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Consumer behaviour final materials

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Consumer behaviour

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Consumer behaviour final materials

  1. 1. Dr. Raafat Youssef Shehata Consumer Behavior
  2. 2. Table of contents • Introduction to consumer behavior • Decision making process • Culture and consumer behavior • Perception • Motivation • Personality • Self • Attitude • Cases
  3. 3. Chapter 1 Introduction to consumer behavior
  4. 4. The Nature of Consumer Behavior Overall Conceptual Model of Consumer Behavior
  5. 5. The Nature of Consumer Behavior External Influences The following are the major external influences: • Culture • Demographics and social stratification • Ethnic, religious, and regional subcultures • Families and households • Groups
  6. 6. The Nature of Consumer Behavior Internal Influences Internal influences include: • Perception • Learning • Memory • Motives • Personality •Emotions •Attitudes
  7. 7. U& A study
  8. 8. Sources of data • Free websites • Governmental statistics • Paid websites • Syndicated research • Customized research
  9. 9. Why study consumer behavior? • Consumer behavior theory provides the manager with the proper questions to ask • Marketing practice designed to influence consumer behavior influences the firm, the individual, and society • All marketing decisions and regulations are based on assumptions about consumer behavior
  10. 10. Consumer Behavior and Marketing Strategy Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
  11. 11. What are Consumers’ Needs, Wants, and Demands? Needs - state of felt deprivation including physical, social, and individual needs i.e hunger Wants - form that a human need takes as shaped by culture and individual personality i.e. bread Demands - human wants backed by buying power i.e. money
  12. 12. CONSUMER DECISION PROCESS AND PROBLEM RECOGNITION © M. Hruby
  13. 13. Decision-Making Process
  14. 14. Problem Recognition • Problem recognition is the result of a gap between a desired state and an actual state sufficient to arouse and activate the decision process. • An actual state is the way an individual perceives his/her feelings and situation to be at the present time. • A desired state is the way an individual wants to feel or be at the present time.
  15. 15. Types of Consumer Problems Active Problem An active problem is one the consumer is aware of or will become aware of in normal course of events. Marketing strategy: Only require marketer to convince consumers that its brand is the superior solution. Inactive Problem An inactive problem is one of which the consumer is not aware. Marketing strategy: Marketer must convince consumers that they have the problem AND that their brand is a superior solution. 14-16 The Process of Problem Recognition
  16. 16. A wide variety of approaches are used to determine the problems consumers face. Discovering Consumer Problems 1. Intuition - the most common, however, the problem identified may be of low importance to most consumers 2. Survey – asks relatively large numbers of individuals about the problems they are facing 3. Focus Groups – composed of 8 to 12 similar individuals brought together to discuss a particular topic; a moderator is present to keep the discussion moving and focused on the topic but otherwise free flowing
  17. 17. INFORMATION SEARCH
  18. 18. Internal Search Search of long-term memory to determine if a satisfactory solution is known. External Search If a resolution is not reached through internal search, then the search process is focused on relevant external information. Consumers continually recognize problems and opportunities, so internal and external searches for information to solve these problems are ongoing processes. Nature of Information Search
  19. 19. Sources of Information • Memory of past searches, personal experiences, and low- involvement learning • Personal sources, such as friends, family, and others. • Independent sources, such as magazines, consumer groups, and government agencies • Marketing sources, such as sales personnel, websites, and advertising • Experiential sources, such as inspection or product trial
  20. 20. ALTERNATIVE EVALUATION AND SELECTION
  21. 21. Three types of consumer choice processes: How Consumers Make Choices -Affective Choice -Attitude-Based Choice -Attribute-Based Choice
  22. 22. Attribute- versus Attitude-Based Choice Processes Attribute-Based Choice •Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by- attribute comparisons across brands. Attitude-Based Choice •Involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by- attribute comparisons are made at the time of choice.
