Perspectives on Consumer Behavior 4 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

ConsumerConsumer Behavior The process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services

Appealing to an Active Lifestyle

Consumer Decision Making Postpurchase evaluation Purchase decision Alternative evaluation Information search Problem recognitionDecision-Making Learning Integration Attitude formation Perception Motivation Psychological Process

Sources of Problem Recognition Out of Stock Dissatisfaction New Needs or Wants New Needs or Wants Related Products, Purchases Market-Induced Recognition Market-Induced Recognition New Products New Products

Ads help Consumers Recognize Problems

What Prompts New Needs/Wants? Financial Changes Employment Status Lifestyle Knowledge Culture Personality

“I’m in the woods” *Click outside of the video screen to advance to the next slide

Maslow’s Hierarchy of Needs Self-actualization needs (self- development, realization) Physiological (hunger, thirst) Safety (security, protection) Social (sense of belonging, love) Esteem (self-esteem, recognition, status)

Huggies Appeals to Need for Love

Freudian Psychoanalytic Approach Strong inhibitions Strong inhibitions Symbolic meanings Symbolic meanings Surrogate behaviors Surrogate behaviors Complex and unclear motives Subconscious Mind Subconscious Mind

Probing the Minds of ConsumersMinds In-depth interviews Association tests Focus groups Projective techniques

Test Your Knowledge Critics of psychoanalytic theory believe any results from motivation research are unusable because: A) Results are unpredictable B) External environmental stimuli exert too much influence C) The research requires the use of very large samples D) The theory is too vague E) The research is too structured

The Psychoanalytic Approach Motivation Research Highlights importance of symbolic factors Reveals hidden feelings, drives and fears Reveals hidden feelings, drives and fears Shifts attention from “what” to “how” and “why” Pros Varying, subjective interpretations Qualitative results from very small samples Difficult or impossible to verify or validate Cons

SexySexy Ads Get Noticed

Go Daddy Knows Sex Sells *Click outside of the video screen to advance to the next slide

Information Search Market sources Personal sources Public sources Personal experience

Perception Marketers want to know –How consumers sense external information –How they select and use sources of information –How information is interpreted and given meaning

The Perception Process Receive Select Organize Interpret

Using Color to Focus Attention WE CAN SUM IT UP IN TWO WORDS: EXCEPTIONAL, EXTRAORDINARY, FANTASTIC, FRESH TASTE. ADMITTEDLY, WE’RE BAD AT SUMMATION. There just aren’t enough adjectives to describe the straight-from-the-orange taste of Tropicana Pure Premium.®

SensorySensory Advertising Perfume on sidewalks Scented cards Microchips Product Samples

Selecting Information

Interpreting Information

Selective Perception Selective retention Selective exposure Selective attention Selective comprehension

SubliminalSubliminal Perception

Evaluation of Alternatives All Available Brands Brand ABrand BBrand CBrand DBrand E Brand FBrand GBrand HBrand IBrand J Brand KBrand LBrand MBrand NBrand O Evoked Set of Brands Brand BBrand E Brand I Brand M Brand F

Evoked Set

Evaluative Criteria Objective Attributes Price Features Warranty Service Price Features Warranty Service Image Style Performance Image Style Performance Subjective Attributes Brand Evaluation

Marketer’s Evaluative View Enough power? Traction okay? Too pricy? The product is a bundle of attributes or characteristics

Consumer’s Evaluative View Product Is Seen As A Set of Outcomes Functional How does it cut tall, thick grass? How close can I get to shrubs? Will the neighbors be impressed with my lawn? Will it still be fun later this summer? Will I have more time for golf? Will it pull that trailer I saw at the store? Psychological

Test Your Knowledge _____ is considered a learned response to an object, or an individual’s overall feelings toward, or evaluation of, an object. A) A motive B) A need C) Perception D) An attitude E) A decision rule

Multiattribute Attitude Model

Changing Attitudes Change perceptions or beliefs about a competing brand Add a new attribute to the attitude formation mix Change perceptions of the value of an attribute Change beliefs about an important attribute

Adding Attributes Changes Attitudes

Purchase Decision and Evaluation Integration processes Pre- evaluation Heuristics Affect referral decision rule Decision Purchase intention Brand loyalty Post evaluation Satisfaction Cognitive dissonance Dis- satisfaction

Behavioral Learning Classical Conditioning

Operant (Instrumental) Conditioning Increase or decrease in probability of repeat behavior (purchase) Positive or negative consequences occur (reward or punishment) Positive or negative consequences occur (reward or punishment) Behavior (consumer uses product or service) Behavior (consumer uses product or service)

Energizer Understands Operant Conditioning

Test Your Knowledge A print ad for Chevy Ventura vans contains ten times more copy than other ads in a recent issue of Better Homes & Gardens magazine. Which of the following theories states that this a way to shape consumer behavior? A) Psychoanalytical theory B) Cognitive theory C) Reinforcement theory D) Affective modeling E) Operant conditioning

Cognitive Learning Process Purposive behavior Insight Goal achievement Goal

ExternaExternal Influences on Consumer Behavior Culture Subculture Social Class Reference Group Situational determinants

External Influences on Consumer Behavior Subculture ads appeal to shared beliefs, values, and norms

Alternative Approaches Complimentary Approaches Participant observation Individual interviews Ethnographies New Methodologies Cultural influences Social influences Environmental influences New Insights