Associative – also known as membership groups – primary are informal (co-workers, neighbours); secondary more formal (religious, professional & trade-union) Aspirational: not a member – eg play for Man Utd Dissociative: consumer rejects their behaviour: eg religious cults; gangs?
Reference groups nb to marketers because of influence: where influence is strong marketers must reach the opinion leaders Family: Family of orientation; parents. Family of procreation: wife/husband, kids. Roles of each in purchasing interest marketers: who makes the decision Husband dominant / wife dominant / equal. Husband: buy the car 68 wife 3% equal 29% Colour of car: husband: 25%, wife 25%, equal 50% Kids: type of TV, electronic appliances.
17 17 16 15 15
Family lc: 9 stages: listed with fin situation & typical product interests Also psychological life cycle stages: transformations or passages we go thru: eg satisfied wife & mother may become dissatisfied person looking for a new career: simulates new interests. Divorce, widowhood: huge impact on consumer behaviour. Occupation also influences consumption pattern: blue-collar vs co, president Economic circumstances: spendable income; borrowing power; attitude to spending vs saving. Important for Income-sensitive products Lifestyle: pattern of living in the world as expressed by activities, interests & opinions. Goes beyond social class 7 personality: marketers monitor this to increase the number of ways their products fit meaningfully into the pattern. Personality: the person’ distinguishing psychological characteristics: can be difficult to link to brand choices. Self-concept (& ideal self-concept) form another method
It’s not really ‘me’.
Motivation: Maslow’s theory
Selective attention People are exposed to a great number of stimuli every day e.g. - average person exposed to 1,500 ads a day and remember only three or four Selective attention is the tendency to screen out most of the information to which they are exposed. Means marketers have to work pretty hard. Selective distortion We fit incoming information into an existing mindset. Selective distortion is the tendency to adapt information to personal meanings. People interpret information in a way that will support rather than challenge their preconceptions Selective Retention: People retain info that supports their beliefs & attitudes Marketers have to worked hard : therefore much use of drama & repetition in getting message across
“ The semiotics of consumption” – These symbols play a large role in how we perceive our world (Nike Swoosh; 3 stripes; Coca Cola Can;
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CONSUMER BEHAVIOURPost Graduate Dipl in Fashion Buying & MgmtMarketing the Fashion BrandAmanda Ratcliffe
“Marketing Managers are not in charge anymore........consumers are.”(Wipperfuerth, 2006)
Objectives Why consumer behaviour is important to strategic planning How an individual’s make-up affects consumption behaviour The factors which affect consumer buying decisions A variety of models to better explain CBB The strategic implications of consumer buyer behaviour
Some definitions of Consumer BuyerBehaviour “The behaviour consumers display in searching for, buying, using, evaluating and disposing of products and services that they expect will satisfy their needs” (Schiffman & Kanuk, 1994) “…an investigation into the way individuals make decisions on how to spend their available resources (time, money, effort) on personal & household products.” (Schiffman & Kanuk, 2000) …the consumer may act as buyer, payer, user or any combination of these roles at a time” (Sheth, 2001)
Think of a fashion item that you bought recently… What was it? How did you find out about its availability? Did you consult with anyone else over this purchase? Where did you buy it from? When did you buy it? How did you pay for it? Would you buy it again?
Defining Consumer BehaviourDefinition…the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and desires (Solomon). Key Concepts Processes Individuals/Groups Select,Purchase, Products, Services, Use, Dispose Ideas, Experiences
Customer Types OrganisationalPrivate Consumers Customers Purchase:Purchase: For use in the operation of a business or organisation. To manufacture other productsFor personal or household use For resale to others ORGANISATIONAL CONSUMER PRODUCT PRODUCT 2
Consumers can be buyers or users… or both! Consumers can act as individuals or on behalf of an organisation Fashion designers have two markets – the fashion buyer and the consumer
A Simplified Model of Consumer Decision Making
Individual Factors Motivation - An activated state that causes a person to initiate goal-directed behaviour. Motive - An aroused need that energises behaviour and directs it towards a goal. Need - The gap between actual and desired states. Incentive - Something believed capable of satisfying a particular motive.
Factors affecting Consumer Behaviour Cultural factors Social factors Personal factors Psychological factors
Culture Culture: “ the concepts, values and tangible items (such as buildings and foods) that make up a particular society” (Dibb et al, 2001) Culture is the source of most of our values, norms, and roles. The term culture is very difficult to define clearly, it encompasses so much about the way a society lives. A culture consists of values, beliefs, and customary behaviours learned and shared by the members of a particular society. Culture undergoes change over time – slowly Rapid change can occur as a result of outside pressures These can impact quickly on the nature of markets. Cultural shifts
Subcultures Subcultures: “Sub-divisions of culture according to geographic regions or human characteristics, such as age or ethnic background.” (Dibb et al, 2001) Within a society there is a dominant culture. However, there are also cultural differences. These can be based on; Geography (Counties; Provinces, Countries eg Scandinavia) Language: Gaeltacht? Belgium 2 Languages, Switzerland) Age: Tweenies, Teenagers, “Grey Power” Lifestyle: Punks, Surfers etc
Social factors Group Theory advocates the importance of Reference Groups : “Actual or imaginary individual sor groups conceived of having significant relevance upon an individual’s evaluations, aspirations or behaviour” (Solomon et al, 1999) The set of individuals with whom individuals compare themselves to guide their attitudes, knowledge and or behaviour Family, friends, colleagues, clubs, organisations etc. Aspirational; Football clubs, Celebrities etc. Associative (those of which we are a member & with whom we identify) Dissociative groups
Social factors cont’d Reference groups influence CBB by Exposing persons to new behaviours & lifestyles Influencing attitudes & self concept Creating pressures to conform Group influence varies across product & brand
Social Factors: Family Family The most powerful social group in any society Learn within the family - what to believe - how to behave - what needs are socially accepted Who is the decision-maker within the family?
