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Curso académico 2014

Dissecting the
consumer behavior
www.juanjosedelgado.es

By Juan José Delgado
Understanding consumers:
the 5 key questions

www.juanjosedelgado.es
Consumer

Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition.

www.juanjosedelgado.es
Who buys?
1.
2.
3.
4.
5.

Initiator
Influencer
Decider
Buyer
User
www.juanjosedelgado.es
1. Initiator
•

The person who begins the process of considering a
purchase. Information should be gathered by this
person...
2. Influencer
•

The person who attempts to persuade others in
the group concerning the outcome of the decision.
Influence...
3. Decider
•

The individual with the power and/or financial
authority to make the ultimate choice regarding
which product...
4. Buyer
•

The person who conducts the transaction. The
buyer calls the supplier, visit the store, makes the
payment and ...
5. User
•

The actual consumer / user of the product.

www.juanjosedelgado.es
Could you identify the key roles in this purchase?

www.juanjosedelgado.es
How they buy?

www.juanjosedelgado.es
The consumer
The consumer
decision-making process
decision-making process

Jobber, D. 2010 Principles and Practice of
Mark...
Need recognition / problem
awareness
•

The degree to which the consumer intends to
resolve the problem depends on:
• The ...
Does it provide enough
incremental value against iPad3?

www.juanjosedelgado.es
•

Marketers should be aware of:
• The needs of consumers
• Need inhibitors (Risk, efforts…)
• Need stimuli (ads)

www.jua...
Information search
•

Identification of alternative ways of problem solution.

Kinds:
•
•

Internal search: memory
Externa...
Does anyone know what
this mean?

g

www.juanjosedelgado.es
… and this?

www.juanjosedelgado.es
Google has change dramatically the context

www.juanjosedelgado.es
Evaluation of alternatives
and the purchase
•

Reduce the awareness set of brands to a evoked
set of brands/products.

•

...
Jobber, D. 2010 Principles and Practice of
Marketing. 6th Edition.

www.juanjosedelgado.es
Google has also comparators!

www.juanjosedelgado.es
What are they choice
criteria?
www.juanjosedelgado.es
Reliability
Durability
Performance
Style/looks
Comfort
Delivery
Convenience
Taste
Status
Social
belonging
Convention
Fashi...
What is the different choice criteria for these
products?

33cl
0,50€

200cl
1,50€
www.juanjosedelgado.es
Post-purchase evaluation of
the decision
•

Cognitive dissonance: uncertainty about making
the right decision.

Word of mo...
www.juanjosedelgado.es
Influencers on Consumer
Behavior
www.juanjosedelgado.es
Jobber, D. 2010
Principles and Practice
of Marketing. 6th Edition.

www.juanjosedelgado.es
Jobber, D. 2010
Principles and Practice
of Marketing. 6th Edition.

www.juanjosedelgado.es
The buying situation
1. Extended problem solving
2. Limited problem solving
3. Habitual problem solving
www.juanjosedelgad...
The buying situation
1. Extended problem solving
2. Limited problem solving
3. Habitual problem solving
www.juanjosedelgad...
1.- Extended problem solving

www.juanjosedelgado.es
Extended problem solving
1.
2.
3.
4.

Self-image
Perceived risk
Social factors
Hedonistic influencers

Kuusela, H., M. T. ...
1.- Self-image
•

Involvement is likely to be high when the decision
potentiality affects one´s self-image. Thus purchase
...
2.- Perceived risk
•

Involvement is likely to be high when the perceived
risk of making a mistake is high. The risk of bu...
3.- Social factors
•

When social acceptance is dependent upon making
a correct choice, involvement is likely to be high. ...
4.- Hedonistic influencers
•

When the purchase is capable of providing a high
degree of pleasure, involvement is usually ...
The buying situation
1. Extended problem solving
2. Limited problem solving
3. Habitual problem solving
www.juanjosedelgad...
2.- Limited problem solving
•

The consumer has some experience with the product
in question, therefor, information search...
The buying situation
1. Extended problem solving
2. Limited problem solving
3. Habitual problem solving
www.juanjosedelgad...
3.- Habitual problem solving
•

It occurs when a consumer repeat-buys the same
product with little or no evaluation of alt...
Jobber, D. 2010
Principles and Practice
of Marketing. 6th Edition.

www.juanjosedelgado.es
Personal influencers
1.
2.
3.
4.
5.
6.

