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Consumer Behavior

Consumer Behavior

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Consumer Behavior

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  1. Consumer Behavior

  2. Definition • The study of the processes involved when people select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. • Before, during and after a purchase

  3. Cross-Cultural Consumer Behavior Framework Processes “How” Income Attributes “Who” • Social processes • Motivation, Emotion • Group processes • Mental processes • Cognition, Learning • Language, Perception • Information processing • Communication • Decision making Personality Self-concept Identity Image Attitude Lifestyle Consumer The Person Values Culture Consumer Behavior Domains Product ownership and usage Adoption/diffusion of innovations Complaining behavior Brand loyalty Responses to advertising Media usage

  4. Attributes- Concept of Self • Who we are vs. who we want to be • Very individualistic and must be adapted • Collectivistic concept of self • Masculinity effects the concept of self esteem • Does not exist in feminine or collectivistic • Ego- boosting vs. respect

  5. Attributes- Personality & Identity • Personality- The qualities and characteristics of a person in an individualistic culture • Personality is thought to be the same always • Collectivism- continuous shaping of personality traits • Personalities are partially biologically bound • Asses themselves in terms of relationships • Identity- idea one has about oneself • Image- how we see and judge one another • Identity defined in desirable values

  6. Attributes- Attitude & Lifestyle • Lasting, general evaluation of people, objects, advertisements, issues • Attributes and functions • Emotions and experiences response • Behaviors can be predicted from attitudes • Shared values or tastes as reflected in consumptions patterns • Personal characteristics- raw ingredients • Explains behavior • Country specific

  7. Self-actualization = individualistic motive = USA motive In other cultures: Esteem security and belonging more important Social Safety Physiological Social Processes- Needs • Functional need vs social need • Maslow’s hierarchy of needs

  8. Social Processes- Emotion • Interactions between cognition and physiology • Responses that are learned (culture bound) • Facial expressions-don’t necessarily mean what they seem • Control of emotions differs • Several emotions are related to culture • Emotions in advertising • Using purely attributes and benefits leads to quick parities • Not suggested in global advertising Campbell's

  9. Social Processes- groups • Behavior is based partly on the personal and partly on the group • Individuals reinforce identity with groups • Collectivistic- members are part of identity • Decision making depends on collectivism, power distance and masculinity • Reference group- external influence • Private vs public consumption • Opinion leaders- influential • Start the word of mouth process

  10. Mental Processes • Language- phonetic vs. visual • Locus of control- outcome of behavior • Information processing-how information is used to assist choice behavior • Info has to be organized through existing schemata • Advertising will either fit schemata or not • Must be remembered to be used

  11. Mental Processes- Decision Making • Decisions happen vs decisions made • Need for more or less information • Control of time, action vs reaction • Consumer decision making style- mental characteristics • Consumer style inventory- don’t exist everywhere • Business decision making • Power of boss, stress of relationships

  12. Consumer Behavior DomainsProduct Usage • Values have direct and indirect effects on product ownership • Food • COL- food has a symbolic meaning • UAI- purity is important • MAS- concept of more • Electronics • IDV- need for variety and stimulation • Electronics can play part of image • UAI- correlates with PC ownership

  13. Consumer Behavior Domains • Complaining Behavior • Voice a complaint- COL rarely file complaint • Brand switching or negative word of mouth • Legal action-linked to IDV and MAS • Brand Loyalty • Collectivists are more loyal • Trying new requires risk • Large power distance implies status

  14. 34% 34% 13.5% 16% 2.5% Early Majority Late Majority Early Adopters Innovators Laggards Diffusion of innovations • Related to tolerance for ambiguity and deviant ideas