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Consumer Behavior

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Consumer Behavior

  1. 1. Consumer Behavior Perception, Learning, Personality, Social Class
  2. 2. “ MEET THE NEW CONSUMER and smile when you do because she is your boss. It may not be the person you thought you knew. Instead of choosing from what you have to offer, she tells you what she wants. You figure it out how to give it to her.” -Fortune Editor
  3. 3. Dominant forces shaping Consumer Research <ul><li>Factors that move an economy from Production-driven to Market-driven </li></ul><ul><li>Level of sophistication with which human behaviour is understood in psychology and other behavioural sciences </li></ul>
  4. 4. What is Consumer Behavior? The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
  5. 5. <ul><li>Why study Consumer Behaviour? </li></ul><ul><li>Consumer behaviour theory provides the manager with the proper questions to ask </li></ul><ul><li>Marketing practice designed to influence consumer behavior influences the firm, the individual, and society </li></ul><ul><li>All marketing decisions and regulations are based on assumptions about consumer behaviour. </li></ul>
  6. 6. The advice to footwear salesmen should be ‘Don’t sell shoes – sell lovely feet’ Marketers must contend with small changing segments of highly selective buyers intent on receiving genuine value at the lowest price
  7. 7. All managers must become astute analysts of Consumer motivation and Behaviour <ul><li>Three foundations for marketing decisions </li></ul><ul><li>Experience </li></ul><ul><li>Intuition </li></ul><ul><li>Research </li></ul>
  8. 8. Enhancing Consumer Value-added Marketers have to constantly innovate after understanding their consumers to strip out costs permanently by focusing on what adds value for the customer and eliminating what doesn’t.
  9. 9. Individualised Marketing <ul><li>A very personal form of marketing that recognises, acknowledges, appreciates and serves individuals who become or are known to the marketer. </li></ul><ul><li>Data – based marketing; DM </li></ul><ul><li>Customized marketing </li></ul>
  10. 10. Variables involved in understanding consumer behaviour <ul><li>Stimulus – ads, products, hungerpangs </li></ul><ul><li>Response – physical/mental reaction to the stimulus </li></ul><ul><li>Intervening variables – mood, knowledge, attitude, values, situations, etc. </li></ul>
  11. 11. Marketing Strategy & Consumer Behaviour
  12. 12. <ul><li>Marketing Strategy </li></ul><ul><li>Providing superior customer value to our target market- </li></ul><ul><li>Marketing Mix </li></ul><ul><ul><li>The Product </li></ul></ul><ul><ul><li>Communications </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><li>Service </li></ul></ul>
  13. 13. <ul><li>Outcomes </li></ul><ul><li>Firm: </li></ul><ul><ul><li>Product positioning </li></ul></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><li>Customer Satisfaction </li></ul></ul><ul><ul><li>Individual: </li></ul></ul><ul><ul><li>Need Satisfaction </li></ul></ul><ul><ul><li>Injurious Consumption </li></ul></ul><ul><li>Society: </li></ul><ul><ul><li>Economic </li></ul></ul><ul><ul><li>Physical Environment </li></ul></ul><ul><ul><li>Social Welfare </li></ul></ul>
  14. 14. Creating Satisfied Customers
  15. 15. Consumer Behavior is Product – Person – Situation Specific Personal Characteristics Product Characteristics Consumption Situation Consumer Behavior Marketing Strategy
  16. 16. Consumer Lifestyles and Consumer Decisions Consumer Lifestyle Needs/Attitudes That Influence Consumption Decisions Consumer Choices Behavior/Experiences That Influence Consumption Decisions
  17. 17. Overall Model Of Consumer Behavior
  18. 21. Perception <ul><li>The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world </li></ul><ul><li>How we see the world around us </li></ul>
  19. 22. Information Processing for Consumer Decision Making
  20. 23. The Nature of Perception <ul><li>Exposure : when a stimulus comes within range of our sensory receptor nerves </li></ul><ul><ul><li>Random vs. Deliberate </li></ul></ul><ul><li>Attention : when the stimulus activates one or more sensory receptor nerves and the resulting sensations go to the brain for processing </li></ul><ul><ul><li>Low vs. High Involvement </li></ul></ul><ul><li>Interpretation : the assignment of meaning to sensations </li></ul><ul><ul><li>Low vs. High Involvement </li></ul></ul>
  21. 24. Use of Isolation and Contrast
  22. 25. Elements of Perception <ul><li>Sensation </li></ul><ul><li>Absolute threshold </li></ul><ul><li>Differential threshold </li></ul><ul><li>Subliminal perception </li></ul>
