Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Chapter 9 Consumer Behavior

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-2 Customer vs. Consumer Behavior Customer behavior Customer behavior Consumer behavior Consumer behavior

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-3 Interpersonal Determinants of Consumer Behavior Cultural Influences Cultural Influences Culture ethnocentrism

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-4 Core Values in the U.S. Culture Core Values in the U.S. Culture While some cultural values change over time, basic core values do not

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-5 Milton Bradley Parker Brothers Emphasizing the Importance of Family and Home Life

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-6 Listerine This ad from the early 1900s demonstrates how culture changes over time.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-7 International Perspective on Cultural Influences International Perspective on Cultural Influences Cultural differences are particularly important for international marketers

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-8 Benetton This Firm Has Been Successful Extending Strategies Across Cultural and National Boundaries

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-9 Subcultures: Subcultures: subgroup of culture with its own, distinct modes of behavior Subcultures can differ by: Ethnicity Nationality Age Religion Geographic distribution

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved % 12.10% 12.50% 1.80% 0.70% 3.10% Hispanic American African Americans Asian American Native American Two or More Races Other Note: Percentages have been rounded. SOURCE: Data from Roger Simon and Angie Cannon, “An Amazing Journey,” U.S. News & World Report, August , p. 12. Ethnic and Racial Minorities Ethnic and Racial Minorities

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Subcultures: African- American Consumers Subcultures: African- American Consumers African-American buying power is rising rapidly compared to U.S. consumers in general

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Subcultures: Hispanic- American Consumers Subcultures: Hispanic- American Consumers The 35 million Hispanics in the U.S are not homogenous The Hispanic market is large and fast-growing Hispanics tend to be younger than the general U.S. population Hispanics are geographically concentrated

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Univision This web site is designed to meet the needs of the growing Hispanic population who prefer Spanish- Language Programs.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Subcultures: Asian- American Consumers Subcultures: Asian- American Consumers Marketing to Asian- Americans presents many of the same challenges as marketing to Hispanics

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Interpersonal Determinants of Consumer Behavior Social Influences Social Influences Group membership influences an individual’s purchase decisions and behavior in both overt and subtle ways. Norms Status Roles

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Jordache Advertisement Illustrating the Influence of Friendship Groups on Purchase Decisions

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved The Asch Phenomenon: The Asch Phenomenon: the effect of a reference group on individual decision-making Reference groups Reference groups  The purchased product must be one that others can see and identify.  The purchased item must be conspicuous

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Social classes: Social classes: groups whose rankings are determined by occupation, income, education, family background, and residence location W. Lloyd Warner identified six classes: 1.Upper-upper 2.Lower-upper 3.Upper-middle 4.Lower-middle 5.Working class 6.Lower class

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Class Discussion Give an example of how you have seen social class operating in the marketplace.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Opinion leaders: Opinion leaders: individuals likely to purchase new products before others and then share the resulting experiences and opinions by word-of-mouth Alternative Channels for Communications Flow

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Family Influences Family Influences Autonomic Husband-dominant Wife-dominant Syncratic Interpersonal Determinants of Consumer Behavior

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Children and teenagers in family purchases Children and teenagers in family purchases Growing numbers are assuming responsibility for family shopping They also influence what parents buy They represent over 50 million consumers in their own right

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Personal Determinants of Consumer Behavior

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Why do you see so many people wearing football clothing? What drives that kind of consumer behavior?

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Needs and Motives Needs and Motives Need Motives

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Lindblad Special Expeditions Service Aimed at Satisfying a Self- actualization Need

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Perception: Perception: the meaning that a person attributes to incoming stimuli gathered through the five senses

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Perceptual screens: Perceptual screens: the filtering processes through which all inputs must pass Sony Breaking Through Perceptual Screens

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Subliminal Perception: Subliminal Perception: subconscious receipt of information Almost 50 years ago, a New Jersey movie theater tried to boost concession sales by flashing the words Eat Popcorn and Drink Coca-Cola. Research has shown that subliminal messages cannot force receivers to purchase goods that they would not consciously want.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Attitudes Attitudes Attitudes: enduring evaluations, emotional feelings, or action tendencies toward some object or data Attitude components:  cognitive  affective  behavioral

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved This advertisement deals with feelings or emotional reactions many of us have felt at one time or another.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Changing Consumer Attitudes Changing Consumer Attitudes Marketers have two choices to lead prospective buyers to adopt a favorable attitude toward their product:

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Modifying the Components of Attitude Modifying the Components of Attitude Marketers can work to modify attitudes by providing evidence of product benefits and by correcting misconceptions

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Learning: Learning: an immediate or expected change in behavior as a result of experience Drive Cue Response Reinforcement

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Citibank Reinforcing a buying behavior

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Applying Learning Theory to Marketing Decisions Applying Learning Theory to Marketing Decisions Prego Using a discount coupon to shape behavior

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Self-Concept: Self-Concept: person’s multifaceted picture of himself or herself, composed of the real self, self-image, looking-glass self, and ideal self

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved The Consumer Decision Process Consumers complete a step-by- step process when making purchase decisions High-involvement Low-involvement Search Alternative Evaluation Purchase Decision Purchase Act Post- purchase Evaluation Problem Opportunity Recognition

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved This advertisement shows how the customer is helped through the buying decision making process…a little unusual but effective none the less.

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Problem or Opportunity Recognition Problem or Opportunity Recognition Consumer becomes aware of a significant discrepancy between the existing situation and the desired situation Motivates the individual to achieve the desired state of affairs

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Evoked Set Model All Brands All Brands Unknown Brands Unknown Brands Known Brands Known Brands Overlooked Brands Unacceptable Brands Acceptable Brands Rejected Brands Rejected Brands Purchased Brand Evoked Set Inert Set

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Evaluation of Alternatives Evaluation of Alternatives Consumer evaluates the evoked set Outcome of the evaluation stage is the choice of a brand or product Evaluative criteria: features that a consumer considers in choosing a model alternatives

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Progresso An Attempt to Influence Evaluative Criteria

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Purchase Decision Purchase Decision Consumer narrows the alternatives down to one Next, the purchase location is decided Purchase Act Purchase Act Consumers tend to choose outlets by considering such characteristics as location, price, assortment, personnel, store image, physical design, and services Some choose the convenience of in-home shopping

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Post-purchase Evaluation Post-purchase Evaluation After the purchase, consumers are either satisfied or experience cognitive dissonance (CD) Michelin relieving CD

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Classifying Consumer Problem-Solving Processes Classifying Consumer Problem-Solving Processes Routinized Response Behavior Routinized Response Behavior Purchases made routinely by choosing a preferred brand or one of a limited group of acceptable brands

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Limited Problem Solving Limited Problem Solving Situation where the consumer has previously set evaluative criteria for a particular kind of purchase but then encounters a new, unknown brand or item

Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved Extended Problem Solving Extended Problem Solving Results when brands are difficult to categorize or evaluate High-involvement purchase decisions usually require extended problem solving