Sociological factors Social groups Norms of dress The family Women buying men’s underwear for them Geodemographics
Who Buys? The Buying Decision Making ProcessBuyer Gatekeeper Decider (Decision Maker) User Influencer Initiator 5
Irish Social Classification (mrbi) Grade % of Heads of Description household AB 10 Upper middle, middle class C1 20 Lower middle class C2 25 Skilled working class DE 30 Other working class; those at lowest level of subsistence F1 8 Large farmers F2 7 Small farmers; farm labourers
Personal factors Age Family life cycle stage Occupation Economic status Lifestyle Personality & self-concept
M&S: Lifestage Typologies Carefree Kids are us Family Ties Freedom Finders Golden Years
Personality Lifestyle Self image how we see ourselves Ideal self image how we like to see ourselves Social self image how we think we are seen Ideal social self image how we would like others to see us
The Extended Self External objects that we consider a part of us Youare what you drive & wear Levels of extended self Individual Family Community Group ALLMYLIFEFORSALE.COM
Motivation: Maslow’s Hierarchy of Needs Physiological Needs Esteem Needs Water, Feeling of self-worth, Success, Food, Prestige, Air Self-Actualisation Safety Needs Becoming all that one is Protection, shelter capable of being, Social Needs Self-fulfilment Acceptance, People endeavour to satisfy a Affection, number of these daily Depending on age, income, Feelings of belonging, country etc Friendship,
Sheth’s 5 Sets of Needs Functional Needs “does what it says on the Epistemic Needs tin..” Express tendency to Social Needs explore the unknown More sophisticated Travel, books, courses Goods & services that Situational Needs provide assocs. With certain Contingent on time & place societal segments Brands Unplanned Emotional Needs Express love, regret etc Needs become motives when they drive us to act
Two High-End Watches for DifferentPsychological Segments
Perception The process by which people select, organise and interpret information to form a meaningful picture of the world Affects how we act People form different perceptions due to Selective exposure Selective attention Selective distortion Selective retention
Lacoste’s campaign uses a very plain background so the symbol really shows.
Beliefs & Attitudes Attitudes describe a person’s relatively consistent evaluations, feelings and tendencies towards an object or idea Belief: a descriptive thought that a person holds about something Beliefs make up product & brand images Favourable attitudes are NB for marketers – much more profitable than turning around a negative one Persuasion: either by Targeting existing attitudes (Because you’re worth it…) or Modifying the target audience’s point of view (Dove Pro Age)
Learning Knowledge of brands, sizes, stores, preferences Learn through experience Learn through family and peers
Learning and LTM Learning describes changes in an individual’s behaviour arising from experience Learning represents changes in the content or organisation of information in consumers’ long-term memories Marketing communicators attempt to alter consumers’ long-term memories, knowledge structures, by facilitating learning of information that is compatible with the marketer’s interest
The Learning Process Drive Stimuli Cue Response Reinforcement
Choice Criteria used when EvaluatingAlternativesTechnical- Social- Reliability Status Durability Social belonging ConventionPerformance FashionStyle/looks Comfort DeliveryConvenience Economic- Personal- Taste Price Self-image Value for money Risk reduction Running costs Morals Residual value Emotions Life style costs 5
Decision Making How do consumers make their choices? An important determinant is the situation in which a decision is made. Three categories of consumer decision-making behaviour: Routinised response behaviour, Limited problem solving, and Extensive problem solving.
The consumer decision-making process and level ofpurchase involvement Stage Low Involvement High Involvement Need recognition Major personality Minor important problem awareness Information search Limited search Extensive search Evaluation of Few alternatives Many alternatives alternatives and the evaluated on few evaluated on many purchase choice criteria choice criteria Purchase Decision Uncomplicated / Complex decision rules impulse Compensatory ? Post-purchase Limited evaluation Extensive evaluation evaluation of the media search alternatives 10
Opinion leadership Influence exerted when a consumer is faced with choice Information is both sought from and/or given by the OL Fashion marketers ‘create’ opinion leaders
Consumer Behaviour Is Interdisciplinary Psychology Sociology Social psychology Anthropology Economics
Why study consumer behaviour? (Micro) Marketing Implications Marketing Concept Market Segmentation Influencing Product/Service Choices (Macro) Societal Implications Understanding Popular Culture--e.g., Lady Gaga, Nike, the Oscars Understanding Consumer Culture around the World--e.g., Christmas as a Global Holiday How does Marketing Affect Consumers?--e.g., Happiness, Envy, Materialism An increasingly significant part of human behaviour
Strategic Implications of Consumer Behaviour Contemporary marketers rely on CB to increase effectiveness in light of increasingly complex env’t Market research: qualitative & quantitative data Increasing importance of psychographics Market segmentation Brand / product postioning (Burberry / chav disaster) Symbolism & semiotics: the study of meaning Use of logos; hi-impact packaging; animation Product innovation & value decisions Brands judged relative to others Use of perceptual maps
Developments in Consumer Behaviour E-shopping: Vast consumer choice Growth of global / international marketing: The “euro”consumer ? The global consumer? Deviant consumer behaviour (I know I shouldn’t but..) Ethical implications for marketers Economic psychology: Choice conflict (among equally reputable brands) Loss / regret aversion