:
How are social relations among humans
organized?
Consumer Behavior
Behavior consumers display in searching,
purchasing,
using,
evaluating
and
disposing off goods and services that they
expect to satisfy their needs
CB focuses on how consumers or families
take decision to spend available resources
(time, money, efforts) on consumption
related items
Consumer Behavior focuses onConsumers make buying decisions all the time. The
Marketing Task is to understand
What do they buy
Why do they buy
CB
Two Different Consuming Entities
Personal
(Own, Households)
Organizations
Profit Org
Non Profit Org.
Govt Agencies
Institutions
CHANGES IN CONSUMER
BEHAVIOR
Consumerism
It is a social and economic order that is based on the
systematic creation and fostering of a desire to
purchase goods or services in ever greater amounts.
The term is often associated with criticisms of
consumption starting with Thorstein Veblen or, more
recently by a movement called Enoughism.
Veblen's subject of examination, the newly emergent
middle class arising at the turn of the twentieth century,
comes to full fruition by the end of the twentieth century
through the process of globalization.
Consumerism
The term "consumerism" is also used to refer
to the consumerist movement or consumer
activism, which seeks to protect and inform
consumers by requiring such practices as
honest packaging and advertising, product
guarantees, and improved safety standards.
In this sense it is a movement or a set of
policies aimed at regulating the products,
services, methods, and standards of
manufacturers, sellers, and advertisers in the
interests of the buyer.
Consumerism A Social
Phenomenon
Beginning in the 1990s, the most frequent
reason given for attending college had
changed to making a lot of money,
outranking reasons such as becoming an
authority in a field or helping others in
difficulty.
This correlates with the rise of materialism.
Businesses have realized that wealthy
consumers are the most attractive targets
of marketing.
Consumerism A Social
Phenomenon
Emulation is also a core component of
21st century consumerism. As a general
trend, regular consumers seek to emulate
those who are above them in the social
hierarchy.
Internal Influences
External
Influences
Culture
Subculture
Demographics
Social Status
Reference Groups
Family
Marketing
Activities
Perception
Learning
Memory
Motives
Personality
Emotions
Attitudes
Problem Recognition
Self-Concept
and
Lifestyle
Information
Search
Alternative
Evaluation
and Selection
Outlet Selection
and Purchase
Postpurchase
Consumer Motivation
Represents the drive to satisfy both
psychological and physiological needs
through product purchase and
consumption.
gives insights into why people buy certain
products.
stems from consumer needs: industries
have been built around basic human
needs.
need to possess
Consumers often acquire products simply
because of their need to own such
products such as collectors.
Goals
The sought-after results of motivated
behavior
Generic goals are general categories of
goals that consumers see as a way to
fulfill their needs
Product-specific goals are specifically
branded products or services that
consumers select as their goals
Negative
Motivation
A driving force away
from some object or
condition
Avoidance Goal
A negative goal from
which behavior is
directed away
Substitute Goals
Are used when a consumer cannot attain
a specific goal he/she anticipates will
satisfy a need
The substitute goal will dispel tension
Substitute goals may actually replace the
primary goal over time
Frustration
Failure to achieve a goal may result in
frustration.
Some adapt; others adopt defense
mechanisms to protect their ego.
Arousal of Motives
Physiological arousal
Emotional arousal
Cognitive arousal
Environmental arousal
Cognitive School
Behavior is directed at goal achievement
Needs and past experiences are reasoned,
categorized, and transformed into attitudes and
beliefs
Cont.
Murrays List of Psychogenic Needs
Sado-Masochistic Needs :
Aggression, Abasement
Needs Concerned with Affection between People:
Affiliation, Rejection, Nurturance, Succorance, Play
A Trio of Needs
Power
individuals desire to control environment
Affiliation
need for friendship, acceptance, and
belonging
Achievement
need for personal accomplishment
closely related to egoistic and selfactualization needs
Consumer Perception
Consumer Experience,
Learning and Knowledge
Perception
The process by which an individual
selects, organizes, and interprets stimuli
into a meaningful and coherent picture of
the world
How we see the world around us
Elements of Perception
Sensation
Absolute threshold
Differential threshold
Subliminal perception
Sensation
The immediate and direct response of the
sensory organs to stimuli
A stimulus is any unit of input to any of the
senses.
