Lecture Guide for Cloe - Lascu Marketing: Essentials 6e 489 Slides Written by the textbook authors Use as flash cards for terminology & concept review Use for notes during instructor lectures Affordable: $9.95 Sample Pages Follow
1
Chapter Objectives Identify elements of a consumer behavior model. Describe the social influences that impact consumer behavior. Describe psychological influences that impact consumer behavior. Address the five stages of the consumer decision-making process. Describe the variations in consumer decision-making. 2
4-1 Chapter Overview This chapter examines: Personal interests, attitudes and background, and how they shape the individual. Individual traits used to create a model of consumer behavior. The five stages in consumer decision-making process: Problem recognition Information search Alternative evaluation Purchase Post-purchase behavior We define who we are through consumption. 3
4-2 Consumer Behavior Firms analyze consumer behavior Understanding consumer behavior is critical to company success Consumer behavior provides information on how to reach consumers 4
Figure 4-1 Model of Consumer Behavior 5
4-3 Social Influences on Consumer Behavior Social Influences Include: Culture: a society s personality A continuously changing totality of learned and shared meanings, rituals, norms, and traditions among the members of an organization or society. Social class Role and status Families and household Reference groups Values Enduring beliefs about a specific mode of conduct or desirable endstate that guides the selection or evaluation of behavior. 6
4-3a Social Influences on Consumer Behavior Cultures are set apart by value systems, e.g.: Western Cultures stress success, achievement, and competitiveness. Eastern Cultures emphasize collective welfare. 7
4-3 Social Influences on Consumer Behavior (contd.) The primary ethnic subcultures in the United States are: African-Americans: - 12.7% of U.S. population - Spend above average amounts money on clothing and furnishings - More brand loyal Hispanics: - 13% of U.S. population - Catholic religion, Spanish language - Male dominance Asian-American: - 4% of U.S. population - Value education and quality brands - Very brand loyal 8
4-3 Social Influences on Consumer Behavior (contd.) Religion: A major factor in a subculture s dominant values and attitudes Protestant values: - Hard work and frugality - Development of capitalism - Economic emancipation Judaic values: - Education - Professional development - Kosher requirements - discourages consumption of pork, requires specific procedures for processing food Islamic values: - Social etiquette between genders - Discourages consumption of pork and alcohol Hindu values: - Family orientation - Discourages consumption of beef products 9
4-3b Social Class, Role, and Status Influences on Consumer Behavior Social Class: Shared values, attitudes, interests, opinions; determined by occupation, education, income, wealth, and values. Social Classes in the United States: Upper Upper Class ( old money ) Wealthiest 1% of U.S. population Inherited their money Educated in private schools Very socially concerned Own expensive homes Pay for household chores Lower Upper Class ( new money ) Next 2% of wealthiest Americans Earned their money, rather than inheriting it Have college degrees Spend money on luxury items 10
4-3b Social Class, Role, and Status Influences on Consumer Behavior (contd.) Upper Middle Class ( professional ) Next 12% of U.S. population Earn money through successful careers Carefully buying quality products Value family and home Social Classes in the United States (contd.) Invest in children s education Lower Middle Class ( white collar ) Comprises 30% of U.S. population Earn money through skilled and creative jobs Price-sensitive market Value homes and neighborhoods Hard working, obey laws 11
4-3b Social Class, Role, and Status Influences on Consumer Behavior (contd.) Upper Lower Class ( blue collar ) Social Classes in the United States (contd.) Comprises 35% of U.S. population work at manual jobs Live routine lives, have limited social interaction Spend impulsively on national brands Rely on relatives for socialization and support Lower Lower Class ( unskilled or unemployed ) Comprise 20% of U.S. population make money through unskilled work or underground jobs and illegal activities Buy impulsively Live in sub-standard housing Social classes define an individual s position in society 12
4-3b Social Class, Role, and Status Influences on Consumer Behavior (contd.) Role: Behavior based on the activities people are expected to perform according to individuals around them Role of women in the United States Role of women in Islamic countries Man in a marriage relationship Partners in a gay or lesbian relationship Status: Esteem that society bestows upon a particular role Soccer mom Company president Judge Car salesperson Advertising creative 13
