CONSUMER

BEHAVIOR
 Refers to the ACQUISITION, USE,
and DISPOSAL of products, ideas, or
services.
 CONSUMING GROUPS include
families, clubs, organizations,
corporations, and governments.
 ACQUIRING

 Receiving
 Finding
 Inheriting
 Producing
 purchasing
 CONSUMING
 Collecting
 Nurturing
 Cleaning
 Preparing
 Evaluating
 Serving
 Displaying
 Storing
 Sharing
 Devouring
 Eating
 DISPOSING
 Giving
 Throwing away
 Recycling
 depleting
 Why SHOULD we study
CONSUMER BEHAVIOR?
 Businesses stay in business by
ATTRACTING AND RETAINING
CUSTOMERS.
 The endless desire of businesses to
attract and retain customers is
important to COPYWRITERS.
 As individuals, we “market” ourselves
to the other members of the society.
 THE CONSUMPTION
PROCESS
 From disposal to acquisition (ukay-ukay
style)
 From disposal to production (recycling)
 From disposal to consumption (hand-me-
down)
 From production to consumption (starting
from scratch)
 From acquisition to consumption (buying
meals from restaurant)
 From acquisition to disposal (buying for gift-
giving)
THE CONSUMER
DECISION
PROCESS MODEL
 Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

PURCHASE

Consumption

Post-consumption Evaluation

Feedback to future decisions

 Stage One:
NEED RECOGNITION
 Occurs when an individual senses a
difference between what he or she
perceives to be the ideal versus the
actual state of affairs.
 Includes: NEEDS, DESIRES
 Marketers should know the
consumers “itch” so they’ll know
where to “scratch” new products.
 Environmental
influences
Culture
Social class
Personal influences
Family
Situation

Memory Need
Recognition Individual
Differences
Consumer resources
Motivation
Knowledge
Attitudes
Personality, values
And lifestyle
 THE
SEGMENTATION

OF
MARKET
GEOGRAPHIC SEGMENTATION

Divides the market into different

geographical units such as regions,
countries, or neighborhoods.
DEMOGRAPHIC SEGMENTATION

Consistsof dividing the market into

groups on the basis of variables as
AGE, SEX, OCCUPATION,
EDUCATION, RELIGION, FAMILY
SIZE, ETHNICITY, INCOME, etc.
PSYCHOGRAPHIC SEGMENTATION

Buyers are divided into groups on

the basis of differences in
consumer lifestyle.

LIFESTYLE refers to how people

live: INTERESTS, ACTIVITIES and
OPINION.
BEHAVIORAL SEGMENTATION

Buyers are divided into groups on

the basis of differences in their
knowledge, attitude, use, or
response to a product.
Segment Rich Yuppies Salary Working
class poor

Size of 100,000 60 million 300 million 840 million

segment
Geographics Coastal Major Small Small towns
and rural
urban urban cities areas, esp.
areas areas in the west
of China
Demographics

•HH income Above $2,000- $1,000- Less than

$5,000 $5,000 $1,999 $1,000
All age
•Age
30-65 25-45 18-60 groups

Elementary
Various College High
•Education school
school
Manual
•Occupation Entrepreneur; Managers, Office laborers,
Government professionals clerks; peasants
officials;
, technical factory
celebrities
workers
Psycho-
graphics
Orientation
Optimistic Hopeful Status quo Uncertain
Early
Innovative- Innovators; majority; Late
Early
ness Trend- majority;
setters
adopter; Emulators
opinion laggard
leaders High
Risk Low Moderate Very high
aversion low
Readiness
high moderate minimum
for foreign
goods
Lifestyles
Mobility Active Mobile Confined Immobile
Activities
Wheel Busy work Trapped Menial
and deal, sked; 8-5; labor;
dine and frequent limited hand-to-
wine in dining out disposable mouth;
exclusive and income; mass
excursion occasional
clubs, entertain
frequent outing; ment such
shopping cameras as sports
and parks on TV
CULTURE
Frameworks for action and
understanding that enable one to
operate in a manner acceptable to
other members.
Includes VALUES, NORMS,
LANGUAGE, OBJECTS, RITUALS,
etc.
VALUES – enduring beliefs about
desirable outcomes that transcend
specific situations and shape one’s
behavior. Example: honesty,
dependability, etc.

NORMS – informal, usually unspoken

rules that govern behavior.
Examine the following:
 How do Filipinos and Westerners differ in
terms of food consumption?
 The “maid” culture
 Examine vanity among people of different
culture
 Consumers in Netherlands and UK use three
times as much toothpaste as those in Spain
and Greece. Spanish consumers view
toothpaste as a cosmetic product.
Domestic animals vs livestock
Clothes represent cultural principles.
We don’t wear cocktail dress at work.
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INSTRUMENTAL VALUES – shared
beliefs about how people should
behave

TERMINAL VALUES – desirable life

goals
Examples of Examples of
INSTRUMENTAL TERMINAL
VALUES: VALUES:
Free choice Personal
Competence gratification
Compassion Security
Integrity Love & affection
independence Self-actualization
Security
Social harmony
Core Japanese and American
Values

Activity,
Harmony Work Equality

Right Hierarchy Romantic

action Individualism
Organization Materialism
MOrality
Warm,
Face-saving accepting Achievement
love

Japanese Values American Values

 Thinking points:
 Pick an instrumental or terminal value you
believe is important in your culture. What
product can support or promote that value?

 Think of a cultural ritual in your community.

Describe the ritual. How does this ritual relate
to important cultural values?