The absolute threshold is the lowest level
at which an individual can experience a
sensation.
Differential Threshold
Minimal difference that can be detected
between two similar stimuli
Also known as the just noticeable
difference
Subliminal Perception
Stimuli that are too weak or too brief to be
consciously seen or heard may be strong
enough to be perceived by one or more
receptor cells.
Is Subliminal Persuasion
Effective?
Extensive research has shown no
evidence that subliminal advertising can
cause behavior changes
Some evidence that subliminal stimuli may
influence affective reactions
Aspects of Perception
Selection
Organization
Interpretation
Perceptual Selection
Consumers subconsciously are selective as to
what they perceive.
Stimuli selected depends on two major factors
Consumers previous experience
Consumers motives
Perceptual Selection
Concepts
Selective
Exposure
Selective
Attention
Perceptual
Defense
Perceptual
Blocking
Perceptual Selection
Concepts
Selective
Exposure
Selective
Attention
Perceptual
Defense
Perceptual
Blocking
Heightened
awareness when
stimuli meet their
needs
Consumers prefer
different messages
and medium
Perceptual Selection
Concepts
Selective
Exposure
Selective
Attention
Perceptual
Defense
Perceptual
Blocking
Screening out of
stimuli which are
threatening
Perceptual Selection
Concepts
Selective
Exposure
Selective
Attention
Perceptual
Defense
Perceptual
Blocking
Consumers avoid
being bombarded by:
Tuning out
TiVo
Organization
Principles
Figure and
ground
Grouping
Closure
Organization
Principles
Figure and
ground
Grouping
Closure
Organization
Principles
Figure and
ground
Grouping
Closure
Interpretation
Perceptual Distortion
Physical
Appearances
Stereotypes
First Impressions
Jumping to
Conclusions
Halo Effect
Positive attributes of
people they know to
those who resemble
them
Important for model
selection
Attractive models are
more persuasive for
some products
Doves campaign
stresses the
everyday
woman.
Interpretation
Perceptual Distortion
Physical
Appearances
Stereotypes
First Impressions
Jumping to
Conclusions
Halo Effect
Interpretation
Perceptual Distortion
Physical
Appearances
Stereotypes
First Impressions
Jumping to
Conclusions
Halo Effect
Interpretation
Perceptual Distortion
Physical
Appearances
Stereotypes
First Impressions
Jumping to
Conclusions
Halo Effect
Interpretation
Perceptual Distortion
Physical
Appearances
Stereotypes
First Impressions
Jumping to
Conclusions
Halo Effect
Consumers perceive
and evaluate multiple
objects based on just
one dimension
Used in licensing of
names
Important with
spokesperson choice
Positioning
Establishing a specific image for a brand
in the consumers mind
Product is positioned in relation to
competing brands
Conveys the concept, or meaning, of the
product in terms of how it fulfills a
consumer need
Result of successful positioning is a
distinctive, positive brand image
Positioning Techniques
Umbrella Positioning
Positioning against
Competition
Positioning Based on
a Specific Benefit
Finding an Unowned
Position
Filling Several
Positions
Repositioning
Perceived Quality
Perceived Quality of Products
Intrinsic vs. Extrinsic Cues
Perceived Risk
The degree of uncertainty perceived by the
consumer as to the consequences (outcome) of
a specific purchase decision
Types
Functional Risk
Physical Risk
Financial Risk
Psychological Risk
Time Risk
Seek Information
Stay Brand Loyal
Select by Brand Image
Rely on Store Image
Buy the Most Expensive Model
Seek Reassurance
What Is Personality
The inner psychological characteristics
that both determine and reflect how a
person responds to his or her environment
Theories of Personality
Freudian theory
Unconscious needs or drives are at the heart
of human motivation
Trait theory
Quantitative approach to personality as a set
of psychological traits
Freudian Theory
Id
Warehouse of primitive or instinctual needs for which
individual seeks immediate satisfaction
Superego
Individuals internal expression of societys moral and
ethical codes of conduct
Ego
Individuals conscious control that balances the
demands of the id and superego
Trait Theory
Personality theory with a focus on
psychological characteristics
Trait - any distinguishing, relatively
enduring way in which one individual
differs from another
Personality is linked to how consumers
make their choices or to consumption of a
broad product category - not a specific
brand
Trait Theory
Consumer Innovators
And Noninnovators
Innovativeness
Dogmatism
Social character
Need for uniqueness
Optimum stimulation
level
Variety-novelty
seeking
Trait Theory
Consumer Innovators
And Noninnovators
Innovativeness
Dogmatism
Social character
Need for uniqueness
Optimum stimulation
level
Variety-novelty
seeking
Trait Theory
Consumer Innovators
And Noninnovators
Innovativeness
Dogmatism
Social character
Need for uniqueness
Optimum stimulation level
Variety-novelty seeking
Other-directedness
look to others
less likely to be innovators
Trait Theory
Consumer Innovators
And Noninnovators
Innovativeness
Dogmatism
Social character
Need for uniqueness
Optimum stimulation
level
Variety-novelty
seeking
Consumers who
avoid appearing to
conform to
expectations or
standards of others
Trait Theory
Consumer Innovators
And Noninnovators
Innovativeness
Dogmatism
Social character
Need for uniqueness
Optimum stimulation level
Variety-novelty seeking
Consumer Ethnocentrism
Ethnocentric consumers feel it is wrong to
purchase foreign-made products
They can be targeted by stressing
nationalistic themes
Brand Personality
Personality-like traits associated with brands
Examples
Fa and freshness
Nike and athlete
BMW is performance driven
Levis 501 jeans are dependable and rugged
Geography
Actual locations like Philadelphia cream cheese and Arizona
iced tea
Fictitious names also used such as Hidden Valley and Bear
Creek
Color
Color combinations in packaging and products denotes
personality
Different Self-Images
Actual SelfImage
Ideal Self-Image
Ideal Social
Self-Image
Social Self-Image
Expected
Self-Image
CONSUMER LEARNING
Learning
The process by which individuals acquire
the purchase and consumption knowledge
and experience that they apply to future
related behavior
Marketers must teach consumers:
where to buy
how to use
how to maintain
how to dispose of products
Learning Theories
Behavioral Theories
Cognitive Theories
Based on observable
behaviors (responses)
that occur as the result
of exposure to stimuli
Learning based on
mental information
processing
Often in response to
problem solving
Elements of
Learning Theories
Motivation
Cues
Response
Reinforcement
Increases the
association between
the conditioned and
unconditioned
stimulus
Slows the pace of
forgetting
Advertising wearout is
a problem
Selection of a specific
stimulus from similar
stimuli
This discrimination is
the basis of
positioning which
looks for unique ways
to fill needs
Instrumental
(Operant)
Conditioning
A behavioral theory of
learning based on a
trial-and-error process,
with habits forced as
the result of positive
experiences
(reinforcement)
resulting from certain
responses or
behaviors.
Types of Reinforcement
Positive
Negative
Forgetting
Extinction
Cognitive
Learning
Theory
Information Processing
Relates to cognitive ability and the
complexity of the information
Individuals differ in imagery their ability
to form mental images which influences
recall
Information Processing
Movement from short-term to long-term
storage depends on
Rehearsal
Encoding
Retention
Information is stored in
long-term memory
Episodically: by the order
in which it is acquired
Semantically: according
to significant concepts
Total package of
associations is called a
schema
Promotional Tricompetent
Model
Model
Sequential
Stages
of
Processing
Attention
Interest
Desire
Action
Cognitive
Affective
Conative
DecisionMaking
Model
Innovation
Adoption
Model
Awareness
Knowledge
Awareness
Innovation
Decision
Process
Knowledge
Interest
Evaluation Evaluation Persuasion
Purchase
Trial
Decision
Postpurchase Adoption Confirmation
Evaluation
Consumer Relevance
Involvement depends on degree of
personal relevance.
