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Consumer Behavior

Consumer Behavior. Influences on consumer behavior Psychological Decision making Attitudes and attitude change Sociocultural Reference groups Family decision making Culture and subculture. Consumer Problems and Recognition.

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Consumer Behavior

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  1. Consumer Behavior • Influences on consumer behavior • Psychological • Decision making • Attitudes and attitude change • Sociocultural • Reference groups • Family decision making • Culture and subculture

  2. Consumer Problems and Recognition • Consumer problem:Discrepancy between ideal and actual state--e.g., consumer: • 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

  3. CONSUMER DECISIONS:Theory and Reality in Consumer Buying Problem Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Evaluation/ Behaviors Theory Complications

  4. Approaches to Search for Problem Solutions INTERNAL Memory Thinking EXTERNAL Word of mouth, media, store visits, trial CATALOG

  5. Cost vs. Benefits of Search • Market Characteristics • Product Characteristics • Consumer Characteristics • Situation Characteristics

  6. Types of decisions 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) Type of evaluation: 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) Decision Issues

  7. Variety Seeking and Impulse Buying • Variety seeking • need varies among consumers by optimal stimulation level (OSL) • Use innovativeness • Impulse purchases • Motivation • Consequences “Don’t give me that same old cola, that same old cola-- I want a rock’n’roller!”

  8. Motivation Personality Perception Attention and competition for attention Selective perception Subliminal influence? Perceived risk Learning Change in behavior May or may not be conscious Values, beliefs, and attitudes Lifestyle—e.g., VALS2 Psychological Influences

  9. Attitude Change Strategies • Change Affect • Classical conditioning • Attitude toward the ad • Mere exposure • Change behavior (e.g., sampling) • Change Belief Component • Change existing beliefs • Change importance of attributes • Add beliefs • Change ideal

  10. One-sided vs. two sided appeals • One-sided: only saying what favors your side • Two-sided: stating your case but also admitting points favoring the other side • Why is this effective?

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

  12. Potential Family Life Cycle Stages YOUNG COUPLE YOUNG SINGLE EMPTY NEST I/II FULL NEST I/II/III SINGLE PARENT OLDER SINGLE BLENDED

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

  14. Roles/influence Information gatherers/holders Influencers Decision makers Purchasers Users Household Decision Making

  15. Social class In the U.S. Positioning strategies: “Upward Pull” “At Level” In other cultures Culture: “Share meanings” Subculture Ethnic Generational Regional Religious groups More Sociocultural Influences

  16. Types Industrial Reseller Government and non-profit organizations Characteristics Greater involvement Bureaucracy Long term relationships Organizational Buyers

  17. The Means-End Chain Aim promotion/ positioning at higher levels of chain! Self-esteem Values Feeling of power Consequences Performance Attributes Fast acceleration Large engine

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