  23. 26. Sensation <ul><li>The immediate and direct response of the sensory organs to stimuli </li></ul><ul><li>Sensitivity to stimuli varies with the quality of an individuals sensory receptors </li></ul><ul><li>Sensation itself depends on energy change within the environment where the perception occurs (i.e. the differentiation of input) </li></ul><ul><li>As sensory input decreases , our ability to detect changes in input increases, to the point that we attain maximum sensitivity under conditions of minimal stimulation </li></ul>
  24. 27. The absolute threshold <ul><li>The lowest level at which individual can experience a sensation is called the absolute threshold. </li></ul><ul><li>sensory adaptation-Under conditions of constant stimulation , the absolute threshold increases. </li></ul>
  25. 30. Differential Threshold <ul><li>Minimal difference that can be detected between two similar stimuli </li></ul><ul><li>Also known as the just noticeable difference (the j.n.d.) </li></ul>
  26. 31. Weber’s Law <ul><li>The j.n.d. between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus </li></ul><ul><li>Weber’s law states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different. </li></ul>
  27. 32. Marketing Applications of the J.N.D. <ul><li>Marketers need to determine the relevant j.n.d. for their products </li></ul><ul><ul><li>so that negative changes are not readily discernible to the public </li></ul></ul><ul><ul><li>so that product improvements are very apparent to consumers </li></ul></ul>
  28. 33. Marketing Applications of the J.N.D. <ul><li>Marketers need to determine the relevant j.n.d. for their products </li></ul><ul><ul><li>so that negative changes are not readily discernible to the public </li></ul></ul><ul><ul><li>so that product improvements are very apparent to consumers </li></ul></ul>
  29. 34. Subliminal Perception <ul><li>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. </li></ul>
  30. 35. Is Subliminal Persuasion Effective? <ul><li>Extensive research has shown no evidence that subliminal advertising can cause behavior changes </li></ul><ul><li>Some evidence that subliminal stimuli may influence affective reactions </li></ul>
  31. 37. Aspects of Perception Selection Organization Interpretation
  32. 38. Aspects of Perception Selection Organization Interpretation
  33. 39. Perceptual Selection <ul><li>Consumers subconsciously are selective as to what they perceive. </li></ul><ul><li>Stimuli selected depends on two major factors </li></ul><ul><ul><li>Consumers’ previous experience </li></ul></ul><ul><ul><li>Consumers’ motives </li></ul></ul><ul><li>Selection depends on the </li></ul><ul><ul><li>Nature of the stimulus </li></ul></ul><ul><ul><li>Expectations </li></ul></ul><ul><ul><li>Motives </li></ul></ul>
  34. 40. Stimulus Factors <ul><li>Size and Intensity – influence the probability of paying attention </li></ul><ul><li>Larger stimuli are more likely to be noticed than a small one </li></ul>47 ONE THIRD PAGE 56 ONE HALF PAGE 68 TWO THIRDS PAGE 76 1 PAGE 107 SPREAD NO. OF RESPONSES SIZE
  35. 41. <ul><li>INSERTION FREQUENCY-THE NUMBER OF TIMES THE SAME AD APPEARS IN THE SAME ISSUE OF A MAGAZINE, HAS AN IMPACT SIMILAR TO AD SIZE </li></ul>
  36. 42. <ul><li>Color and Movement – serve to attract attention </li></ul>
  37. 43. Position – <ul><li>Placement of the object in a person’s visual field </li></ul>
  38. 44. Perceptual Selection <ul><li>Selective Exposure </li></ul><ul><li>Selective Attention </li></ul><ul><li>Perceptual Defense </li></ul><ul><li>Perceptual Blocking </li></ul><ul><li>Consumers seek out messages which: </li></ul><ul><ul><li>Are pleasant </li></ul></ul><ul><ul><li>They can sympathize </li></ul></ul><ul><ul><li>Reassure them of good purchases </li></ul></ul>Concepts
  39. 45. Marketing Applications of the J.N.D. <ul><li>Marketers need to determine the relevant j.n.d. for their products </li></ul><ul><ul><li>so that negative changes are not readily discernible to the public </li></ul></ul><ul><ul><li>so that product improvements are very apparent to consumers </li></ul></ul>
  40. 46. Subliminal Perception <ul><li>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. </li></ul>
  41. 47. Is Subliminal Persuasion Effective? <ul><li>Extensive research has shown no evidence that subliminal advertising can cause behavior changes </li></ul><ul><li>Some evidence that subliminal stimuli may influence affective reactions </li></ul>
  42. 49. Aspects of Perception Selection Organization Interpretation
  43. 50. Aspects of Perception Selection Organization Interpretation
  44. 51. Perceptual Selection <ul><li>Consumers subconsciously are selective as to what they perceive. </li></ul><ul><li>Stimuli selected depends on two major factors </li></ul><ul><ul><li>Consumers’ previous experience </li></ul></ul><ul><ul><li>Consumers’ motives </li></ul></ul><ul><li>Selection depends on the </li></ul><ul><ul><li>Nature of the stimulus </li></ul></ul><ul><ul><li>Expectations </li></ul></ul><ul><ul><li>Motives </li></ul></ul>
