Chapter 4 Perspectives on Consumer Behavior Last Class Organization of the advertising agency Today’s Objectives Consumer Behavior Culture Social Class Life style Personality Psychological Factors Small groups Family Social roles & status Personal Factors Subculture Motivation Perception Learning Beliefs & Attitudes Types of Buying Behavior Consumer Decision Making Process What is Consumer Behavior? The process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires Why consumer behavior? Markets have to be understood before strategies can be developed. World consumer consists of more than 6 billion people. Consumers vary tremendously in: age, income, education level and tastes. Consumer Behavior is influenced by buyer’s decisions process. Consumer Decision Making Decision Stage Psychological Process Problem Recognition Motivation Information Search Perception Alternative Evaluation Purchase Decision Postpurchase Evaluation Attitude Formation Integration Learning Sources of Problem Recognition Out of Stock Dissatisfaction New Needs or Wants Related Product Purchase Market-Induced Recognition New Products Ads Help Consumers Recognize Problems Maslow’s Hierarchy of Needs Self-actualization needs (selfdevelopment, realization) Esteem needs (self-esteem, recognition, status) Social needs (sense of belonging, love) Safety needs (security, protection) Physiological needs (hunger, thirst) Nurturance, Love and Belonging + consumer's novelty-seeking behavior In saturated markets manufacturers should come up with new offerings Example -Honey Maid graham crackers /sticks What Consumers Want? Probing the Minds of Consumers Depth Interviews Association Tests Projective Methods Focus Groups No One Knows You Better “MR” Not All Positive or All Negative Pros Cons Reveals Hidden Feelings, Drives and Fears Qualitative Results from Very Small Samples Highlights Importance of Symbolic Factors Varying, Subjective Interpretations Shifts Attention from “What” to “How” and “Why” Motivation Research Difficult or Impossible to Verify or Validate Information Search Personal Sources Perception You can see a white vase as figure against a black background, or two black faces in profile on a white background Do you see the flashing dots? The flashing is all in your head. What do you see? Now what do you see? Perception Müller-Lyer Illusion – The two lines above are the same length, but the diagonals extending outward from both ends of the lower line make it look longer than the upper line The Selective Perception Process Selective Exposure Selective Attention Selective Comprehension Selective Retention Doing two things at a time Pick a card I’ve removed your card Tell me theYESIL colors? MAVI SARI KIRMIZI MAVI SARI KIRMIZI MAVI YESIL KIRMIZI Tell me the colors again? TURUNCU MAVI YESIL SARI TURUNCU YESIL MOR YESIL SIYAH SARI Tell me the colors now? ORANGE BLAU GRUN GELB ORANGE GRUN VIOLETT GRUN SCHWARZ GELB A memory test: 1. Please listen carefully to the following list of words. 2. Please DO NOT write the words down. Just listen carefully. 3. In a little while, I’ll ask you to remember the words. Now count backwards with me slowly, by threes, from 45 to 3: 45, 42 … 3 1. Write down each word below: ghost cake blanket sweet rabbit candy 2. Circle only the words you heard on the list. 3. If you VIVIDLY remember hearing a word, circle it twice. Now examine the list carefully: sour candy sugar bitter good taste tooth nice honey soda chocolate heart cake tart pie TO THINK ABOUT OR DISCUSS : Should this make us worry about eyewitness testimony? Now we are going to do a simple activity involving letters of the alphabet. Based on your gut feelings, quickly write down: 1.Your six FAVORITE letters 2.Your six LEAST FAVORITE letters Look over each list and circle all of the letters that occur in your own first name. Count the number of circled letters in each list. Which list included more of the letters from your own first name?? The preference for the letters in one’s own name is the name letter effect. TO THINK ABOUT: Would people be more likely to purchase a product if the product resembled his or her name? Should the musician depicted here like M&Ms more than the average person does? Can you spot the vertical white bar? Can you spot the vertical white bar? Can you spot the vertical white bar? Pop Out Examples Form: line orientation, length, width spatial orientation, added marks, numerosity (4) Colour: hue, intensity Motion: flicker, direction of motion Spatial Position: stereoscopic depth, convex/concave shape Color Orientation Motion Simple shading Combining Color With Black-andWhite Is Intended to Gain Attention + Memory Try to remember the following words First Group Recall Words Immediately 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11 12 13 14 15 Vegetable Television Lampshade Statue Aluminium Picnic Comma Diary Photograph Bicycle Cabinet Tiger Window Medicine Factory 100 Immediate Free Recall of words 90 80 70 60 50 40 30 20 Percentage of Recalled 10 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Serial Position for Presentation Evaluation of Alternatives All available brands Brand A Brand B Brand C Brand D Brand E Brand F Brand G Brand H Brand I Brand J Brand K Brand L Brand M Brand N Brand O Evoked Set of Brands Brand B Brand E Brand F Brand I Brand M Two Forms of Evaluative Criteria Evaluative Criteria Objective Subjective Price Style Warranty Appearance Service Image Different Perspectives: Marketer’s View Enough power? Traction okay? Too pricy? Product is seen as a bundle of attributes or characteristics. Different Perspectives: Consumer’s View How does it cut the taller grass? Will the neighbors be impressed with my lawn? How close can I get to the shrubs? Is it going to be as fun to use later this summer? Will it pull that little trailer I saw at the store? Functional Will I enjoy having more time for golf? Product Is Seen As A Set of Outcomes Psychological Heuristics Depends on the consumer segment Examples Never buy cat litter that does not contain a deodorizing agent. Do not buy national brands of pet food. Use coupons for the purchase of all snack foods. Do not buy cake mixes that contain artificial color. Consumer Attitudes Focus on Objects Individuals Products Ads Brands Attitudes Toward: Media Companies Retailers Organizations Ways to Change Attitudes Change Beliefs About An Important Attribute Change Perceptions of the Value of An Attribute Add a New Attribute To the Attitude Formation Mix Change Perceptions or Beliefs About a Competing Brand Adding Attributes Changes Attitudes + How Consumers Learn Thinking Conditioning Modeling Intellectual evaluation comparing attributes with values Based on conditioning through association or reinforcement Based on emulation (copying) of respected examples Classical Conditioning Process Unconditioned stimulus (waterfall) Unconditioned response (freshness, purity) Association develops through contiguity and repetition Conditioned stimulus (Brita water filtration pitcher) Conditioned response (freshness, purity) Classical Conditioning for Cosmetics + Instrumental Conditioning Process Behavior (consumer uses product or service) Positive or negative consequences occur (reward or punishment) Increase or decrease in probability of repeat behavior (purchase) Cognitive Learning Process Goal Purposive Behavior Insight Goal Achievement External Influences on Consumers Culture : the complexity of learned meanings, values, norms, Culture and customs shared by members of the society Subculture Social class Reference groups Situations Subcultural Ads Appeal to Shared Beliefs, Values and Norms + Summary Consumer Behavior Culture Social Class Personal Factors Psychological Factors Types of Buying Behavior Consumer Decision Making Process