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Factors Influencing Consumer Behavior
- 3. Factors Influencing Consumer Behavior Personal Psychological Social Cultural
- 4. Personal Factors Age Life-Cycle Stage
- 5. Personal Factors Age Life-Cycle Stage Occupation Economic Circumstances Life Style
- 6. Psychological Factors “Wants” Based on a want or desire to have something. Not a necessity.
- 7. Psychological Factors Motivation: Freud Id Ego Super Ego Maslow Hierarchy of Needs
- 8. Psychological Factors Motivation Perception The process by which an individual selects, organizes, and interprets inputs to create a meaningful picture of the world. Selective Exposure Selective Distortion Selective Retention
- 9. Psychological Factors Motivation Perception Learning Changes in an individual’s behavior arising form experience
- 10. Psychological Factors Motivation Perception Learning Beliefs Descriptive thoughts that a person holds about something
- 11. Psychological Factors Motivation Perception Learning Beliefs Attitudes Enduring favorable or unfavorable cognitive evaluations emotional feelings and action tendencies
- 12. Functional Factors “Needs” Need over wants. Delivers to a real “need” to have something.
- 13. Social Class Relatively homogenous, enduring divisions in a society, hierarchically ordered with members sharing similar values, interests, and behaviors.
- 14. American Social Classes Upper Upper 1% Lower Upper 2% Upper Middle 12% Middle 32% Working 38% Upper Lower 9% Lower Lower 7%
- 15. Group Influences Brand Choice Strong Weak Product Choice Public Luxuries Private Luxuries Strong Golf Clubs TV Video Games Snow Skis Ice Makers Sail Boat Trash Compactors Public Private Weak Necessities Necessities Wrist Watch Mattresses Automobiles Floor Lamps Dress Clothes Refrigerators
- 16. Family Influence on Buying Behavior Husband-Dominant Wife-Dominant Equal
- 17. Adoption Process • Awareness • Interest • Evaluation • Trial • Decision • Confirmation
- 18. Examples of Buying Motives: Psychological or Functional? A senior wants to impress his date at the prom . His primary motive is …? Psychological
- 19. Examples of Buying Motives: Psychological or Functional? A girl wants to remember her grandmother on her birthday. Her primary motive is…? Psychological
- 20. Examples of Buying Motives: Psychological or Functional? A homemaker needs a new washing machine and has had good experiences with Sears. Her primary motive is …? Functional
- 21. Examples of Buying Motives: Psychological or Functional? A teacher wants to buy a practical car to be used for family transportation. Her/His primary motive is …? Functional
- 22. Examples of Buying Motives: Psychological or Functional? A career woman always buys Liz Claiborne clothes. Her primary motive is…? Psychological
- 23. Examples of Buying Motives: Psychological or Functional? An overweight 40 year old man wants to loose weight so that he can reduce his blood pressure. His primary motive is…? Functional
- 24. Examples of Buying Motives: Psychological or Functional? A homeowner needs to mow their lawn. Their primary motive is…? Functional
- 25. Consumer Buying Behavior Competency Functional Psychological Motive Motive The price is 40 cents off the regular price. It never needs ironing. Diamonds are forever. Serving you since 1971. Ninety-day warranty.
- 26. Consumer Buying Behavior Competency Functional Psychological Motive Motive Running shoe with built-in arch. It’s all the rage— colored action wear and style. Wheaties—the breakfast of champions! Steel-belted radial tires warranted for 40,000 miles A watch—a gift she will treasure always.
- 27. Learning Objectives-- Reviewed Understand the major factors influencing consumer behavior Know and recognize the types of buying decision behavior Understand the stages in the buying decision process
- 28. Consumer Buying Behavior
- 29. Welcome to Mark529 Professor: Jaideep Sengupta PhD: UCLA MBA; BTech (Electrical Engg) Teaching in the MBA program the last few years (including Shenzhen) Taught executives in UCLA, HK (Kellogg-HKUST EMBA) Telephone: 852-2358-7718 Email: mkjaisen@ust.hk Course packet available with MBA office
- 30. Example 3…. In the US, the Marlboro cowboy is usually shown alone Ad….
- 32. Example 3…. In Japan, the Marlboro cowboy is usually shown as part of a group… Ad….
- 34. WHY??
- 35. Solution…. Culture has an influence on consumer behavior US culture = importance of individual; not true in Asia Japanese consumers think a single cowboy looks “lonely” and “poor” Just an ordinary worker on a farm
- 36. GETTING TO KNOW THE AUTOMOBILE CUSTOM(H)ER AND INFLUENC(H)ER
- 37. FIGURE 5-2 Consumer Report’s evaluation of portable MP3-capable CD players
- 38. FIGURE 5-A What new car buyers consider most important in deciding what new car to buy
- 39. Consumer Purchase Decision Why is post purchase behavior important?
- 40. Pierce Brosnan and Anna Kournikova Why use celebrity spokespersons?
- 41. Hershey’s Kisses Why use Spanish language ads in the U.S.?
Notas do Editor
- Definition of Buying Behavior: Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand: Why consumers make the pruchases that they make? What factors influence consumer purchases? The changing factors in our society.
- Lifestyle refers to the way people live, how they spend their time and money, what activities they pursue, and what their attitudes and opinions are about the world they live in.
- Selective Exposure-selects inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies a current need, intensity of input changes (sharp price drop). Selective Distortion – Changing/twisting current received information,m inconsistent with beliefs. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example…MCI and AT&T…do you ever get confused? Selective Retention—remember inputs that support beliefs, forgets those that don’t. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes—60% of purchases are unplanned. Exposed to 1500 advertisements per day. Can’t be expected to be aware of all these inputs, and certainly will not retain many.
- Individuals learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm’s marketing strategy.
- Social class influences many aspects of our lives. Social class determines to some extent, the types, quality, quantity of products that a person buys or uses. Upper Upper—inherited wealth, aristocratic names Lower Upper—newer social elite, from current professionals and corporate elite. Upper Middle—college graduates, mangers and professionals Middle—average pay white collar workers and blue collar friends Working—average blue collar workers Upper Lower—working,not on welfare Lower Lower—on welfare Important point to bring up is that income distribution of the United States is becoming polarized. This means that more people are leaving the middle-income groups and spreading to the upper and lower income groups.
- Women make the majority of the purchasing decisions (Wife-Dominant).
- New car buyers have fairly well-defined evaluative criteria. This chart shows what the top six criteria or factors are. It is noteworthy to mention that warranty/guarantee has grown in importance over the years while style/look of the brand has declined as being “most important.”