  23. 23. OUTLET SELECTION AND PURCHASE
  24. 24. Retailing • Internet Retailing • Barriers to Internet Shopping • Characteristics of Online Shoppers • Store-based Retailing
  25. 25. Many barriers still exist to online purchasing, not the least of which is the lack of Internet access. However, many who are online still have never made a purchase. A Forrester Research study found the following reasons among those who are online who have never made a purchase: Barriers to Internet Shopping
  26. 26. Internet shoppers tend to have higher income and education levels than the general population, although these differences are diminishing. Online shoppers tend to be younger and more affluent than the average Internet users. While men and women are roughly equally split in terms of internet use, women are emerging as the stronger Internet buyer. Characteristics of Online Shoppers
  27. 27. Most sales take place in physical stores, and this will remain true for the foreseeable future. However traditional store-based retailing is certainly vulnerable in ways that plays into the hands of in-home retailers. Store-based Retailing
  28. 28. The following are the results of a Roper survey asking consumers why they don’t like shopping in stores: Store-based Retailing
  29. 29. Location and size play an important role in store choice. All else equal, consumers generally select the closest store. Outlet size is also important. Generally, customers prefer larger outlets over smaller outlets. The retail attraction model, or the retail gravitation model, is used to calculate the level of store attraction based on store size and distance from the consumer. Outlet Location and Size
  30. 30. Perceived Risk -The perception of these risks differs among consumers, depending in part on their past experiences and lifestyles. -For this reason perceived risk is considered a consumer characteristic as well as a product characteristic.
  31. 31. Types of perceived risk 1-Performance risk Will the product function properly? 2-Financial risk Can I afford it, is it good value? 3-Physical risk Will the product harm me or other people? 4-Ego risk Will this product make me feel good about myself? 5-Social risk Will this impress friends or colleagues?
  32. 32. How to minimise perceived risk • To minimise risks associated with purchasing new products & brands, companies employ methods that encourage trust & satisfy need for reassurance (e.g., less well-known brands will offer lengthy warranties). PR can be used to gain credibility. • Celebrity endorsement, the approvals of opinion formers & visual demonstration of the product/service in action are all important communication methods to minimise perceived risk. • Branding is one of the main methods.
  33. 33. POSTPURCHASE PROCESSES, CUSTOMER SATISFACTION, AND CUSTOMER COMMITMENT
  34. 34. Postpurchase Dissonance occurs when a consumer has doubts or anxiety regarding the wisdom of a purchase made and is a function of the following: • The degree of commitment or irrevocability of the decision • The importance of the decision to the consumer • The difficulty of choosing among the alternatives • The individual’s tendency to experience anxiety Post-purchase Dissonance
  35. 35. After the purchase is made, the consumer may utilize one or more of the following to reduce dissonance:  Increase the desirability of the brand purchased  Decrease the desirability of rejected alternatives  Decrease the importance of the purchase decision  Reverse the purchase decision (return before use) Post-purchase Dissonance
  36. 36. Culture & Cultural influences on consumer behavior Chapter 2
  37. 37. The Concept of Culture Culture is the complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society.
  38. 38. Marketing Across Cultural Boundaries is a Difficult and Challenging Task
  39. 39. Hofstede’s Cultural Classification Scheme
  40. 40. Power distance The degree of inequality among people that is viewed as being equitable
  41. 41. Uncertainty avoidance The extent to which people in a given culture prefer structured situations with clear rules over unstructured ones
  42. 42. Individualism The degree to which people prefer to act as individuals rather than group members.
  43. 43. Asian cultures more collective U.S. culture more individualistic Individual/Collective
  44. 44. Masculinity The importance of “male” values (assertiveness, success, competitive drive, achievement) versus “female” values (solidarity, quality of life).
  45. 45. Masculinity -The importance of “male” values (assertiveness, success, competitive drive, achievement) versus “female” values (solidarity, quality of life). -Japan is considered by Hofstede to be the most masculine culture, Sweden is regarded as the most feminine culture.
  46. 46. Long-term orientation versus short-term focus Future versus past and present orientations
  47. 47. Competitive/Cooperative Other-Oriented Values Does one obtain success by excelling over others or by cooperating with them?
