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Consumer Behaviour

Consumer Behaviour. Silvia Cacho Elizondo November 8, 2005. The collective character of consumption. Review : Attitudes & Preferences The interpersonal level Case study presentation “ Microsoft: The xbox dream ”. Learning objective.

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Consumer Behaviour

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  1. Consumer Behaviour Silvia Cacho Elizondo November 8, 2005

  2. The collective character of consumption • Review : Attitudes & Preferences • The interpersonal level • Case study presentation “Microsoft: The xbox dream” Silvia Cacho-Elizondo ISC 2005

  3. Learning objective Understand the factors and theories explaining consumer behaviour at the interpersonal level : • Consumer Socialization • Reference groups • Opinion leadership, lead users Silvia Cacho-Elizondo ISC 2005

  4. Review

  5. Factors explaining consumption at the Individual level • Socio-Demographic Variables • Motivational Theories • Involvement • Psychology of Perception • Learning / Experience/ Memory • Attitudes and Preferences Silvia Cacho-Elizondo ISC 2005

  6. Attitudes

  7. Attitude definition • A person’s point of view toward « something », such as a person, a brand or a service. • Learned beliefs, feelings and reactions tendencies which are formed in the process of information acquisitions and experiences Silvia Cacho-Elizondo ISC 2005

  8. Functional theory of attitudes This theory was initially developed by the psychologist Daniel Katz to explain how attitudes facilitate social behaviour. According to this approach attitudes are determined by a person’s motives. Two persons can have the same attitude toward an object but for different reasons. It is then important for a marketer to know why an attitude is held before attempting to change it. Silvia Cacho-Elizondo ISC 2005

  9. Attitudes’ components • Cognitive • Affective • Behavioral Silvia Cacho-Elizondo ISC 2005

  10. Qualifying attitudes… • Attitudes are learned but some human dispositions are inborn • Attitudes are shaped by experience but they are more or less stable overtime they are not so easily to change • Attitudes are a multidimensional construct Silvia Cacho-Elizondo ISC 2005

  11. Why are attitudes important? • Everyday life is full of words connected with attitudes (opinions, beliefs, convictions, desires, feelings, wishes…) • There is a link between attitudes and behaviour ? • Attitude measurementcould help to predict and understand behaviour Silvia Cacho-Elizondo ISC 2005

  12. Attitude formation processes a) Classical or respondent conditioning ( conditioned stimulus linked to conditioned response) b) Instrumental or operant conditioning (Compliance  to gainreward or avoid punishment) c) Identification (To allow the person to fit in orto be similar to others) d) Internalization (Attitudes became part of a person’s value system) Silvia Cacho-Elizondo ISC 2005

  13. Silvia Cacho-Elizondo ISC 2005

  14. Hierarchies of effects Silvia Cacho-Elizondo ISC 2005

  15. Consumer preferences When we analyze consumer behaviour, we are usually assessing how consumer make purchase decisions. Consumer preferences are important for product policy (eg. Product attributes and new product launchs) and pricing decisions. Silvia Cacho-Elizondo ISC 2005

  16. Two proven procedures for the actionable analysis of Consumer Preferences • Concept testing • Conjoint Analysis Silvia Cacho-Elizondo ISC 2005

  17. Do one of the following exercises Attitudes & Preferences • http://elab.vanderbilt.edu/conjoint_airline/conjoint_airline.htm http://elab.vanderbilt.edu/conjoint_movie/conjoint_movie.htm TIP: read What is conjoint analysis ? at dobney.com Silvia Cacho-Elizondo ISC 2005

  18. Conjoint Analysis …a tool that allows a subset of the possible combinations of product features to be used to determine the relative importance of each feature in the purchasing decision. … based on the fact that the relative values of attributes considered jointly can be better be measured than when considered in isolation Silvia Cacho-Elizondo ISC 2005

  19. Basic principles to apply conjoint analysis • Products must be able to be specified as a collection of attributes • We know or find out what attributes are salient in the product category • Respondents can reasonable rate products • The firm should be able to act upon the output of the conjoint by constructing products that deliver the attribute levels used in the analysis Silvia Cacho-Elizondo ISC 2005

  20. Steps in developing a Conjoint Analysis • Choose product attributes • Choose the value or options for each attribute • Define products as a combination of attribute options • Choose the form in which the combinations of attributes are to be presented to the respondents (verbal presentation, paragraph description, pictorial presentation..) • Decide how responses will be aggregated (use individual responses, pool all responses into a single utility function, define segments of respondents with similar preferences) • Select the technique to analyze the collected data. Silvia Cacho-Elizondo ISC 2005

