THE CONSUMER AUDIENCE

Nuggets Why is consumer behaviour important to advertisers? What cultural, social, psychological and behavioural influences affect consumer responses to advertising? How does the consumer decision process work? What is the difference between segmenting and targeting?

How does consumer behaviour work? Consumer behaviour describes how individuals or groups select, purchase, use or dispose of products as well as the needs and wants that motivate these behaviours. Consumers are people who buy or use products or adopt ideas that satisfy their needs and wants Customers are specific types of consumers or patrons Prospects are potential customers

Influences on consumer decisions

Influences on consumer decisions The major categorization of influences are Cultural Social Psychological Behavioral influences Trends in consumer buying behavior

Cultural influences Norms and Values – norms are proper behaviour; while values are where norms are drawn from. The 9 core values are 1. sense of belonging, 2. excitement, 3. fun and enjoyment, 4. warm relationships, 5. self-fulfillment, 6. respect from others, 7. a sense of accomplishments, 8. security, 9. self respect Subcultures – eg ethnic background, age etc Corporate culture – eg AUN, dress code

Social influences Social class Reference groups Family Demographics – age [traditionalist, baby boomer, Gen X, Gen Y, Millennium Generation], gender, family status, race/ethnicity, education, occupation, income geography, sexual orientation

Psychological Influences Perception and state of mind Needs [satisfaction and dissonance] and wants – see Maslow Hierarchy of needs in next slide Motivations Attitudes Personality Psychographics – opinions, activities, interests Lifestyles

Maslow’s hierarchy of needs

Lifestyle components – the Venn middle is the lifestyle Person Product Setting

Behavioural influences Remember the early models like T/F/D, AIDA, we could add Diffusion of Innovation by Everett Rogers We have two classes – usage behaviour and experiences We could talk about innovators and adopters

Diffusion of Innovation Model

Information approach to brand decisions for low and high involvement

Market Target

Thank you and question What were the decision making process involved in your choice of AUN as a university? Build a profile base of AUN student with not less than 20 indicators What social and psychographic factors will influence the choice of a new SUV and Smart phones for AUN students?