1. Consumer Behavior1 GROUP INFLUENCES

2. Consumer Behavior2 REFERENCE GROUPS

3. Consumer Behavior3 INFLUENCES OF REFERENCE GROUPS

4. Consumer Behavior4 WORD OF MOUTH (WOM) Enduring Involvemen t Situational Involvement Opinion Leadership Personal Experience Advice Giving Product News

5. Consumer Behavior5 DIFFUSION OF INNOVATIONS

6. Consumer Behavior6 TYPES OF INNOVATIONS Continuous Dynamically Continuous Discontinuous Repositioning Brand extension Line extension New to company New to world

7. Consumer Behavior7 INNOVATION DIFFUSION Percent Adopt Time

8. Consumer Behavior8 INNOVATION DIFFUSION Innovators Early Adopters Early Majority Late Majority Laggards -2s.d.-1 s.d.mean+1 sd. 2.5% 13.5%34% 16%

9. Consumer Behavior9 WHAT INFLUENCES RATE OF DIFFUSION

10. Consumer Behavior10 PREDICTING SALES: TRIAL/REPEAT MODEL AWARENESSTRIALREPEAT Evaluate reactions to ad’g/promos Test market Test market Market size = (% aware x %try x % repeat) x potential number of buyers

11. Consumer Behavior11 NEW PRODUCT MODEL AWARENESSTRIALREPEAT Problem recognition Product quality evaluation Price evaluation Social influences

12. Consumer Behavior12 CONSUMER SEGMENTS: HH EXPENDITURES

13. Consumer Behavior13 CONSUMER SEGMENTS: HH EXPENDITURES