Information processing
Motivation
Beliefs and attitudes
Personality
Lifestyle and ...
1.- Information processing
•

It refers to the process by which a stimulus is
received, interpreted, stored in memory and ...
2.- Motivation
•
•

An understanding of motivation lies in the
relationship between needs, drives and goals.
Five categori...
2.- Motivation

Jobber, D. 2010
Principles and Practice
of Marketing. 6th Edition.

www.juanjosedelgado.es
3.- Beliefs and attitudes
•

A belief is a thought about a product or service on
one or more choice criteria. The conseque...
www.juanjosedelgado.es
4.- Personality
•

Personality is the inner psychological characteristics
of individuals that lead to consistent responses...
character

Temperament

Persistency
www.juanjosedelgado.es

Personality
3 temperament
dimensions
www.juanjosedelgado.es
Novelty

www.juanjosedelgado.es
www.juanjosedelgado.es
Risk

www.juanjosedelgado.es
Risk is always subjective

www.juanjosedelgado.es
…ALWAYS

www.juanjosedelgado.es
Social

www.juanjosedelgado.es
www.juanjosedelgado.es
iPod
Vs
iPhone
www.juanjosedelgado.es
28.01.13

www.juanjosedelgado.es
NORISO
CUBE
Adventurous

Novelty

Passionate

Reliable

Risk

Explosive

Sensitive

Independent

Cautious

Social
*Adaptat...
Passionate
•They need to catch the attention.
•They look for new curious and singular new products or services.
•They need...
www.juanjosedelgado.es
www.juanjosedelgado.es
Methodical
•They need stability, order, and control.
•They are checking continuously. It is not weird to go to
the same we...
www.juanjosedelgado.es
www.juanjosedelgado.es
Sensitive
•They need to catch the admiration of others.
•They love exclusive brands. These brands have to have a proved
re...
www.juanjosedelgado.es
Independent
•They love to enjoy about their own loneliness (They perceive
negatively processes that make them change their...
28.01.13

www.juanjosedelgado.es
Adventurous
•They do not tolerate to be bored.
•And they usually get bored easily.
•They do not like to plan, they usually...
28.01.13

www.juanjosedelgado.es
Cautious
•They need to feel loved, be part of something.
•It makes them to be dependent of their reference
group (family, ...
www.juanjosedelgado.es
Explosive
•It is contradiction: They need novelty but they are afraid about risk
•Eventually, they take the decision in an...
www.juanjosedelgado.es
Reliable
•They are just the opposite to the explosive segment. They are
stable, predictable, and reliable
•They need to fe...
28.01.13

www.juanjosedelgado.es
5.- Lifestyle
•

The pattern of living as expressed in a person´s
activities, interests and opinions.

www.juanjosedelgado...
6.- Life cycle
and age

Jobber, D. 2010
Principles and Practice
of Marketing. 6th Edition.

www.juanjosedelgado.es
Jobber, D. 2010
Principles and Practice
of Marketing. 6th Edition.

www.juanjosedelgado.es
Social influencers
1.
2.
3.
4.

Culture
Social class
Geodemographics
Reference groups

www.juanjosedelgado.es
1.- Culture
•

It refers to the traditions, taboos, values and basic
attitudes of the whole society within which an
indivi...
2.- Social class
•

Usually drove by occupation

•

It provides satisfactory power to discriminate
between consumption pat...
3.- Geodemographics
•

Based on population census data.
•
Type of accommodation
•
Car ownership
•
Age
•
Occupation
•
Numbe...
4.- Reference groups
•

It is used to indicate a group of people that
influences an individual´s attitude or behavior.

ww...
Follow me on:
www.linkedin.com/in/juanjosedelgado
www.juanjosedelgado.es
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Dissecting the consumer behaviour. Do you want to know the keys?

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Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. It blends elements from psychology, sociology, social anthropology, marketing and economics. It attempts to understand the decision-making processes of buyers, both individually and in groups such as how emotions affect buying behaviour. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

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Transcript of "Dissecting the consumer behaviour. Do you want to know the keys?"

