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Chapter 6 CONSUMER BEHAVIOR © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior 1. Define Customer Behavior and Consumer Behavior. Copyright © 2013 by South Western, a division of Cengage Learning. All rights © 2014 Cengage Learning. All reserved. Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Customer Behavior ▮Buying behavior of individual consumers as well as organizational buyers. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Consumer Behavior ▮Process through which buyers make purchase decisions • Marketers borrow extensively from psychology and sociology to better understand consumer behavior • Consumer behavior is understood as a function of interpersonal influences and personal factors © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior 2. What are the two determinants of consumer behavior? Copyright © 2013 by South Western, a division of Cengage Learning. All rights © 2014 Cengage Learning. All reserved. Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Determinants Of Consumer Behavior ▮Interpersonal ▮Personal © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior 3. What are the interpersonal determinants of consumer behavior? Copyright © 2013 by South Western, a division of Cengage Learning. All rights © 2014 Cengage Learning. All reserved. Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Interpersonal Determinants Of Consumer Behavior ▮Cultural influences • Culture - Values, beliefs, preferences, and tastes handed down from one generation to the next • The broadest environmental determinant of behavior © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior International Perspective on Cultural Influences ▮Successful strategies in one country may not extend to other international markets • Example: Domino’s allows local managers to run their own advertising campaigns tailored to the preferences of their customers © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Subcultures ▮Groups with their own distinct modes of behavior • Can differ by ethnicity, nationality, age, rural versus urban location, religion, and geographic distribution ▮Population mix in U.S. is changing as the Hispanic, African American, and Asian populations grow © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Social Influences ▮Everyone belongs to multiple social groups Family, neighborhood, clubs, and sports teams • Group membership influences an individual consumer’s purchases and behavior in overt and subtle ways ▮Differences in group status and roles influence buying behavior • People make purchases designed to reflect their status within a particular group © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior The Asch Phenomenon ▮Theory of psychologist S. E. Asch Individuals conform to majority rule, even if that majority rule goes against their beliefs ▮The Asch phenomenon can be a big factor in many purchase decisions • From major choices such as buying a car to deciding whether to buy a pair of shoes on sale © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Reference Groups ▮People or institutions such as family, friends, or celebrities: • Whose opinions are valued • To whom a person looks for guidance in his or her own behavior, values, and conduct © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Reference Groups ▮Influence of reference group depends on two conditions: • The purchased product must be one that others can see and identify • The purchased item must be a brand or product that not everyone owns © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Social Classes ▮Six classes within the social structures of both small and large U.S. cities • • • • • • Upper-upper Lower-upper Upper-middle Lower-middle Working class Lower class © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Social Classes ▮Class rankings determined by occupation, income, education, family background, and residence location • Income is not always a primary factor ▮Occupations and incomes of one or both parents are primary influences on social class ▮Individuals’ buying habits reflect the class to which they aspire © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Opinion Leaders ▮Trendsetters who purchase new products before others in a group and then influence others in their purchases ▮Individuals tend to act as opinion leaders based on their knowledge of and interest in products ▮Information about goods and services flows from mass media to opinion leaders to consumers • Sometimes flows directly to consumers © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Family Influences ▮Family structure has changed over the last century • Many couples are separated or divorced, so single heads of households are more common ▮Role of each spouse in a household: • • • • Autonomic role Husband-dominant role Wife-dominant role Syncratic role © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior 4. What are the personal determinants of consumer behavior? Copyright © 2013 by South Western, a division of Cengage Learning. All rights © 2014 Cengage Learning. All reserved. Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Personal Determinants of Consumer Behavior ▮Consumer behavior is affected by a number of internal, personal factors also • Need - Imbalance between a consumer’s actual and desired states • Motive - Inner state that directs a person toward the goal of satisfying a need © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Maslow’s Hierarchy of Needs ▮Physiological needs - Needs concerning essential requirements for survival, such as food, water, shelter, and clothing ▮Safety needs - Financial or lifestyle security, protection from physical harm, and avoidance of the unexpected ▮Social/belongingness needs - The desire to be accepted by people and groups important to that individual © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Maslow’s Hierarchy of Needs ▮Esteem needs - A universal desire for a sense of accomplishment and achievement ▮Actualization needs - Desire to realize potential and find fulfillment by expressing their unique talents and capabilities © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior ▮Maslow’s Hierarchy of Needs Self-Actualization Esteem