CHAPTER FIVE Consumer Behavior

Name: CHAPTER FIVE Consumer Behavior
Uploaded: 2017-07-27T15:22:49+00:00
Duration: PTM24S18
Channel: Steven Walker
Description: CHAPTER FIVE Consumer Behavior

CHAPTER FIVE Consumer Behavior
Lecturer: Insert your name here Ch 5 -1 Copyright © 2011 Pearson Education 1

Chapter Learning Outcomes
Topic Outline 5.1 Model of Consumer Behavior 5.2 Characteristics Affecting Consumer Behavior 5.3 Types of Buying Decision Behavior 5.4 The Buyer Decision Process 5.5 The Buyer Decision Process for New Products Ch 5 -2 Copyright © 2011 Pearson Education

Consumer Behavior Consumer Buyer Behavior and Consumer Market Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption. Consumer market refers to all of the personal consumption of final consumers. Note to Instructor Discussion Question What have you recently purchased that cost over $100? Write down all the reasons you purchased this particular item. Because students are all consumers—it is interesting to start the class with a discussion of products they have recently purchased. When you ask them why they purchased a particular item or product, you can bring them through many topics in this chapter including the characteristics that affect consumer behavior (cultural, social, personal, and psychological). You can also try to determine the process they went through including how and where they searched for information and how they evaluated their alternatives. Finally, ask them how they feel about their purchase (postpurchase behavior). This discussion will lead nicely to the next slide which is the Model of Buyer Behavior. Ch 5 -3 Copyright © 2011 Pearson Education

Model of Consumer Behavior

Characteristics Affecting Consumer Behavior
Copyright © 2011 Pearson Education

Cultural Factors Culture is the set of basic values, perceptions, wants, and behavior learned from family and other important institutions. Subculture are groups of people within a culture with shared value systems based on common life experiences and situations. Note to Instructor Real Marketing 5.1 discusses McDonald’s challenges in the Arab world. McDonald’s is currently operating in 14 Arab countries. A key element in McDonald’s strategy is to adapt its traditional American approach to local culture, food habits, and lifestyles. For example, in some countries of the Arab world, McDonald’s outlets are divided along male and female lines in accordance with local custom. As well as adapting the restaurants themselves, McDonald’s tailors its menu to meet the food culture or preferences of different countries. The McDonald’s menu varies widely in different parts of the world. In the Arab world, for example, the company launched ‘McArabia,’ a product that McDonald’s intended to match regional tastes and preferences. Ch 5 -6 Copyright © 2011 Pearson Education

Characteristics Affecting Consumer Behavior Cultural Factors Prof. Hofstede defined five dimensions to analyze and compare cultures across the world. Using research conducted in Egypt, Iraq, Kuwait, Lebanon, Libya, Saudi Arabia, and the UAE, he developed a measure of the Arab world. The 5 dimensions are: Power Distance Index Uncertainty Avoidance Index Individualism Masculinity Long-Term Orientation. Note to Instructor This weblink directs you to the homepage of professor Geert Hofstede’s Cultural Dimensions in the Arab World. Hofstede identified a high Power Distance Index (PDI) ranking in the Arab world. This indicates high levels of inequality of power and wealth. People expect and accept that leaders will separate themselves from the majority. Hofstede also identified a high Uncertainty Avoidance Index (UAI). This indicates that people are uncomfortable with uncertainty. Strict rules, laws, policies, and regulations are put in place to minimize or reduce this level of uncertainty. Large PDI and UAI scores, 80 and 68 respectively, suggest that people in Arab world societies are likely to follow a hierarchical system in which there is little social mobility. According to Hofstede, the combination of these two dimensions produces a situation in which leaders have ultimate power and authority, and allows them to set laws and regulations that reinforce their leadership and control. The Masculinity Index (MAS) is the Arab world’s third highest dimension, though at 52 it is only slightly higher than the 50.2 world average. This score suggests that women in the Arab world have limited rights. However, it is not clear whether this is due to cultural or religious factors. The lowest Hofstede dimension for the Arab world is for Individualism (IDV). With a score of 38, it is significantly below the world average of 64. This shows the existence of a Collectivist society rather than an Individualist culture. In a Collectivist culture, there is a close long-term commitment to the member ’group,’ in other words to the family, extended family, or extended relationships. In this culture, loyalty is vital and overrides most other societal rules. Ch 5 -7 Copyright © 2011 Pearson Education

