Consumer Behavior Brief

8/8/2019 Consumer Behavior Brief

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Consumer Behavior

Dr. Mary Wolfinbarger

Marketing 300


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Topics

Classes of buying decisions

Decision process

Motivations for Buying: MaslowsHierarchy

Major influences on CB


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Classes of Buying Decisions

Routine DM

Limited DM

Extensive DM


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outine Decision Making

Consumer mindlessness

Typically choose from an evoked orconsideration set

Often purchased lower priced items

Little thought, search or time

May stick with one brand

Buy first, evaluate later


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outine Decision Making/Marketers Task

For current customers:

maintain brands quality, stockand value


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For non-customers

break normal buying habits

How?

Use promo to call attention to brand,USP


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In general:

ads/promos focus on one message

messages are repeated often

initial trial occurs due to brandrecognition or variety seeking, notbrand evaluation

can raise purchase involvement level(The Gillette Mach series blades TheBest a Man can Get)


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Limited Decision Making

Low to medium levels of involvement

Low to moderate cost goods

Buyers may reduce risk through someinformation gathering

New brands may be considered for eachpurchase

Short to moderate time to decide


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Limited Decision Making

Marketers Task

provide reasons for buying brand (notjust reminder advertising)


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Extensive Decision Making

Products may be

new

expensive complex

important to consumer


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may be many choices

may not know criteria to use

high level of involvement longer time frame to make decision

Example: computers, houses, cars


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Buyers will search for info

Personal selling promo messages can be

longer/ more informative Consumers may perceive risk

marketers must work to reduce thisperception


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The Decision Process


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The Decision Process

Model most relevant for extensive DM

Some of these 5 steps exist in anydecision


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Need Recognition

Cues:

social cues

new life situation marketing cues

Marketing communications

See a superior product

physical drive stock-out/ worn product

emergency


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Information Search

Reduces risks of DM

Financial

Performance Social

Time

Physical

Psychological


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Information Search

Two types:

Internal Search: Past experiences/knowledge

External Search: several sources


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Information Search

Sources of external search:

marketing

consumers: word of mouth or wordof mouse, the internet (CGM consumer generated media)

neutral sources: Consumer Reports,news reports


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Information Evaluation

Example: Friday nights date

important attributes -- looks, personality, cash

relative importance of attributes -- looks, cash,

personality acceptable tradeoffs -- less good personality

may be compensated by cash

attributes wont tradeoff -- need a level of

minimal acceptable looks (no amount of cashor personality will compensate!)


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Purchase Decision

To buy or not to buy?

Best alternative is chosen

Choose place/method of purchase

Out-of-stock prompts more evaluation


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Post-purchase Behaviors

Evaluation of satisfaction

Cognitive dissonance -- the feeling thatsome other choice would have been

better, including not buying at all More likely when choice is inconsistent with

values and opinions and/or

More likely when choices were close


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Post-purchase Behavior

Complaint behavior, grudge-holding

Positive/negative word of mouth

More purchases if satisfied


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More issues for the 5-step model

Some researchers argue that many CBdecisions occur spontaneously itsimply seems right

Part way through the evaluationprocess consumers now often addalternatives for consideration

Read Is the purchase funnel dead?


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More issues for the 5-step model

Consumers may explain their behavioremphasizing factors that are rational andlogical

Do we make decisions with our reptilian minds?(MOTL)

Read The Culture Code


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Why do people shop?Two general motivations:

Goal oriented shopping to buy orfind specific information

Experiential or hedonic shopping to

shop These two motivations are seen in

retailing and in online shopping

The five step model is most consistent with

which

motivation? Which motivation is more likely in online

shopping (except at eBay)?


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Maslows Hierarchy

Suggests five types of needs:

Physiological

Safety

Social

Esteem

Self-Actualization


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Maslows Hierarchy

Physiological Needs

Basic needs for food, rest, shelter

Mostly taken for granted in U. S., butare the basis for some ad appeals

Examples: Gatorade, For that deepdown body thirst


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SafetyNeeds

The need to protect ones self fromanything threatening

U.S. is a relatively risk-averse society Alarms, insurance, health, tires, cars,

medications.

Michelin Tires Because so much is riding

on your tires


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Social Needs

Needs for friendship and belonging

Products: cosmetics, clothing, cigarettes

and beer A pervasive ad appeal

Sometimes the appeal is wrong choicewill not be accepted by friends or

family Example: JIF


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Comments on Maslows Hierarchy

Needs arent fulfilled one at a time in order

There may be other needs

Need for self-expression

Need for complexity

Need for novelty

Other models e.g. Schwartz

Circle of Values (much more recent)

Focuses on basic values rather than needs Has been applied to 75,000 people in 68 countries


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Ads to what motivations do they play?

Apple Ad?

BomChickaWahWah? (Axe)

Loreal (Because Im worth it)

Original Coke ad Id like to teach theworld to sing?

AFLAC Goat


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ReadyMade

To what value on the Circle of Valuesdoes the ReadyMade magazine appeal? How did the founders get the idea for the

business?

How is the magazine designed to appealto their target audience(s)?

How do they choose advertisers?

What postpurchase behavior that ocurredafter the publication of the first issue doesthe film mention?


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Major Influences onConsumer Behavior


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Cultural Characteristics

Fundamental/ubiquitous

Cultures shift, but only slowly

Ones own culture is tacit

Example: shaving?

Example: Deodorant commercial withoctopus shown to Japanese businessmen


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Reference Groups/Group Membership

Primary: family, close friends,neighbors, workmates

Secondary: professional/fraternalorgs

Aspirational groups: sports heroes,movie stars, CEOs?


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Reference Groups

Different groups influence differentdecisions

casual clothes?

career clothing? Tennis shoes?

Music?

Food?

Furniture? Refrigerator? TV?


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Lifestyle, Self-Concept

Lifestyle: pattern of living

Ex: health nut, soccer mom, Nascar Dad,Netizen

Self-concept: -- buy a product becauseits me!

Ex: cars, clothing

Ex: Rich people in East Africa who drive a

Mercedes Benz are called WaBenzi members of the Mercedes Benz tribe

Ideal self-concept: Dove ad uses thisidea subversively


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Branding and Self-Concept

Branding enables us to define ourselvesin terms of recognized standards andsymbols. Lexus, Tommy Hilfigermake

precise and easily recognizedstatements about who they are and byinference about us, the people who buythem.--Wally Olins, Branding consultant


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Other Concepts to Read About Perception

Selective exposure

Selective distortion

Selective retention

Learning Stimulus generalization and discrimination

Beliefs and Attitudes (and changing them) Example: Technology Optimism, attitude towards

a brand

Personality Example: Curiosity, self-efficacy, innovativeness,

materialism


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An example of attitudes and personality

How would you predict thattechnology optimism is related toadoption of the internet by seniors?

How about curiosity?How aboutinnovativeness? Self-efficacy?

Which would you anticipate has moreof an impact?Technology optimism orcuriosity?

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