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Consumer Behavior
Consumer Behavior

   The study of how people buy, what they buy,
    why they buy and when they buy.

   It attempts to understand the buyer decision
    making process, both individually and in
    groups.
Consumer Audience
   The people who buy or use products to satisfy
    needs or wants.

   Types of consumers
     Those who buy the product
     Those who use the product



   Target Audience
     Those
          individuals who will receive the advertising
     message
Factors affecting consumer
behavior
   Cultural and social      Psychological
    influences                influences
     Culture                  Perception

     Social Class             Learning

     Reference groups         Motives

     Family                   Attitudes

     Demograhics              Lifestyles

     Geography
Cultural and social influences
   Culture

     Based   on norms and values
       Norms  – boundaries a culture establishes for behavior
       Values - broad preferences concerning appropriate
        courses of action or outcomes


     Directly   influences buying behavior
Cultural and social influences
   Social Class
     Determined  by factors like income , wealth,
      education, occupation, family prestige, value of
      home, and neighborhood

     Itis assumed that people in one class buy
      different products than any other class for
      different reasons.

     E.g   Walls icecream vs Movenpick icecream
Cultural and social influences
   Reference Groups

     Collection of people used as a guide for behavior
     in specific situations.

     Reference    groups have three functions
       They provide information
       They serve as comparison
       They offer guidance
Cultural and social influences
   Family
     Family consists of two or more people who are
     related by blood, marriage or adoption and live in
     the same household.

     Familyhelps develop a lifestyle (how you spend
     time and money and the kinds of activities you
     value)
Cultural and social influences
   Demographics
     Arestatistical, personal, social and economic
     characteristics of a population including
       Age
       Gender
       Education
       Income
       Occupation
       Race/   ethnicity
Cultural and social influences
   Geographic location

     Difference in buying behavior exists between
     different regions

     Buying   behavior also differs urban areas and rural
     areas.
Psychological Influences
   Perception
     Theprocess by which we receive information
     through our five senses and assign meaning to it.
      3   sets of influences shape perception
              The physical characteristics of the stimuli
              The relationship of the stimuli to the surroundings
              The person’s state of mind.
       Some  stimuli are selected over others
       Selective perception
              Screening out some information that does not interest us
               and retaining that information that interests us.
Psychological Influences
   Selective   exposure
        Seeking information that is in line with our beliefs, values,
         experiences, biases, attitudes.


   Selective   distortion
        Changing the meaning of information that is conflicting
         with our beliefs


   Selective   retention
        The process we go through to retain information
Psychological Influences



        A little exercise
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception
Activity - Perception

   Write down the ads which you remember.

   Write the reason for remembering every ad.

   Discuss in class.
Psychological Influences
   Learning
     Perceptions lead to learning
     We learn something that we perceive and attach
      meaning to it.
     Cognitive learning
           Perception -> Problem solving -> Insight
       Behavioral conditioning
           Classic conditioning
                Pairing one stimulus with another that already is
                 associated with a response
                e.g. associating sound of bell with end of school day
           Operant conditioning
                Voluntary occurrences of behavior that are then
                 rewarded , ignored or punished.
When you use a mobile while you drive, your head is somewhere else
Psychological Influences
   Motivation and Needs
       Motive
         An internal force that forces you to behave in a particular
          way.
         Advertisers study buying motives.



       Need
         Basic forces that motivate us to do something
         Primary needs: requirements to maintain life
         Secondary: Acquired needs in response to our culture and
          environment.
         Needs change over time.
When did you last buy and
why?
Psychological Influences
   Attitudes
    A  learned feeling you hold towards an object, a
      person or an idea that leads to a particular
      behavior.

     Attitudes   are resistant to change.

     Attitudes   are learned, hence can be changed or
      replaced.

