Transcript Ch004
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
● Completing Transition from class website to Facebook for Announcement by this week ● RSRP, Grades ● Review
Evaluative criteria/ Consideration Set Cognitive Dissonance/Miser
● Extended/Limited/Routine Problem Solving depending on the level of involvement & product knowledge
FIGURE 4-4
Influences on the consumer purchase decision process from both internal and external sources *5 Situational influence (at bottom) 1) Purchase task (gift, social visibility, buyer’s own) 2) Social surroundings (with kids, buy more) 3) Physical surroundings (décor, music, …) 4) Temporal effects (time of day or time availability) 5) Antecedent states (mood, cash on hand)
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LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO:
LO1 LO2 LO3 LO4
Describe the stages in the consumer purchase decision process.
Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving.
Identify major psychological influences on consumer behavior.
Identify major sociocultural influences on consumer behavior.
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LO3
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR MOTIVATION
Motivation is the energizing force that stimulates behavior to satisfy a
need
markers try
needs .
Hierarchy of Needs
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Physiological Needs (food, water,…)
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Safety Needs (2 things: smoke detector, insurance,…)
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Social Needs (dating sites, fragrance companies,…)
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Personal Needs (prestige, respect; Brooks Brothers Colothier)
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Self Actualization Needs (US Army, “Be all you can be”)
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FIGURE 4-5
Hierarchy of needs Match.com
Maslow’s hierarchy of needs
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LO3
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PERSONALITY
Traits enduring characteristics within a person or in his or her relationships with others
Self-Concept The way people see themselves vs. Ideal-self concept (Lenovo - notebook self expression?)
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LO3
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PERCEPTION
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Selective Perception- brain attempts to organize & interpret
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Information with process
Selective Exposure
– attention to the consistent, ignore to Inconsistent; likely to see McDonald Ad when you are hungry
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Selective Comprehension – Toro’s Snow Pup
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Selective Retention – limited cognitive capability Subliminal Perception you see or hear message without being aware of them
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LO3
MAKING RESPONSIBLE DECISIONS The Ethics of Subliminal Messages
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LO3
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PERCEIVED RISK
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Obtain Seals of Approval- Good Housekeeping seal for Fresh Step cat litter
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Secure Endorsements – 9 out of 10 cardiologists
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Provide Free Trials/Samples – Mary Kay’s Velocity fragrance
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Give Extensive Instructions – Clairol hair coloring products
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Provide Warranties/Guarantees – Kia 10 yrs/100K miles warranty
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LO3
Fresh Step and Mary Kay Velocity What strategy is used to reduce perceived risk?
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LO3
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR LEARNING
Learning behaviors that result from repeated experience and reasoning
Behavioral Learning – the process of developing automatic response to a situation built upon through repeated exposure to it.
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Drive (Hunger)
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Response
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Cue
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Reinforcement Being hungry (drive), a consumer see a cue (a billboard), takes action (buys a sandwitch) and receives a reward (= reinforcement, taste)
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LO3
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR LEARNING
Behavioral Learning is the process of developing automatic response to a situation built up through repeated exposure to it.
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Stimulus Generalization
– occurs when a response elicited By one stimulus (cue) is generalized to another stimulus.
(Tylenol Cold & Flu vs. Tylenol PM)
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Stimulus Discrimination
– refers to a person’s ability to Perceive differences in stimuli. (light beers vs. Bud Light) Cognitive Learning also learn through thinking, reasoning, and mental problem solving w/o direct experience (making a connection between two – brand (Advil) and idea (pain reliever)
Brand Loyalty a favorable attitude toward and consistent Purchase of a single brand over time
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LO3
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR VALUES, ATTITUDES AND BELIEFS
Attitude Formation
Attitude – a tendency to respond to something in a consitently favorable or unfavorable way
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Values – personal values affect attitudes by influencing The importance assigned to specific product attributes
Beliefs A consumer’s perception of how a product or Brand performs
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LO3
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR VALUES, ATTITUDES AND BELIEFS
Attitude Change 1.
Change Beliefs about the extent to which a brand has certain Attributes (ex: Mayo’s Omega 3 content) 2. Change Perceived Importance of Attributes: Pepsi stamped Freshness dates 3. Add New Product Attributes (new antibacterial ingredient)
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LO3
Colgate and Hellmann's How did these ads change attitudes?