  45. 52. Stimulus Factors <ul><li>Size and Intensity – influence the probability of paying attention </li></ul><ul><li>Larger stimuli are more likely to be noticed than a small one </li></ul>47 ONE THIRD PAGE 56 ONE HALF PAGE 68 TWO THIRDS PAGE 76 1 PAGE 107 SPREAD NO. OF RESPONSES SIZE
  46. 53. <ul><li>INSERTION FREQUENCY-THE NUMBER OF TIMES THE SAME AD APPEARS IN THE SAME ISSUE OF A MAGAZINE, HAS AN IMPACT SIMILAR TO AD SIZE </li></ul>
  47. 54. <ul><li>Color and Movement – serve to attract attention </li></ul>
  48. 55. Position – <ul><li>Placement of the object in a person’s visual field </li></ul>
  49. 56. Perceptual Selection <ul><li>Selective Exposure </li></ul><ul><li>Selective Attention </li></ul><ul><li>Perceptual Defense </li></ul><ul><li>Perceptual Blocking </li></ul><ul><li>Consumers seek out messages which: </li></ul><ul><ul><li>Are pleasant </li></ul></ul><ul><ul><li>They can sympathize </li></ul></ul><ul><ul><li>Reassure them of good purchases </li></ul></ul>Concepts
  50. 57. Perceptual Selection <ul><li>Selective Exposure </li></ul><ul><li>Selective Attention </li></ul><ul><li>Perceptual Defense </li></ul><ul><li>Perceptual Blocking </li></ul><ul><li>Heightened awareness when stimuli meet their needs </li></ul><ul><li>Consumers prefer different messages and medium </li></ul>Concepts
  51. 58. Perceptual Selection <ul><li>Selective Exposure </li></ul><ul><li>Selective Attention </li></ul><ul><li>Perceptual Defense </li></ul><ul><li>Perceptual Blocking </li></ul><ul><li>Screening out of stimuli which are threatening </li></ul>Concepts
  52. 59. Perceptual Selection <ul><li>Selective Exposure </li></ul><ul><li>Selective Attention </li></ul><ul><li>Perceptual Defense </li></ul><ul><li>Perceptual Blocking </li></ul><ul><li>Consumers avoid being bombarded by: </li></ul><ul><ul><li>Tuning out </li></ul></ul><ul><ul><li>TiVo </li></ul></ul>Concepts
  53. 60. Aspects of Perception Selection Organization Interpretation
  54. 61. Organization <ul><li>Figure and ground </li></ul><ul><li>Grouping </li></ul><ul><li>Closure </li></ul><ul><li>People tend to organize perceptions into figure-and-ground relationships. </li></ul><ul><li>The ground is usually hazy. </li></ul><ul><li>Marketers usually design so the figure is the noticed stimuli. </li></ul>Principles
  55. 65. Organization <ul><li>Figure and ground </li></ul><ul><li>Grouping </li></ul><ul><li>Closure </li></ul><ul><li>People group stimuli to form a unified impression or concept. </li></ul><ul><li>Grouping helps memory and recall. </li></ul>Principles
  56. 68. Organization <ul><li>Figure and ground </li></ul><ul><li>Grouping </li></ul><ul><li>Closure </li></ul><ul><li>People have a need for closure and organize perceptions to form a complete picture. </li></ul><ul><li>Will often fill in missing pieces </li></ul><ul><li>Incomplete messages remembered more than complete </li></ul>Principles
  57. 70. Aspects of Perception Selection Organization Interpretation
  58. 71. Interpretation <ul><li>Physical Appearances </li></ul><ul><li>Stereotypes </li></ul><ul><li>First Impressions </li></ul><ul><li>Jumping to Conclusions </li></ul><ul><li>Halo Effect </li></ul><ul><li>Positive attributes of people they know to those who resemble them </li></ul><ul><li>Important for model selection </li></ul><ul><li>Attractive models are more persuasive for some products </li></ul>Perceptual Distortion
  59. 72. Interpretation <ul><li>Physical Appearances </li></ul><ul><li>Stereotypes </li></ul><ul><li>First Impressions </li></ul><ul><li>Jumping to Conclusions </li></ul><ul><li>Halo Effect </li></ul><ul><li>People hold meanings related to stimuli </li></ul><ul><li>Stereotypes influence how stimuli are perceived </li></ul>Perceptual Distortion
  60. 73. Interpretation <ul><li>Physical Appearances </li></ul><ul><li>Stereotypes </li></ul><ul><li>First Impressions </li></ul><ul><li>Jumping to Conclusions </li></ul><ul><li>Halo Effect </li></ul><ul><li>First impressions are lasting </li></ul><ul><li>The perceiver is trying to determine which stimuli are relevant, important, or predictive </li></ul>Perceptual Distortion
  61. 74. Interpretation <ul><li>Physical Appearances </li></ul><ul><li>Stereotypes </li></ul><ul><li>First Impressions </li></ul><ul><li>Jumping to Conclusions </li></ul><ul><li>Halo Effect </li></ul><ul><li>People tend not to listen to all the information before making conclusion </li></ul><ul><li>Important to put persuasive arguments first in advertising </li></ul>Perceptual Distortion
  62. 75. Interpretation <ul><li>Physical Appearances </li></ul><ul><li>Stereotypes </li></ul><ul><li>First Impressions </li></ul><ul><li>Jumping to Conclusions </li></ul><ul><li>Halo Effect </li></ul><ul><li>Consumers perceive and evaluate multiple objects based on just one dimension </li></ul><ul><li>Used in licensing of names </li></ul><ul><li>Important with spokesperson choice </li></ul>Perceptual Distortion
