CONSUMER BEHAVIOUR

Milanka Slavova, Sandrine Heitz, Neva Yalman

TOPICS
Model of Consumer Behavior Characteristics Affecting Consumer Behavior Types of Buying Decision Behavior The Buyer Decision Process

Two Consumer Entities

Personal Consumer The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend. Organizational Consumer A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.

DEFINITION
Consumer buyer behavior refers to the buying behavior of final consumersindividuals and households who buy goods and services for personal consumption The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services ideas, or experiences to satisfy needs and desires

Consumers Impact on Marketing

Understanding people/organizations to satisfy consumers needs Knowledge and data about customers: Help to define the market Help to take marketing mix decisions Identify threats/opportunities to a brand, etc.

The Consumer as a Black Box

Model of Consumer Behavior

Cultural Factors
What is culture? An integrated sum total of a learned behavior. Comprises the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations.

Cultural Factors
Cultural values and behavior patterns are: learned and not biologically determined shared with other members of the group Interrelated
Culture includes both abstract ideas and material objects and services

Culture and Its Effects on Business

Once upon a time there was a great flood, and involved in this flood were two creatures, a monkey and a fish. The monkey, being agile and experienced, was lucky enough to scramble up a tree and escape the raging waters. As he looked down from his safe perch, he saw the poor fish struggling against the swift current. With the best of intentions, he reached down and lifted the fish from the water. The result was inevitable.

Subculture

A distinct cultural group that exists as an identifiable segment within a larger, more complex society.

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Chapter Twelve Slide

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African Americans in Advertising

Many national brands routinely use African American models.

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Nationality Subculture - Hispanic

Stronger preference for well-established brands Prefer to shop at smaller stores Some are shifting food shopping to non-ethnic American-style supermarkets Youths are more fashion conscious than nonHispanic peers

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Chapter Twelve Slide

Results of European study into the teens credo (500 of 1420 year olds) Want to live life to the full.

Will live in a digitised future that lacks warmth.

View 24 hour commerce as a mechanism that can only add more stress.

Phones are essential pieces of communication equipment.

Are a visually literate generation with clear understanding of commercial aims. A generation that has brand awareness and is brand dismissive.

Rituals
Rituals are sets of multiple, symbolic behaviors that occur in a fixed sequence and that tend to be repeated periodically Many consumer activities are ritualistic
Trips to Starbucks Sunday brunch

Specific Ritual Types

Grooming rituals Gift-giving rituals Holiday rituals Rites of passage

Social Class

The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes.
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Chapter Ten Slide

Social Classes

Components of social class

Occupation hierarchies of occupational prestige tend to be quite stable over time and tend to be similar in different societies.

Income is of great interest to marketers as it determines, which groups have the greatest buying power and market potential. The way the money is spent is more telling than income per se.
Educational attainment. Place of residence.

Cultural interests.

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Social Class Mobility

Upward mobility Downward mobility Rags to riches?

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Chapter Ten Slide 21

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

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Group Influences

Group pressure often influences our clothing choices.

Brand Communities and Consumer Tribes

A group of consumers who share a set of social relationships based upon usage or interest in a product Consumer tribes share emotions, moral beliefs, styles of life, and affiliated product Brandfests celebrated by community
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Opinion Leadership
Opinion leaders influence others attitudes and behaviors Experts Unbiased evaluation Socially active Similar to the consumer Among the first to buy

The Market Maven

Market maven: actively involved in transmitting marketplace information of all types Just into shopping and aware of whats happening in the marketplace Overall knowledge of how and where to get products

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The Surrogate Consumer

Surrogate consumer: a marketing intermediary hired to provide input into purchase decisions Interior decorators, stockbrokers, professional shoppers, college consultants Consumer relinquishes control over decisionmaking functions Marketers should not overlook influence of surrogates!

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Characteristics Affecting Consumer Behavior Social Factors

Family is the most important consumerbuying organization in society

The Modern Family

Changes in family structure Changes in concept of household (any occupied housing unit)

Defining the modern family

Women Manage Many Tasks

Women often manage many tasks within the family that pull them in many directions.

Family Structures

Family structures continue to evolve, but some basic conflicts remain the same. This Italian ad for an antacid product says, Certain things are hard to swallow.

Family Life Cycle

Factors that determine how couples spend money:
Whether they have children Whether the woman works

Family life cycle (FLC) concept combines trends in income and family composition with change in demands placed on income

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The family life cycle:

an updated view

Source: Adapted from Mary C. Gilly and Ben M. Enis, Recycling the Family Life Cycle: A Proposal for Redefinition, in Andrew A. Mitchell, ed., Advances in Consumer Research 9 (Ann Arbor, MI: Association for Consumer Research, 1982): 274, Figure 1.

To Which Stage of the Family Life Cycle Does This Ad Apply, and Why?

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Bachelorhood
The Target Consumer Is Not Yet Married

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Chapter Ten Slide

Sandwich Generation Sandwich generation: adults who care for their parents as well as their own children Boomerang kids: adult children who return to live with their parents
Spend less on household items and more on entertainment

Nonhuman Family Members

Pets are treated like family members Spending on pets has doubled in the last decade Pet-smart marketing strategies:
Name-brand pet products Designer water for dogs Lavish kennel clubs, pet classes/clothiers Pet accessories in cars
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Who Makes Key Decisions in the Family?