  1. 1. Curso académico 2014 Dissecting the consumer behavior www.juanjosedelgado.es By Juan José Delgado
  2. 2. Understanding consumers: the 5 key questions www.juanjosedelgado.es
  3. 3. Consumer Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. www.juanjosedelgado.es
  4. 4. Who buys? 1. 2. 3. 4. 5. Initiator Influencer Decider Buyer User www.juanjosedelgado.es
  5. 5. 1. Initiator • The person who begins the process of considering a purchase. Information should be gathered by this person to help the decision. www.juanjosedelgado.es
  6. 6. 2. Influencer • The person who attempts to persuade others in the group concerning the outcome of the decision. Influencers typically gather information and attempt to impose their choice criteria. www.juanjosedelgado.es
  7. 7. 3. Decider • The individual with the power and/or financial authority to make the ultimate choice regarding which product to buy. www.juanjosedelgado.es
  8. 8. 4. Buyer • The person who conducts the transaction. The buyer calls the supplier, visit the store, makes the payment and effects delivery. www.juanjosedelgado.es
  9. 9. 5. User • The actual consumer / user of the product. www.juanjosedelgado.es
  10. 10. Could you identify the key roles in this purchase? www.juanjosedelgado.es
  11. 11. How they buy? www.juanjosedelgado.es
  12. 12. The consumer The consumer decision-making process decision-making process Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. www.juanjosedelgado.es
  13. 13. Need recognition / problem awareness • The degree to which the consumer intends to resolve the problem depends on: • The magnitude of the discrepancy between current situation and desire situation • The importance of the problem. www.juanjosedelgado.es
  14. 14. Does it provide enough incremental value against iPad3? www.juanjosedelgado.es
  15. 15. • Marketers should be aware of: • The needs of consumers • Need inhibitors (Risk, efforts…) • Need stimuli (ads) www.juanjosedelgado.es
  16. 16. Information search • Identification of alternative ways of problem solution. Kinds: • • Internal search: memory External search: • Personal sources: Family, friends… • Commercial sources • Third-party reports www.juanjosedelgado.es Awareness set
  17. 17. Does anyone know what this mean? g www.juanjosedelgado.es
  18. 18. … and this? www.juanjosedelgado.es
  19. 19. Google has change dramatically the context www.juanjosedelgado.es
  20. 20. Evaluation of alternatives and the purchase • Reduce the awareness set of brands to a evoked set of brands/products. • It depends on the level of involvement of the purchase www.juanjosedelgado.es
  21. 21. Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. www.juanjosedelgado.es
  22. 22. Google has also comparators! www.juanjosedelgado.es
  23. 23. What are they choice criteria? www.juanjosedelgado.es
  24. 24. Reliability Durability Performance Style/looks Comfort Delivery Convenience Taste Status Social belonging Convention Fashion Self-image Risk reduction Ethics Emotions Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. Price Value for money Running costs Residual value Life-cycle costs www.juanjosedelgado.es
  25. 25. What is the different choice criteria for these products? 33cl 0,50€ 200cl 1,50€ www.juanjosedelgado.es
  26. 26. Post-purchase evaluation of the decision • Cognitive dissonance: uncertainty about making the right decision. Word of mouth. www.juanjosedelgado.es
  27. 27. www.juanjosedelgado.es
  28. 28. Influencers on Consumer Behavior www.juanjosedelgado.es
  29. 29. Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. www.juanjosedelgado.es
  30. 30. Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. www.juanjosedelgado.es
  31. 31. The buying situation 1. Extended problem solving 2. Limited problem solving 3. Habitual problem solving www.juanjosedelgado.es
  32. 32. The buying situation 1. Extended problem solving 2. Limited problem solving 3. Habitual problem solving www.juanjosedelgado.es
  33. 33. 1.- Extended problem solving www.juanjosedelgado.es
  34. 34. Extended problem solving 1. 2. 3. 4. Self-image Perceived risk Social factors Hedonistic influencers Kuusela, H., M. T. Spence and A. J. Kanto (1998) Expertise Effects on Prechoice Decision Processes And Final Outcomes: A protocol Analysis, European Journal of Marketing 32 (5/6) 559-76 www.juanjosedelgado.es