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LO3
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER LIFESTYLE
Lifestyle – a mode of living that is identified by how people spend their time and resources
Psychographics
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FIGURE 4-B
VALS™ identifies eight consumer segments INNOVATORS Sophisticated, Change Leading, Active, Take Charge ACHIEVERS Successful, Career & Family Oriented, Moderate THINKERS Information Seeking, Satisfied, Reflective BELIEVERS Conservative, Conventional, Traditional STRIVERS Trendy, Approval, Seeking, Disenfranchised SURVIVORS Passive, Risk Averse, Constrained
Copyright © 2010 by Strategic Business Insights. All rights reserved.
EXPERIENCERS Risk Seeking, Enthusiastic, Impulsive MAKERS Homegrown, Self Sufficient, Macho, Family Oriented
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LO4
SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR PERSONAL INFLUENCE
A consumer’s purchase are often Influenced by others’ view, opinion, and behaviors
Opinion Leaders – individuals who have social influence over others
Word of Mouth (WOM) – people influencing each other in personal conversations. Negative WOM
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Buzz – popularity created by Consumers’ WOM
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LO4
MARKETING MATTERS BZZAgent —The Buzz Experience
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LO4
SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR REFERENCE GROUPS
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Membership Group – is one to which a person actually belongs, Including fraternities/sororities, social clubs, and family
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Aspiration Group – is one that a person wishes to be a member Of or wishes to be identified with
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Dissociative Group – on that a person wishes to maintain a distance From because of differences in values or behaviors
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LO4
SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR FAMILY INFLUENCE
Consumer Socialization – The process by which people acquire the skills, knowledge, and attitude necessary to function as consumers is called XXX Children learn how to purchase 1) interaction, 2) through direct experience
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Traditional Family – married couple With children younger than 18 years – 21% US household
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FIGURE 4-6
and flows Modern family life cycle stages
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LO4
SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR FAMILY INFLUENCE
Family Decision-Making
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Styles
Spouse-Dominant – either
Joint – decisions by both
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Family Member Roles
Information Gatherer
Influencer
Decision Maker
Purchaser
User
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LO4
SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR FAMILY INFLUENCE
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89% of wives either influence or make outright purchases of men’s clothing
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Women are often the grocery decision maker, not necessarily the purchaser (51% men)
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Preteens and teenagers are the information gatherers, influencers, decision makers, and purchasers of products and services for the family, given the prevalence of working parents and single-parent households. Spending $200billion annually
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LO4
SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR CULTURE AND SUBCULTURE
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Hispanic Buying Patterns Why challengeable?
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African American Buying Patterns Socioeconomics status
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Asian American Buying Patterns
Assimilated Asian American Nonassimilated Asian American
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LO4
SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS
Social Class
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Upper Class
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Middle Class
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Working/Lower Class
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VIDEO CASE
4 GROUPON: HELPING CONSUMERS WITH PURCHASE DECISIONS
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VIDEO CASE GROUPON 4
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Branding: GROUPON What is the unmet needs of consumers? The predecessor (?) was successful? What they learned?
Win-Win for everyone? Why? GROUPON’s Marketing Mix (Offering: product price promotion place?; External Changes?) What is Groupon Promise? What’s the influence on Perceived Risk? 5 stages What is the target market? Its demographic? SWOT 4-29
VIDEO CASE GROUPON 4
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How has an understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today?
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VIDEO CASE GROUPON 4
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What is the Groupon Promise? How does the Promise affect a consumer ’ s perceived risk and cognitive dissonance?
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VIDEO CASE GROUPON 4
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Describe the five-stage purchase decision process for a typical Groupon user.
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VIDEO CASE GROUPON 4
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What are possible psychological and sociological influences on the Groupon consumer purchase decision process?
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VIDEO CASE GROUPON 4
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What challenges does Groupon face in the future? What actions would you recommend related to each challenge?
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Motivation
Motivation
a need.
is the energizing force that stimulates behavior to satisfy 4-35
Personality
Personality
is a person to recurring situations.
’ s consistent behaviors or responses 4-36
Perception
Perception
is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
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Perceived Risk
Perceived risk
is the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.
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Learning
Learning
consists of those behaviors that result from (1) repeated experience and (2) reasoning.
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Brand Loyalty
Brand loyalty
time.
is a favorable attitude toward and consistent purchase of a single brand over 4-40
Attitude
An
attitude
is a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
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Beliefs
Beliefs
are a consumer ’ s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.
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Opinion Leaders
Opinion leaders
are individuals who exert direct or indirect social influence over others.
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Word of Mouth
Word of mouth
influencing of people during conversations.
involves the 4-44
Reference Groups
Reference groups
standards.
consists of people to whom an individual looks as a basis for self-appraisal or as a source of personal 4-45
Family Life Cycle
A
family life cycle
consists of the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.
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Subcultures
Subcultures
and attitudes.
are the subgroups within the larger, or national, culture with unique values, ideas, 4-47