  48. 48. Culture -It is the sum of beliefs , customs , norms , knowledge to which people are exposed in their social conditioning VALUES & BELIEFS BEHAVIOUR ARTEFACTS RITUALS Observable Non observable
  49. 49. Culture 1-Beliefs & values -The way we feel anything 2-Customs -e.g. division of labour in a household 3-Mores -Customs with strong moral overtone e.g. prostitution 4-Conventions -Norms regarding every day conduct e.g. etiquette
  50. 50. Culture 5-Artefacts -Physical tools e.g. dress codes , logo 6-Rituals -Symbolic meaning e.g. greeting behaviors 7-Heros - e.g. Bill Gates
  51. 51. Holiday Rituals Thanksgiving Valentine’s Day Secretaries’ Day Grandparents’ Day Christmas New Year’s Halloween What Rituals Are Associated With the Following Holidays?
  52. 52. Materialism • Success is usually measured in terms of acquisitions like houses, cars and electronic goods and people devote an enormous amount of their lives to acquiring these things. • The signs of being a successful achiever lie in the ownership of desired consumer goods like a Mercedes or a big house .
  53. 53. Halloween • Its rituals are unusual: • Involves nonfamily members • Celebrates evil and death • Encourages “tricks” for treats • Halloween is an antifestival: distorts symbols associated with other holidays • Witch = inverted mother figure; resurrection of ghosts; evil jack- o-lantern • We act out uncharacteristic behaviors and try on new roles
  54. 54. Cultural Variations in Nonverbal Communications Etiquette Meishi is an important aspect of Japanese business etiquette…”a man without a Meishi has no identity in Japan.” What is Meishi? It is the exchange of business cards!
  55. 55. Subcultures
  56. 56. Gender-Based Marketing Gender roles in the U.S. are shifting, both genders making many purchase decisions. Example: Today, women influence 80% of all vehicles sold. Implications for dealerships and sales training?
  57. 57. Social factors
  58. 58. Social class -Class A ---- upper middle class -Class B ---- middle class -Class C1 ---- lower middle -Class C2----- skilled workers -Class D ----- unskilled workers -Class E ----- unemployed & pensions + Criticisms of social class
  59. 59. UK socioeconomic classification scheme Class name Social status Occupation of head of household % of population A Upper middle Higher managerial, administrative or professional 3 B Middle Intermediate managerial, administrative or professional 14 C1 Lower middle Supervisors or clerical, junior managerial, administrative or professional 27 C2 Skilled working Skilled manual workers 25 D Working Semiskilled and unskilled workers 19 E Those at lowest levels of subsistence Pensioners, widows, casual or lower-grade workers 12
  60. 60. Status Symbols Status-seeking: motivation to obtain products that will let others know that you have “made it”
  61. 61. Status Symbols The effectiveness of a product or service as a status symbol seems to rest, therefore, on five factors: • Exclusivity – only a few people should be eligible to acquire it • It should be relatively expensive • It should be of good quality • It should be of limited supply • It should be used by honored and respected people
  62. 62. Status Symbols • Gucci leather goods were accepted status symbols from the 1920s up until the1980s, when they were seen by many as hackneyed and d´eclass´e after going down-market and trying to broaden their appeal. • Many of the electronic goods and household items that were status symbols when they were first introduced and relatively expensive, are now within the reach of most people with a middle class income and middle class tastes – even if others might classify these people as working class.
  63. 63. Perception Chapter 3
  64. 64. Perception It is the process by which people select ,organize and interpret stimuli into a meaningful picture
  65. 65. The Nature of Perception
  66. 66. Exposure Exposure occurs when a stimulus is placed within a person’s relevant environment and comes within range of their sensory receptor nerves. Exposure provides the opportunity for attention but in no way guarantees it.
  67. 67. Selective Exposure • Ad avoidance includes ways consumers selectively avoid exposure to advertising messages and can include: • Zipping--occurs when one fast-forwards through a commercial on a prerecorded program • Zapping--involves switching channels when a commercial appears • Muting--is turning the sound off curing commercial breaks.