     Attitudes   may be positive or negative, weak or
      strong.
Psychological Influence
   Lifestyle

     The way a person spends his time and money
      and the activities he likes to perform.
Buyer decision process
   Steps of decision making

     Need  Recognition
     Information Search

     Evaluation of alternatives

     Purchase Decision

     Post Purchase Evaluation

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Advanced advertising consumer behavior

  • 2. Consumer Behavior  The study of how people buy, what they buy, why they buy and when they buy.  It attempts to understand the buyer decision making process, both individually and in groups.
  • 3. Consumer Audience  The people who buy or use products to satisfy needs or wants.  Types of consumers  Those who buy the product  Those who use the product  Target Audience  Those individuals who will receive the advertising message
  • 4. Factors affecting consumer behavior  Cultural and social  Psychological influences influences  Culture  Perception  Social Class  Learning  Reference groups  Motives  Family  Attitudes  Demograhics  Lifestyles  Geography
  • 5. Cultural and social influences  Culture  Based on norms and values  Norms – boundaries a culture establishes for behavior  Values - broad preferences concerning appropriate courses of action or outcomes  Directly influences buying behavior
  • 6. Cultural and social influences  Social Class  Determined by factors like income , wealth, education, occupation, family prestige, value of home, and neighborhood  Itis assumed that people in one class buy different products than any other class for different reasons.  E.g Walls icecream vs Movenpick icecream
  • 7. Cultural and social influences  Reference Groups  Collection of people used as a guide for behavior in specific situations.  Reference groups have three functions  They provide information  They serve as comparison  They offer guidance
  • 8. Cultural and social influences  Family  Family consists of two or more people who are related by blood, marriage or adoption and live in the same household.  Familyhelps develop a lifestyle (how you spend time and money and the kinds of activities you value)
  • 9. Cultural and social influences  Demographics  Arestatistical, personal, social and economic characteristics of a population including  Age  Gender  Education  Income  Occupation  Race/ ethnicity
  • 10. Cultural and social influences  Geographic location  Difference in buying behavior exists between different regions  Buying behavior also differs urban areas and rural areas.
  • 11. Psychological Influences  Perception  Theprocess by which we receive information through our five senses and assign meaning to it. 3 sets of influences shape perception  The physical characteristics of the stimuli  The relationship of the stimuli to the surroundings  The person’s state of mind.  Some stimuli are selected over others  Selective perception  Screening out some information that does not interest us and retaining that information that interests us.
  • 12. Psychological Influences  Selective exposure  Seeking information that is in line with our beliefs, values, experiences, biases, attitudes.  Selective distortion  Changing the meaning of information that is conflicting with our beliefs  Selective retention  The process we go through to retain information
  • 13. Psychological Influences A little exercise
  • 35. Activity - Perception  Write down the ads which you remember.  Write the reason for remembering every ad.  Discuss in class.
  • 36. Psychological Influences  Learning  Perceptions lead to learning  We learn something that we perceive and attach meaning to it.  Cognitive learning  Perception -> Problem solving -> Insight  Behavioral conditioning  Classic conditioning  Pairing one stimulus with another that already is associated with a response  e.g. associating sound of bell with end of school day  Operant conditioning  Voluntary occurrences of behavior that are then rewarded , ignored or punished.
  • 37.
  • 38.
  • 39. When you use a mobile while you drive, your head is somewhere else
  • 40. Psychological Influences  Motivation and Needs  Motive  An internal force that forces you to behave in a particular way.  Advertisers study buying motives.  Need  Basic forces that motivate us to do something  Primary needs: requirements to maintain life  Secondary: Acquired needs in response to our culture and environment.  Needs change over time.
  • 41. When did you last buy and why?
  • 42. Psychological Influences  Attitudes A learned feeling you hold towards an object, a person or an idea that leads to a particular behavior.  Attitudes are resistant to change.  Attitudes are learned, hence can be changed or replaced.  Attitudes may be positive or negative, weak or strong.
  • 43.
  • 44. Psychological Influence  Lifestyle  The way a person spends his time and money and the activities he likes to perform.
  • 45. Buyer decision process  Steps of decision making  Need Recognition  Information Search  Evaluation of alternatives  Purchase Decision  Post Purchase Evaluation