2. What influences Consumer Behavior?
Cultural factors
Social factors
Personal factors
Purchase behavior
Consumption behavior
3. Cultural Factors
Culture
Sub-culture
Social stratification/class
Lower Class
Middle Class
Upper Middle Class
Upper Class
4. Social Factors
Reference groups
Cliques
Challenge – to create more openness
How to create people’s interest in an idea?
Brand evangelists
WOM
Shill and Stealth Marketing
Family
Roles and Status
1. The Law of the Few ~ M.S.C
2. Stickiness
3. The Power of Context
Family of Orientation
Family of procreation
5. Personal Factors
Age and stage in the lifecycle
Occupation and Economic Circumstances
Personality and Self-Concept
Lifestyle and Values
Brand personality
- Sincerity
- Excitement
- Competence
- Sophistication
- Ruggedness
Core values
8. Motivation
Biogenic (Hunger, thirst)
Psychogenic (recognition)
Theories of human motivation
Freud’s theory ~ people’s behavior are largely unconscious
Maslow’s theory ~ people are driven by particular needs
Herzberg’s theory ~ dissatisfiers vs. satisfiers (e.g. product warranty)
14. The Buying Decision Process:
The Five-Stage Model
Understanding customers’ buying decision process ~ all
experiences in learning, choosing, using, and disposing of a
product.
Vary from product to product ~ Car vs. Toothpaste
16. Information Search
Two levels of engagement in the search:
Heightened attention
Active information search
Information Sources:
Personal
Commercial
Public
Experiential
Hierarchy of Attributes
↓ ↓
Brand dominant & Nation Dominant
Segmentation ~ Price, Type, Service
Market Partitioning
18. Evaluation of Alternatives
Different consumers, different evaluation processes
Beliefs and Attitudes ~ difficult to change
Expectancy-Value Model ~ attribute evaluation process
19.
20. Purchase Decision
Non-compensatory models of consumer choice
Conjunctive heuristics
Lexicographic heuristics
Elimination-by-aspects heuristics
Intervening factors
Attitude of others ~ peers, reviews, ratings, consumer reports
Unanticipated situational factors Decision changes due to:
Functional risk
Physical risk
Financial risk
Social risk
Psychological risk
Time risk
21. Post purchase Behavior
Post purchase satisfaction
Post purchase actions
Post purchase uses and disposal
Vary from product to product
22. Moderating Effects on Consumer
Decision Making
Low involvement consumer decision making
Variety seeking buying behavior
Elaboration Likelihood Model
↓ ↓
Central Route & Peripheral Route
Which route to take?
Depends on:
- Product type
- Awareness
- Knowledge
23. Behavioral Theories
Theories
Theory of planned behavior
Behavioral decision theory
Decision heuristics
Availability heuristics
Representativeness heuristics
Anchoring and adjustment heuristics
Framing ~ how choices are presented to decision makers?
Mental accounting
Segregate gains
Integrate losses
Integrate smaller losses
with larger gains
Segregate small gains
from large losses