  68. 68. Attention Attention is determined by three factors: • Stimulus Factors • Are physical characteristics of the stimulus itself • Individual Factors • Are characteristics which distinguish one individual from another • Situational Factors • Include stimuli in the environment other than the focal stimulus and temporary characteristics of the individual that are induced by the environment
  69. 69. Attention Stimulus Factors • Size • Intensity • Attractive Visuals • Color and Movement • Position • Isolation • Novelty • Format • Contrast and Expectations • Interestingness • Information Quantity
  70. 70. Attention Size Larger stimuli are more likely to be noticed than smaller ones. Stimulus Factors Source: 1Cahners Advertising Research Report 110.1B (Boston: Cahners Publishing, undated). An estimated $9+ billion a year is paid out in slotting allowances by firms to retailers in order to secure shelf space. Size also affects attention to advertising. The Impact of Size on Advertising Readership1
  71. 71. Attention Intensity The intensity (e.g., loudness, brightness, length) of a stimulus can increase attention. In online contexts, one aspect of intensity is intrusiveness, or the degree to which one is forced to see or interact with a banner ad or pop up in order to see the desired content. Repetition is related to intensity. It is the number of times an individual is exposed to a given stimulus, such as an ad or brand logo, over time. Consumers may shift the focus of their attention from one part of the ad to another across repetitions, resulting in attention reallocation. Stimulus Factors
  72. 72. Attention Attractive Visuals Individuals are attracted to pleasant stimuli and repelled by unpleasant stimuli. An ad’s visual or pictorial component can have a strong influence, known as a picture superiority effect. Any factor that draws attention to itself and away from the brand has to be used with caution. Stimulus Factors
  73. 73. Attention Color and Movement Color and movement attract attention. A brightly colored package or display is more likely to received attention. Color and movement are also important in ads. Stimulus Factors Color and Size Impact on Attention1 Source: 1”How Important is Color to an Ad?” Starch Tested Copy. February 1989, p.1. Roper Starch Worldwide, Inc.
  74. 74. Attention Position Position is the placement of an object in physical space or time. In retail stores, items that are easy to find or stand out are more likely to attract attention, such as end-caps and kiosks. High impact zones in print ads in the U.S. tend to be toward the top left portion of the ad. Stimulus Factors
  75. 75. Attention Isolation Isolation is separating a stimulus object from other objects. Examples of isolation include: • In store use of a stand-alone kiosk • In an advertisement, the use of “white space” • In a radio commercial, surrounding a key part with a brief moment of silence. Stimulus Factors
  76. 76. Attention Novelty -Stimuli that appear in unexpected ways or places tend to grab our attention -The unconventional places include the back of shopping carts, walls of tunnels , and even public restrooms -A promotion to introduce vanilla coke in Europe put wooden boxes in shopping malls and told people to stick their heads in them. The brave souls who complied were rewarded with bottle of the stuff . This request tied into commercials for the new product that tell viewers to “reward your curiosity “ Stimulus Factors
  77. 77. Stimulus organization 1-The closure principle—people tend to perceive an incomplete picture as complete. We fill in the blanks. 2-The principle of similarity—consumers tend to group objects that share similar physical characteristics. 3-The figure-ground principle—one part of a stimulus will dominate (the figure) while other parts recede into the backdrop (the ground).
  78. 78. Closure Principle People tend to perceive an incomplete picture as complete
  79. 79. Perceptual filters • Perceptual vigilance—consumers are more likely to be aware of stimuli that relate to their current needs. • Perceptual defense —people see what they want to see and vice versa. • Adaptation —the degree to which consumers notice a stimulus over time
  80. 80. Perceptual vigilance • A consumer who rarely notices car ads will become very much aware of them when he is in the market for a new car
  81. 81. Perceptual defense For example a heavy smoker may block out images of cancer-scarred lungs
  82. 82. Perceptual Adaptation • The process of adaptation occurs when no longer pay attention to stimulus because it is so familiar • For example a consumer en route to work might read a billboard message when it is first installed but after few days it just become part of the passing scenery
  83. 83. Types of vision 1-Central (or foveal) vision - This is the sharp, straight-ahead vision which enables us to read, drive, and perform other activities that require fine, sharp, straight-ahead vision 2-Peripheral vision - This extends an additional 30 degrees either side of our central vision
  84. 84. Peripheral vision
  85. 85. Motivation Chapter 4
  86. 86. Shopping • If you see a friend in a shopping mall and you ask ‘Why are you here?’ • The immediate and obvious answer you would expect is ‘To buy things’. But if • You followed this up with the question ‘Why else are you here?’ you might be met with a blank stare. • Yet research has discovered that there may be many other reasons why people go shopping, some of which they may be aware of and others which may be quite
  87. 87. Shopping • Shopping gets you out of the house and breaks up the routine • Shopping is a form of entertainment (and window shopping is free entertainment) • Shopping allows you to meet friends • Shopping can make you feel important and needed as the household provider • Shopping gives you the opportunity to exercise your hunting and bargaining skills and success gives you a feeling of achievement.