  35. 35. 1.- Self-image • Involvement is likely to be high when the decision potentiality affects one´s self-image. Thus purchase of jewellery, cars, and clothing invokes more involvements than choosing a brand of soap. Kuusela, H., M. T. Spence and A. J. Kanto (1998) Expertise Effects on Prechoice Decision Processes And Final Outcomes: A protocol Analysis, European Journal of Marketing 32 (5/6) 559-76 www.juanjosedelgado.es
  36. 36. 2.- Perceived risk • Involvement is likely to be high when the perceived risk of making a mistake is high. The risk of buying the wrong house is much higher than buying the wrong chewing gum, because the potential negative consequences of the wrong decisions are higher. Risk usually increase with the price of the purchase. Kuusela, H., M. T. Spence and A. J. Kanto (1998) Expertise Effects on Prechoice Decision Processes And Final Outcomes: A protocol Analysis, European Journal of Marketing 32 (5/6) 559-76 www.juanjosedelgado.es
  37. 37. 3.- Social factors • When social acceptance is dependent upon making a correct choice, involvement is likely to be high. The purchase of golf clubs may be highly involving because the correct decision may affect social standing among fellow golfers. Kuusela, H., M. T. Spence and A. J. Kanto (1998) Expertise Effects on Prechoice Decision Processes And Final Outcomes: A protocol Analysis, European Journal of Marketing 32 (5/6) 559-76 www.juanjosedelgado.es
  38. 38. 4.- Hedonistic influencers • When the purchase is capable of providing a high degree of pleasure, involvement is usually high. The choice of a restaurant when on holiday can be highly involving since the difference between making the right or wrong choice can severely affect the amount of pleasure associated with the experience. Kuusela, H., M. T. Spence and A. J. Kanto (1998) Expertise Effects on Prechoice Decision Processes And Final Outcomes: A protocol Analysis, European Journal of Marketing 32 (5/6) 559-76 www.juanjosedelgado.es
  39. 39. The buying situation 1. Extended problem solving 2. Limited problem solving 3. Habitual problem solving www.juanjosedelgado.es
  40. 40. 2.- Limited problem solving • The consumer has some experience with the product in question, therefor, information search is mainly internally (memory). However, some external information is taking place (such as checking prices) www.juanjosedelgado.es
  41. 41. The buying situation 1. Extended problem solving 2. Limited problem solving 3. Habitual problem solving www.juanjosedelgado.es
  42. 42. 3.- Habitual problem solving • It occurs when a consumer repeat-buys the same product with little or no evaluation of alternatives. Advertising may be effective in keeping the brand name in the consumer´s mind and reinforcing already favourable attitudes towards it. www.juanjosedelgado.es
  43. 43. Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. www.juanjosedelgado.es
  44. 44. Personal influencers 1. 2. 3. 4. 5. 6. Information processing Motivation Beliefs and attitudes Personality Lifestyle and age Life cycle www.juanjosedelgado.es
  45. 45. 1.- Information processing • It refers to the process by which a stimulus is received, interpreted, stored in memory and later retrieved. It is therefore the link between external influencers (such as marketing activities) and the consumer´s decision-making process. www.juanjosedelgado.es
  46. 46. 2.- Motivation • • An understanding of motivation lies in the relationship between needs, drives and goals. Five categories proposed by Maslow: • Physiological • Safety • Belongingness and love • Esteem and status • Self-actualization. www.juanjosedelgado.es
  47. 47. 2.- Motivation Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. www.juanjosedelgado.es
  48. 48. 3.- Beliefs and attitudes • A belief is a thought about a product or service on one or more choice criteria. The consequence of a set of beliefs may be a positive or negative attitude towards a product or service. www.juanjosedelgado.es
  49. 49. www.juanjosedelgado.es
  50. 50. 4.- Personality • Personality is the inner psychological characteristics of individuals that lead to consistent responses to their environment. www.juanjosedelgado.es
  51. 51. character Temperament Persistency www.juanjosedelgado.es Personality
  52. 52. 3 temperament dimensions www.juanjosedelgado.es
  53. 53. Novelty www.juanjosedelgado.es
  54. 54. www.juanjosedelgado.es
  55. 55. Risk www.juanjosedelgado.es
  56. 56. Risk is always subjective www.juanjosedelgado.es
