Consumer behavior

1. Consumer behavior

2. Appreciate the wide scope of consumer behavior studies, including the three consumer roles and analysis of consumer wants and needs • Describe the psychological bases of consumer behavior, including perception, learning, and motivation

3. Explain how psychographics seeks to explain consumer behavior by discussing such aspects as values, lifestyles, and self-concepts Identify the steps in a typical consumer decision process Describe how households make group consumer decisions

4. THE SCOPE OF CONSUMER BEHAVIOR Consumer behavior is the process by which individuals or groups select, use, or dispose of goods, services, ideas, or experiences to satisfy needs or wants.

5. Three Consumer Roles User Buyer Payer

6. Wants Versus Needs • Needs – unsatisfactory condition of the consumer that prompt him or her to action that will make the condition better. • Wants – desires to obtain more satisfaction than is absolutely necessary to improve an unsatisfactory condition.

7. PSYCHOLOGICAL BASES OF CONSUMER BEHAVIOR • Perception – the process by which an individual senses, organizes, and interprets information received from the environment.

8. PSYCHOLOGICAL BASES OF CONSUMER BEHAVIOR • Learning – a change in the content of long-term memory.

9. PSYCHOLOGICAL BASES OF CONSUMER BEHAVIOR • Motivation – the state of drive or arousal that moves us toward a goal-object.

10. Consumer Needs • Maslow’s Hierarchy of Needs

11. Consumer Needs Maslow’s Hierarchy of Needs Self Actualization Esteem Social/ Belongingness Safety Physiological

12. Consumer Needs Physiological • Products: • Limited in the United States. Generic foods, medicines, special drinks, and foods for athletes • Specific themes: • Campbell’s Soup - “Soup is good food,” with advertising copy that stresses the nutritional benefits of soup • Raisins - “Thank goodness I found a snack kids will sit for. And mothers will stand for.”

13. Consumer Needs Maslow’s Hierarchy of Needs Self Actualization Esteem Social/ Belongingness Safety Physiological

14. Consumer Needs Safety • Products: • Smoke detectors, preventive medicines, insurance, social security, seat belts, safes • Specific themes: • Sleep Safe - “We’ve designed a travel alarm that might wake you in the middle of the night… You see, ours is a smoke alarm as well as an alarm clock” • Alka Seltzer - “Will it be there when you need it?”

15. Consumer Needs Maslow’s Hierarchy of Needs Self Actualization Esteem Social/ Belongingness Safety Physiological

16. Consumer Needs Social/Belongingness • Products: • Personal grooming, foods, entertainment, clothing, and many others. • Specific themes: • Oil of Olay - “When was the last time you and your husband met for lunch?”

17. Consumer Needs Maslow’s Hierarchy of Needs Self Actualization Esteem Social/ Belongingness Safety Physiological

18. Consumer Needs Esteem • Products: • Clothing, furniture, liquors, hobbies, stores, cars, and many others • Specific themes: • Sheaffer - “Your hand should look as contemporary as the rest of you” • St. Pauli Girl - “People who know the difference in fine things know the difference between imported beer and St. Pauli Girl…”

19. Consumer Needs Maslow’s Hierarchy of Needs Self Actualization Esteem Social/ Belongingness Safety Physiological

20. Consumer Needs Self-Actualization • Products: • Education, hobbies, sports, some vacations, gourmet foods, museums • Specific themes: • U.S. Army - “Be all you can be” • U.S. Home - “Make the rest of your life… the best of your life”

21. Consumer Emotions and Moods • Emotions – strong, relatively uncontrolled feelings that affect our behavior. • Moods – emotions that are less intense and transitory.

22. Involvement The degree of personal relevance of a product to a consumer.

23. PSYCHOGRAPHICS: DESCRIBING CONSUMER BEHAVIOR • Values • Self-Concept • Lifestyle

24. Values • Self-respect • Self-fulfillment • Security • Sense of belonging • Excitement • Sense of accomplishment • Fun and Enjoyment • Being well respected • Warm relationships with others

25. VALS • Figure 5.2

26. Consumer Motivation VALS2 Groupings

27. Consumer Motivation • Fulfillers • Mature, home oriented, well educated professionals • High incomes • Value-oriented • Open to new ideas VALS2 Groupings

28. Consumer Motivation • Achievers • Work oriented • Successful • High job satisfaction • Respect authority, and favor the status quo • Demonstrate success through their purchase VALS2 Groupings

29. Consumer Motivation • Experiencers • Main component of action-oriented segment • Youngest in VALS2, median age is 25 years • Active in both physical and social activities • Favor new products VALS2 Groupings

30. Consumer Motivation • Believers • Family and community oriented people • Modest means • Brand loyal • Favor American-made products VALS2 Groupings

31. Consumer Motivation • Strivers • Lower-income people • Values similar to achievers • Style is important in lifestyle. VALS2 Groupings

32. Consumer Motivation • Makers • Main component of action-oriented segment along with experiencers • Self-sufficient group • Practical with little interest in most material possessions VALS2 Groupings

33. Consumer Motivation • Actualizers • Posses both high income and self-esteem • Indulge in a variety of self-orientations VALS2 Groupings

34. Consumer Motivation • Strugglers • Have few resources • Do not fit into the regular VALS2 categories • Brand loyal to the extent possible VALS2 Groupings

35. Attitude Attitudes are learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way.

36. INDIVIDUAL CONSUMER DECISION MAKING • Figure 5.3

37. Step 1: Problem Recognition Problem recognition occurs when consumers realize that they need to do something to get back to a normal state of comfort.

38. Step 2: Information Search • Awareness set • Evoked set • Consideration set

39. Step 3: Alternative Evaluation • Compensatory models • Noncompensatory models

40. Step 3: Alternative Evaluation • Table 5.1

41. Step 4: Purchase • Purchase is the stage when transaction terms are arranged, title of ownership is transferred, the product is paid for, and the consumer takes possession of the product from the seller.

42. Step 5: Postpurchase Evaluations • Cognitive Dissonance

43. HOUSEHOLD DECISION MAKING • Families and Households • Children’s Influence • Conflict in Family Decisions

44. Family Buying Decisions • Initiation of the purchase decision • Gathering and sharing of information • Evaluating and deciding • Shopping and buying • Conflict management

45. Supplemental Material

46. Needs and Wants • Needs • Unsatisfactory conditions of the consumer that lead him or her to actions that will make the conditions better • Wants • Desires to obtain more satisfaction than is absolutely necessary to improve unsatisfactory conditions

47. Determination of Needs Individual Genetics Biogenics Psychogenics • Determination of Needs • 3 physical characteristics of the individual person • Genetics • Biogenics • Psychogenics

48. Determination of Needs Individual Genetics Biogenics Psychogenics • Genetics • Heredity and chemical/biological characteristics of organisms • Habits and needs vary with gene types

49. Determination of Needs Individual Genetics Biogenics Psychogenics • Biogenics • Biological characteristics that people possess at birth (gender, race, age, etc.) • For example, older people have different needs

50. Determination of Needs Individual Genetics Biogenics Psychogenics • Psychogenics • Individual states and traits induced by a person’s brain functioning • Moods, emotions, perceptions, experiences