Consumer Behavior

Customer vs. Consumer Behavior

• Customer behavior: a broad term

that covers both individual consumers
who buy goods and services for their
own use and organizational buyers who
purchase business products

• Consumer behavior: the process

through which the ultimate buyer
makes purchase decisions
UNIT: 4. CONSUMER BEHAVIOUR

• Factors Influencing Buyer Behavior

• Buyer Decision Process
• Consumer Psychology
• Industrial Buyer Behavior Vs. domestic
Buyer Behavior
• Customer Satisfaction Vs. Customer
Delight
 Consumer Behavior

Consumer
Consumer behavior
behavior consists
consists of
of the
the
actions
actions aa person
person takes
takes in
in purchasing
purchasing and
and
using
using products
products and
and services,
services, including
including the
the
mental
mental and
and social
social processes
processes that
that come
come
before
before and
and after
after these
these actions.
actions.
Importance of understanding
Consumer Behavior

Understand

Predict

Influence
 Factors affecting Consumer
Behavior
• Model of Consumer Behavior
• Factors affecting Buyer Behavior
• Types of Buying Decisions
 Model
Model of
of Consumer
Consumer Behavior
Behavior
Product Marketing Economic
Marketing and
and
Price Other
Other Stimuli
Stimuli Technological
Place Political
Promotion Cultural
Factors
Buyer’s Affecting
Decision Buyer’s
Process Buyer’s Black
Black Box
Box Consumer
Behavior

Product Choice Purchase

Timing
Brand Choice Buyer’s
Buyer’s Response
Response
Purchase
Dealer Choice Amount
 Factors
Factors Affecting
Affecting
Consumer
Consumer Behavior
Behavior
Cultural
Social

Personal
Psychological

Buyer
Buyer
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Cultural
Cultural

Culture

Subculture

Social class
 Culture

Culture
Culture is
is aa whole
whole set
set of
of values,
values,
traditions,
traditions, beliefs,
beliefs, attitudes
attitudes and
and ways
ways
of
of doing
doing things
things of
of aa reasonably
reasonably
homogeneous
homogeneous set set of
of people.
people.
• Cultural Influences
• Culture: values, beliefs, perceptions, preferences, and
tastes handed down from one generation to the next.
Indian Culture:
• Children feel the responsibility of taking care of aged
parents.
• A father owning the responsibility of getting his Daughter
married in a well to do family.
• Core Values in the Culture
• While some cultural values change over time, basic
core values do not
• Examples of core values include:
• Importance of family and home life
• The way of dressing
• Working habits

Values are shared beliefs formed through Socialization

& Acculturisation process
 Subcultures

Subcultures
Subcultures areare subgroups
subgroups within
within the
the
larger,
larger, or
or national
national culture
culture with
with unique
unique
values,
values, ideas,
ideas, and
and attitudes,
attitudes, based
based on
on
common
common life
life experiences.
experiences.
• Subcultures: subgroup of culture with its
own, distinct modes of behavior
• Cultures are not homogeneous entities with
universal values.
• Subcultures can differ by:
• Religion
• Place of residence
Subculture influences food
preferences, clothing choices,
recreation & career aspirations.
 Social class
A group of people who have
approximately equal social position as
viewed by others in society. It can be
related to occupation, education, &
community participation where a person
lives.
• It comprises of relatively homogeneous
& enduring divisions in a society which
are hierarchically ordered & whose
members share similar values, interests
and behavior.
E.g. Caste-system in India
• Social classes: groups whose
rankings are determined by occupation,
income, education, family background,
and residence location

W. Lloyd Warner identified

six classes:
1. Lower class
2. Upper-upper
3. Lower-upper
4. Upper-middle
5. Lower-middle
6. Working class
• Social classes show distinct product &
brand preferences in many areas such
as clothing, furnishings, leisure etc.
SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
 Bonne Bell Cosmetics
Why target the African American women market?
 Hershey’s Kisses
Why use Spanish language ads in the U.S.?
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Social
Social
Reference
Reference Groups
Groups

Family
Family
Social
Social Factors
Factors

Roles and Status

 Reference Groups

Reference
Reference groups
groups are
are people
people toto whom
whom
an
an individual
individual looks
looks asas aa basis
basis for
for
self-appraisal
self-appraisal or
or as
as aa source
source ofof personal
personal
standards.
standards.
• Reference groups: groups whose value
structures and standards influence a
person’s behavior
• Requires two conditions:
• The purchased product must be one that
others can see and identify
• The purchased item must be conspicuous; it
must stand out as something unusual, a
brand or product that not everyone owns
• Reference Groups

