Consumer Behavior

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What influences behavior?

Social Factors Personal Factors

Cultural Factors
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 fundamental determinant of a
piety, hard work

Culture

persons wants and behaviors.

E.g. Asian child exposed to filial Subcultures include

nationalities, religions, racial groups, and geographic regions.

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Multi-cultural Marketing
Ethnic & demographic niches Dont respond favorably to mass marketing Where applied? Regional and international marketing Marketers must recognize and respond to differences in cultural norms and values and adapt products and promotions

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Social Class

Social Stratification (CASTE) homogeneous and enduring divisions in a society that are hierarchically ordered and whose members share similar values, interests, and behavior - behave the same way (product and brand preference, media preference, language) Mixture of variables not just one We can move up and down We ac

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Social Class
UpperA Php Php100,000+ UpperB Php50,001-99,999 Upper Middle C1 Php30,001-50,000 Middle C2 Php 15,001-30,000 Lower DE 15,000 and below Source: PSRC/AGB data
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Social

Factors
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 Membership groups - groups Primary -

Reference Groups

whom have direct influence on a person continuous interaction and informal - (family,
friends, neighbors, and co-workers)

Secondary - tend to be more

formal (religious, professional groups)

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Reference Groups
Reference groups expose us to new behaviors and lifestyles which influence our attitude and selfconcept

pressures for conformity that affect our choices Are even affected by groups that we do not belong

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Aspirational - we wish to join Dissociative - we wish not to join

Implications
Manufacturers of products and brands where group inuence is strong must determine how to reach and inuence opinion leaders in these reference groups.

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most important consumer-buying organization in society, and family members constitute the most influential primary reference group.

Family

We are part of at least 2 families in our lifetime

The family of orientation consists of parents and siblings. A more direct influence on everyday buying behavior is the family of procreation namely, ones spouse and children.

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Philippine Family Facts

2 in every 5 households have OFW

family member families

3 out of 10 OFWs have broken

It is a norm that both parents are working

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Implications

roles and relative influence of family members in the purchase of a large variety of products and services.

expensive - joint decision children have strong voice in purchases

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Roles and Status

Role consists of the activities a person is expected to perform Each role in turn connotes a status.

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Roles and Status

Role consists of the activities a person is expected to perform Each role in turn connotes a status.

Implications

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Roles and Status

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Role consists of the activities a person is expected to perform Each role in turn connotes a status.

Implications
People choose products that reflect and communicate their role and actual or desired status in society. Marketers must be aware of the status symbol potential of products and

Personal Factors
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Age and Lifecycle Stage

Taste in food, things & recreation age related Consumption shaped by family life-cycle & number, age & gender of people in household psychological life-cycle stages may matter.

Adults experience certain passages or transformations as they go through life.

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Occupation and Economic Circumstance

Identify occupational groups with above-average interest in products

Tailor products for some of them Product choice affected by economic circumstances: income, savings

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More Asians are purchasing on credit Periods of recession

Personality and Self-Concept

Personality: A set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli - (example buying behavior) The idea is that brands have personalities and consumers are likely to choose brands whose personalities match their own.

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Personality and Self-Concept

Brand personality is defined as the specific mix of human traits that may be attributed to a particular brand. Consumers also choose and use brand that have a brand personality consistent with their own actual self-concept (how one views themselves). Although in some cases, the match may be based on the consumers ideal selfconcept (how we would like to view ourselves).

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1. Sincerity (down-to-earth, honest, wholesome, and cheerful) For example, Hello Kitty 2. Excitement (daring, spirited, imaginative, and up-to-date) For example, MTV 3. Competence (reliable, intelligent, and successful) For example, Sony 4. Sophistication (upper-class and charming) For example, Shiseido 5. Ruggedness (outdoorsy and tough) For example, Timberland 6. Passion (emotional intensity, spirituality, and mysticism) For example, Zara 7. Peacefulness (harmony, balance, and natural) For example, Yamaha

Jennifer Aakers Brand Personalities

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Lifestyle and Values

Lifestyle is a persons pattern of living in the world as expressed in activities, interests, and opinions. whole person interacting with his or her environment. Marketers search for relationships between their products and lifestyle groups. Lifestyles shaped partly by being:

