Summary Overview Several behavioral sciences contribute to the marketer’s understanding of why consumers behave as they do. The basic model of consumer behavior shown on the slide integrates many of these influences. Teaching Tip: Economics and psychology are often cited as sources for marketers but marketing also derives a great deal of knowledge about consumer behavior from sociology, anthropology, and communication theory. Economic Models of Consumer Behavior Needs . Economists often assume that consumers are people who know all the facts and logically compare choices in terms of cost and value received to get the greatest satisfaction for their time and money. Economic Needs . Economic needs are concerned with making the best use of a consumer’s time and money-- from the consumer’s point of view. Although useful, this view is probably too simplistic to cover all consumer behavior. Consequently, marketers try to identify sets of factors affecting the choices consumers make. These include psychological variables, social influences, events in the purchase situation. Understanding Motivation Needs . Needs are the basic forces that motivate a person to do something Wants . Wants are learned needs, that is, they are needs expressed as a desire for a particular need-satisfier: I need food; I want a hamburger. Drive . A drive is a strong internal stimulus that encourages action to reduce a need. When a drive is strong enough, it compels a person to seek satisfaction for a need and often in the form of a preferred want. This slide relates to the material on pp. 155-156. Instructor’s Note: This slide corresponds to Exhibit 6-1 on p. 156 and Transparency 46. See also Transparency 45 and Overheads 57-58.
Summary Overview Many different levels of needs can appeal to or motivate a person. The PSSP pyramid on the slide helps apply motivation theory to the particular needs of consumers and marketing managers trying to develop marketing mixes to meet those needs. PSSP Hierarchy of Needs Thinking of needs as being linked to one of these four levels helps explain why some marketing mix variations work in one context and not in another. But other influences also come into play which is why marketers don’t rely solely on motivation theory for understanding and responding to consumer behavior. Physiological Needs . Physiological needs are the most basic needs people experience. These include biological needs for food, drink, rest, and sex. Safety Needs . Safety needs come into play next. These are concerned with protection and physical well-being. Social Needs . Social needs are concerned with love, friendship, social status and esteem. These are derived from a person’s interactions with others. Personal Needs . Personal needs are concerned with an individual’s need for personal satisfaction, unrelated to what others do. They include self-esteem, fun, and freedom. This slide relates to the material on pp. 156-158. Instructor’s Note: This slide corresponds to Exhibit 6-3 on p. 158 and Transparency 47. See also Overhead 59.
Summary Overview Learning is a complex interaction of experience and cultural expectations based upon attitudes, beliefs, and actions. The Learning Process Perception . Perception refers to how we gather and interpret information from the world around us. Because we do not process or even attend to all incoming sensory stimuli equally, marketers are very much interested in the selective processes we use to handle incoming marketing mix stimuli: Selective Exposure. We seek out and notice only information that interests us. Selective Perception. We screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs. Selective Retention. If all of this weren’t enough, we remember only what we want to remember. Learning . Learning is a change in a person’s thought processes caused by prior experience. Key concepts of the learning process include: Cues. These are stimuli in the environment that trigger a drive or response. Response. This is an effort to satisfy a drive. Reinforcement. This occurs when the response is followed by satisfaction, which reduces the drive. Cultural Influences . Learning does not take place in a vacuum. A person’s culture plays a large role in making some wants more available than others: Attitude. This is a person’s point of view toward something. Belief. This is a person’s opinion about something. Expectation. This is an outcome or event that a person anticipates or looks forward to. This slide relates to the material on pp. 158-163. Instructor’s Note: This slide corresponds to Exhibit 6-4 on p. 160 and Transparency 49. See also Transparency 48.
Summary Overview Psychographics or lifestyle analysis examines a person’s day-to-day pattern of living as expressed in AIO statements (Activities, Interests, and Opinions). When this information is linked to demographic information, marketers have the basis for very accurate segmentation of markets for some products. Lifestyle Dimensions Activities . Activities identify what people do. Activities are an important variable because behavior is objectively observable. Interests . People also have interests. Stronger interests tend to create stronger drives that may pinpoint market opportunities. Opinions . How people feel about things also affects their relative motivation to take action. By combining these opinions with interests and activities, marketers can develop a robust view of some target market segments. Discussion Note: While lifestyles can be very useful for some types of products, it is important to remind students, as the text points out, that lifestyle segmentation may not match true target markets for all products. This slide relates to the material on pp. 163-164. See also Overhead 60 and Transparency 50.
