1. Consumer Behavior & Marketing Fundamentals Jamie Bute Caroline Mutonyi Lisa Schoborg Morgan Wortham December 1, 2014

2. Agenda  Consumer purchase decision making process  Consumer behavior  Psychological Influences  Personal Influences  Social Influences  Cultural Influences

3. Consumer Purchase Decision Making Process

4. Consumer behavior  “The actions a person takes in purchasing and using products and services”

5. Psychological Influences  Helps marketers understand why consumers purchase or do not purchase  Motivation  Perception  Learning  Beliefs & Attitudes

6. Motivation  “The energizing force that stimulates behavior to satisfy a need”  Marketers need to stimulate this need to move to purchase

7. Perception  “The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world”  https://www.youtube.com/watch?v=51Rd4tp6wpg https://www.youtube.com/watch?v=51Rd4tp6wpg

8. Learning  Behavioral learning  Developing automatic responses to situations built through repeated experience  Stimulus generalization: response by one stimulus is generalized to another  Ex. Using packaging similar to a popular brand  Stimulus discrimination: ability to perceive differences in stimuli  Cognitive learning  Learn by thinking and reasoning  Brand loyalty  A favorable attitude toward a brand in which the consumer consistently buys the same brand over others

9. Personal Influences - Personality  Personality is the inner psychological characteristics that determines and reflects how a person responds to his or her environment.  The Nature of Personality  Personality varies from person to person  Personality is consistent and enduring  Personality can change with time

10. Raymond Cattell  Reduced the number of main personality traits from a list of over 4,000 down to 16 by means of a statistical technique called factor analysis 1905-1998

11. Hans Eysenck  Developed a model of personality based on preferences for different forms of factor analysis. He came upon with 3 universal traits. 1916-1997

12. Theories of Personality  Introversion/Extraversion  Introversion involves directing attention on inner experiences, while extraversion relates to focusing outward on other people and the environment.  Neuroticism/Emotional Stability  This is related to moodiness versus even temperedness. Neuroticism refers to an individual’s tendency to become upset or emotional, while stability refers to the tendency to remain emotionally constant.  Psychoticism  Individuals who have difficulty dealing with reality and may be antisocial, hostile, non-empathetic, and manipulative.

13. Personality Determinants  Heredity  Environment  Culture  Family and social background

14. Purchase Based On Age and Life Cycle

15. Purchase Based On Occupation

16. Purchase Based On Lifestyle

17. Purchase Based On Economic Situation Q. What factors affect the economy?

18. Social Influences  Reference Groups  Norms  Rules  Status  Conformity  Membership Groups  Formal  Informal  Non-membership groups  Aspirational  Avoidance

19. Social Factors  Reference Groups  The Initiator  The Influencer  The Decision-Maker  The Buyer

20. Social Factors  Social roles and status  Family  MOST INFLUENTIAL  Family Life Cycle

21. Beliefs & Attitudes  Attitudes are shaped by our values and beliefs, which are learned  Create favorable or unfavorable ideas about a product or brand  Attitudes and Attitude Change  They are learned  They are predispositions  They are consistent  They are the link between perception and behavior  They are a “hypothetical construct”

22. Marketing Approaches to Attitude Change  Change beliefs about brand attributes  Healthy  Change perceived importance of attributes  Made from sustainable material  Add new attributes  Different kinds/styles

23. Attitudes  Source credibility  Source physical attractiveness  Source likeability  Message factors  Receiver emotions

24. Attitudes  Receiver's Emotions  Emotional Security  Assurance of Worth  Ego Gratification - https://www.youtube.com/watch?v=1UzoO_n8Neo https://www.youtube.com/watch?v=1UzoO_n8Neo  Creative Outlets  Love Objects - https://www.youtube.com/watch?v=LRpmFk8aXOU https://www.youtube.com/watch?v=LRpmFk8aXOU  Sense of Power - http://www.denverpost.com/news/ci_25048554/top-five-2014- super-bowl-commercials http://www.denverpost.com/news/ci_25048554/top-five-2014- super-bowl-commercials  Sense of Roots - http://www.ispot.tv/ad/7nDR/budweiser-red- white-and-blue-summer-song-by-miike-snow http://www.ispot.tv/ad/7nDR/budweiser-red- white-and-blue-summer-song-by-miike-snow  Immortality

25. Cultural Influences  Culture is defined as the learned patterns of traditions, beliefs, values, norms, meanings, and symbols that serve to regulate the behavior of members of a particular society.

26. Culture and Consumer Behavior  Culture is the ‘lens’ through which people view products and try to make sense of their own and other people’s consumer behavior.  The relationship between consumer behavior and culture is an exchange.

27. Subculture  Subculture  African American  Hispanic American  Asian American  Ethnic & Racial Subcultures  High-context Culture  De-ethnicization

28. What Kind of Consumer Does This Ad Target?

29. Kluckholn Theory on Culture  Theory of Culture  Value Orientations  Dominant Value System

30. Kluckholm Theory on Culture  Relation to Environment  Time  Nature of People  Activity  Responsibility  Space

31. Any Questions?