Money-constrained - lower cost products Time-constrained - multitasking,

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Model of Consumer Behavior

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Lifestyle and Values

Buyer

Decision Process
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Lifestyle and Values

Buyer

Decision Process
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Problem Recognition

Buying starts - recognize problem/ need Need triggered by stimuli

Internal stimulus: normal needs, hunger External stimulus: love new cartriggers buying one

Identify situation that trigger need and Develop strategies that trigger interest

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Information Search

Aroused consumer search for more

Heightened attention: receptive to information Active information search: find ways to learn about product

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Information Search

Aroused consumer search for more

Heightened attention: receptive to information Active information search: find ways to learn about product

4 sources:
1.! 2.! 3.! 4.!

Personal Commercial Public Experiential

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Information Search
Total brands available total set Know only subset of total awareness set Meet initial criteria consideration set More information, few remain choice set Makes final choice from this set

Wednesday, November 27, 13

Information Search
Total brands available total set Know only subset of total awareness set Meet initial criteria consideration set More information, few remain choice set Makes final choice from this set

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Information Search
Marketers need to know:

Consumers other brands in choice set competition Identify sources & importance Prepare effective communications for target market

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Evaluation of Alternatives

Value judgment process - conscious & rational Consumer evaluation process:

Try to satisfy a need Look for certain benefits in solution Each with attributes, benefits sought Attributes of interest to buyers vary

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Evaluation of Alternatives

BELIEFS & ATTITUDES influence buying behavior

Belief - descriptive thought on something Attitude enduring evaluation, feeling & action tendencies toward something

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Evaluation of Alternatives

EXPECTANCY VALUE MODEL

Consumer evaluates product Combine brand beliefs - importance Weights attached to each attribute

Total perceived value = (weights x beliefs) of all attributes

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Evaluation of Alternatives

EXPECTANCY VALUE MODEL

Consumer evaluates product Combine brand beliefs - importance Weights attached to each attribute

Total perceived value = (weights x beliefs) of all attributes

Wednesday, November 27, 13

Evaluation of Alternatives

EXPECTANCY VALUE MODEL

Consumer evaluates product Combine brand beliefs - importance Weights attached to each attribute

Total perceived value = (weights x beliefs) of all attributes

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If you are brand B what should you do?

Wednesday, November 27, 13

If you are brand B what should you do?

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Purchase Decision
In the evaluation stage, the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to buy the most preferred brand. In executing a purchase intention, the consumer may make up to five subdecisions: Brand Dealer Quantity Timing Payment-method

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Purchase Decision

INTERVENING FACTORS Between purchase intention & decision

Attitudes of others:

Intensity of others attitude Motivation to comply with others wishes

Unanticipated situational factors

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Purchase Decision

INTERVENING FACTORS Between purchase intention & decision

Attitudes of others:

Intensity of others attitude Motivation to comply with others wishes

Unanticipated situational factors

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PERCEIVED RISK

Purchase Decision
Functional risk not up to expectations Physical risk threat to well-being/ health Financial risk not worth price Social risk embarrassment from others Psychological risk mental well-being Time risk opportunity cost to find

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Post Purchase Behavior

After the purchase, the consumer might experience dissonance about their purchase and be alert to information that supports their decision. Marketing communications should supply beliefs and evaluations that reinforce the consumers choice and help him or her feel good about the brand.

Marketers must monitor postpurchase satisfaction, post-purchase actions, and post-purchase uses.

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Post Purchase Behavior

POSTPURCHASE SATISFACTION!

Satisfaction = performance expectations ! () disappointed (0) satised

!

(+) delighted !

!! !! !!

Expectations - from sellers, friends etc! Larger gap - greater dissatisfaction! Product claims must truthfully represent likely performance!

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Post Purchase

Abandon/return product

Seek to confirm high value Public action - complain, go to lawyer Private actions - stop buying or warn friends

Post-purchase communications - fewer product returns & cancellations

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How Customers Use/ Dispose Products

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Level of Involvement

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