  88. 88. Motivation as a Psychological Force • Motivation is the driving force within individuals that impels them to action. • Needs are the essence of the marketing concept. Marketers do not create needs but can make consumers aware of needs.
  89. 89. Model of the Motivation Process 96
  90. 90. Types of Needs • Innate Needs • Physiological (or biogenic) needs that are considered primary needs or motives • Acquired Needs • Learned in response to our culture or environment. Are generally psychological and considered secondary needs
  91. 91. Types of Needs Types of needs: • Biogenic: biological needs, such as for air, water, food • Psychogenic: need for status, power, affiliation • Utilitarian: need for tangible attributes of a product, such as miles per gallon in a car or calories in a cheeseburger • Hedonic: needs for excitement, self-confidence, fantasy
  92. 92. Classifying Consumer Motivations Researchers put motivation into 5 categories: 1. Conscious vs. Unconscious 2. High vs. Low Urgency 3. Positive vs. Negative Polarity 4. Intrinsic vs. Extrinsic 5. Rational vs. Emotional
  93. 93. • Conscious motives are motives we are aware of, the reasons for our behavior are clear, and these motives do not need to be aroused • Sometimes we are unaware of the reason why a particular behavior was undertaken; our motivation is unconscious Conscious vs. unconscious motives
  94. 94. Manifest motives are motives that are known and freely admitted. Latent motives are either unknown to the consumer or are such that he/she is reluctant to admit them. Projective techniques are designed to provide information on latent motives. Discovering Purchase Motives
  95. 95. High vs. low urgency motives • High urgency needs must be satisfied immediately and may make comparison shopping impossible • Low urgency needs can be postponed and enable consumers to shop for the best product at the best price • Example :Heating system quits; car breaks down Vs. Buying equipment for your trip this summer
  96. 96. Positive and negative motivation • Positive motivation drives consumers toward some object or condition • Negative motivation (e.g., fear/guilt) drives consumers away from a consequence • American Express: positive—convenient, accepted everywhere • Life insurance and home security devices use negative motivation
  97. 97. Intrinsic vs. extrinsic motives • Intrinsic motivation is engaging in behavior for the pleasure of the behavior itself; the behavior is the reward • Extrinsic motivation is engaging in behavior for a reward that is independent of the activity • A sport such as basketball—some play for the love of the game, others for monetary reward, to gain a scholarship, etc.
  98. 98. Rational v. emotional motives • Rationality implies consumers select goals based on totally objective and utilitarian criteria, such as size, weight, price, miles per gallon, etc. • Ads that provide factual information are aimed at this motivation • Emotion implies the selection of goals according to personal or subjective criteria, such as pride, fear, affection or status • Ads that identify products with a particular lifestyle target emotional motivation
  99. 99. Maslow’s Hierarchy of Needs
  100. 100. Five basic needs (in order)  Physiological needs  Safety needs  Social needs  Egoistic needs  Self-actualization needs Maslow’s hierarchy of needs Physiological Needs (Food, water, air, shelter, sex) Safety and Security Needs (Protection, order, stability) Social Needs (affection, friendship, belonging) Ego Needs (Prestige, status, self esteem) Self-Actualization (Self-fulfillment)
  101. 101. Theories of Motivation For Wearing Clothes 1. Modest theory. 2. Immodest theory. 3. Protection theory. 4. Adornment theory.
  102. 102. Theories Of Motivation For Wearing Clothes (continued) 1. Modest theory. -people wore clothing to conceal the private parts of their bodies. -Modest theory is not universal
  103. 103. Theories Of Motivation For Wearing Clothes (continued) 2. Immodest theory. -clothes have been worn to draw attention to certain parts of the body.
  104. 104. Theories Of Motivation For Wearing Clothes (continued) 3. Protection theory. -clothing was first used to protect us from the elements such as cold, from insect and animals.
