Chapter 5 Consumer Behavior Copyright 2006 by SouthWestern

Chapter 5 Consumer Behavior Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Chapter Objectives 1. Distinguish between customer behavior and consumer behavior. 2. Explain how marketers classify behavioral influences on consumer decisions. 3. Describe cultural, group, and family influences on consumer behavior. 4. Explain each of the personal determinants of consumer behavior; needs and motives, perceptions, attitudes, and self-concept theory. 5. Distinguish between high-involvement and lowinvolvement purchase decisions. 6. Outline the steps in the consumer decision process. 7. Differentiate among routinized response behavior, limited problem solving, and extended problem solving by consumers. Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2

Customer vs. Consumer Behavior n 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 n Consumer behavior: the process through which the ultimate buyer makes purchase decisions Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 3

Interpersonal Determinants of Consumer Behavior n Cultural Influences üCulture: values, beliefs, preferences, and tastes handed down from one generation to the next üIt is important to recognize the concept of ethnocentrism, or the tendency to view your own culture as the norm, as it relates to consumer behavior. Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 4

n Core Values in the U. S. Culture üWhile some cultural values change over time, basic core values do not üExamples of American core values include: w Importance of family and home life w Education w Youthfulness w Individualism Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 5

n International Perspective on Cultural Influences üCultural differences are particularly important for international marketers üSuccessful strategies in one country often cannot extend to other international markets because of cultural variations Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 6

n Subcultures: subgroup of culture with its own, distinct modes of behavior üCultures are not homogeneous entities with universal values. üSubcultures can differ by: w Ethnicity or Nationality w Age or Gender w Religion w Social class or Profession Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 7

n Hispanic-American Consumers üThe 40 million Hispanics in the U. S. , coming from a wide range of countries, are not homogenous üThere are important differences in acculturation üThe Hispanic market is large and fast-growing üHispanics tend to be younger than the general U. S. population üHispanics are geographically concentrated Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 8

n African-American Consumers üAfrican-American buying power is rising rapidly compared to U. S. consumers in general üFamily structures may differ for African-American consumers, creating differences in preferences for clothing, music, cars, and many other products Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9

n Asian-American Consumers üMarketing to Asian-Americans presents many of the same challenges as reaching Hispanics üAsian-Americans are spread among culturally diverse groups, including Chinese, Japanese, Indians, Koreans, Filipinos, and Vietnamese-many retaining their own languages Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10

n Social Influences Group membership influences an individual’s purchase decisions and behavior in both overt and subtle ways. üNorms: are the values, attitudes, and behaviors that a group deems appropriate for its members üStatus: is the relative position of any individual member in a group üRoles define behavior that members of a group expect of individuals who hold specific positions within the group Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 11

n The Asch Phenomenon: the effect of a reference group on individual decisionmaking n Reference groups: groups whose value structures and standards influence a person’s behavior üRequires two conditions: w The purchased product must be one that others can see and identify w The purchased item must be conspicuous; it must stand out as something unusual, a brand or product that not everyone owns Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 12

n Social classes Groups whose rankings are determined by occupation, income, education, family background, and residence location n Opinion leaders Trendsetters who purchase new products before others in a group and then influence others in their purchases Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 13

n Family Influences üAutonomic üHusband-dominant üWife-dominant üSyncratic n Children and Teenagers in Family Purchases üGrowing numbers are assuming responsibility for family shopping üAlso influence what parents buy Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 14

Personal Determinants of Consumer Behavior • Needs & Motives • Perceptions • Attitudes • Learning • Self Concept Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 15

n Needs and Motives üNeed: an imbalance between a consumer’s actual and desired states üMotives: inner states that direct a person toward the goal of satisfying a felt need Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 16

n Maslow’s Hierarchy of Needs Self-Actualization Esteem Needs Social Needs Safety Needs Physiological Needs Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 17

n Perceptions: the meaning that a person attributes to incoming stimuli gathered through the five senses – sight, hearing, touch, taste, and smell. n Perceptual screens: the filtering processes through which all inputs must pass n Subliminal Perception: subconscious receipt of information Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 18

n Attitudes üA person’s enduring favorable or unfavorable evaluations, emotional feelings, or action tendencies toward some object or idea üAttitude components: w Cognitive w Affective w Behavioral Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 19

n Changing Consumer Attitudes üAttempt to produce consumer attitudes that will motivate the purchase of a particular product üEvaluate existing consumer attitudes and then make the product characteristics appeal to them n Modifying the Components of Attitude üAttitudes change in response to inconsistencies among the three components üMarketers can work to modify attitudes by providing evidence of product benefits and by correcting misconceptions Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 20

n Learning üAn immediate or expected change in behavior as a result of experience. üProcess includes the components of: w Drive, Cue, Response, Reinforcement üApplying Learning Theory to Marketing Decisions w Shaping Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 21

n Self-Concept üA person’s multifaceted picture of himself or herself, composed of the: w Real self w Self-image w Looking-glass self w Ideal self Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 22

The Consumer Decision Process Problem Opportunity Recognition Search Alternative Evaluation Purchase Decision n Consumers complete a step-by-step process when making purchase decisions ü High-involvement purchase decisions are those with high levels of potential social or economic consequences ü Low-involvement decisions are routine purchases that pose little risk to the consumer Purchase Act Postpurchase Evaluation Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 23

n Problem or Opportunity Recognition üConsumer becomes aware of a significant discrepancy between the existing situation and the desired situation üMotivates the individual to achieve the desired state of affairs Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 24

n Search üConsumer gathers information related to their attainment of the desired state of affairs üIdentifies alternative means of problem solution üMay cover internal or external sources of information üBrands that a consumer actually considers buying before making a purchase decision are known as the evoked set Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 25

n Evaluation of Alternatives üConsumer evaluates the evoked set üDifficult to completely separate the second and third steps, since some evaluation takes place as the search progresses üOutcome of the evaluation stage is the choice of a brand or product (or possibly a decision to renew the search) üEvaluative criteria: features that a consumer considers in choosing among alternatives Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 26

n Purchase Decision and Purchase Act üConsumer narrows the alternatives down to one üThe purchase location is decided n Postpurchase Evaluation üAfter the purchase, consumers are either satisfied or experience postpurchase anxiety üCognitive dissonance Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 27

n Classifying Consumer Problem-Solving Processes üThree categories of problem-solving behavior w Routinized Response Behavior w Limited Problem Solving w Extended Problem Solving Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 28