The Consumer Audience
Part 2: Planning and Strategy
Chapter 5
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Key Points
 Assess cultural and social influences on
consumer responses
 Demonstrate how psychological influences
motivate customers
 Explain the behavioral characteristics that
describe consumer responses
 Describe how the consumer decision process
works
 Differentiate between segmenting and targeting
and trace these tools to their sources
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How Consumer Behavior Works?
Consumer behavior
- Describes how individuals or groups select,
purchase, use, or dispose of products – as
well as describing the needs that motivate
these behaviors
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Who is the Consumer Audience?
 Consumer
People who buy or use products to satisfy their
needs and wants
 Customers
People who buy a particular brand or patronize a
specific store
 Purchaser
 User
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Influences on Consumer’s Buying Decision Process
Social Cultural
Influences
•Culture
•Social Class
•Reference Groups
•Family
•Demographic
Behavioral Influences
Usage
Innovation& Adoption
Market Segment
Psychological
Influence
Perception
Motivation
Attitudes and values
Personality
Psychographics
Target
Audience
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THE CONSUMER AUDIENCE
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Cultural and Social Influences
Culture
 a way of life
 Learned and passed on
from one gen. to
another
 Norm
 Core value: a sense of
Tangible items: art,
literature, building,
furniture,food, clothes,
etc.
Intangible concept:
history, knowledge,
moral, tradition,
language etc.
belonging, excitement, fun &
enjoyment, warm relationships,
self-fulfillment, respect from others,
a sense of accomplishment,
security, self-respect
Advertiser matches the core value and the ad appeal.
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Cultural and Social Influences
Social Class
The position a person and his/her family
hold within society
Determined by such factors as income,
wealth, education, occupation, etc.
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Cultural and Social Influences
Family
Two or more people who are related by
blood, marriage, or adoption and live in the
same household
Household
Lifestyle : the way you
spend your time and money on the
activity you value.
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Cultural and Social Influences
Reference Groups
 A group of people who
are used as a guide for
behavior in specific
situations
 1) provide info.
 2) a means of
comparison
 3)they offer guidance
Reference group is used in the ad to attract the audience
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Cultural and Social Influences
Demographics
 The statistical,
personal, social, and
economic
characteristics that
describe a population
Characteristics
 Age (different age,different need)
 Sexual orientation (product
preferred)




Education (media used)
Occupation (type of product)
Income (purchasing power)
Race and ethnicity (type of
product)
 Geography (type of product)
The basis for ad strategy, media
design, media selection.
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Psychological Influences
Perception/State of Mind
 Affects how people perceive information
as well as determines the particular
pattern of consumer behavior (experience,
friend,brand message,
mental stage)
Ad: understands and communicate to the
Emotion of the audience
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Psychological Influences
 Needs & Wants
- Basic driving forces that motivate us to do
something
- Need: e.g. choose a motel when traveling
- Want: e.g. choose the most expensive motel
- Innate needs (needs necessary to keep life) VS
Acquired needs (learn in response to culture &
environment) e.g. esteem, prestige, affection
power and learning
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Psychological Influences
Attitudes and Values
 Attitudes impact
motivations
 Influence how consumers
evaluate products,
institutions, retail stores,
and advertising
Personality
 Distinctive characteristics
that make people or
brands individual
 Brand personalities make
them distinctive from their
competitors
e.g. old-fashioned, lively,
efficient, helpful, warm,
dependable, risk taking
Ad: should focus on establishing, changing,
reinforcing, or replacing them
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Ad: enhance brand personality
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Psychographic Influences
Psychographics ----- complex consumer profiles  how people make the
decisions
Psychological
Lifestyle:
The way people allocate,
Time, money & energy
Perception
Motivation and Needs
Attitudes
Personality
Hobbies, vacation, entertainment,
club membership, fashion, family,
job, food, trend, etc.
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THE CONSUMER AUDIENCE
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Psychological Influences
Motivations
Internal forces that stimulate people to
behave in a particular manner
Produced by the tension caused by an
unfulfilled need
People are usually motivated by emotion &
habit
It affects ad message and the timing of the ad
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Behavioral Influences
Usage behavior
 How much of a product category or brand customers buy
 Usage Rate: Light users, Medium users, Heavy users (how much they
buy)
 Brand relationship: Nonusers, Ex-users, Regulars, First timers, Loyal
users, Switchers
 Innovation and adoption
 How willing people are to be innovative and try something new
 Innovators, Early adopters, Early majority, Late majority, Laggards
 perceived risk: evaluate what u gain & what u have to lose if the p/d does
not work
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The Innovation Diffusion
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Target Profile of Oishi Green tea
Demographics
 Primary: 15-20 years old
 Both male & female
 Students& first jobber
 Monthly income: 5000-10000
 Nationwide
Psychographics
 People who are trendy
 People who are open minded
 People who are health-conscious
Behavioral
 People who usually drink green tea
 Always try something new
 Go fitness
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Example: Target Profile of Iphone
Demographics
Psychographics
Behavioral
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Consumer Decision Process
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase evaluation
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The Consumer Decision Process
Need recognition
 The consumer recognizes
the need/want for a product
 Advertising should activate
or stimulate this need
Source of problem recognition:
- Out of stock
- Dissatisfaction
- New needs or wants
- Related product purchase
- Market-induced recognition
- New products
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The Consumer Decision Process
Information search
Personal source : friend, relatives, coworker
Market-controlled source: ad.
salespeople, display
Public source: print articles, news
reports
Personal experience: handling,
examining, testing, using
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 Can be casual or formal
 Advertising helps the
search process by
providing information and
making it easy to find, as
well as remember
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The Consumer Decision Process
Evaluation of
alternatives


Consumers compare various products
and reduce the list of options
Advertising helps sort out products on the
basis of tangible and intangible features
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Tangible: size, features, color,
durability, package, taste, others
Intangible: Style, quality, image,
prestige, warranty, brand name,
others
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The Consumer Decision Process
Purchase
decision
 Often a two-part
decision
 Select the brand
 Select the outlet from
which to purchase
 In-store promotions
affect these choices
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The Consumer Decision Process
Postpurchase
evaluation
Wells, Moriarty, Burnett & Lwin - Xth Edition
 The customer
reconsiders and justifies
the purchase
 Determines whether the
customer will keep the
product, return it, or
refuse to buy the product
again
 Ad- reassures Cognitive
Dissonance– the feeling of
dissatisfaction with the
product
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Involvement Decision Process
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