  105. 105. Theories Of Motivation For Wearing Clothes (continued) 4. Adornment theory. -function of clothing is adornment, personal decoration, or aesthetic expression. -shows status and identity, and raises one’s self esteem.
  106. 106. Motivational research
  107. 107. Motivational research • Ice cream taps into unconscious feelings of love and affection for many people Because it symbolizes an abundant and nurturing mother.
  108. 108. Motivational research • When a woman bakes a cake and pulls it out of the oven she is (unconsciously and symbolically) going through the process of giving birth.
  109. 109. Motivational conflict
  110. 110. Motivational conflict • Occurs when multiple needs arise and fulfilling one goal conflicts with another • The end result is frustration • Conflict can involve both positive and negative motivation Lewin identified three types of motivational conflict: 1.Approach-approach conflicts 2.Avoidance-avoidance conflicts 3.Approach-avoidance conflicts
  111. 111. 1. Approach-approach conflicts • Arise when consumers face a choice among desirable option—i.e., two positive goals or motivations • The more equal the positives, the greater the conflict • Example :Buying a new car vs. going on an expensive vacation
  112. 112. 1. Approach-approach conflicts • Marketers can use tactics designed to ease the conflict by making one option more attractive or creating conditions where consumers can have both • Restaurant menu: combination plates help consumer who can’t decide what he wants • Special rates, sales, deals, etc. can make one more attractive (e.g., buy a full fare seat, get second free)
  113. 113. -Some solutions to these conflicts include the proliferation of fake furs, which eliminate guilt about harming animals to make a fashion statement, and the success of low calorie and diet foods, such as those produced by Weight Watchers, that promise good food without the calories. -Some marketers counter consumer resistance to over- consumption and spending by promising more (benefits) from less, as in an Audi advertisement (in 2000), whereas other marketers try to overcome guilt by convincing consumers that they deserve luxuries . 1. Approach-approach conflicts
  114. 114. 2. Avoidance-avoidance conflicts • Arise when consumers must choose between two options with unfavorable consequences • Examples: -Paying to fix up the old car or buying another one -Life insurance is a classic example: paying premiums vs. leaving your family unprotected
  115. 115. 2. Avoidance-avoidance conflicts • Marketers seek ways to minimize the negative aspects of purchasing their product • Marketers may also emphasize the negatives related to avoiding the purchase of the product • Examples: -Car: low-rate financing, rebates, payment plans, etc. -Insurance: turn it into an investment
  116. 116. 3. Approach-avoidance conflicts • Consumers only purchase products when they believe the benefits outweigh the costs • It is the job of marketers to convince consumers that their product’s value exceeds its costs
  117. 117. Personality
  118. 118. Personality • Personality: a person’s unique psychological makeup and how it consistently influences the way a person responds to his/her environment
  119. 119. Freudian Theory -Sigmund Freud developed the idea that much of one’s adult personality stems from a fundamental conflict between a person’s desire to gratify his or her physical needs and the necessity to function as a responsible member of society. -His principles (note that these terms do not refer to physiological portions of the consumer’s brain) included: • The id • The superego • The ego
  120. 120. 1) The id (which is entirely oriented toward immediate gratification). It operates on the pleasure principle (behavior guided by the primary desire to maximize pleasure and avoid pain). a) The id is selfish. b) The id is illogical 2) The superego (which is the counterweight to the id). It is a person’s conscience. a) It internalizes society’s rules. b) It works to prevent the id from seeking selfish gratification. 3) The ego (which is the system that mediates between the id and the superego). The ego tries to balance these two opposing forces according to the reality principle, whereby it finds ways to gratify the id that will be acceptable to the outside world. Much of this battle occurs in the unconscious mind. Freudian Theory
  121. 121. Specific personality traits 1. Innovativeness 2. Dogmatism 3. Social character 4. Materialism 5. Compulsiveness Trait Theory of Personality
  122. 122. 1. Innovativeness • Willingness to try new products, services or practices • Innovators are the first to try a new product and often indicate its success or failure • Remember Apple’s “Newton”? Trait Theory of Personality:Specific personality traits
  123. 123. 2. Dogmatism • Measures the degree of rigidity vs. openness individuals display toward the unfamiliar and toward information that is contrary to their own established beliefs • An indicator of how consumers respond to unfamiliar products or features • Highly dogmatic (closed-minded) consumers are more likely to choose established, rather than innovative, product alternatives Trait Theory of Personality:Specific personality traits
