Why People Buy Influences Psychological Social and Interpersonal Situational Psychological Influences 1. Needs and Motives All purchases are driven by needs – gaps between buyers’ current conditions and their ideal conditions. Needs create motives and wants. Maslow’s Hierarchy of Needs Self-actualization Esteem Social Safety Physiological *Refer to the chart in class 3. Attitude and Life Style Attitude is a lasting, general evaluation of objects. Three attitude components: Cognitive, Affective, Behavioral Attitude (+ Demographics) Life-style VALS refer to chart in class Station Break Go to the SRI International Web site at www.future.sri.com and participate in an actual VALS lifestyle survey. Next, discuss the characteristics of the online shopper or e-buyer. How is this group different from the eight groups described in Figure 4.5? What are your thoughts on how to construct a VALS scheme that would aid advertisers that are seeking to advertise internationally? Notice how SRI has approached this problem. THE NINE VALS TYPES (Exhibit 6-16, page 197) Need Driven Survivors: Elderly females who might be poorly educated and ill, or innercity or rural families. Sustainers: Mostly young and unemployed.Struggling to find a place in society. Outer-Directed Belongers: The solid middle class; 4 out of 10 Americans. They value security, stability, and group identification; they don't like to take risks or be flashy. Emulators: One in every 10 Americans. They spend ostentatiously, tend to be in debt, and are a study in frustrated ambitions. Achievers: One out of five. Older, wealthy, well educated, married homeowners. Emulators are struggling to join this group. Inner-Directed I-Am-Me: Mostly students. Passionate about self-expression, loud music, outrageous clothes, and opposition to the Outer-Directed. Experientials: Believe In education, saving the environment, and having peak experiences. Many are former I-Am-Mes. Socially Conscious: The best-educated group. Early middle-aged adults who moved from flower power to Vietnam, Watergate and The Big Chill. Although suspicious of large institutions, many make comfortable livings and have influential jobs. Integrated Combines Outer and Inner values. Mature and psychologically balanced. One In 50 Americans. Social and Interpersonal Influences Division of social classes Changing family roles and expectations New reference and membership groups Definition of race and ethnicity Gender identification Formation of brand communities Psychological and Social Processes • Psychological influences: • brand attitudes • salient beliefs • cognitive consistency • overload and clutter Social influences: • cultural contexts • regional values • ritual behavior Factors Affecting Decision-Making How People Buy Perception-Selective Information-Cognition Affect-Emotional Response Perceptions (Selective) Organize by simple patterns Focus on single aspect Relate things Fill in missing parts Information Cognition Affect Emotional Response Emotional Response Predicts Intentions and Interest Emotional Response and Ads Robust study of over 23,000 responses to 240 advertising messages Emotion shown to dominate over knowledge and beliefs for predicting intentions FCB Grid Learn Feel DO Feel Learn Do Do Feel Learn Do Learn Feel FCB Grid – Refer to chart in class Decision Making 1. Need recognition 2. Information search and comparison 3. Purchase 4. Postpurchase use and evaluation