High involvement is:
Very important to the consumer
Provokes extensive problem solving
Brand Loyalty
Function of three groups of influences
Consumer drivers
Brand drivers
Social drivers
Brand Equity
Refers to the value inherent in a wellknown brand name
Value stems from consumers perception
of brand superiority
Brand equity reflects learned brand loyalty
Brand loyalty and brand equity lead to
increased market share and greater profits
CONSUMER ATTITUDE
FORMATION AND CHANGE
Attitude
A learned
predisposition to
behave in a
consistently
favorable or
unfavorable manner
with respect to a
given object.
Cognition
Cognitive
Affective
Conative
Cognitive
Affective
Conative
A consumers
emotions or feelings
about a particular
product or brand
Starbucks Coffee
Cognitive
Affective
Conative
The likelihood or
tendency that an
individual will
undertake a specific
action or behave in a
particular way with
regard to the attitude
object
Multiattribute
Attitude
Models
Attitude is function of
evaluation of productspecific beliefs and
evaluations
Useful to measure
attitudes toward
brands
Includes cognitive,
affective, and
conative components
Includes subjective
norms in addition to
attitude
An Economic View
A Passive View
A Cognitive View
An Emotional View
A Simple
Model of
Consumer
Decision
Making
Need Recognition
Usually occurs when consumer has a
problem
Need recognition styles
Actual state
Desired state
Prepurchase Search
Begins with internal search and then
moves to external search
The impact of the Internet
Search may be personal or impersonal
Compensatory
Decision Rules
A type of decision
rule in which a
consumer evaluates
each brand in terms
of each relevant
attribute and then
selects the brand
with the highest
weighted score.
Noncompensatory
Decision
Rules
A type of consumer
decision rule by which
positive evaluation of
a brand attribute does
not compensate for a
negative evaluation of
the same brand on
some other attribute.
Conjunctive
Decision
Rule
A noncompensatory
decision rule in which
consumers establish a
minimally acceptable
cutoff point for each
attribute evaluated.
Brands that fall below
the cutoff point on any
one attribute are
eliminated from further
consideration.
Disjunctive
Rule
A noncompensatory
decision rule in which
consumers establish a
minimally acceptable
cutoff point for each
relevant product
attribute.
Lexicographic
Rule
A noncompensatory
decision rule consumers first rank
product attributes in
terms of importance,
then compare brands
in terms of the
attribute considered
most important.
Affect
Referral
Decision
Rule
A simplified decision
rule by which consumers
make a product choice
on the basis of their
previously established
overall ratings of the
brands considered, rather
than on specific
attributes.
Postpurchase Evaluation
Actual Performance Matches Expectations
Neutral Feeling
Gifting Behavior
Gifting is an act of symbolic
communication, with explicit and implicit
meanings ranging from congratulations
and love, to regret, obligation, and
dominance.
MOTIVATIONS
Personal accomplishment
Feeling down
Holiday
Feeling stressed
Have some extra money
Need
Had not bought for self in a while
Attainment of a desired goal
Others
To reward oneself
To be nice to oneself
To cheer up oneself
To fulfill a need
To celebrate
To relieve stress
To maintain a good feeling
To provide an incentive toward a goal
Others
Gifting Relationships
GIFTING
RELATIONSHIP
DEFINITION
EXAMPLE
Intergroup
Intercategory
Intragroup
Interpersonal
Intrapersonal
Self-gift
Relationship
Marketing
Marketing aimed at
creating strong,
lasting relationships
with a core group of
customers by making
them feel good about
the company and by
giving them some
kind of personal
connection with the
business.