  57. 57. …ALWAYS www.juanjosedelgado.es
  58. 58. Social www.juanjosedelgado.es
  59. 59. www.juanjosedelgado.es
  60. 60. iPod Vs iPhone www.juanjosedelgado.es
  61. 61. 28.01.13 www.juanjosedelgado.es
  62. 62. NORISO CUBE Adventurous Novelty Passionate Reliable Risk Explosive Sensitive Independent Cautious Social *Adaptation and review of temperamental de R. Cloninger (1993) www.juanjosedelgado.es Methodical
  63. 63. Passionate •They need to catch the attention. •They look for new curious and singular new products or services. •They need to be the singular guy in the group. •They love imported items. They are difficult to access. •They do not care about prices. However, good deals are welcome as long as they can talk about them. www.juanjosedelgado.es
  64. 64. www.juanjosedelgado.es
  65. 65. www.juanjosedelgado.es
  66. 66. Methodical •They need stability, order, and control. •They are checking continuously. It is not weird to go to the same web some times in order to check and doublecheck the promotion before buy. •They are deal-seekers. (good quality / Price) www.juanjosedelgado.es
  67. 67. www.juanjosedelgado.es
  68. 68. www.juanjosedelgado.es
  69. 69. Sensitive •They need to catch the admiration of others. •They love exclusive brands. These brands have to have a proved record about social admiration. This exclusivity has to be socially proved. •They will not risk to be critiqued. It makes them be frustrated. www.juanjosedelgado.es
  70. 70. www.juanjosedelgado.es
  71. 71. Independent •They love to enjoy about their own loneliness (They perceive negatively processes that make them change their loneliness stability) •They love new technologies. They invest long hours on them. •It provides them pleasure without interacting with others. www.juanjosedelgado.es
  72. 72. 28.01.13 www.juanjosedelgado.es
  73. 73. Adventurous •They do not tolerate to be bored. •And they usually get bored easily. •They do not like to plan, they usually take decisions on the go. •Typical activities that they love are long trips, risky sports… www.juanjosedelgado.es
  74. 74. 28.01.13 www.juanjosedelgado.es
  75. 75. Cautious •They need to feel loved, be part of something. •It makes them to be dependent of their reference group (family, friends, celebrities…) •They are cautious, they try to delegate all their decision on others. www.juanjosedelgado.es
  76. 76. www.juanjosedelgado.es
  77. 77. Explosive •It is contradiction: They need novelty but they are afraid about risk •Eventually, they take the decision in an impulsive way. •They are unpredictable •They usually buy in an impulsive way: • They buy things they never use • They expend more tan they can • They think short-term • They love credit cards. www.juanjosedelgado.es
  78. 78. www.juanjosedelgado.es
  79. 79. Reliable •They are just the opposite to the explosive segment. They are stable, predictable, and reliable •They need to feel loved as well, however, they use their temperance. •They control their expenses. •They are always the middle point. www.juanjosedelgado.es
  80. 80. 28.01.13 www.juanjosedelgado.es
  81. 81. 5.- Lifestyle • The pattern of living as expressed in a person´s activities, interests and opinions. www.juanjosedelgado.es
  82. 82. 6.- Life cycle and age Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. www.juanjosedelgado.es
  83. 83. Jobber, D. 2010 Principles and Practice of Marketing. 6th Edition. www.juanjosedelgado.es
  84. 84. Social influencers 1. 2. 3. 4. Culture Social class Geodemographics Reference groups www.juanjosedelgado.es
  85. 85. 1.- Culture • It refers to the traditions, taboos, values and basic attitudes of the whole society within which an individual lives. www.juanjosedelgado.es
  86. 86. 2.- Social class • Usually drove by occupation • It provides satisfactory power to discriminate between consumption patterns. • It works across all product fields www.juanjosedelgado.es
  87. 87. 3.- Geodemographics • Based on population census data. • Type of accommodation • Car ownership • Age • Occupation • Number and age of children • Ethnic background www.juanjosedelgado.es
  88. 88. 4.- Reference groups • It is used to indicate a group of people that influences an individual´s attitude or behavior. www.juanjosedelgado.es
  89. 89. Follow me on: www.linkedin.com/in/juanjosedelgado www.juanjosedelgado.es

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