 Membership Group ( primary, secondary)

 Aspiration Group (like to belong)
 Dissociative Group (like not to belong)
 Reference groups influence in at least
three ways.
1.Expose individual to new behavior &
lifestyle
2.Influence a persons attitude & self-
concept.
3.Create pressures for conformity-actual
product/brand choice.
• Personal Influence

 Opinion Leadership
• Opinion Leaders

• Word of Mouth
 Opinion Leaders

Opinion
Opinion leaders
leaders are
are individuals
individuals who
who
exert
exert direct
direct or
or indirect
indirect social
social influence
influence
over
over others.
others.
• Opinion
leaders:
trendsetters
who purchase
new products
before others
in a group and
then influence
others in their
purchases
Pierce Brosnan and Anna Kournikova
Why use celebrity spokespersons?
 Word of Mouth

Word
Word ofof mouth
mouth is
is the
the influencing
influencing of
of
people
people during
during conversations.
conversations.
 Family

• Family Influence

 Consumer Socialization
 Family Life Cycle
 Family Decision Making
• Information Gatherer • Purchaser

• Influencer • User

• Decision Maker
 Family Life Cycle

The
The family
family life
life cycle
cycle describes
describes thethe
distinct
distinct phases
phases that
that aa family
family progresses
progresses
through
through from
from formation
formation toto retirement,
retirement,
each
each phase
phase bringing
bringing with
with itit identifiable
identifiable
purchasing
purchasing behaviors.
behaviors.
 Haggar Clothing
What role do women play in this purchase?
• Family Influences

• Husband-dominant role is when the

husband makes most of the decisions.
• Wife-dominant role is when the wife makes
most of the decisions.
• Syncratic role is when both partners jointly
make most decisions.
• Children and Teenagers in Family
Purchases
• Growing numbers are assuming
responsibility for family shopping
• They also influence what parents buy
 Roles & Status

• Roles define behavior that members of a

group expect of individuals who hold
specific positions within the group

• Status: is the relative position of any

individual member in a group. Each role
carries a Status
• Roles influence Buyer behavior. People
choose products that communicate
their role & status in society.
• Marketers should be aware of the
status symbol potential of products &
brands.
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Personal
Personal
Personal
Personal Influences
Influences

Age
Ageand
and Life
LifeCycle
Cycle Occupation
Stage Occupation
Stage

Economic
EconomicSituation
Situation Personality
Personality&&Self-Concept
Self-Concept

Lifestyle
Lifestyle Identification
Identification

Activities
Activities Opinions
Opinions

Interests
Interests
 Age & life-cycle stage
• Affects choice of food, clothes,
furniture, recreation etc.
 Occupation
• Affects consumption pattern .
e.g. Purchasing patterns of white collar
workers will be different from those of
blue collar workers.
 Economic circumstances
• Spendable income
• Savings & assets
• Debts
• Borrowing power
• Attitude towards spending & savings
 Personality
• A person’s distinguishing psychological
characteristics that lead to relatively
consistent & enduring responses to
environment
 Based on traits people can be described as
• Confident
• Warm
• Loving
• Caring
• Outgoing
• Introvert
• Extrovert
• Aggressive
• Not Responsible
• Personality types affect product/brand
choices. A Marketer should adapt his
selling style to suit the customer’s
personality.
 Self-concept
• Self-concept (Self-image)
• Marketers try to develop brand images
that match the target market’s self-
image.
• Actual self-concept
• Ideal self- concept
• Other’s self -concept

• It sometimes may become difficult to answer which

self will one try to satisfy while choosing a product.
 Lifestyle
• It is the person’s pattern of living as
expressed in the person’s activities ,
interests & opinions.
• Lifestyle portrays whole person
interacting with the environment.
• Achievement-oriented
• Belongingness-oriented
VALS
VALS 22 Actualizers
Actualizers Abundant
Abundant Resources
Resources

Principle Oriented Status Oriented Action Oriented

Fulfilleds
Fulfilleds Achievers
Achievers Experiencers
Experiencers

Believers
Believers Strivers
Strivers Makers
Makers

Strugglers
Strugglers
Minimal
Minimal Resources
Resources
 Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological

Motivation
Motivation

Beliefs
Beliefs and
and Psychological
Factors PPerception
erception
Attitudes
Attitudes

Learning
Learning
Maslow’s
Maslow’s Hierarchy
Hierarchy of
of Needs
Needs
Self
Actualization
(Self-development)

Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
 Types of Buying Decisions
• Involvement
• Differences between brands
 Involvement

Involvement
Involvement consists
consists of
of the
the personal,
personal,
social,
social, and
and economic
economic significance
significance of
of the
the
purchase
purchase to
to the
the consumer.
consumer.
 Types
Types of
of Buying
Buying Decisions
Decisions

High Low
Involvement Involvement
Significant
differences Complex Variety-
between Buying Seeking
brands Behavior Behavior
Few
differences Dissonance- Habitual
between Reducing Buying Buying
brands
Behavior Behavior
The
The Buyer
Buyer Decision
Decision Process
Process

Need
Need Recognition
Recognition

Information
Information Search
Search

Evaluation
Evaluation of
of Alternatives
Alternatives

Purchase
Purchase Decision
Decision

Postpurchase
Postpurchase Behavior
Behavior
 The Buyer Decision Process

The
The buyer
buyer decision
decision process
process is
is the
the stages
stages
aa buyer
buyer passes
passes through
through in
in making
making choices
choices
about
about which
which products
products and
and services
services to
to buy.
buy.
Consumer Buying Decisions
Process for a Wireless Phone
1. Recognition 2. Search for 3. Evaluation
of a Need Information of Alternatives
(for reliable (about wireless (narrow down to
mobile telephone service providers consideration set)
communication) and phones)

6. Disposition 5. Post-purchase 4. Choice/

(Discard phone, Evaluation Purchase
cancel wireless (actual versus (choosing one
service when no expected alternative
longer wanted satisfaction with provider and
or needed) both phone and phone from
service the set)
provider)
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition

Need
Need Recognition
Recognition
Difference
Differencebetween
betweenan
anactual
actualstate
stateand
andaadesired
desiredstate
state

Internal
Internal Stimuli
Stimuli External
External Stimuli
Stimuli
•• Hunger
Hunger ••TV
TVadvertising
advertising
••Thirst ••Magazine
Thirst Magazinead
ad
••AAperson’s
person’snormal
normal ••Radio
needs Radioslogan
slogan
needs
••Stimuli
Stimuliin
inthe
the
environment
environment
 Need recognition: the process that
occurs whenever the consumer sees a
significant difference between his or her
current state of affairs and some desired
or ideal state.

• Needs are biologically determined (food,

water, shelter) while wants are learned
responses to satisfying those needs.
• Marketers want to know how consumers learn
so that they can attempt to influence this
process.
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 2.
2. Information
Information Search
Search
•Family, friends, neighbors
Personal
Personal Sources
Sources •Most influential source of
information

•Advertising, salespeople
Commercial
Commercial Sources
Sources •Receives most information
from these sources

•Mass Media
Public
Public Sources
Sources •Consumer-rating groups

•Handling the product

Experiential
Experiential Sources
Sources •Examining the product
•Using the product
 Information search: the process whereby a
consumer searches for appropriate information
needed to make a reasonable decision.

• Information search takes place:

• Internally: our own memory bank.
• Externally: everywhere else.
• The Internet has enabled this process by huge leaps
and bounds.
• Information search can be:
• Purposeful: looking for it.
• Passively acquired.
• Of key interest is what influences the amount and
quality of search?
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Product
ProductAttributes
Attributes
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

Degree
Degreeof
ofImportance
Importance
Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?

Brand
BrandBeliefs
Beliefs
What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?