Cultural Factors Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Measured by a combination of occupation, income, education, wealth, and other variables. Ch 5 -8 Copyright © 2011 Pearson Education

An Arab Example : Social Classes in the UAE Nationals Al-Muwateneen Foreign immigrants Al-Wafedeen Ruling Sheikhly Families The Merchant Class New Middle Class Low Income Groups Top Professionals and International Contractors Middle Range Professionals Low-paid, Semi-skilled and Unskilled workers Ch 5 -9 Copyright © 2011 Pearson Education

Social Factors Groups and Social Networks Membership Groups Groups with direct influence and to which a person belongs Aspirational Groups Groups an individual wishes to belong to Reference Groups Groups that form a comparison or reference in forming attitudes or behavior Note to Instructor Discussion Question What groups are you a member of and what are your aspirational groups. How does this influence you as a consumers? Ch 5 -10 Copyright © 2011 Pearson Education

Social Factors Word-of-mouth influence and buzz marketing Opinion leaders are people within a reference group who exert social influence on others Also called influentials or leading adopters Marketers identify them to use as brand ambassadors Note to Instructor It is a great idea to click through to the BuzzParadise Web site. It is an excellent example of Buzz marketing. Ask students if they tend to have a “go to” person when they want to purchase. Would they consider themselves opinion leaders? A great group to ask about is middle school aged kids. Who are the opinion leaders here? What qualities do they possess? Ch 5 -11 Copyright © 2011 Pearson Education

Social Factors Online Social Networks are online communities where people socialize or exchange information and opinions: Blogs Social networking sites (facebook) Virtual worlds (second life) Note to Instructor: Discussion Question How can marketers use these networks? This slide should provide a lively discussion for students because they all are users of social networks. Ask students for examples they have seen or experienced. Then be sure to ask if they think the marketing efforts were effective for the marketer and why? P&G for example set up Ch 5 -12 Copyright © 2011 Pearson Education

Social Factors Family is the most important consumer-buying organization in society. Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status. Note to Instructor Discussion Question What brands do you purchase because it is what your parents used? Why do you think this occurs? Ch 5 -13 Copyright © 2011 Pearson Education

Personal Factors Age and life-cycle stage: People change the goods and services they buy over their lifetimes Tastes in food, clothes, furniture, and recreation are often age related Buying is also shaped by the stage of the family life-cycle—the stages through which families might pass as they mature over time Ch 5 -14 Copyright © 2011 Pearson Education

Personal Factors Occupation affects the goods and services bought by consumers. Economic situation includes trends in: Personal income Savings Interest rates Ch 5 -15 Copyright © 2011 Pearson Education

Personal Factors Lifestyle is a person’s pattern of living as expressed in his or her psychographics. Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment. Note to Instructor Lifestyle: BlackBerry has achieved initial success by attracting consumers with an interest in a cool lifestyle and social networking. Discussion Question What categories of products seem to be targeted to consumer’s lifestyles? They will realize many products in addition to cars including food, cosmetics, shampoo also appeal to a consumer’s lifestyles. Ch 5 -16 Copyright © 2011 Pearson Education

Personal Factors Personality and self-concept Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment: Self-confidence, Sociability, Autonomy, Defensiveness, Adaptability, Aggressiveness. Self-concept or self-image premise is that people’s possessions contribute to and reflect their identities—that is, ‘we are what we have’. Ch 5 -17 Copyright © 2011 Pearson Education