  63. 76. Issues in Consumer Imagery <ul><li>Product Positioning and Repositioning </li></ul><ul><li>Positioning of Services </li></ul><ul><li>Perceived Price </li></ul><ul><li>Perceived Quality </li></ul><ul><li>Retail Store Image </li></ul><ul><li>Manufacturer Image </li></ul><ul><li>Perceived Risk </li></ul>
  64. 77. Positioning <ul><li>Establishing a specific image for a brand in the consumer’s mind </li></ul><ul><li>Product is positioned in relation to competing brands </li></ul><ul><li>Conveys the concept, or meaning, of the product in terms of how it fulfills a consumer need </li></ul><ul><li>Result of successful positioning is a distinctive, positive brand image </li></ul>
  65. 78. Positioning Techniques <ul><li>Umbrella Positioning </li></ul><ul><li>Positioning against Competition </li></ul><ul><li>Positioning Based on a Specific Benefit </li></ul><ul><li>Finding an “Unowned” Position </li></ul><ul><li>Filling Several Positions </li></ul><ul><li>Repositioning </li></ul>
  66. 79. Perceptual Mapping <ul><li>A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands </li></ul>
  67. 80. Perceptual Mapping
  68. 81. Perceived Quality <ul><li>Perceived Quality of Products </li></ul><ul><ul><li>Intrinsic vs. Extrinsic Cues </li></ul></ul><ul><li>Perceived Quality of Services </li></ul><ul><li>Price/Quality Relationship </li></ul>
  69. 82. Perceived Quality of Services <ul><li>Difficult due to characteristics of services </li></ul><ul><ul><li>Intangible </li></ul></ul><ul><ul><li>Variable </li></ul></ul><ul><ul><li>Perishable </li></ul></ul><ul><ul><li>Simultaneously Produced and Consumed </li></ul></ul><ul><li>SERVQUAL scale used to measure gap between customers’ expectation of service and perceptions of actual service </li></ul>
  70. 83. Price/Quality Relationship <ul><li>The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product.) </li></ul>
  71. 84. <ul><li>LEARNING DEFINED </li></ul><ul><li>IT IS RELATIVELY PERMANENT CHANGE IN BEHAVIOUR OCCURING AS A RESULT OF EXPERIENCE. </li></ul><ul><li>TYPES OF LEARNED BEHAVIOUR </li></ul><ul><li>PHYSICAL BEHAVIOUR </li></ul><ul><li>SYMBOLIC LEARNING AND PROBLEM SOLVING </li></ul><ul><li>AFFECTIVE LEARNING </li></ul>
  72. 85. <ul><li>PRINCIPLE ELEMENTS OF LEARNING </li></ul><ul><li>MOTIVE - they arouse individuals ,thereby increasing their readiness to respond </li></ul><ul><li>CUES- It is a weak stimulus not strong enough to arouse consumers, but capable of providing direction to motivated activity </li></ul><ul><li>RESPONSE- mental or physical activity the consumer makes in reaction to a stimulus situation. </li></ul><ul><li>REINFORCEMENT- anything that follows a response and increases the tendency of response to reoccur in a similar situation. </li></ul>
  73. 86. THEORIES OF LEARNING CLASSICAL CONDITIONING UNCONDITIONED STIMULUS MEAT PASTE CONDITIONED STIMULUS BELL CONDITIONED STIMULUS BELL CONDITIONED RESPONSE SALIVATION UNCONDITIONED RESPONSE SALIVATION AFTER REPEATED PAIRINGS
  74. 87. <ul><li>CREATION OF A STRONG ASSOCIATION BETWEEN CS AND US REQUIRES </li></ul><ul><li>FORWARD CONDITIONING (i.e. CS should precede US) </li></ul><ul><li>Repeated pairings of CS and US </li></ul><ul><li>A CS and US that logically belong to each other </li></ul><ul><li>A CS that is novel and unfamiliar </li></ul><ul><li>A US that is biologically or symbolically salient </li></ul>
  75. 88. <ul><li>STRATEGIC APPLICATIONS OF CLASSICAL CONDITIONING </li></ul><ul><li>REPETITION </li></ul><ul><li>ADVERTISING WEAROUT </li></ul><ul><li>COSMETIC VARIATIONS </li></ul><ul><li>SUBSTANTIATIVE WEAROUT </li></ul><ul><li>THREE HIT THEORY </li></ul>
  76. 90. <ul><li>STIMULUS GENERALISATION </li></ul><ul><li>PRODUCT LINE,FORM AND CATEGORY EXTENSIONS </li></ul><ul><li>FAMILY BRANDING </li></ul><ul><li>LICENSING </li></ul><ul><li>STIMULUS DISCRIMINATION </li></ul><ul><li>POSITIONING </li></ul><ul><li>PRODUCT DIFFERENTIATION </li></ul>
  77. 91. INSTRUMENTAL CONDITIONING STIMULUS SITUATION NEED NEW SHOES TRY BRAND A TRY BRAND B TRY BRAND C TRY BRAND D REWARD PERFECT FIT UNREWARDED NOT COMFORTABLE UNREWARDED LIMITED STYLES UNREWARDED BAD FIT REPEAT BEHAVIOUR
  78. 94. What Is Personality <ul><li>The inner psychological characteristics that both determine and reflect how a person responds to his or her environment </li></ul>
  79. 95. The Nature of Personality <ul><li>Personality reflects individual differences </li></ul><ul><li>Personality is consistent and enduring </li></ul><ul><li>Personality can change </li></ul>
  80. 96. Theories of Personality <ul><li>Freudian theory </li></ul><ul><ul><li>Unconscious needs or drives are at the heart of human motivation </li></ul></ul><ul><li>Neo-Freudian personality theory </li></ul><ul><ul><li>Social relationships are fundamental to the formation and development of personality </li></ul></ul><ul><li>Trait theory </li></ul><ul><ul><li>Quantitative approach to personality as a set of psychological traits </li></ul></ul>