Total
TotalProduct
ProductSatisfaction
Satisfaction
Based
Basedon
onwhat
whatI’m
I’mlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?
Evaluation
EvaluationProcedures
Procedures
Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.
 Evaluation of alternatives: the process
whereby a consumer evaluates the different
purchase alternatives identified.
• Evaluation criteria: the dimensions that
consumers use to compare competing
product alternatives.
• Students choosing a university may use
many different selection criteria, such as:
size, reputation, costs, location, programs,
living accommodations, or social life.
• Some criteria are more important than
others, so we still need to know how the
decision will be made.
• Product choice: the process whereby a
consumer makes a choice between the
different purchase alternatives identified.
• Heuristics: a mental rule of thumb that leads
to a speedy decision by simplifying the
process.
 Heuristics
• The human mind seeks to simplify the
amount of decision making required
whenever possible.
• We hold attitudes for the same reason, and
we apply them to purchase decisions.
• Does higher price equal more quality? If it is a
Rolex, yes.
• What happens when it doesn’t in the short
and long run?
 Brand Loyalty
• Brand loyalty: a pattern of repeat product
purchases, accompanied by an underlying
positive attitude toward the brand, which is
based on the belief that the brand makes
products superior to its competition.
• Brand names can serve as an expectation of
performance and can be used to facilitate new
product acceptance.
• Brand equity: the value of the brand
name’s acceptance.
• Companies use brand equity to
facilitate new product acceptance.
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 4.
4. Purchase
Purchase Decision
Decision
Purchase
Purchase Intention
Intention
Desire
Desire to
to buy
buy the
the most
most preferred
preferred brand
brand

Attitudes Unexpected
of others situational
factors

Purchase
Purchase Decision
Decision
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 5.
5. Post
Post purchase
purchase Behavior
Behavior
Consumer’s
Consumer’s Expectations
Expectations of
of
Product’s
Product’s Performance
Performance
Product’s Perceived
Performance

Satisfied
Satisfied Dissatisfied
Dissatisfied
Customer!
Customer! Customer
Customer

Cognitive Dissonance
• Post-purchase evaluation: the
process whereby a consumer evaluates
the quality of the purchase decision made,
as a result of consumption and learning.
• Customer (dis)satisfaction: the
overall feelings or attitude a person has
about a product after purchasing it.
Stages
Stages in
in the
the Adoption
Adoption Process
Process
Awareness
Awareness

Interest
Interest

Evaluation
Evaluation

Trial
Trial

Adoption
Adoption
Adoption
Adoption of
of Innovations
Innovations
Percentage of Adopters

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late
 nfluences on
Influences on the
the Rate
Rate of
of Adoption
Adoption
of
of New
New Products
Products
Communicability Relative Advantage
Can results be easily Is the innovation
observed or described superior to existing
to others? products?

Product
Divisibility Characteristics Compatibility
Does the
Can the innovation
innovation
be used on a
fit the values and
trial basis?
experience of the
Complexity target market?
Is the innovation
difficult to
understand or use?
Consumer psychology
 Consumer Psychology
• Perception
• Learning
• Motivation
• Beliefs & Attitudes
• Lifestyles
 Perception
• What is Perception
• Images
• Process
• Sensation & Perception
• Picturing the Perceptual Process
• Psychological influences on consumer
behavior
 What is Perception?
• Process to recognize, organize,
and make sense of sensations.
 Perception

Perception
Perception is is the
the process
process byby which
which an
an
individual
individual selects,
selects, organizes,
organizes, and
and
interprets
interprets information
information to to create
create aa
meaningful
meaningful picture
picture ofof the
the world.
world.
Look at this picture: what do you see?
Images nearby ... and far away
How many Horses can you find in this picture?
Find faces
in this tree
Can you
find
hidden
images?
Find the baby
PERCEPTION
 Sensation and Perception
• Sensation: Conscious outcome of sense
organs and projection regions. (“I detect
something”, not necessarily conscious, and
not necessarily meaningful)
• Perception: Means by which information
acquired from the environment via the sense
organs is transformed (organized) into
experiences of objects, events, sounds,
tastes, etc. (“I know, recognize, appreciate
what I am sensing, and it means something to
me”)
Picturing the Perceptual Process
Three steps in the sensation and
perception of a stimulus
• Perceptions: the meaning that a
person attributes to incoming stimuli
gathered through the five senses –
sight, hearing, touch, taste, and smell.
• Perceptual screens: the filtering
processes through which all inputs
must pass
 Psychological Influences of
consumer behavior
• Selective perception
• Subliminal Perception
• Perceived Risk
 PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR

• Perception

 (Three perceptual processes)

• Selective Attention

• Selective Distortion
• Selective Retention

 Subliminal Perception
• Subliminal Perception: subconscious
receipt of information
• Almost 50 years ago, a New Jersey movie
theater tried to boost concession sales by
flashing the words Eat Popcorn and Drink
Coca-Cola.
• Subliminal advertising is aimed at the
subconscious level of awareness.
• Subliminal advertising has been universally
condemned as manipulative, and is
exceedingly unlikely that it can induce
purchasing.
• Research has shown that subliminal
messages cannot force receivers to purchase
goods that they would not consciously want.
 Perceived Risk

