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@ What is Consumer Behavior?

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Consumer Buying Behavior

 Buying behavior of individuals and
households that buy products for
personal consumption.
Consumer Market
 All individuals/households who buy
products for personal consumption.

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Answers questions about:
 What consumers buy
 Where they buy
 How and how much they buy
 When they buy
 Why they buy
Most difficult

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How do consumers respond
to various marketing efforts
the company might use?

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Stimulus Response Model

 Marketing and other stimuli enter the
buyer¶s ³black box´ and produce
certain choice / purchase responses.
 Marketers must figure out
what is inside of the buyer¶s
³black box´ and how stimuli
are changed to responses.
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Culture
èey Factors  Set of basic values,
perceptions, wants,
and behaviors
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learned by a
]
 member of society
from family and

 other important

 institutions

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Cultural Influences
 Culture: values, beliefs,
preferences, and tastes
handed down from one
generation to the next
 It is important to recognize
the concept of
ethnocentrism, or the
tendency to view your
own culture as the
norm, as it relates to
consumer behavior.
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Core Values in the U.S.
Culture:

 While some cultural

values change over
time, basic core
values do not
 Examples of
American core values
include:
The work ethic
Desire to
accumulate wealth

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Milton Bradley
Parker
Brothers
 Emphasizing
the
Importance
of Family
and Home
Life
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International Perspective on Cultural Influences
 Cultural differences are particularly important for
international marketers
 Successful strategies in one country often
cannot extend to other international markets
because of cultural variations

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Benetton
 This Firm Has Been Successful Extending
Strategies Across Cultural and National
Boundaries

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 -   
Achievement and Freedom
success
Humanitarianism
Activity and
involvement Youthfulness
Efficiency and Fitness and
practicality Health
Progress
Material comfort
Individualism
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èey Factors Subculture

 roup of people
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 with shared
values systems
]
 based on

 common life
experiences and

 situations

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èey Factors Culture

Subculture
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  Hispanic
consumers
]
  African Americans
 Asian Americans


 Mature consumers

 Social Class

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Hispanics
 35 million consumers
purchase $425 billion
worth of goods and
services.
 Expected to grow 64%
in 20 years.
 Spanish media makes
group easy to reach.
 Brand loyal group.

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Univision
 This web site is designed to meet the needs of
the growing Hispanic population who prefer
Spanish--Language Programs.
Spanish

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African Americans
 35 million consumers
purchase $527 billion
worth of goods and
services.
 rowing more affluent /
sophisticated.
 Price and brand name
conscious; quality and
selection are important.
 Certain media target this
group.

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Asian Americans
 10 million consumers
purchase $229 billion
worth of goods and
services.
 Fastest growing, most
affluent subculture.
 Many nationalities
comprise this group.
 Consumer packaged
goods firms now target
this group more heavily.

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Subcultures: Asian-
Asian-
American Consumers
 Marketing to Asian-
Asian-
Americans presents
many of the same
challenges as
marketing to
Hispanics
 Asian
Asian--Americans are
spread among
culturally diverse
groups, including
Chinese, Japanese,
Indians, èoreans,
Filipinos, and
Vietnamese --many
--many
retaining their own
languages

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Mature Consumers
 75 million consumers age 50+will grow to 115
million within 25 years.
 Mature consumers
control 50% of all
discretionary income.
 Attractive market for
travel, restaurant, and
cosmetics products,
among others.
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 ]
 | 
Permanent and ordered
divisions in a society whose
members share similar values,
interests and behaviors
Measured as a combination of
occupation, income,
education, wealth and other
variables
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Marketers are interested in
social class because people
within a certain class tend to
exhibit certain behaviors,
including buying behavior
Clothing, home furnishings,
leisure activities and
automobiles

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èey Factors roups

 Membership
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Reference
o Aspirational
]
 (a hope or
ambition)

 groups


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èey Factors roups

 Xpinion leaders ±
|


 person within a
reference group
]
 who exerts

 (apply) influence
on others


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Jordache::
Jordache

 Advertisement
Illustrating the
Influence of
Friendship
roups on
Purchase
Decisions