Summary Overview Perceived and actual social standing have powerful influences on consumers. It is important to remember when considering the influences below that who is chosen or appointed to fill each social influence role is largely determined by the social class to which the consumer belongs. Social Influences Social Class . A social class is a group of people who have approximately equal social position as viewed by others in the society. Reference Group . A reference group consists of the people to whom an individual looks when forming attitudes about a particular topic. Opinion Leader . An opinion leader is a person who influences others. Culture . Underpinning all social influences is the culture of a society -- the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous people. This slide relates to the material on pp. 165-168. Instructor’s Note: This slide corresponds to Exhibit 6-6 on p. 166 and Overhead 62. See also Overheads 61 and 63.
Summary Overview The particular situation a consumer is in during or around the time of purchase can also have significant effects on the actual purchase. Purchase Situation Influences Purchase Reason . Why a consumer makes a purchase can affect buying behavior. In gift giving behavior in particular, the reason behind the purchase is significant. Time . The time available for the purchase is also important. A leisure dinner induces different behavior than grabbing a quick cup of 7-Eleven coffee on the way to work. Surroundings . The physical surroundings and the emotional responses they elicit or encourage can also affect the purchase. Instructor’s Note: Ask students if they’ve ever been in a store known for its sophisticated use of surroundings to enhance sales such as Nike Town, The Disney Store, or Victoria Secrets. All these retailers make manipulation of the surroundings (“atmospherics”) a key part of their overall marketing strategy. This slide relates to the material on pp. 168-169.
Summary Overview It is often useful to view consumer behavior in terms of specific characteristics of the purchase situation. This can include marketing stimuli and other variables present in the retail environment. It can also include seeing the purchase itself as the culmination of a series of steps that solves a problem for the consumer. Consumer Problem-Solving 1. Awareness . Here consumers are attentive to a need or problem and interested in ways to satisfy the need. 2. Gathering Information . Here consumers search internal (memory, personal) sources and may investigate external sources (friends, articles, demonstrations) for more information about the problem and/or the kinds of solutions available. 3. Evaluating Alternatives . Here consumers decide which different product choices might be capable of solving their problem. 4. Choosing a Solution . Here consumers select one (&quot;the best&quot;) of the alternatives. 5. Evaluating the Decision . During this stage the consumer assesses the outcome of his or her decision. This slide relates to the material on pp. 169-170. Instructor’s Note: This slide corresponds to Exhibit 6-7 on p. 170 and Transparency 51.
Summary Overview The time, effort, and source of information used in making a purchase can be influenced by the relative level of involvement the consumer experiences. Problem-Solving Continuum Routinized Response Behavior . Here a consumer resorts to habit to solve a problem. This is especially appropriate for low-involvement purchases. Limited Problem Solving . Here the consumer is willing to put forth some effort, perhaps to update or add to previous experience or because the problem is moderately important. Extensive Problem Solving . This approach is used for a completely new or important need. Here much information is needed because the consumer has no experience and the decision -- and risk of making a wrong decision -- is important. Grid of Evaluative Criteria . Based on studies of how consumers seek out and evaluate product information, researchers suggest that marketing managers use evaluative grids showing features common to different products (or marketing mixes). Grids encourage managers to view each product as a bundle of features or attributes. Some consumers will reject a product if they see one feature as substandard--regardless of how favorably they regard the product’s other features. This slide relates to the material on pp. 170-172. Instructor’s Note: This slide corresponds to Exhibit 6-9 on p. 172 and Transparency 52. See also Overhead 64.