  81. 97. Freudian Theory <ul><li>Id </li></ul><ul><ul><li>Warehouse of primitive or instinctual needs for which individual seeks immediate satisfaction </li></ul></ul><ul><li>Superego </li></ul><ul><ul><li>Individual’s internal expression of society’s moral and ethical codes of conduct </li></ul></ul><ul><li>Ego </li></ul><ul><ul><li>Individual’s conscious control that balances the demands of the id and superego </li></ul></ul>
  82. 98. One of Many Sites Devoted to Freud
  83. 99. A Representation of the Interrelationships Among the Id, Ego, and Superego
  84. 100. Freudian Theory and “Product Personality” <ul><li>Consumer researchers using Freud’s personality theory see consumer purchases as a reflection and extension of the consumer’s own personality </li></ul>
  85. 101. Neo-Freudian Personality Theory <ul><li>We seek goals to overcome feelings of inferiority </li></ul><ul><li>We continually attempt to establish relationships with others to reduce tensions </li></ul><ul><li>Karen Horney was interested in child-parent relationships and desires to conquer feelings of anxiety. Proposed three personality groups </li></ul><ul><ul><li>Compliant move toward others, they desire to be loved, wanted, and appreciated </li></ul></ul><ul><ul><li>Aggressive move against others </li></ul></ul><ul><ul><li>Detached move away from others </li></ul></ul>
  86. 102. Trait Theory <ul><li>Personality theory with a focus on psychological characteristics </li></ul><ul><li>Trait - any distinguishing, relatively enduring way in which one individual differs from another </li></ul><ul><li>Personality is linked to how consumers make their choices or to consumption of a broad product category - not a specific brand </li></ul>
  87. 103. <ul><li>Innovativeness </li></ul><ul><li>Dogmatism </li></ul><ul><li>Social character </li></ul><ul><li>Need for uniqueness </li></ul><ul><li>Optimum stimulation level </li></ul><ul><li>Variety-novelty seeking </li></ul><ul><li>The degree to which consumers are receptive to new products, new services, or new practices </li></ul>Consumer Innovators And Noninnovators
  88. 104. <ul><li>Innovativeness </li></ul><ul><li>Dogmatism </li></ul><ul><li>Social character </li></ul><ul><li>Need for uniqueness </li></ul><ul><li>Optimum stimulation level </li></ul><ul><li>Variety-novelty seeking </li></ul><ul><li>A personality trait that reflects the degree of rigidity a person displays toward the unfamiliar and toward information that is contrary to his or her own established beliefs </li></ul>Consumer Innovators And Noninnovators
  89. 105. <ul><li>Innovativeness </li></ul><ul><li>Dogmatism </li></ul><ul><li>Social character </li></ul><ul><li>Need for uniqueness </li></ul><ul><li>Optimum stimulation level </li></ul><ul><li>Variety-novelty seeking </li></ul><ul><li>Ranges on a continuum for inner-directedness to other-directedness </li></ul><ul><li>Inner-directedness </li></ul><ul><ul><li>rely on own values when evaluating products </li></ul></ul><ul><ul><li>Innovators </li></ul></ul><ul><li>Other-directedness </li></ul><ul><ul><li>look to others </li></ul></ul><ul><ul><li>less likely to be innovators </li></ul></ul>Consumer Innovators And Noninnovators
  90. 106. <ul><li>Innovativeness </li></ul><ul><li>Dogmatism </li></ul><ul><li>Social character </li></ul><ul><li>Need for uniqueness </li></ul><ul><li>Optimum stimulation level </li></ul><ul><li>Variety-novelty seeking </li></ul><ul><li>Consumers who avoid appearing to conform to expectations or standards of others </li></ul>Consumer Innovators And Noninnovators
  91. 107. A Sample Items from a Consumers’ Need for Uniqueness Scale <ul><li>I collect unusual products as a way of telling people I’m different </li></ul><ul><li>When dressing, I have sometimes dared to be different in ways that others are likely to disapprove </li></ul><ul><li>When products or brands I like become extremely popular, I lose interest in them </li></ul><ul><li>As far as I’m concerned, when it comes to the products I buy and the situations in which I use them, custom and rules are made to be broken </li></ul><ul><li>I have sometimes purchased unusual products or brands as a way to create a more distinctive personal image </li></ul>
  92. 108. <ul><li>Innovativeness </li></ul><ul><li>Dogmatism </li></ul><ul><li>Social character </li></ul><ul><li>Need for uniqueness </li></ul><ul><li>Optimum stimulation level </li></ul><ul><li>Variety-novelty seeking </li></ul><ul><li>A personality trait that measures the level or amount of novelty or complexity that individuals seek in their personal experiences </li></ul><ul><li>High OSL consumers tend to accept risky and novel products more readily than low OSL consumers. </li></ul>Consumer Innovators And Noninnovators