Needs Social Needs Safety Needs Physiological Needs © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Perceptions ▮Meaning that a person attributes to incoming stimuli gathered through the five senses ▮Results from the interaction of two types of factors: • Stimulus factors • Individual factors © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Perceptual Screens ▮The mental filtering processes through which all inputs must pass ▮Techniques that marketers use to elicit a positive response from consumers: • Doubling the size of an ad • Using certain colors or graphics • Developing unique packaging ▮Word of mouth - The oldest and most effective marketing technique in existence © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Attitudes ▮Person’s enduring favorable or unfavorable evaluations, emotions, or action tendencies toward some object or idea ▮Attitude components: • Cognitive • Affective • Behavioral © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Changing Consumer Attitudes ▮Marketers have two choices for appealing to consumer attitudes: • Attempt to produce consumer attitudes that will lead to the purchase of an existing product • Evaluate existing consumer attitudes and create or modify products to appeal to these attitudes © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Modifying the Components of Attitude ▮Providing evidence of product benefits and correcting misconceptions ▮Engaging buyers in new behavior ▮New technologies can also encourage consumers to change their attitudes © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Learning ▮Knowledge or skill acquired as a result of experience, which changes consumer behavior © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Learning ▮Components of learning process: • Drive - Fear, pride, greed, jealousy, hunger, thirst, comfort, and rivalry • Cue - An object or signal in the environment that determines the nature of the consumer’s response to a drive • Response - Individual’s reaction to a set of cues and drives • Reinforcement - Reduction in drive that results from a proper response © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Applying Learning Theory to Marketing Decisions ▮Marketers use shaping • Applying a series of rewards and reinforcements, to permit more complex behavior to evolve ▮Promotional strategy and the product itself play a role in the shaping process © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior The Shaping Process ▮Offer a free-sample package that includes a substantial discount for first purchase ▮Entice the consumer to buy the item with little financial risk ▮Motivate the person to buy the item again at a moderate cost ▮Customer decides whether to buy the item at its true price without the discount coupon © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Self-Concept Theory ▮Person’s multifaceted picture of himself or herself ▮Four components that influence purchasing decisions: • • • • Real self Self-image Looking-glass self Ideal self © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior 5. What are the various steps in the consumer decision process? Copyright © 2013 by South Western, a division of Cengage Learning. All rights © 2014 Cengage Learning. All reserved. Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Figure 6.2 - Integrated Model of the Consumer Decision Process © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior The Consumer Decision Process ▮High-involvement purchase decisions • Purchases with high levels of potential social or economic consequences ▮Low-involvement purchase decisions • Routine purchases that pose little risk to the consumer © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Steps in the Consumer Decision Process ▮Consumer becomes aware of a gap between the existing situation and a desired situation ▮Consumer gathers information about the attainment of a desired state of affairs • Evoked set - Number of alternatives that a consumer actually considers in making a purchase decision © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Steps in the Consumer Decision Process ▮Consumer evaluates the evoked set of options and as the search progresses, the consumer accepts, distorts, or rejects • Evaluative criteria - Features that a consumer considers in choosing among alternatives ▮The consumer narrows the alternatives down to one ▮The consumer decides where or from whom to make the purchase © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Steps in the Consumer Decision Process ▮Post-purchase evaluation – Buyer feels either: • Satisfaction at the removal of the discrepancy between the existing and desired states • Dissatisfaction with the purchase ▮Cognitive dissonance - Imbalance among knowledge, beliefs, and attitudes that occurs after an action or decision, such as a purchase © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Steps in the Consumer Decision Process • Dissonance is likely to increase: • As the dollar value of a purchase increases • When the rejected alternatives have desirable features that the chosen alternatives do not provide • When the purchase decision has a major effect on the buyer ▮Marketers can reduce cognitive dissonance by providing information that supports the chosen item © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior 6. What are the three categories of problemsolving process? Copyright © 2013 by South Western, a division of Cengage Learning. All rights © 2014 Cengage Learning. All reserved. Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Classifying Consumer Problem-Solving Processes ▮Routinized response behavior • Consumer makes many purchases routinely by choosing a preferred brand or one of a limited group of acceptable brands ▮Limited problem solving • Consumer has previously set evaluative criteria for a particular kind of purchase but then encounters a new, unknown brand © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42 Chapter 8 Marketing Research Chapter 6and Consumer Sales Forecasting Behavior Classifying Consumer Problem-Solving Processes ▮Extended problem solving • Results when brands are difficult to categorize or evaluate • Typical of high-involvement purchases © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 43