  21. Factors explaining buying and consumption behaviour • Individual level • Interpersonal level • Socio-cultural level Silvia Cacho-Elizondo ISC 2005

  22. Case Study PresentationMicrosoft : The xbox dream Silvia Cacho-Elizondo ISC 2005

  23. Consumer Socialization The process by which young people acquire skills, knowledgeandattitudes relevant to their functionning in the market place Silvia Cacho-Elizondo ISC 2005

  24. Silvia Cacho-Elizondo ISC 2005

  25. The group influence

  26. Typology of groups • Size • Purpose • Structure • Status Silvia Cacho-Elizondo ISC 2005

  27. Classification of groups by Size (degree of contact) 1) Primary groups (limited size) highest contact Ex. The family 2) Secondary groups (sub-groups) lower contact Ex. Social classes Cultural communities Groups of sport fans Professional associations Silvia Cacho-Elizondo ISC 2005

  28. Classification of groups by Purpose 1) Socio-groups the group is a means to achieve an objective 2) Psycho-groups  group interaction is an end in itself Silvia Cacho-Elizondo ISC 2005

  29. Classification of groups according to their Structure 1) Formal  rules and rituals 2) Informal  norms communally established but not easy to detect Silvia Cacho-Elizondo ISC 2005

  30. Classification of groups considering their Status 1) Membership groups  the individual is part of the group voluntary or not 2) Reference Groups  an actual or imaginary group having relevance upon individual evaluations and behaviour Silvia Cacho-Elizondo ISC 2005

  31. Reference Groups It is an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations or behaviour.  A group need at least two people but the term reference group is used more loosely to describe any external influence that provides social cues. Silvia Cacho-Elizondo ISC 2005

  32. Forms of influence Normative or utilitarian influence when an individual fulfills others’ expectations to gain a direct reward or to avoid a sanction. Value-expressive or identification influence when individuals use others’ norms, values and behaviours as a guide for their own attitudes, values and behaviour. Implicit in this type of influence is the desire for psychologicial association or social affilitation with others. Informational social influence when an individual uses the values, norms, and behaviours of others as credible, and needed evidence about reality Silvia Cacho-Elizondo ISC 2005

  33. Group influence on product and brand (Dubois, page 142) Silvia Cacho-Elizondo ISC 2005

  34. When reference groups are important.. • When the purchases are luxuries rather than necessities • When purchases are consumed socially or visible to others rather than privately Silvia Cacho-Elizondo ISC 2005

  35. Types of Reference Groups Avoidance Negative, nonmembership Aspirational Positive, nonmembership Disclaimant Negative, membership Contractual Positive, membership Silvia Cacho-Elizondo ISC 2005

  36. How the endorsement of a product by an aspirational group could affect consumer attitudes and intentions? • Social desirability of product consumption • Perceived visibility of early adoption behaviour • Perception of quality One explanation for this type of aspirational group influence is provided by the model of meaning transfer. The focus of this model is on the transfer of culturally relevant meanings from the endorser to the product Silvia Cacho-Elizondo ISC 2005

  37. The nature of Opinion Leadership An opinion leader is a person who is frequently able to influence others’ attitudes and behaviours Silvia Cacho-Elizondo ISC 2005

  38. Why are opinion leaders considered as valuable information sources? • Involvement, Expertise and Experience in a product category • Product category pioneers • Empathy and Neutrality • High Credibility Silvia Cacho-Elizondo ISC 2005

  39. Some categories of opinion leaders • Journalists • Specialists • Professionals • Lead-users Silvia Cacho-Elizondo ISC 2005

  40. The role of lead users Word of Mouth communication The diffusion of Innovations Silvia Cacho-Elizondo ISC 2005

  41. Companies’ strategies: • Simulate by product usea « leader » • Developing the idea that others are buying • Granting the status of a leader to a potential customer to trigger a feeling of pride • Stimulating personal influence • Supplying local opinion leaders with the product • Getting people to talk about a product Silvia Cacho-Elizondo ISC 2005

  42. Culture & Lifestyles How culture & lifestyles influence consumption patterns? Silvia Cacho-Elizondo ISC 2005

  43. Home exercise  VALS site http://www.sric-bi.com • Look for representative projects • Answer the VALS questionnaire to know your VALS type • Print the questionnaire and your VALS types Silvia Cacho-Elizondo ISC 2005

  44. See you next class!

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