Summary Overview For many extensive problem-solving situations, consumers may pass through a series of steps used to investigate and evaluate, and ultimately accept or reject, an idea or product as a solution to their problem. This process is referred to as the adoption process. The Adoption Process 1. Awareness . Here the potential customer first learns about the existence of a product but may lack more details. 2. Interest . If this step is reached, the consumer will gather general information and facts about the product. Teaching Tip: You might link the “if” to the selective processes discussed earlier under perception. 3. Evaluation . Here the consumer gives the product a mental trial, applying it to his or her own personal situation. 4. Trial . Here the consumer may buy the product to experiment with it in use. 5. Decision . Here the consumer decides on either adoption and continued use or rejection of the product from further consideration. 6. Confirmation . Here the adopter continues to rethink the decision and searches for further support that it was correct. Dissonance may set in after the decision. The buyer may have chosen from among several attractive alternatives--weighing the pros and cons and finally making a decision. Later doubts, however, may lead to dissonance--tension caused by uncertainty about the rightness of a decision. This slide relates to the material on pp. 172-173.
Summary Overview It is important to see the interrelation of the problem-solving process, the adoption process, and learning. Knowing how target markets handle these processes helps companies with their marketing strategy planning. Instructor’s Note: This slide corresponds to Exhibit 6-10 on p. 174 and Overhead 65.
Behavioral marketing dimention
Chapter 6: Behavioral Dimensions of the Consumer Market
Chapter 6 Objectives <ul><li>1 . Understand the economic-buyer model of buyer behavior. </li></ul><ul><li>2. Understand how psychological variables affect an individual’s buying behavior. </li></ul><ul><li>3. Understand how social influences affect an individual’s and household’s buying behavior. </li></ul><ul><li>4. See why the purchase situation has an effect on consumer behavior. </li></ul><ul><li>5. Know how consumers use problem-solving processes. </li></ul><ul><li>6. Have some feel for how a consumer handles all the behavioral variables and incoming stimuli. </li></ul><ul><li>7. Understand the important new terms. </li></ul>When you finish this chapter, you should 6-2
A Model of Buyer Behavior 6-3 Exhibit 6-1 Purchase Reason Time Surroundings Purchase Situation Motivation Perception Learning Attitude Personality/Lifestyle Psychological Variables Family Social Class Reference Groups Culture Social Influence Problem-Solving Process Person Does or Does Not Purchase (Response) Marketing Mixes All Other Stimuli Person Making Decision
The PSSP Hierarchy of Needs 6-4 Physiological Needs Safety Needs Social Needs Personal Needs
The Learning Process 6-5 Drive Cues Response Reinforcement
The Consumer Problem Solving Process Exhibit 6-7 6-9 Purchase Situation Social Influences Psychological Variables Need-want Awareness Information Search Set Criteria Decide on Solution Purchase Product Routinized Response Postpone Decision Postpurchase Evaluation Response Feedback of information as attitudes Person making decision Marketing mixes All other stimuli
Levels of Problem Solving Exhibit 6-9 6-10 Extensive Problem Solving Limited Problem Solving Routinized Response Behavior Involvement Continuum Low Involvement High Involvement Low involvement Frequently purchased Inexpensive Little risk Little information needed High involvement Infrequently purchased Expensive High risk Much information desired
The Adoption Process 6-11 Awareness Interest Evaluation Trial Decision Confirmation
Relating the Processes 6-12 Problem-solving steps 1. Becoming aware of or interested in the problem 2. Gathering information about possible solutions 3. Evaluating alterative solutions 4. Deciding on the appropriate solution 5. Evaluating the decision Adoption process steps Awareness and interest Interest and evaluation Evaluation, maybe trial Decision Confirmation Learning steps Drive Cues Response Reinforcement
Key Terms Learning Cues Response Reinforcement Attitude Belief Expectation Psychographics Lifestyle Analysis Social Class Reference Group Opinion Leader Culture Economic Buyers Economic Needs Needs Wants Drive Physiological Needs Safety Needs Social Needs Personal Needs Perception Selective Exposure Selective Perception Selective Retention Extensive Problem Solving Limited Problem Solving Routinized Response Behavior Low-involvement Purchases Adoption Process Dissonance 6-13