Brand Personalities Sincerity: Down-to-earth, honest, wholesome, and cheerful Excitement: Daring, spirited, imaginative, and up-to-date Competence: Reliable, intelligent, and successful Sophistication: Upper class and charming Ruggedness: Outdoorsy and tough Note to Instructor It is interesting to talk about brand personalities and ask students the personality of several brands: A brand personality is the specific mix of human traits that may be attributed to a particular brand. One researcher identified five brand personality traits 1. Sincerity (down-to-earth, honest, wholesome, and cheerful) 2. Excitement (daring, spirited, imaginative, and up-to-date) 3. Competence (reliable, intelligent, and successful) 4. Sophistication (upper class and charming) 5. Ruggedness (outdoorsy and tough) Ch 5 -18 Copyright © 2011 Pearson Education

Psychological Factors Motivation A motive is a need that is sufficiently pressing to direct the person to seek satisfaction. Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations. Note to Instructor An aging consumer who buys a sporty convertible might explain that he or she simply likes the feel of the wind in his or her thinning hair. At a deeper level, the person may be buying the car to feel young and independent again. Ch 5 -20 Copyright © 2011 Pearson Education

Psychological Factors Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes. Selective attention Selective distortion Selective retention Note to Instructor Selective perception: It’s impossible for people to pay attention to the thousands of ads they’re exposed to every day, so they screen most of them out. Discussion Question If you watched television last night, what ads do you remember seeing? Probe to find out why they remember certain ads—was it that they broke through the clutter, that they saw them many times, or that they are in the market for that certain product? Ch 5 -22 Copyright © 2011 Pearson Education

Psychological Factors Selective attention is the tendency for people to screen out most of the information to which they are exposed. Selective distortion is the tendency for people to interpret information in a way that will support what they already believe. Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands. Ch 5 -23 Copyright © 2011 Pearson Education

Psychological Factors Learning is the change in an individual’s behavior arising from experience and occurs through interplay of: Drives Stimuli Cues Responses Reinforcement Ch 5 -24 Copyright © 2011 Pearson Education

Psychological Factors Beliefs and Attitudes Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. Ch 5 -26 Copyright © 2011 Pearson Education

Types of Buying Decision Behavior

The Buyer Decision Process

Need Recognition Occurs when the buyer recognizes a problem or need triggered by: Internal stimuli External stimuli Note to Instructor This innovative ad from Clorox clothing detergent reminds parents that “This is how babies see the world. Keep it clean.” Ch 5 -30 Copyright © 2011 Pearson Education

Information Search Sources of Information Personal sources—family and friends Commercial sources—advertising, Internet Public sources—mass media, consumer organizations Experiential sources—handling, examining, using the product Ch 5 -31 Copyright © 2011 Pearson Education

Evaluation of Alternatives How the consumer processes information to arrive at brand choices. Depends on the individual consumer and the specific buying situation. Note to Instructor This Web link brings you to PriceGrabber—an online comparison shopping site. What is interesting on this site is on the left hand side, you can search by features. These features help a consumer know how to evaluate a product. For instance, this example is laptop computers and one can search by processing speed, processor type, screen size, etc. Ch 5 -32 Copyright © 2011 Pearson Education

Purchase Decision The act by the consumer to buy the most preferred brand The purchase decision can be affected by: Attitudes of others Unexpected situational factors. Ch 5 -33 Copyright © 2011 Pearson Education

Post-Purchase Decision The satisfaction or dissatisfaction that the consumer feels about the purchase. Relationship between: Consumer’s expectations Product’s perceived performance The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction. Ch 5 -34 Copyright © 2011 Pearson Education

Post-Purchase Decision Cognitive dissonance is the discomfort caused by a post-purchase conflict. Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value. Ch 5 -35 Copyright © 2011 Pearson Education

The Buyer Decision Process for New Products
New Product and Adoption Process A New Product is a good, service, or idea that is perceived by some potential customers as new. Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. Ch 5 -36 Copyright © 2011 Pearson Education

This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Ch 5 -40 Copyright © 2011 Pearson Education

CHAPTER FIVE Consumer Behavior

Similar presentations

Presentation on theme: "CHAPTER FIVE Consumer Behavior"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

CHAPTER FIVE Consumer Behavior

Similar presentations

Presentation on theme: "CHAPTER FIVE Consumer Behavior"— Presentation transcript:

Similar presentations

About project

Feedback