Kuliah I Consumer Behavior; An Overview Michael R. Solomon 8th edition

Consumer behavior is a process Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.  Discuss each highlighted word

Stages in the consumption process Consumers’ Perspective Marketer’s Perspective How does a consumer decide he/she needs product? What are the best sources of information to learn alternative choices? PREPURCHASE ISSUES Is acquiring a product a stressful or pleasant experience? What does the purchase say about the consumer? PURCHASE ISSUES Does the product provide pleasure or perform its intended function? How is the product eventually disposed of, and what are the environmental consequences of this act? POSTPURCHASE ISSUES PREPURCHASE ISSUES How are consumer attitudes toward products formed/changed? What cues do consumers use to infer which products are superior to others? PURCHASE ISSUES How do situational factors, such as time pressure or store displays, affect the consumer’s purchase decision? POSTPURCHASE ISSUES What determines whether a consumer will be satisfied with a product and whether he/she will buy it again? Does this person tell others about his/her experiences with the product and influence their purchase decisions?

Segmenting Consumers Demographic Dimensions Age Gender Family Structure Social Class and Income Race and Ethnicity Geography Beyond Demographics : Lifestyles

Market Segmentation Categories Geographic Segmentation Region : Provinces City size : Kota ibukota, kotamadya, desa Density : Urban, Sub-urban, Rural Climate : hot, cool, mountain, coastland Demographic Segmentation Age Sex/gender Income/Expenditure Education Occupation + cohort segmentation Ethnic group Religion Family lifecycle

AN OVERVIEW OF THE FAMILY LIFE CYCLE AND BUYING BEHAVIOR STAGE IN FAMILY LIFE CYCLE BUYING OF BEHAVIORAL PATTERN 1. Bachelor stage: young, single, people not living at home Few financial burdens. Fashion opinion leader. Recreation oriented. Buy: basic kitchen equipment, basic furniture, cars, equipment for the mating game, vacations. 2. Newly Married couples: young, no children Better off financially than the will be in near future. Highest purchase rate and highest ever-age purchase of durables. Buy: cars, refrigerators, stoves, sensible and durable furniture, vacations. 3. Full nest I: youngest child under six Home purchasing at peak. Liquid assets low. Dissatisfied with financial position and amount of money saved. Interested in new products. Like advertised products. Buy: washers, dryers, TV, baby food, chest rubs and cough medicines, vitamins, dolls, wagons, sled, skates. 4. Full nest II: youngest child six or over. Financial position better. Some wives work. Less influenced by advertising. Buy larger-size packages, multiple-unit deals. Buy: many foods, cleaning materials, bicycle, music lessons, pianos. 5. Full nest III: older married couples with dependent children Financial position still better. More wives work. Some children get jobs. Hard to influence with advertising. High average purchase of durables. Buy: new, more tasteful furniture, auto travel, unnecessary appliances, boats, dental services magazines. 6. Empty nest I: older married couples, no children living with them, head in labor force. Home ownership at peak. Most satisfied with financial position and money saved. Interested in travel, recreation, self-education. Make gifts and contributions. Not interested in new product. Buy: vacations, luxuries, home improvements. 7. Empty nest II: older married. No children living at home, head retired. Drastic cut in income. Keep home. Buy: medical appliances, medical-care products that aid health, sleep, and digestion. 8. Solitary survivor, in labor force Income still good but likely to sell home 9. Solitary survivor, retired Same medical and product needs as other retired group; drastic cut in income. Special need for attention, affection, and security. s

Psychographic Segmentation Lifestyle segmentation : Lifestyle dimensions A-I-O + D Activities Interests Opinions Demographics Behavior Segmentation Benefit segmentation Convenience Social acceptance Economy Quality Use-related Usage level/rate/volume Awareness status Brand loyalty Product user Location Person Situation

The Meaning of Consumption People buy products for What they do What they mean Relationships between consumers and product: Self concept attachment : the product helps to establish user’s identity Nostalgic attachment: the product links with past self Interdependence : the product is a part of the user’s daily routine Love : the product elicits emotional bonds of warmth , passion or other strong emotions.

The Global Consumer Growing urban centers Global consumer culture : unite people all over the world by common devotion to brand names, movie stars, celebrities, leisure activities, multinational companies. Virtual consumption and the power of crowds/communities

Do Marketers Manipulate Consumers? Do marketers create needs? -Needs and wants Are advertising and marketing necessary? Do marketers create miracles?

Two Issues of Consumer Behavior BRIGHT ISSUES Consumerism Consumer Research Social Marketing Green Marketing DARK ISSUES Consumer Terrorism Addictive Consumption Compulsive Consumption Consumed Consumers Prostitutes Organ, blood, hair donors Babies for sale Illegal Activities Consumer theft and fraud Anticonsumption : deliberately deface or mutilate products.

Interdisciplinary Influences on the Study of Consumer Behavior Disciplinary Focus Product role Experimental Psychology Clinical Psychology Microeconomics Social Psychology Sociology Macroeconomics Semiotics Demography History Cultural Anthropology Perception, learning, and memory process Psychological adjustment Allocation of individual and family resources Behavior of individuals as members of social groups Social institutions and group relationships Consumers’ relations with the marketplace Verbal and visual communication of meaning Measurable characteristics of a population Societal changes over time Society’s beliefs and practices

Reading Assignment : Chapter 2 Review Questions : no. 4, 5, 8, 13 Discuss : no. 1, 3 Apply : 7, 8