Autonomic decision: one family member chooses a product Syncretic decision: involve both partners
Used for cars, vacations, homes, appliances, furniture, home electronics, interior design, phone service As education increases, so does syncretic decision making

Who plays the role of family financial officer?

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Children as Decision Makers

Children make up three distinct markets: Primary market: kids spend their own money Influence market: parents buy what their kids tell them to buy (parental yielding) Future market: kids grow up quickly and purchase items that normally adults purchase (e.g., photographic equipment, cell phones)
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Personality
Personality: a persons unique psychological makeup and how it consistently influences the way a person responds to his/her environment

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The Nature of Personality

Personality reflects individual differences

individuals may be similar in terms of a single characteristic but not in terms of others

Personality is consistent and enduring Personality can change as a result of

- Major life event - A gradual maturing process

Different Appeals for Same Goal Object

Theories of Personality

Freudian theory Unconscious needs or drives are at the

heart of human motivation

Neo-Freudian personality theory Social relationships are fundamental to

the formation and development of personality

Trait theory Personality is a set of psychological

traits

Ad Portraying the Forces of the Id

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Freudian Theory and Product Personality

Consumer researchers using Freuds

personality theory see consumer purchases as a reflection and extension of the consumers own personality

Snack Food Personality Traits

Potato Chips: Ambitious, successful, high achiever, impatient

Tortilla Chips: Perfectionist, high expectations, punctual, conservational Pretzels: Lively, easily bored, flirtatious, intuitive Snack Crackers: Rational, logical, contemplative, shy, prefers time alone

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NEO-Freudian Theory
Social relationships are fundamental to the formation and the development of the personality

Karen Horney - Compliant versus

detached versus aggressive

Alfred Adler - Individuals are motivated to

overcome feelings of inferiority

Harry Stack Sullivan - Personality evolves

to reduce anxiety

Carl Jung - Developed analytical

psychology

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Trait Theory

Personality traits: identifiable

characteristics that define a person

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

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Personality Traits and Consumer Innovators

Innovativeness

Dogmatism
Social Character Need for uniqueness Need for cognition Variety-novelty seeking

Consumers low in dogmatism (open-minded) are more likely to prefer innovative products to established or traditional alternatives Highly dogmatic consumers tend to be more receptive to ads for new products or services that contain an appeal from an authoritative figure

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Ad Targeting Visualizers

Brand Personality
Brand personality: set of traits people attribute to a product as if it were a person

Volvo - safety Perdue - freshness Nike - the athlete BMW - performance Levis 501 - dependable and rugged

Self Concept
Self Concept:
The beliefs a person holds about his or her own attributes and how he or she evaluates these qualities

Consumer perceptions of self can be quite distorted, particularly with regard to their physical appearance.

Different Self-Images
Actual Self-Image how we see ourselves Ideal Self-Imagehow we would like to see ourselves

Ideal Social Self-Image- how we would like others to see us

Social Self-Image how we feel others see us

Expected Self-Image how we expect to see us at some specific future time

The Extended Self

Extended Self: External objects that consumers consider a part of themselves

This Italian ad demonstrates that our favorite products are part of the extended self.

Possessions Act as Self-Extensions

By allowing the person to do things that otherwise would be very difficult By making a person feel better By conferring status or rank By bestowing feelings of immortality By endowing with magical powers

Lifestyles
Lifestyle defines a pattern of consumption reflecting a persons choices of how one spends time and money Lifestyle marketing perspective: people sort themselves into groups on the basis of: What they like to do How they spend leisure time How they spend disposable income

Lifestyle Dimensions
Activities Work Hobbies Social events Vacation Entertainment Club membership Community Shopping Sports Interests Family Home Job Community Recreation Fashion Food Media Achievements Opinions Themselves Social issues Politics Business Economics Education Products Future Culture Demographics Age Education Income Occupation Family size Dwelling Geography City size Stage in life cycle
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High Status of Golf in Japan

Golf is a high status game in Japan, where land is scarce and greens fees are extremely high.

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VALS2TM

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Global Psychographic Typologies

Global MOSAIC identifies segments across 19 countries RISC measures lifestyles/sociocultural change in 40+ countries Exploration/Stability Social/Individual Global/Local

Lifestyle of Bulgarian Consumers

Market Compass 2011
The REJECTIVE
Social status

Attitude towards the world and new technologies

Sense of belonging

Lifestyle of Bulgarian Consumers

The ACTIVE The CONTENT

Lifestyle of Bulgarian Consumers

The INDIFFERENT The PASSIVE

Lifestyle of Bulgarian Consumers

The POSSITIVE The CONFINED

References
CONSUMER BEHAVIOR, 9e
Michael R. Solomon

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall CONSUMER BEHAVIOR, 10e Leon G. Schiffman, Leslie
Lazar Kanuk in collabaration with Joseph Wisenblit

Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall