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Consumer Behaviour “The behaviour of individuals in obtaining goods and services, including the decision processes that precede and determine the purchase.” What makes the consumer tick? Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-1 Consumer Purchase Decision Process Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-purchase Evaluation Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-2 Purchase Decisions Routine Do not involve much money and takes little time. Complex More expensive and time consuming to evaluate alternatives. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-3 Post-Purchase Evaluation Second thoughts often follow complex buying decisions. The unsettled state of mind experienced by an individual after the decision has been made is called cognitive dissonance. Did I make the right decision? Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-4 Influences on Consumer Behaviour Psychological Marketing Social Consumer Cultural Company (Image) Economic Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-5 Needs and Motivation Theory Need Absence of something useful Motive Condition prompting action to satisfy need Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-6 Hierarchy of Needs Self-Actualization Esteem Social Safety Physiological Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-7 Personality and Self-Concept Personality refers to a person’s distinguishing psychological characteristics. Real Self SelfImage LookingGlass Self Ideal Self The self has four components. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-8 Perception Individuals receive and interpret messages differently. Selective Exposure Notice things of interest Selective Perception Tuning out information in conflict with attitudes Selective Retention Remember what we want to Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-9 Attitudes and Beliefs Attitudes Beliefs Ones feelings about an idea or object. Strongly held convictions. Gaining acceptance is easier if the product idea “fits” the attitudes. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-10 Lifestyle “A person’s pattern of living as expressed in his or her activities, interests, opinions, and values.” Lifestyle information is revealed from research Economic circumstance influences lifestyle Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-11 Social Influences Reference Groups Family The desire to “fit in”affects behaviour and buying decisions. Changing roles of adults necessitates double targeting. Children affect family decisions. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-12 The Family Life Cycle A series of stages one passes through on life’s journey. Needs and behaviour change in each stage. Single Married; no children Married; with children Married; older children Divorced (Possible Transition) Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-13 Cultural Influences Learned behaviour influences one’s values. Culture Youth Sub-cultures Ethnic Sub-cultures Sub-cultures have distinctive behaviour. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-14 We Have Changed 1970s & 80s • Environmentally Unaware • Trusting • Indulgent • Optimistic • Image Driven • Conspicuous Consumption • Brand Loyal 1990s and 00s • Socially Responsible • Skeptical • Health and Wellness • Pessimistic • Value Driven • Strategic Consumption • Brand Disloyal Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-15 Technological Influence 1. A time-pressed society accepts technology as it offers convenience. 2. Banking technology has changed our methods of buying (ATM, Interac, Credit, Debit, etc.). 3. Canada is a leader in Internet acceptance and penetration. Contemporary marketing strategy is technology-driven. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-16 Regional Influences Atlantic Quebec Identify common and unique characteristics in regions. Ontario National marketing strategies don’t always work. Prairies Implement regional marketing strategies if profitable. B.C. Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-17 The Economic Influence Economic cycles affect behaviour: Recession Save Trade down Postpone Economize Make do Conservative Marketing Recovery/Prosperity Spend Trade-up Buy now Borrow Improve Aggressive Marketing Canadian Marketing in Action, 6th ed. Keith J. Tuckwell ©2004 Pearson Education Canada Inc. 4-18