CONSUMER BEHAVIOR The study of how people buy, what they buy, why they buy and when they buy. It attempts to understand the buyer decision making process, both individually and in groups.
CONSUMER AUDIENCE The people who buy or use products to satisfy needs or wants. Types of consumers Those who buy the product Those who use the product Target Audience Those individuals who will receive the advertising message
FACTORS AFFECTING CONSUMER BEHAVIOR Cultural and social Psychological influences influences Culture Perception Social Class Learning Reference groups Motives Family Attitudes Demograhics Lifestyles Geography
CULTURAL AND SOCIAL INFLUENCES Culture Based on norms and values Norms – boundaries a culture establishes for behavior Values - broad preferences concerning appropriate courses of action or outcomes Directly influences buying behavior
CULTURAL AND SOCIAL INFLUENCES Social Class Determined by factors like income , wealth, education, occupation, family prestige, value of home, and neighborhood It is assumed that people in one class buy different products than any other class for different reasons. E.g Walls icecream vs Movenpick icecream
CULTURAL AND SOCIAL INFLUENCES Reference Groups Collection of people used as a guide for behavior in specific situations. Reference groups have three functions They provide information They serve as comparison They offer guidance
CULTURAL AND SOCIAL INFLUENCES Family Family consists of two or more people who are related by blood, marriage or adoption and live in the same household. Family helps develop a lifestyle (how you spend time and money and the kinds of activities you value)
CULTURAL AND SOCIAL INFLUENCES Demographics Are statistical, personal, social and economic characteristics of a population including Age Gender Education Income Occupation Race/ ethnicity
CULTURAL AND SOCIAL INFLUENCES Geographic location Difference in buying behavior exists between different regions Buying behavior also differs urban areas and rural areas.
PSYCHOLOGICAL INFLUENCES Perception The process by which we receive information through our five senses and assign meaning to it. 3 sets of influences shape perception The physical characteristics of the stimuli The relationship of the stimuli to the surroundings The person’s state of mind. Some stimuli are selected over others Selective perception Screening out some information that does not interest us and retaining that information that interests us.
PSYCHOLOGICAL INFLUENCES Selective exposure Seeking information that is in line with our beliefs, values, experiences, biases, attitudes. Selective distortion Changing the meaning of information that is conflicting with our beliefs Selective retention The process we go through to retain information
ACTIVITY - PERCEPTION Write down the ads which you remember. Write the reason for remembering every ad. Discuss in class.
PSYCHOLOGICAL INFLUENCES Learning Perceptions lead to learning We learn something that we perceive and attach meaning to it. Cognitive learning Perception -> Problem solving -> Insight Behavioral conditioning Classic conditioning Pairing one stimulus with another that already is associated with a response e.g. associating sound of bell with end of school day Operant conditioning Voluntary occurrences of behavior that are then rewarded , ignored or punished.
When you use a mobile while you drive, your head is somewhere else
PSYCHOLOGICAL INFLUENCES Motivation and Needs Motive An internal force that forces you to behave in a particular way. Advertisers study buying motives. Need Basic forces that motivate us to do something Primary needs: requirements to maintain life Secondary: Acquired needs in response to our culture and environment. Needs change over time.
PSYCHOLOGICAL INFLUENCES Attitudes A learned feeling you hold towards an object, a person or an idea that leads to a particular behavior. Attitudes are resistant to change. Attitudes are learned, hence can be changed or replaced. Attitudes may be positive or negative, weak or strong.
PSYCHOLOGICAL INFLUENCE Lifestyle The way a person spends his time and money and the activities he likes to perform.
BUYER DECISION PROCESS Steps of decision making Need Recognition Information Search Evaluation of alternatives Purchase Decision Post Purchase Evaluation