Consumer Behavior & Marketing Fundamentals Jamie Bute Caroline Mutonyi Lisa Schoborg Morgan Wortham December 1, 2014

Agenda  Consumer purchase decision making process  Consumer behavior  Psychological Influences  Personal Influences  Social Influences  Cultural Influences

Consumer Purchase Decision Making Process

Consumer behavior  “The actions a person takes in purchasing and using products and services”

Psychological Influences  Helps marketers understand why consumers purchase or do not purchase  Motivation  Perception  Learning  Beliefs & Attitudes

Motivation  “The energizing force that stimulates behavior to satisfy a need”  Marketers need to stimulate this need to move to purchase

Perception  “The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world” 

Learning  Behavioral learning  Developing automatic responses to situations built through repeated experience  Stimulus generalization: response by one stimulus is generalized to another  Ex. Using packaging similar to a popular brand  Stimulus discrimination: ability to perceive differences in stimuli  Cognitive learning  Learn by thinking and reasoning  Brand loyalty  A favorable attitude toward a brand in which the consumer consistently buys the same brand over others

Personal Influences - Personality  Personality is the inner psychological characteristics that determines and reflects how a person responds to his or her environment.  The Nature of Personality  Personality varies from person to person  Personality is consistent and enduring  Personality can change with time

Raymond Cattell  Reduced the number of main personality traits from a list of over 4,000 down to 16 by means of a statistical technique called factor analysis

Hans Eysenck  Developed a model of personality based on preferences for different forms of factor analysis. He came upon with 3 universal traits

Theories of Personality  Introversion/Extraversion  Introversion involves directing attention on inner experiences, while extraversion relates to focusing outward on other people and the environment.  Neuroticism/Emotional Stability  This is related to moodiness versus even temperedness. Neuroticism refers to an individual’s tendency to become upset or emotional, while stability refers to the tendency to remain emotionally constant.  Psychoticism  Individuals who have difficulty dealing with reality and may be antisocial, hostile, non-empathetic, and manipulative.

Personality Determinants  Heredity  Environment  Culture  Family and social background

Purchase Based On Age and Life Cycle

Purchase Based On Occupation

Purchase Based On Lifestyle

Purchase Based On Economic Situation Q. What factors affect the economy?

Social Influences  Reference Groups  Norms  Rules  Status  Conformity  Membership Groups  Formal  Informal  Non-membership groups  Aspirational  Avoidance

Social Factors  Reference Groups  The Initiator  The Influencer  The Decision-Maker  The Buyer

Social Factors  Social roles and status  Family  MOST INFLUENTIAL  Family Life Cycle

Beliefs & Attitudes  Attitudes are shaped by our values and beliefs, which are learned  Create favorable or unfavorable ideas about a product or brand  Attitudes and Attitude Change  They are learned  They are predispositions  They are consistent  They are the link between perception and behavior  They are a “hypothetical construct”

Marketing Approaches to Attitude Change  Change beliefs about brand attributes  Healthy  Change perceived importance of attributes  Made from sustainable material  Add new attributes  Different kinds/styles

Attitudes  Source credibility  Source physical attractiveness  Source likeability  Message factors  Receiver emotions

Attitudes  Receiver's Emotions  Emotional Security  Assurance of Worth  Ego Gratification  Creative Outlets  Love Objects  Sense of Power - super-bowl-commercials super-bowl-commercials  Sense of Roots - white-and-blue-summer-song-by-miike-snow white-and-blue-summer-song-by-miike-snow  Immortality

Cultural Influences  Culture is defined as the learned patterns of traditions, beliefs, values, norms, meanings, and symbols that serve to regulate the behavior of members of a particular society.

Culture and Consumer Behavior  Culture is the ‘lens’ through which people view products and try to make sense of their own and other people’s consumer behavior.  The relationship between consumer behavior and culture is an exchange.

Subculture  Subculture  African American  Hispanic American  Asian American  Ethnic & Racial Subcultures  High-context Culture  De-ethnicization

What Kind of Consumer Does This Ad Target?

Kluckholn Theory on Culture  Theory of Culture  Value Orientations  Dominant Value System

Kluckholm Theory on Culture  Relation to Environment  Time  Nature of People  Activity  Responsibility  Space

Any Questions?