Consumer Behavior n Influences on consumer behavior n

Consumer Behavior n Influences on consumer behavior n Psychological n n n Sociocultural n n n MKTG 370 Decision making Attitudes and attitude change Reference groups Family decision making Culture and subculture CONSUMER BEHAVIOR Lars Perner, Instructor 1

Consumer Problems and Recognition n Consumer problem: Discrepancy between ideal and actual state--e. g. , consumer: n n has insufficient hair is hungry has run out of ink in his or her inkjet cartridge Problems can be solved in several ways--e. g. , stress reduction <----- vacation, movie, hot bath, medication MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 2

CONSUMER DECISIONS: Theory and Reality in Consumer Buying Problem Recognition Evaluation of Alternatives Postpurchase Evaluation/ Behaviors MKTG 370 CONSUMER BEHAVIOR Information Search Purchase Theory Complications Lars Perner, Instructor 3

Approaches to Search for Problem Solutions INTERNAL Memory Thinking EXTERNAL Word of mouth, media, store visits, trial MKTG 370 CONSUMER BEHAVIOR CATALOG Lars Perner, Instructor 4

Cost vs. Benefits of Search n n Market Characteristics Product Characteristics Consumer Characteristics Situation Characteristics MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 5

Decision Issues n Types of decisions n n n MKTG 370 Routinized response (e. g. , gas, sodas) Limited problem solving (e. g. , car service, fast food) Extended problem solving (e. g. , new car, computer, medical procedures) n Type of evaluation: n n CONSUMER BEHAVIOR Compensatory: Decision based on overall value of alternatives (good attribute can outweigh bad ones) Non-compensatory: Absolutely must meet at least one important criterion (e. g. , car must have automatic transmission) Lars Perner, Instructor 6

Variety Seeking and Impulse Buying l Variety seeking » need varies among consumers by optimal stimulation level (OSL) » Use innovativeness l “Don’t give me that same old cola, that same old cola-I want a rock’n’roller!” MKTG 370 Impulse purchases » Motivation » Consequences CONSUMER BEHAVIOR Lars Perner, Instructor 7

Psychological Influences n n n Motivation Personality Perception n MKTG 370 n n Perceived risk Learning n Attention and competition for attention Selective perception Subliminal influence? n n n Change in behavior May or may not be conscious Values, beliefs, and attitudes Lifestyle—e. g. , VALS 2 CONSUMER BEHAVIOR Lars Perner, Instructor 8

Attitude Change Strategies n Change Affect n n n Classical conditioning Attitude toward the ad Mere exposure Change behavior (e. g. , sampling) Change Belief Component n n MKTG 370 Change existing beliefs Change importance of attributes Add beliefs Change ideal CONSUMER BEHAVIOR Lars Perner, Instructor 9

One-sided vs. two sided appeals n n One-sided: only saying what favors your side Two-sided: stating your case but also admitting points favoring the other side n MKTG 370 Why is this effective? CONSUMER BEHAVIOR Lars Perner, Instructor 10

Sociocultural Influences n Personal Influence n n n Opinion leadership Word of mouth and rumors Reference groups n n n MKTG 370 n n Culture Subculture Associative: “We’re the Pepsi generation…” Dissociative: “It’s not your father’s car. ” Aspirational CONSUMER BEHAVIOR Lars Perner, Instructor 11

Potential Family Life Cycle Stages YOUNG SINGLE PARENT YOUNG COUPLE EMPTY NEST I/II FULL NEST I/II/III OLDER SINGLE BLENDED MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 12

Economic/Marketing Implications of Household Cycles n n n Income tends to increase with time But children/ obligations add cost Divorce n n MKTG 370 increases costs may change income distribution marriage n Product demand due to n n n CONSUMER BEHAVIOR singles with low expenses new couples divorced families children empty nesters --> more income Lars Perner, Instructor 13

Household Decision Making n Roles/influence n n n Information gatherers/holders Influencers Decision makers Purchasers Users MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 14

More Sociocultural Influences n Social class n In the U. S. n n n Subculture n Positioning strategies: n n “Upward Pull” “At Level” n n Ethnic Generational Regional Religious groups In other cultures Culture: “Share meanings” MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 15

Organizational Buyers n Types n n n MKTG 370 n Industrial Reseller Government and non -profit organizations Characteristics n n n CONSUMER BEHAVIOR Greater involvement Bureaucracy Long term relationships Lars Perner, Instructor 16

The Means-End Chain Aim promotion/ positioning at higher levels of chain! Self-esteem Values Feeling of power Consequences Attributes Performance Fast acceleration Large engine MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 17