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Family
 èids can influence
èey Factors
Roles ± activities a
person is expected
|


 to according to the
]
 people around him
Status ± general

 esteem given to a

 role by society

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Milton
Bradley
Parker
Brothers
 Emphasizing
the
Importance of
Family and
Home Life

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|

    
| 


èey Factors Age and life-

life-cycle
Xccupation
|


 Economic situation
Lifestyle
]

 Activities, interests,

 and opinions
 Lifestyle

 segmentation

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Sincerity Excitement
Ruggedness Competence
Sophistication

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Motivation
èey Factors
 Needs provide
motives
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  Motivation
]
 research
 Maslow¶s

 hierarchy of needs


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Perception
èey Factors
 Selective attention,
selective
|


 distortion,
]
 selective retention





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Perception:
The meaning that a
person attributes to
incoming stimuli
gathered through
the five senses ±
sight, hearing,
touch, taste, and
smell.

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Perceptual
Screens:
The filtering
processes
through
which all
inputs must
pass
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Selection Attention ± People
screen out most of the information
to which they are exposed.
Selective Distortion ± People
interpret information in a way that
will support what they believe.
Selection Retention - People retain
only part of the information to
which they are exposed.

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Learning
èey Factors  Drives, stimuli, cues,
responses and
reinforcement
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 Beliefs and attitudes
]





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Learning: An immediate or expected
change in behavior as a result of
experience.

 Drive: Strong stimulus that impels action

 Cue: Any object in the environment that
determines the nature of a consumer¶s
response to a drive
 Response: An individual's reaction to a
set of cues and drives
 Reinforcement: Reduction
in a drive that results from
an appropriate consumer
response
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Citibank
 Reinforcing
a buying
behavior

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Belief ± Descriptive thought
that a person holds about
something.
Attitude ± Person¶s
consistently favorable or
unfavorable evaluations,
feelings, and tendencies
toward an object or idea.

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Stages Needs can be
triggered by:
‰   Internal stimuli
$

 Normal needs
%


 become strong

 
  enough to drive
behavior



 External stimuli
 


Advertisements
!

Friends of friends
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Stages Consumers exhibit
heightened attention or
‰  actively search for
information.
$


Sources of information:
%


  Personal

 
   Commercial


  Public
 Experiential
 


!
 Word ± of - Mouth

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Stages Evaluation procedure
depends on the
consumer and the buying
‰  situation.
$

 Most buyers evaluate
%


 multiple attributes, each
of which is weighted

 
  differently.


 At the end of the
 

 evaluation stage,
purchase intentions are
!

formed.

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Stages Two factors
intercede between
‰ 
purchase
$


intentions and the
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  actual decision:


  Attitudes of others
 

  Unexpected
!
 situational factors

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Satisfaction is key:
Stages
 Delighted consumers
‰  engage in positive
$

 word--of
word of--mouth.
 Unhappy customers
%


 tell on average 11

 
  other people.


  It costs more to attract
 

 a new customer than it
does to retain an
!
 existing customer.

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New Products
 ood, service or
idea that is
  by
customers as new.

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Stages in the Adoption

Process
 Marketers should help
consumers move from
awareness to adoption.

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Awareness Evaluation
Interest Trial
Adoption

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Individual Differences
in Innovativeness
 Consumers can be
classified into five
adopter categories,
each of which behaves
differently toward new
products.

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á
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 D á
  

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Product Characteristics
and Adoption
 Five product
characteristics
influence the
adoption rate.

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Product Characteristics
Relative Advantage
Compatibility
Complexity
Divisibility
Communicability
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International Consumer Behavior

 Values, attitudes and behaviors differ greatly
in other countries.
 Physical differences exist that require
changes in the marketing mix.
 Customs vary from country to country.
 Marketers must decide the degree to which
they will adapt their marketing efforts.

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