Perceived
Perceived risk
risk represents
represents the
the anxieties
anxieties
felt
felt because
because the
the consumer
consumer cannot
cannot
anticipate
anticipate the
the outcomes
outcomes of
of aa purchase
purchase
but
but believes
believes that
that there
there may
may bebe negative
negative
consequences.
consequences.
Perceived risk: the belief that use of a product
has potentially negative consequences, either
financial, physical, or social.
• The consequences of making a bad choice
may vary from minimal (chocolate bar) to
severe (university program or choice of mate!).
• Risk is perceptual, therefore it can be
influenced. How do marketers reduce the risk
perceived by consumers?
• What do consumers do to reduce their
perceived risk?
• Mostly, they look for information.
 PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR

• Perception

 Perceived Risk
• Obtain Seals of Approval

• Secure Endorsements from Influential People

• Provide Free Trials of the Product

• Give Extensive Usage Instructions

• Provide Warranties and Guarantees

 Learning
• Meaning
• Learning - I : Classical Conditioning
• Learning -2: Operant Conditioning
• Psychological Influences on Consumer
Behavior
 What is “learning”?

“any relatively enduring change in

behavior as the result of experience”
 Learning

Learning
Learning refers
refers to
to those
those behaviors
behaviors that
that
result
result from
from (1)
(1) repeated
repeated experience
experience and
and
(2)
(2) reasoning.
reasoning.
• Learning: a relatively permanent
change in behavior caused by acquiring
information or experience. Consumers
must learn how to satisfy their needs.
• Learning can be either deliberate or
vicarious.
• Behavioral learning theories: theories of
learning that focus on how consumer behavior
is changed by external events or stimuli.
• The consumer forms connections between the
things that happen to them or within their range
of perception.
• Freud had a few things to say about these
connections.
 Learning I:
Classical Conditioning
 Ivan Pavlov

• 1849-1936 (b. near Moscow)

• Animal research using live animals
• Early research on animal digestion in which taste
of food shown to trigger release of gastric juices
Pavlov’s Research on Conditioning
• Animals had small
incision in jaw to
create a channel
(fistula) through which
saliva would flow and
be collected &
measured

• Pavlov began to
research what would
happen when he rang
a bell or sounded a
gong just before he
put meat powder in the
dog’s bowl
What is your reaction to this
photo?
What is your reaction to this blue
box?
What is happening here?
 The blue box becomes
associated with the lovers

+
 Signals

Take a naturally pleasant or attractive

object or situation

+ Associate it with a neutral object or situation

If done enough times, the neutral object or situation becomes a mental

signal for the pleasant or attractive one. It signals that the naturally
pleasant or attractive object or situation is about to appear on the scene
 Learning II:
Operant Conditioning
B. F. Skinner
 “Skinner Box”
• Lever or other target upon
which the animal will operate
• Signal such as a light
• Source of reward such as a
food pellet tray or a
punishment such as an
electrical shock grid
• Mechanism to record animal’s
behavior (frequency counter)
• First used with rats, then with
pigeons
 New Language I:
Contingencies
• Reinforcement = any consequence which increases the
likelihood that the behavior will occur again
• Positive Reinforcement: a pleasant reward which leads to
an increase in a behavior
• Having a good time on a Saturday night
• Negative Reinforcement: removal of something aversive
or unpleasant which leads to increase in a behavior
• Cops stopping loud music of kids outside

• Punishment = Any consequence which decreases the

likelihood that the behavior will occur again
 New Language II: Behavioral
Control
• Organisms acquire new behaviors
• The forms of behaviors are shaped by their
consequences
• Behaviors are extinguished by a lack of reinforcement
when they occur
• Discriminative stimuli are cues (signals) that influence
behavior; they suggest the consequence of behavior
• Generalized responses are behaviors which are similar
to behaviors which have been rewarded or punished in
the past
• Learning
• An immediate or expected change in
behavior as a result of experience.
• The learning process includes the
component of:
• Drive
• Cue
• Response
• Reinforcement
 PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR

• Learning

 Behavioral Learning
• Drive • Stimulus Generalization

• Response • Stimulus Discrimination

• Reinforcement

 Cognitive Learning
 Brand Loyalty
 Brand Loyalty

Brand
Brand loyalty
loyalty is
is aa favorable
favorable attitude
attitude
toward
toward and
and consistent
consistent purchase
purchase ofof aa single
single
brand
brand over
over time.
time.
• Applying Learning Theory to
Marketing Decisions
• Shaping: process of applying a series of
rewards and reinforcements to permit
more complex behavior to evolve over
time
MOTIVATION & PERSONALITY
 Motivation

Motivation
Motivation isis the
the energizing
energizing force
force that
that
stimulates
stimulates behavior
behavior toto satisfy
satisfy aa need.
need.
 Personality

Personality
Personality refers
refers to
to aa person’s
person’s
consistent
consistent behaviors
behaviors oror responses
responses to
to
recurring
recurring situations.
situations.
 Motivation & Personality
• Why do people do the things they do?
• Drive Reduction Theory
• Kinds of Drives
• Psychological Influences on Consumer
Behavior
 Motivation
Why do people do the things they do?
• reflexes
• simple, unlearned responses to specific stimuli
• -often mediated by direct connections in spinal cord
• learned (conditioned) behaviors
• physiological needs  drives  increase likelihood • What are
of behavior the basic
drives?
• cognition
• thoughts, beliefs and strategies about consciously • Why are
directed behaviors that best satisfy drives some things
more
motivating
(reinforcing)
than others?
• Motivation
 Drive-Reduction Theory
 the idea that a physiological need creates
an aroused tension state (a drive) that
motivates an organism to satisfy the need
 Kinds of Drives
• regulatory
• primary biological maintenance
• survival
• regulated by homeostasis
• breathing, hunger, thirst, pain, sleep

• non-regulatory
• long-term maintenance
• attachment, nurture, novelty, aggression
• long-term comfort
• self-esteem, power, achievement, self-actualization
 PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR

• Motivation and Personality

 Motivation  Personality
• Physiological Needs • Self-Concept

• Safety Needs

• Social Needs

• Personal Needs

• Self-Actualization Needs
Hierarchy of needs
 Motivation: an internal state that drives
us to satisfy needs by activating goal-
oriented behaviour.
• Example: a homeless person is
motivated to find shelter and food, while
only the wealthy have the luxury of
spending their time seeking “self-
fulfillment”.
• Needs and Motives
• Need: an imbalance between a consumer’s
actual and desired states
• Motives: inner states that direct a person
toward the goal of satisfying a felt need
 Self Concept

Definition
Self Concept: the totality of an individual’s
thoughts and feelings having reference to
him/herself as an object.
It is the personal or internal basis for
lifestyle but should not be perceived as
devoid of social influence.
• Self-Concept
• A person’s multifaceted picture of himself or
herself, composed of the:
• Real self
• Self-image
• Looking-glass self
• Ideal self
Measurement Scales for Self-Concepts,
Person Concepts, and Product Concepts

1. Rugged ----------------- Delicate

2. Excitable ----------------- Calm
3. Uncomfortable ------------ Comfortable
4. Dominating --------------- Submissive
5. Thrifty ----------------- Indulgent
6. Pleasant ----------------- Unpleasant
7. Contemporary -------------Non-contemporary
8. Organized ----------------- Unorganized
9. Rational ----------------- Emotional
10. Youthful ----------------- Mature
11. Formal ----------------- Informal
12. Orthodox ----------------- Liberal
13. Complex ----------------- Simple
14. Colorless ----------------- Colorful
15. Modest ----------------- Vain
 The Relationship between Self-Concept and
Brand Image Influence

Product
Brand Image

Behavior Satisfaction
Relationshi Seek products
p Between and brands Purchase
self-concept that improve contributes to
and brand desired self-
or maintain concept
image self-concept

Consumer
Self-concept
 Lifestyle/ Psychographics
Lifestyle defined:
A distinct mode of living -- including how
one spends time, $, and places emphasis on
numerous aspects of their life.

Lifestyle patterns are influenced by several

internal and external factors like:
Income, age, family size, social patterns, social
attitude changes, shifts in social views, legal
changes, background, and education.
 Lifestyle/ Psychographics

Psychographics defined:
A way of describing the psychological make-
up or lifestyle of a consumer or segment of
consumers.