  93. 109. <ul><li>Innovativeness </li></ul><ul><li>Dogmatism </li></ul><ul><li>Social character </li></ul><ul><li>Need for uniqueness </li></ul><ul><li>Optimum stimulation level </li></ul><ul><li>Variety-novelty seeking </li></ul><ul><li>Measures a consumer’s degree of variety seeking </li></ul><ul><li>Examples include: </li></ul><ul><ul><li>Exploratory Purchase Behavior </li></ul></ul><ul><ul><li>Use Innovativeness </li></ul></ul><ul><ul><li>Vicarious Exploration </li></ul></ul>Consumer Innovators And Noninnovators
  94. 110. Cognitive Personality Factors <ul><li>Need for cognition (NC) </li></ul><ul><ul><li>A person’s craving for enjoyment of thinking </li></ul></ul><ul><ul><li>Individual with high NC more likely to respond to ads rich in product information </li></ul></ul><ul><li>Visualizers versus verbalizers </li></ul><ul><ul><li>A person’s preference for information presented visually or verbally </li></ul></ul><ul><ul><li>Verbalizers prefer written information over graphics and images. </li></ul></ul>
  95. 111. From Consumer Materialism to Compulsive Consumption <ul><li>Consumer materialism </li></ul><ul><ul><li>The extent to which a person is considered “materialistic” </li></ul></ul><ul><li>Fixated consumption behavior </li></ul><ul><ul><li>Consumers fixated on certain products or categories of products </li></ul></ul><ul><li>Compulsive consumption behavior </li></ul><ul><ul><li>“ Addicted” or “out-of-control” consumers </li></ul></ul>
  96. 112. Sample Items to Measure Compulsive Buying <ul><li>When I have money, I cannot help but spend part or the whole of it. </li></ul><ul><li>I am often impulsive in my buying behavior. </li></ul><ul><li>As soon as I enter a shopping center, I have an irresistible urge to go into a shop to buy something. </li></ul><ul><li>I am one of those people who often responds to direct mail offers. </li></ul><ul><li>I have often bought a product that I did not need, while knowing I had very little money left. </li></ul>
  97. 113. Consumer Ethnocentrism <ul><li>Ethnocentric consumers feel it is wrong to purchase foreign-made products </li></ul><ul><li>They can be targeted by stressing nationalistic themes </li></ul>
  98. 114. Brand Personality <ul><li>Personality-like traits associated with brands </li></ul><ul><li>Examples </li></ul><ul><ul><li>Nike and athlete </li></ul></ul><ul><ul><li>BMW is performance driven </li></ul></ul><ul><ul><li>Levi’s 501 jeans are dependable and rugged </li></ul></ul><ul><li>Brand personality which is strong and favorable will strengthen a brand but not necessarily demand a price premium </li></ul>
  99. 115. A Brand Personality Framework
  100. 116. Product Personality Issues <ul><li>Gender </li></ul><ul><ul><li>Often used for brand personalities </li></ul></ul><ul><ul><li>Some product perceived as masculine (coffee and toothpaste) while others as feminine (bath soap and shampoo) </li></ul></ul><ul><li>Geography </li></ul><ul><ul><li>Actual locations names used </li></ul></ul><ul><ul><li>Color </li></ul></ul><ul><ul><li>Color combinations in packaging and products denotes personality </li></ul></ul>
  101. 117. Commands respect, authority <ul><li>America’s favored color </li></ul><ul><li>IBM holds the title to blue </li></ul><ul><li>Associated with club soda </li></ul><ul><li>Men seek products packaged in blue </li></ul><ul><li>Houses painted blue are avoided </li></ul><ul><li>Low-calorie, skim milk </li></ul><ul><li>Coffee in a blue can perceived as “mild” </li></ul>Caution, novelty, temporary, warmth <ul><li>Eyes register it faster </li></ul><ul><li>Coffee in yellow can perceived as “weak” </li></ul><ul><li>Stops traffic </li></ul><ul><li>Sells a house </li></ul>Secure, natural, relaxed or easy- going, living things <ul><li>Good work environment </li></ul><ul><li>Associated with vegetables and chewing gum </li></ul><ul><li>Canada Dry ginger ale sales increased when it changed sugar-free package from red to green and white </li></ul>BLUE YELLOW GREEN The Personality-like Associations of Colors
  102. 118. Human, exciting, hot, passionate, strong <ul><li>Makes food “smell” better </li></ul><ul><li>Coffee in a red can perceived as “rich” </li></ul><ul><li>Women have a preference for bluish red </li></ul><ul><li>Men have a preference for yellowish red </li></ul><ul><li>Coca-Cola “owns” red </li></ul>Powerful, affordable, informal <ul><li>Draws attention quickly </li></ul>Informal and relaxed, masculine, nature <ul><li>Coffee in a dark-brown can was “too strong” </li></ul><ul><li>Men seek products packaged in brown </li></ul>Goodness, purity, chastity, cleanliness, delicacy, refinement, formality <ul><li>Suggests reduced calories </li></ul><ul><li>Pure and wholesome food </li></ul><ul><li>Clean, bath products, feminine </li></ul>Sophistication, power, authority, mystery <ul><li>Powerful clothing </li></ul><ul><li>High-tech electronics </li></ul>Regal, wealthy, stately <ul><li>Suggests premium price </li></ul>RED ORANGE BROWN WHITE BLACK SILVER, GOLD
