Consumer Buying Behavior The Psychology

Six Stages of consumer buying behavior Problem Recognition(Awareness of Need) Difference between the desired state and the actual condition. Deficit in assortment of products. Hunger > Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information Did not know you were deficient? I.E., See a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. Information search Internal search (memory) External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is Chinese food Indian food Burger king Klondike Kates etc

Six Stages of consumer buying behavior Evaluation of Alternatives Need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. Purchase decision Choose buying alternative, includes product, package, store, method of purchase etc. Purchase May differ from decision due to time or availability of product Post-Purchase Evaluation: Satisfaction or Dissatisfaction.  Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, may think that really you wanted a Chinese meal instead.

Psychological influence: needs and motives Suggests a state of deprivation or the absence of something useful Motives The conditions that prompt the action necessary to satisfy a need Often the action stimulated by marketing activities The Hierarchy of Needs Physiological Needs: Food, water, air (Basic Survival Needs) Safety Needs: Security, Protection, Comfort Social Needs: A sense of belonging: Friends and family Esteem Needs : Recognition, achievement, status Self Actualization needs: Fulfillment and realization of full potential

The hierarchy of needs explained Two principals at work in this theory: When lower level needs are satisfied, a person moves up to higher needs Satisfied needs do not motivate. Instead, needs yet to be satisfied influence behavior Understanding a consumers needs is essential for a marketing organization Example One: In recent years, the need for “whiter teeth” has grown exponentially A number of industries such as the gum industry have invaded a market traditionally held by tooth care products This need for social acceptance has fueled this product innovation Example Two: People with lots of money can afford life's necessities and safeties so they move on to “Esteem needs” In order to do so the buy expensive things such as Jaguars and Porches

Self Concept theory Marketing companies focus on the personalities of its consumers and try to exploit them for profit In order to get a better understanding it is important they understand the Self Concept Theory The Self Concept Theory has four components Real Self: You as you really are. Often distorted by influence of “other selves” Self Image: How you see yourself. Not the real you but the role you play Looking Glass Self: How you think others see you. Often different from how they see you Ideal Self: How you would like to be. What you aspire to be

Exploitation of the Self Concept theory Marketers use this theory to their advantage as they realize most important decisions are based off “Looking Glass” and “Ideal Self” perceptions Example: Mens Grooming Men are continually feeling more insecure about their aging Over the last decade, manicures and skin treatments amongst aging males has grown exponentially Magazines such as Men’s Health are being heavily advertised in by cosmetic groups that are now beginning to specialize in men’s health products Companies and marketers feed on insecurities

ATTITUDES AND PERCEPTION Attitudes: An individuals feelings (favorable or unfavorable) to an idea or object Businesses and marketers present their product or service to consumers in a way that agrees with prevailing attitudes Marketers have tried, but found it is too much money to change attitudes Example One: Right Guard Right Guard Sport sold considerably well with adults but was not selling often to teenagers By simply adding the word “extreme,” Right Guard Extreme Sport sold increasingly well with teenagers Example Two: Molson Ultra With a number of people switching to a more “healthy lifestyle” Molson created a low carb beer called “Molson Ultra”

Attitudes and perception Perception: How and individual receives and interprets messages While marketers can often change how a consumer feels, it is extremely hard to change their perception of something Marketers must observe the “Three Levels of Selectivity” Selective Exposure: Our eyes and minds notice only information of our interest Selective Perception: We screen out messages and information that are in conflict with previously learned attitudes and beliefs Selective Retention: We remember only what we want to remember Example: Vehicles People may often have a specific brand of truck that they are loyal too, yet they have never even driven a truck