Download Consumers Rule

Consumer Behavior:
How and Why People Buy
Chapter Objectives
• Define consumer behavior and explain why consumers
buy what they buy
• Describe the prepurchase, purchase, and postpurchase
activities that consumers engage in when making
decisions
• Explain how internal factors influence consumers’
decision-making processes
• Show how situational factors at the time and place of
purchase influence consumer behavior
• Explain how consumers’ relationships with other people
influence their decision-making processes
• Show how the Internet offers consumers opportunities to
participate in consumer-to-consumer marketing
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Real People, Real Choices
• Meet Daniel Grossman at Wild Planet
• Creating brands/products that parents
endorse and kids find cool
• Future direction of Room Gear product line
 Option 1: acknowledge that Wild Planet missed the
mark and drop the line
 Option 2: retain line concept and develop products
similar to those already selling
 Option 3: reposition the line toward either boys or girls
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Decisions, Decisions
• Consumer behavior: The process we use
to select, purchase, use, and dispose of
goods, services, ideas, or experiences to
satisfy needs/desires
• Internal, situational, and social influences
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Steps in Consumer Decision Process
• Extended problem-solving versus habitual
decision-making
• Involvement: relative importance of
perceived consequences of the purchase
• Perceived risk: choice of product has
potentially negative consequences
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Step 1: Problem Recognition
• Occurs when consumer sees a significant
difference between current state and ideal
state
• Marketers can develop ads that stimulate
problem recognition
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Step 2: Information Search
• Consumers need adequate information to make
a reasonable decision
• Search memory and the environment for
information
• Internet: search engines, portals, or “shopping
robots”
• Behavioral targeting: Marketers deliver ads for
products consumers look for, by watching what
they do
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Step 3: Evaluation of Alternatives
• Consumers are interested in a small number of
products, then narrow choices and compare
pros/cons
• Evaluative criteria: product characteristics
consumers use to compare competing
alternatives
• Marketers point out their brand’s superiority on
most important evaluative criteria.
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Step 4: Product Choice
• Deciding on one product and acting on
choice
• Heuristic: a mental rule of thumb used for
a speedy decision, such as:
 Price equals quality
 Brand loyalty
 Country of origin
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Step 5: Postpurchase Evaluation
• Consumer satisfaction/dissatisfaction after
purchase of product
• Expectations of product quality are
met/exceeded or not
• Ads/communications must create accurate
expectations of product
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Internal Influences
on Consumer Behavior
• Factors that cause us each to interpret
information about the outside world differently:
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Perception
Motivation
Learning
Attitudes
Personality
Age group
The family life cycle
Lifestyle
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Perception
• Process by which we select, organize, and
interpret information from outside world
• Necessary for perception to occur
• Exposure: capable of registering a
stimulus
• Attention: mental processing activity
• Interpretation: assigning meaning to a
stimulus
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Motivation
• Internal state that drives us to satisfy
needs by activating goal-oriented behavior
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Motivation (cont’d)
• Maslow’s Hierarchy of Needs
HIGHER-LEVEL NEEDS
Self-Actualization (US Army)
Figure 5.5 (Abridged)
Ego (BMW)
Belongingness (“Pepsi Generation”)
Safety (Allstate Insurance)
Physiological (Quaker Oats Bran)
LOWER-LEVEL NEEDS
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Learning
• A change in behavior caused by
information or experience
• Behavioral learning
 Classical conditioning
 Operant conditioning
 Stimulus generalization
• Cognitive learning
 Observational learning
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Attitudes
• Lasting evaluations of a person, object, or
issue
• Three attitude components
 Affect (feeling): emotional response
 Cognition (knowing): beliefs or knowledge
 Behavior (doing): intention to do something
• Marketers must decide which attitude
component will drive consumer
preferences
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Personality
• The set of unique psychological
characteristics that consistently influences
the way a person responds to situations in
the environment
• Personality traits: Innovativeness,
materialism, self-confidence, sociability,
need for cognition
• Self-concept
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Age Group and Family Life Cycle
• Goods/services appeal to specific age
group
• Family Life Cycle: The stages through
which family members pass as they grow
older
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Lifestyle
• Lifestyle: A pattern of living that
determines how people choose to spend
their time, money, and energy
• Psychographics: group consumers
according to psychological and behavioral
similarities
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Situational Influences
on Consumer Decisions
• Physical environment dimensions such as
décor, smells, and lighting
• Arousal and pleasure determine
consumers’ reaction to store environment
• Time as a situational factor
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Social Influences
on Consumer Decisions
• We are members of many groups that
influence our buying decisions:
 Culture/subcultures
 Social class
 Group memberships
 Opinion leaders
 Sex roles
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Culture
• The values, beliefs, customs, and tastes
produced or practiced by a group of
people
• Rituals such as weddings and funerals
• Cultural values: deeply held beliefs about
right and wrong ways to live
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Subcultures
• A group within a society whose members
share a distinctive set of beliefs,
characteristics, or common experiences
• Subcultures important to marketers are
racial and ethnic groups.
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Social Class
• The overall rank or social standing of
groups of people within a society,
according to factors such as family
background, education, occupation, and
income.
• Status symbols such as luxury products
provide a way for people to flaunt their
membership in higher social classes.
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Group Memberships
• Reference group: a set of people a
consumer wants to please or imitate and
that thus has an effect on an individual’s
evaluations, aspirations, or behavior
• Conformity means people change
behavior due to group pressure.
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Opinion Leaders
• People who influence others’ attitudes or
behaviors because others perceive them
as possessing expertise about the product
 Have high interest in product category
 Update knowledge by reading, talking with
salespeople, etc.
 Impart both positive and negative product information
 Are among the first to buy new products
•
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Gender Roles
• Society’s expectations regarding
appropriate attitudes, behaviors, and
appearance for men and women
• Consumers often associate “sex-typed”
products with one gender or the other.
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Consumer-to-Consumer
E-Commerce
• Online communications and purchases that
occur among individuals without directly
involving the manufacturer or retailer
• Groups of “netizens” around the world with
similar interests, united via the Internet
• Popular online C2C formats
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Gaming
Chat rooms, rings, and lists
Boards
Blogs
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Real People, Real Choices
• Wild Planet (Daniel Grossman)
• Daniel chose option 3: reposition the line
toward either boys or girls
 The firm renamed the line Girls Livin’ in Style (GLS),
which has had moderate success.
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Marketing in Action Case:
You Make the Call
• What decision must Facebook.com make?
• What factors are important in
understanding this decision situation?
• What are the alternatives?
• What decision(s) do you recommend?
• What are some ways to implement your
recommendation?
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Keeping It Real: Fast Forward to Next
Class Decision Time at PPG Industries
• Meet Vicki Holt, Senior VP, Glass & Fiber
Glass for PPG Industries, Inc.
• PPG’s Insulating Glazing Unit, or IGU,
has an aggressive competitor marketing a
complete IGU unit.
• The decision: How to react to the
competition.
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