  103. 119. Self and Self-Image <ul><li>Consumers have a variety of enduring images of themselves </li></ul><ul><li>These images are associated with personality in that individuals consumption relates to self-image </li></ul>
  104. 120. <ul><li>One or multiple selves </li></ul><ul><li>Makeup of the self-image </li></ul><ul><li>Extended self </li></ul><ul><li>Altering the self- image </li></ul><ul><li>A single consumer will act differently in different situations or with different people </li></ul><ul><li>We have a variety of social roles </li></ul><ul><li>Marketers can target products to a particular “self” </li></ul>Issues Related to Self and Self-Image
  105. 121. <ul><li>One or multiple selves </li></ul><ul><li>Makeup of the self -image </li></ul><ul><li>Extended self </li></ul><ul><li>Altering the self- image </li></ul><ul><li>Contains traits, skills, habits, possessions, relationships and way of behavior </li></ul><ul><li>Developed through background, experience, and interaction with others </li></ul><ul><li>Consumers select products congruent with this image </li></ul>Issues Related to Self and Self-Image
  106. 122. Different Self-Images Actual Self-Image Ideal Self-Image Ideal Social Self-Image Social Self-Image Expected Self-Image
  107. 123. <ul><li>One or multiple selves </li></ul><ul><li>Makeup of the self-image </li></ul><ul><li>Extended self </li></ul><ul><li>Altering the self- image </li></ul><ul><li>Possessions can extend self in a number of ways: </li></ul><ul><ul><li>Actually </li></ul></ul><ul><ul><li>Symbolically </li></ul></ul><ul><ul><li>Conferring status or rank </li></ul></ul><ul><ul><li>Bestowing feelings of immortality </li></ul></ul><ul><ul><li>Endowing with magical powers </li></ul></ul>Issues Related to Self and Self-Image
  108. 124. <ul><li>One or multiple selves </li></ul><ul><li>Makeup of the self-image </li></ul><ul><li>Extended self </li></ul><ul><li>Altering the self -image </li></ul><ul><li>Consumers use self-altering products to express individualism by </li></ul><ul><ul><li>Creating new self </li></ul></ul><ul><ul><li>Maintaining the existing self </li></ul></ul><ul><ul><li>Extending the self </li></ul></ul><ul><ul><li>Conforming </li></ul></ul>Issues Related to Self and Self-Image
  109. 125. <ul><li>Social Stratification </li></ul><ul><li>Social Class System – </li></ul><ul><li>Hierarchical division of society into relatively permanent and homogeneous groups with respect to attitudes, values and lifestyles. </li></ul><ul><li>Criteria for a Social Class System: Individual Classes Must Be: </li></ul><ul><ul><li>Bounded </li></ul></ul><ul><ul><li>Ordered </li></ul></ul><ul><ul><li>Mutually Exclusive </li></ul></ul><ul><ul><li>Exhaustive </li></ul></ul><ul><ul><li>Influential </li></ul></ul>
  110. 126. Social Standing Influences Behavior
  111. 127. Not All Behaviors within a Social Class are Unique Unique Behaviors Shared Behaviors Excluded Behaviors Behaviors associated with a particular social class Behaviors not Engaged in Behaviors shared With other Social Classes
  112. 128. Positioning Within Social Class Working- Class Aristocrats Disdain Upper- Middle Class Prefer Working- Class Products And Brands Positioning Working-class Symbolism for Working-class Products
  113. 129. Upward-Pull Strategy
  114. 130. Measuring Social Status <ul><li>Single-Item Indexes </li></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Occupation (e.g., Socioeconomic Index: SEI) </li></ul></ul><ul><ul><li>Income (e.g., individual, family, before or after tax) </li></ul></ul><ul><li>Advantage: Allow estimation of the impact of specific status dimensions on the consumption process. </li></ul><ul><li>Disadvantage: Less accurate at predicting an individual’s overall position in a community. </li></ul>
  115. 131. Measuring Social Status <ul><li>Multi-Item Indexes </li></ul><ul><ul><li>Hollingshead Index of Social Position </li></ul></ul><ul><ul><li>Warner’s Index of Status Characteristics </li></ul></ul><ul><ul><li>Census Bureau’s Index of Socioeconomic Status </li></ul></ul><ul><li>Advantage: More accurate at predicting an individual’s overall position in a community. </li></ul><ul><li>Disadvantage: Overall status may mask useful associations between individual status dimensions and the consumption process for particular products. </li></ul>
  116. 132. Positioning and Social Class Segments
  117. 133. What Is a Group? <ul><li>Two or more people who interact to accomplish either individual or mutual goals </li></ul><ul><li>A membership group is one to which a person either belongs or would qualify for membership </li></ul><ul><li>A symbolic group is one in which an individual is not likely to receive membership despite acting like a member </li></ul>
  118. 134. Indirect Reference Groups Individuals or groups with whom a person identifies but does not have direct face-to-face contact, such as movie stars, sports heroes, political leaders, or TV personalities.