Lifestyle dimensions can come from analyzing several

activities/interests and opinion items. This analysis ---
a set of dimensions or factors, next these factors are
used in formulation clusters or categories of the
consumer population.
 Lifestyle and the Consumption Process

Lifestyle Lifestyle Behavioral

Determinants
• Demographics
(How we live) Impact
• Subculture
 Activities Purchases
• Social class  Interests  How
 When
• Motives  Like/dislikes  Where
• Personality
 What
 Attitudes  With whom
• Emotions
 Consumption Consumption
• Values
 Where
• Household
 Expectations  With whom
• Culture  Feelings  How
 When
• Past experiences  What
 Impact of Lifestyle

Lifestyle ----- > Choice/use/w.o.m

Direct Impact

Indirect Impact

Aspirational Impact
 Impact of Lifestyle

Direct Impact

Adventuresome, fast-paced,
live-for-now, lifestyle --->
higher desire for sports
cars, bungie jumping, travel.
 Impact of Lifestyle

Indirect Impact

Modern conservative family, two career

professionals, wants to provide nice, safe
home and good future opportunities for
children ---> lawn care service, auto
maintenance contracts, fast food services.
 Impact of Lifestyle

Aspirational Impact

Low-income individual, young adult,

college graduate, profession seeking,
wants a family, (but later). Marketing
messages tell him/her that you need to
“dress for success” “look good” ---> CZ
ring, 18K gold plated watch, designer
copy-cat clothes, less-expensive but
“unique car.”
 Relationship of Self-concept and
Lifestyle

Actual External
Self concept Factors
Lifestyle

Private Social
Self Self

Ideal Actual
 Measures of Lifestyle

Originally AIO inventory (200-350 items

involving Activities, Interests, and Opinions)
Problem: Too long, too narrow in scope

More recent measures include: Attitudes, Values,

Activities, Interests, Media Patterns, Usage
characteristics, Demographics and Geographics.

VALS VALS2 PRIZM

 VALS
4 Base categories:
Survivors
Need Driven
Groups Sustainers

Outer directed Belongers

Groups Emulators
Achievers
I am me
Inner directed
Groups Experiential
Societally conscious

Both inner and

Integrated
outer directed
VALS2 Lifestyle System
Principle Status Action
Abundant resources
Actualizer

Fulfilled Achiever Experiencer

Believer Striver Maker

Struggler
Minimal resources
 VALS2 Lifestyle System
Self concept is composed primarily of three
dimensions of self orientation:
Principle oriented: Choices guided by their own
personal beliefs, not feelings or other’s approval.

Status oriented: Heavily influenced by actions,

approval, and the opinions of others

Action oriented: Desire social activity & Physical

activity variety and risk taking -- adventuresome.
 Lifestyle Analysis of the Cosmetics Market

Cosmetic Lifestyle Segments

1. Self-aware: concerned about appearance, fashion, and
exercise.
2. Fashion-direct: concerned about fashion and appearance,
not about exercise and sport.
3. Green goddesses: concerned about sport and fitness, less
about appearance.
4. Unconcerned: neutral attitudes to health and appearance.
5. Conscience-stricken: no time for self-realization, busy with
family responsibilities.
6. Dowdies: indifferent to fashion, cool on exercise, and dress
for comfort.
 Intrapersonal and Interpersonal Determinants of Consumer Behavior

Culture and Subculture

Measurement
Social class
Psychographics
Preference groups
Activities, interests,
opinions. Family

Values Personality

Lifestyles

Decisions
Family
Individual

General behavior
Intrapersonal and Interpersonal Determinants of Consumer Behavior

General behavior

Benefits desired

Money Budget Time budget

expenditures expenditures

Product choices

Brands and store

choices

Benefit delivery
 Beliefs & Attitudes
• Beliefs
• Attitudes
• Psychological Influences on Consumer
Behavior
 Beliefs

Beliefs
Beliefs are
are aa consumer’s
consumer’s subjective
subjective
perception
perception of
of how
how aa product
product oror brand
brand
performs
performs on
on different
different attributes
attributes based
based on
on
personal
personal experience,
experience, advertising,
advertising, and
and
discussions
discussions with
with other
other people.
people.
 Attitude

