Consumer Behavior How does psychology and behavior impact promotions?
Who Are Consumers? • People who buy products • People who use products • Example: Mom buys the cereal but the kids consume and influence decision
External Influences Culture Social Class Reference Groups Family Personal Influences Age Sex Family Status Occupation Psychological Influences Attitudes Perception Needs Major Influences on Consumers
Culture • Complex of tangible items such as art, literature, clothing, music and intangibles such as law, values, customs that define a group of people and their way of life.
Social Class • Position that you and you family occupy within society • Determined by: • income • occupation • wealth • family prestige • value of home
Reference Groups • Collection of people that you use as a guide for behavior in specific situations. • 3 Functions • provide information • means of comparison • furnish guidance
Family • 2 or more people living in a house related by blood, marriage, or adoption • Provides economic, financial and emotional support • Determines Lifestyle
Age Gender Family Status Education Occupation Income Race and Ethnicity Personal Influences
Perception • The process by which an individual receives, selects, organizes and interprets information to create a meaningful picture of the world. • Individualized process where information is filtered and screened for interpretation
Selective Exposure • Consumers choose whether or not to make themselves available to information. • Example: in the Golden Age of TV networks ads could reach 70% of audience
Selective Attention • Consumer chooses to focus attention on certain stimuli while excluding others. • Example: average consumer exposed to 3,000 – 20,000 promotional messages a day
Selective Comprehension • Consumers tend to interpret information in a manner that will support their own, attitudes, beliefs, motives, and experiences.
Selective Retention • Final screening process. • Consumers do not remember all that they see, hear, or read even after attending and comprehending it.
Psychological Influences • Elaboration Likelihood Model • Attitudes • Behavioral Intentions • Involvement • Needs – Maslow’s Hierarchy of Needs
Attitudes • learned predisposition to think in a certain way about a person, product, service or idea • based on: • personal factors -social class • cultural factors -race • educational factors • familial roots • religious factors
Elaboration Likelihood Model • model that allows marketers to predict routes to persuasion • route to persuasion based on two moderating variables: • motivation (involvement) • ability to comprehend • central and peripheral routes are the ends of an elaboration continuum
ELM • Elaboration • amount of issue relevant thinking done by the consumer • Involvement • personal motivation to “think” • reflects risk and how close the issue ties to the ego
Peripheral Route • Affective Route - Zajonc • reflects lower levels of involvement or lack of ability to process • outcome is attitude toward the ad • attitudes less resistant or persistent than those formed centrally • relies on cues such as sex, celebrities, music color, visuals to persuade
Peripheral Route • Most effective forms of advertising will be: • tv • radio • celebrity endorsers • mood oriented print ads • sex
Hedonic Needs • Attend to messages that make us feel good. • Hedonic Consumption • stimulus cues consumption of memories • I.e., perfume and an old girlfriend
Central Route • high levels of involvement • higher levels of ability to process • may reflect a natural desire to be cognitive • cognitive route to persuasion • outcome is an attitude toward the brand • attitudes formed centrally are more resistant and persistent
Central Route • reflected by the Fishbein Model of Attitude Formation • best forms of advertising • print • cognitive • product information provided
Fishbein Model Attitude Changes • Change a belief • Very difficult to change an initial negative impression • Change the Importance of the Evaluative Criteria • Add a new BiEi Combination • BEST! Improves your position and hurts everyone else!
Multi-Stage Memory Theory • Sensory Memory • Physical Property Analysis • Short Term Memory • Assign some meaning to the new input • Combines with long-term stores • Long-term Memory • Unlimited memory store
Techniques to Enhance Memorability • Repetition • Frequency • Jingles • Slogans • Taglines • Logos
Maslow’s Hierarchy of Needs • Motivation - internal force that stimulates the person to act in a certain manner. • Needs- the basis of motivated behavior
Maslow’s Hierarchy • Self-Actualization - Fulfillment • Ego Needs - success, achievement • Social Needs - affection, friendship • Safety and Security Needs - protection, order, stabilization • Physiological Needs - food, water, shelter, sex