  119. 135. Major Consumer Reference Groups
  120. 136. Positive Influences on Conformity <ul><li>Group Characteristics </li></ul><ul><li>Attractiveness </li></ul><ul><li>Expertise </li></ul><ul><li>Credibility </li></ul><ul><li>Past Success </li></ul><ul><li>Clarity of Group Goals </li></ul><ul><li>Personal Characteristics </li></ul><ul><li>Tendency to Conform </li></ul><ul><li>Need for Affiliation </li></ul><ul><li>Need to be Liked </li></ul><ul><li>Desire for Control </li></ul><ul><li>Fear of Negative Evaluation </li></ul>
  121. 137. GROUP EXERT INFLUENCES <ul><li>ATTITUDE TOWARDS THE GROUP </li></ul><ul><li>VIEWS THE REFERENCE GROUP AS A CREDIBLE SOURCE OF INFORMATION </li></ul><ul><li>VALUES THE VIEWS AND REACTIONS </li></ul><ul><li>ACCEPTS THE REWARDS AND SANCTIONS </li></ul><ul><li>NATURE OF THE GROUP </li></ul><ul><li>COHESIVE </li></ul><ul><li>FREQUENTLY INTERACTING </li></ul><ul><li>DISTINCTIVE AND EXCLUSIVE </li></ul><ul><li>NATURE OF THE PRODUCT </li></ul><ul><li>VISIBLE </li></ul><ul><li>EXCLUSIVE </li></ul>
  122. 138. Selected Consumer-Related Reference Groups <ul><li>Friendship groups </li></ul><ul><li>Shopping groups </li></ul><ul><li>Work groups </li></ul><ul><li>Virtual groups or communities </li></ul><ul><li>Consumer-action groups </li></ul>Wild Planet Video
  123. 139. A FRIEND MENTIONS THAT STORE X HAS A GOOD COLLECTION OF SUITS A DEVELOPS A CONSEVATIVE WARDROBE A BUYS THE RECOMMENDED MOUTHWASH NEEDING A NEW SUIT A DECIDES TO VISIT THE STORE NORMATIVE IDENTIFICATION AN AD STRESSES THAT”EVEN YOUR FRIENDS WON’T TELL YOU IF YOU HAVE BAD BREATH-THEY WILL IGNORE YOU INFORMATIONAL Behavioral response SITUATION Type of influence OVER TIME.A NOTICES THAT SUCCESSFUL EXECUTIVES DRESS CONSERVATIVELY
  124. 140. PRIVATE PRIVATE NECESSITIES PRIVATE (WEAK REFERENCE GROUP INFLUENCE ON BRAND) PUBLIC PUBLIC NECESSITIES VISIBLE (STRONG REFERENCE GROUP INFLUENCE ON BRAND) NONNECESSITY (STRONG REFERENCE GROUP INFLUENCE ON PRODUCT) NECESSITY (WEAK REFERENCE GROUP INFLUENCE ON PRODUCT) CONSUMPTION
  125. 141. <ul><li>Visible usage </li></ul><ul><li>High relevance of product </li></ul><ul><li>to group </li></ul><ul><li>Low individual purchase </li></ul><ul><li>confidence </li></ul><ul><li>Strong individual </li></ul><ul><li>commitment to group </li></ul><ul><li>Nonnecessary item </li></ul>HIGH DEGREE OF REFERENCE GROUP INFLUENCE
  126. 142. Consumer Socialization The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.
  127. 143. A Simple Model of the Socialization Process - Figure 10.11
  128. 144. Table 10.7 Eight Roles in the Family Decision-Making Process ROLE DESCRIPTION Influencers Family member(s) who provide information to other members about a product or service Gatekeepers Family member(s) who control the flow of information about a product or service into the family Deciders Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or service Buyers Family member(s) who make the actual purchase of a particular product or service Preparers Family member(s) who transform the product into a form suitable for consumption by other family members Users Family member(s) who use or consume a particular product or service Maintainers Family member(s) who service or repair the product so that it will provide continued satisfaction. Disposers Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service
  129. 145. The Family Life Cycle <ul><li>Traditional Family Life Cycle </li></ul><ul><ul><li>Stage I: Bachelorhood </li></ul></ul><ul><ul><li>Stage II: Honeymooners </li></ul></ul><ul><ul><li>Stage III: Parenthood </li></ul></ul><ul><ul><li>Stage IV: Postparenthood </li></ul></ul><ul><ul><li>Stage V: Dissolution </li></ul></ul><ul><li>Modifications - the Nontraditional FLC </li></ul>
  130. 147. <ul><li>Thank You </li></ul>

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