4-3c Family and Household Influences on Consumer Behavior Family and household exert great influence on consumer purchasing behavior. Consumers tend to purchase the brands they grew up with Decision makers and influencers of decisions: Husband Wife Children Cleaning personnel Guests Roommates 14
4-3d Reference Groups Reference groups: Point of reference for individuals in the process of shaping their attitude and behavior Associate reference groups: - Groups an individual belongs to the individual adopts certain behavior patterns of these groups. Dissociative reference groups: - Groups people do not want to associate with. Aspirational reference groups: - Groups an individual aspires to join or associate with. 15
4-4 Psychological Influences on Consumer Behavior Motivation Perception Learning Beliefs Attitudes Personality Lifestyles 16
4-4a Motivation Created by needs and wants When a need is not satisfied it becomes a drive (or motive) Motivation becomes a process that results in behavior. Maslow s theory of needs also explains individual motivation that results in behavior. 17
4-4a Motivation (contd.) Unsatisfied need or want Drive or motive = stimulus Hunger Go to a restaurant Action, purchase good Eat food Reduce need or want Hunger is gone 18
4-4a Motivation (contd.) Maslow s Hierarchy of Needs 19
4-4b Perception Perception: manner we collect, organize, and interpret information. Selective exposure: The stimuli that consumers consciously or unconsciously choose to pay attention to. Selective distortion: Consumers adapt information to fit their own existing knowledge or beliefs (cognitive assonance). Selective retention: Consumers only retain information about a good or service that supports personal knowledge or beliefs. Perception is very important to marketers because it ultimately governs whether or not consumers buy. 20
4-4c Learning Learning is the culmination of changes in the individual s thought processes or behavior attributed to experience Cues & Stimuli: environmental factors, such as products and advertisements that create individual responses. Response: An attempt to satisfy an individual drive. Reinforcement: Learning achieved by strengthening the relationship between the cue and the response. Learning can be unconscious - when we grab a hot pot, we quickly learn never to do it again 21
4-4d Attitudes and Beliefs Attitudes: Relatively enduring and consistent feelings (affective responses) about a good or service. Attitudes are very difficult to change. Beliefs: Associations between a product and attributes of that product. - Examples of beliefs Fast food and smoking cause heart attacks. Intel processors only exist in quality computers. Marketers are trying to create positive attitudes about their products and beliefs that their products have desirable attributes. 22
4-4e Personality and Lifestyles Personality: An individual s unique psychological characteristics. Lifestyles: An individual s style of living as expressed through activities, interests, and opinions. Psychographics: Classification of consumers according to lifestyles and personality. 23
4-5 The Consumer Decision-Making Process 24
4-5 The Consumer Decision-Making Process (contd.) 1. Problem recognition: Difference between actual and desired state creates a need. 2. Information search: Internal information search External information search 3. Alternative Evaluation: Products are evaluated and compared using criteria such as: Price Ease of use Performance Style This step (3) can be skipped if purchase is habitual. Consumers then rely on memory of past purchases. 25
4-5 The Consumer Decision-Making Process (contd.) 4. Purchase: Intervening factors ( second thoughts ) Purchase Intention Too expensive Impulses False information Actual Purchase 5. Post-Purchase Processes: Expectations influence level of satisfaction Quality refers to overall product quality, reliability and the extent to which it meets consumers needs. 26
4-5 The Consumer Decision-Making Process (contd.) Satisfaction If expectation > performance dissatisfied consumer If expectation = performance somewhat satisfied consumer If expectation < performance satisfied consumer 27
4-5 The Consumer Decision-Making Process (contd.) Cognitive Dissonance and Buyer s Regret Cognitive Dissonance: An anxiety feeling of uncertainty about whether or not the consumer made the right purchase decision. Buyer s Regret: The anxiety is related to the consumer s loss of freedom to spend money on other products. Marketers need to reduce cognitive dissonance and buyer s regret by reassuring consumers that they made the right choice. 28
4-6 Variations in Decision Making Extensive problem solving Consumer goes carefully through each stage. Used for expensive or high-involvement purchases that have a high personal relevance. Limited problem solving Consumer is less involved and goes through less problem solving. Used for products that are not especially visible or expensive. Routine problem solving Habitual purchases or low-involvement products. Used for purchases made frequently. Situational influences can affect purchase behavior. 29
4-6a Extended, Limited, and Routine Consumer Decision Making 30