Reference Groups
Reference group: an actual or imaginary
individual/group conceived of having significant
relevance upon an individuals evaluations,
aspirations, or behavior
Influences consumers in three ways:
Informational
Utilitarian
Value-expressive
Information power
Legitimate power
Expert power
Reward power
Coercive power
Membership versus
Aspirational Reference Groups
Membership reference groups
People the consumer actually knows
Advertisers use ordinary people
Factors Predicting
Reference Group Membership
Propinquity
Mere exposure
Group cohesiveness
Positive versus
Negative Reference Groups
Avoidance groups: motivation to distance
oneself from other people/groups
Antibrand communities: coalesce around a
celebrity, store, or brandbut in this case
theyre united by their disdain for it
Consumers Do It in Groups
Deindividuation: individual identities become
submerged within a group
Social loafing: people dont devote as much to a
task when their contribution is part of a larger
group
Risky shift: group members show a greater
willingness to consider riskier alternatives
following group discussion than if members
made their own decisions
Cultural pressures
Fear of deviance
Commitment
Group characteristics
unanimity
size
expertise
Susceptibility to
interpersonal influence
Opinion Leadership
Opinion leaders influence others attitudes and
behaviors
Experts
Unbiased evaluation
Socially active
Similar to the consumer
Among the first to buy
Opinion Leaders
Is there a generalized opinion leader whose
recommendations we seek for all types of
purchases?
Experts may be monomorphic or polymorphic
Sociometric Methods
Sociometric methods: trace communication
patterns among group members
Systematic map of group interactions
Most precise method of identifying productinformation sources, but is very
difficult/expensive to implement
Network analysis
Referral behavior/network, tie strength
Bridging function, strength of weak ties
Word-of-Mouth Communication
WOM is product information transmitted by
individuals to individuals
More reliable form of marketing
Social pressure to conform
Influences two-thirds of all sales
We rely upon WOM in later stages of product
adoption
Powerful when we are unfamiliar with product
category
Guerilla Marketing
Viral Marketing
Cultural Influence on
Consumer Behavior
Culture
188
Culture Is Learned
Issues
Enculturation and
acculturation
Language and
symbols
Ritual
Sharing of culture
Enculturation
The learning of ones
own culture
Acculturation
The learning of a new
or foreign culture
190
Culture Is Learned
Issues
Enculturation and
acculturation
Language and
symbols
Ritual
Sharing of culture
Without a common
language, shared
meaning could not exist
Marketers must choose
appropriate symbols in
advertising
Marketers can use
known symbols for
associations
Culture Is Learned
Issues
Enculturation and
acculturation
Language and
symbols
Ritual
Sharing of culture
A ritual is a type of
symbolic activity
consisting of a series of
steps
Rituals extend over the
human life cycle
Marketers realize that
rituals often involve
products (artifacts)
TYPICAL ARTIFACTS
Wedding
Birth of child
Birthday
Graduation
Valentines Day
Culture Is Learned
Issues
Enculturation and
acculturation
Language and
symbols
Ritual
Sharing of Culture
To be a cultural
characteristic, a belief,
value, or practice must
be shared by a
significant portion of the
society
Culture is transferred
through family, schools,
houses of worship, and
media
194
Culture is Dynamic
Evolves because it fills needs
Certain factors change culture
Technology
Population shifts
Resource shortages
Wars
Changing values
Customs from other countries
Content
Analysis
A method for
systematically analyzing
the content of verbal
and/or pictorial
communication. The
method is frequently
used to determine
prevailing social values
of a society.
Consumer Fieldwork
Field Observation
Natural setting
Subject unaware
Focus on observation of behavior
Participant Observation
A selfadministered
inventory
consisting of
eighteen
terminal values
(i.e., personal
goals) and
eighteen
instrumental
values (i.e., ways
of reaching
personal goals)