Copyright © 2007 Pearson Education Canada 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? Copyright © 2007 Pearson Education Canada

Purchase Decision Process Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-purchase Evaluation Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Purchase Decisions Routine Do not involve much time and money. More expensive and time consuming to evaluate alternatives. Limited Capital investment; much time and effort to evaluate options. Complex Copyright © 2007 Pearson Education Canada

Post-Purchase Evaluation Second thoughts often follow a complex buying decision. The unsettled state of mind experienced by an individual after a decision has been made is called cognitive dissonance. Did I make the right decision? Copyright © 2007 Pearson Education Canada

Influences on Consumer Behaviour Psychological Marketing Personal Consumer Social Company (Image) Cultural Copyright © 2007 Pearson Education Canada

Needs and Motivation Theory Absence of something useful Condition prompting action to satisfy a need Motive Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Hierarchy of Needs Self-Actualization Esteem Social Safety Physiological Copyright © 2007 Pearson Education Canada

Personality and Self-Concept Personality refers to a person’s distinguishing psychological characteristics. Real Self Self- Image Looking- Glass Self Ideal Self The self has four components. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Attitudes “An individual’s feelings, favourable or unfavourable, toward an idea or object.” Gaining acceptance is easier if the product idea “fits” with the attitudes of the target audience. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Perception Individuals receive and interpret messages differently. Consumers are selective about the messages they receive. Selective Exposure Selective Perception Selective Retention Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Lifestyle “A person’s pattern of living as expressed in his or her activities, interests, opinions, and values.” Joiner Activists Passive Malcontents Disinterested Outsiders Tie-Dyed Greys Protective Providers Up and comers Les “Petite Vie” Mavericks Contented Traditionalists See Figure 4.7 in the text for details of lifestyle segments. Copyright © 2007 Pearson Education Canada

Age and Life Cycle Tastes and preferences change as we age and pass through life cycle stages. Traditional Transition Non-traditional family formations are now more common and they pose new challenges for marketers. Single Married; no children Married: with children Married; older children Married; empty nest Copyright © 2007 Pearson Education Canada

Technological Influences Canadians are a “connected” society. Technology provides convenience to time-pressed individuals. Electronic banking is growing rapidly. E-commerce becoming more popular. Copyright © 2007 Pearson Education Canada

Conservative Marketing Economic Influences Recession Recovery/Prosperity Save Trade Down Postpone Economize Make do Spend Trade up Buy now Borrow Improve Conservative Marketing Aggressive Marketing Copyright © 2007 Pearson Education Canada

Reference Group Influence “A group of people with common interest that influences its members’ attitudes and behaviour. Reference groups (peers) are quite a strong influence among young people. RBK – Hip Hop – Cool! Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Family Influence Changing roles of adults necessitate double targeting and unique marketing strategies. Children influence family decisions to the tune of $20 billion a year in Canada. Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Cultural Influences Learned behaviour influences one’s values. Culture Youth Sub-Cultures Ethnic Sub-Cultures Sub-cultures have distinctive behaviour Copyright © 2007 Pearson Education Canada

Changing Values 70s and 80s 90s and 00s Environmentally Unaware Trusting Indulgent Optimistic Image Driven Conspicuous Consumption Brand Loyal Traditional Marriage Socially Responsible Skeptical Health and Wellness Pessimistic Value Driven Strategic Consumption Brand Disloyal Non-traditional Marriage Copyright © 2007 Pearson Education Canada

Copyright © 2007 Pearson Education Canada Regional Influences Location and culture have an influence on attitudes and values. Canada is a diverse country. Identify common and unique characteristics in regions. National strategies don’t always work. Implement regional strategies if profitable. Atlantic Quebec Ontario Prairies B.C. Copyright © 2007 Pearson Education Canada