An
An attitude
attitude is
is aa “learned
“learned predisposition
predisposition
to
to respond
respond to
to an
an object
object or
or class
class of
of objects
objects
in
in aa consistently
consistently favorable
favorable or
or unfavorable
unfavorable
way.”
way.”
• Attitudes
• A person’s enduring favorable or
unfavorable evaluations, emotional feelings,
or action tendencies toward some object or
idea
• Attitude components:
• Cognitive
• Affective
• Behavioral
• Changing Consumer Attitudes
• Attempt to produce consumer attitudes that
will motivate the purchase of a particular
product
• Evaluate existing consumer attitudes and
then make the product characteristics appeal
to them

• Modifying the Components of Attitude

• Attitudes change in response to
inconsistencies among the three components
• Marketers can work to modify attitudes by
providing evidence of product benefits and by
correcting misconceptions
 PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR

• Values, Beliefs, and Attitudes

 Attitude Formation
• Attitude

• Beliefs

 Attitude Change
• Change Beliefs About a Brand’s Attributes

• Change Perceived Importance of Attributes

• Add New Attributes to the Product

 Colgate Total Toothpaste and
Bayer Extra Strength Aspirin
How did these ads change attitudes?
 PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR

• Lifestyle

 Psychographics
 VALS™
• Thinkers • Experiencers

• Believers • Makers

• Achievers • Innovators

• Strivers • Survivors
 VALS™ Consumer Segments
How do consumers make purchase decisions?
 Industrial Buying Behavior
• Business Market
• Characteristics of Business Market
• Model of Business Buying Behavior
• Business Buying Situation
• Participants
• Major Buying Influences
• Stages
What
What is
is aa Business
Business Market?
Market?
• The Business Market - all the
organizations that buy goods and services
to use in the production of other products
and services that are sold, rented, or
supplied to others.

• Business markets involve many more

dollars and items do consumer markets.
Characteristics
Characteristics of
of Business
Business Markets
Markets

Market
MarketStructure
Structureand
andDemand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Geographically
Geographicallyconcentrated
concentrated
••Demand
Demand derivedfrom
derived fromconsumers
consumers
••Inelastic
Inelasticdemand
demand
••Fluctuating
Fluctuatingdemand
demand
Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit
••More
Morebuyers
buyers
••More
Moreprofessional
professionalpurchasing
purchasing
effort
effort

Types
Typesof
ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process
••More
Morecomplex
complexdecisions
decisions
••Process
Processis ismore
moreformalized
formalized
••Buyer
Buyer and seller aremore
and seller are more
dependent on each other
dependent on each other
••Build
Buildclose
closelong-term
long-termrelationships
relationships
with
withcustomers
customers
Model
Model of
of Business
Business Buyer
Buyer Behavior
Behavior
Product Marketing Economic
Marketing and
and
Price Other
Other Stimuli
Stimuli Technological
Place Political
Promotion Cultural

Organizational The
TheBuying
Buying
The
Organization
Organization
Buying Center
Interpersonal
Influences and Individual
Buying Decision
Process
Influences

Product or Service Delivery Terms

Choice and Times
Buyer’s
Buyer’s Response
Response
Supplier Choice Service Terms
Order Quantities Payment
Business
Business Buying
Buying Situations
Situations

New
New Task
Task Buying
Buying
Involved Decision Making

Modified
Modified Rebuy
Rebuy

Straight
Straight Rebuy
Rebuy
Participants
Participants in
in the
the Business
Business Buying
Buying Process:
Process:
The
The Buying
Buying Center
Center

Gatekeepers Users

Buying
Buying
Deciders Center
Center Influencers

Buyers
Major
Major Influences
Influences on
on Business
Business
Buying
Buying
Environmental
Environmental
Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive&&Cultural
Cultural

Organizational
Organizational
Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure,
Structure,&&Systems
Systems
Interpersonal
Interpersonal
Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness
Individual
Individual
Age,
Age,Education,
Education,Job
JobPosition,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes

Buyers
Buyers
Stages
Stages in
in the
the BusinessBuying
BusinessBuying Process
Process
Problem
Problem Recognition
Recognition
General
General Need
Need Description
Description
Product
Product Specification
Specification
Supplier
Supplier Search
Search
Proposal
Proposal Solicitation
Solicitation
Supplier
Supplier Selection
Selection
Order
Order Routine
Routine Specification
Specification
Performance
Performance Review
Review
Customer satisfaction Vs. Customer
Delight