Consumer Behavior

Motivations Ideas, activities and/or people who have the power to “get us off the couch” and into a consumer purchase decision-making process Tools to understand consumer motivations Maslow’s Hierarchy of Needs Personality traits, attitudes & beliefs Cultural influences (family, subcultures) VALS – take the quiz!

Maslow’s Hierarchy of Needs As needs at lower levels are satisfied, needs at higher levels ‘take over’ and become the motivations for purchase decisions.

Nike sells self-actualization (not shoes) Nike's "Just Do It" campaign challenges people to exceed their physical limitations. Dove's "Campaign for Real Beauty" encourages women to shake off the self-doubt and anxiety imposed by traditional concepts of beauty. This ad for Nike appeals to Maslow’s fifth and highest category, self-actualization. The ad implies that by using Nike equipment consumers will be able to improve performance and achieve their goals.

Dove sells self actualization (not toiletteries)

Personality Traits Personality describes a person’s disposition, helps show why people are different, and encompasses a person’s unique traits. The “Big Five” personality traits that psychologists discuss frequently include openness or how open you are to new experiences, conscientiousness or how diligent you are, extraversion or how outgoing or shy you are, agreeableness or how easy you are to get along with, and neuroticism or how prone you are to negative mental states.

Personality Traits Many traits are learned; some are innate. Traits are bundled. You find trait combinations in most people. Achievement (test one’s skills) Independence (be autonomous) Exhibition (show off) Recognition (in high regard) Dominance (power) Affiliation (association with opinion leaders)

More Personality Traits Nuturance (protect and provide care) Succorance (be comforted) Sexuality (be sexually attractive) Stimulation (engage the mind and body) Diversion (relax and have fun) Novelty (alter routine) Understanding (teach and learn) Consistency (order and cleanliness) Security (free from fear)

VALS “VALS™ segments U.S. adults into eight distinct types—or mindsets—using a specific set of psychological traits and key demographics that drive consumer behavior.” Eight VALS types Innovators Thinkers Believers Achievers Experiencers Makers Survivors

Family Influences Family Life Cycle Consumers purchase different products and services at each stage of their lives. Young single Young married no kids Young married with kids Middle-aged with kids Middle-aged without dependent children (“Empty Nesters”) Older married Older unmarried In some families, consumer decision-making involves many people across several generations.

Culture and Subculture Different ethnic groups tend to exhibit similar purchasing habits. Why? They value the same things. Those values motivate their purchase decisions. They hold the same beliefs. Those beliefs influence their preferences. If they live near each other, their purchase behaviors are likely to be even more similar! (Claritas)

The Purchase Decision Process

Let’s think and write Why do people in different cultures buy different products? What is your opinion of companies like Google that gather information about your browsing patterns? What advantages and drawbacks does this pose for consumers? If you were a business owner, what kinds of information would you gather on your customers and how would you use it? What purchasing decisions have you been able to influence in your family and why? Is marketing to children a good idea? Name some products that have led to a negative postpurchase experience on your part. Why is understanding consumer behavior so important for companies? Think of examples where you do not think companies understood their consumers

In pairs Using Maslow’s hierarchy of needs, identify a list of popular advertising slogans that appeal to each of the five levels. Identify how McDonald’s targets both users (primarily children) and buyers (parents, grandparents, etc.). Provide specific examples of strategies used by the fast-food marketer to target both groups. Make it a point to incorporate Happy Meals and Mighty Kids Meals into your discussion.