  124. 124. 3. Social character • Personality trait that ranges on a continuum from inner- directedness to other-directedness • Inner-directed consumers rely on their own “inner” values in evaluating new products and are likely to be innovators • Outer-directed consumers tend to look to others for direction on what is right and wrong and thus less likely to be innovators Trait Theory of Personality:Specific personality traits
  125. 125. 4. Materialism • It distinguishes between individuals who regard possessions as essential to their identities and their lives, and those for whom possessions are secondary • Research indicates that characteristics of materialistic persons include: • They value acquiring and showing off possessions • Self-centered and selfish • They seek lifestyles full of possessions • Their possessions do not give them greater personal satisfaction Trait Theory of Personality:Specific personality traits
  126. 126. Materialism • The importance people attach to worldly possessions • Tends to emphasize the well-being of the individual versus the group • People with highly material values tend to be less happy • America is a highly materialistic society
  127. 127. 5. Compulsiveness • Compulsive activities include alcoholism, gambling, and various food disorders • Compulsive buying can be included in the list • Often requires some type of therapy or clinical treatment • Evidence suggests that some consumers use self-gifting and compulsive buying as a way to influence or manage their moods • E.g., I’m feeling depressed; I think I’ll go shopping Trait Theory of Personality:Specific personality traits
  128. 128. Personality • Multi-trait Approach • The Five-Factor Model is the most commonly used by marketers and identifies five basic traits that are formed by genetics and early learning. • Single Trait Approach • Consumer Ethnocentrism • Need for Cognition • Consumers’ Need for Uniqueness
  129. 129. Personality Multitrait personality theory identifies several traits that in combination capture a substantial portion of the personality of the individual. Multitrait Approach The Five-Factor Model is commonly used by marketers, which identifies five basic traits that are formed by genetics and early learning.
  130. 130. Personality The Five-Factor Model of Personality
  131. 131. Single trait approach 1. Consumer Ethnocentrism 2. Need for Cognition (NFC) 3. Consumers’ Need for Uniqueness
  132. 132. 1-Consumer Ethnocentrism Reflects an individual difference in consumers propensity to be biased against the purchase of foreign products
  133. 133. Consumer Ethnocentrism • Lexington furniture is tapping into pro-American sentiments by actively promoting the “Made in America”
  134. 134. 2-Need for Cognition (NFC) • Reflects an individual difference in consumers’ propensity to engage in and enjoy thinking • High NFC people prefer verbal to visual information and are less swayed by the opinions of others • A person’s craving for enjoyment of thinking • Individual with high NFC more likely to respond to ads rich in product information • Research reveals NFC may be linked to demographic characteristics such as gender (women are generally higher in NFC)
  135. 135. 3-Consumers’ Need for Uniqueness Reflects an individual difference in consumers’ propensity to pursue differentness relative to others through the acquisition, utilization, and disposition of consumer goods.
  136. 136. Cognitive Personality Factors • Visualizers • Verbalizers -Is whether a consumer is a visualizer who prefers visual information or a verbalizer who prefers written or verbal information. -This difference in cognitive personality factors would affect how they respond to a print ad.
  137. 137. The Self Chapter 6
  138. 138. The Self • Perspective on the self • Consumption and self concept • Sex roles • Body image
  139. 139. You are what you consume
  140. 140. The self • A person’s conception of his or her body also provides feedback to self-image. • A culture communicates certain ideals of beauty, and consumers go to great lengths to attain these. • Many consumer activities involve manipulating the body, whether through dieting, cosmetic surgery, tattooing, or even mutilation. • Sometimes these activities are carried to an extreme, as people try too hard to live up to cultural ideals. One example is found in eating disorders, where women in particular become obsessed with thinness
  141. 141. Dimensions of a Consumer’s Self-Concept
  142. 142. Extended self Four levels of extended self have been described: 1) Individual level—you are what you wear. 2) Family level—includes your house and furniture. 3) Community level—includes your neighborhood and home town. 4) Group level—includes your religion, flag, sports team, etc
  143. 143. Symbolic self-completion theory suggests that people who have an incomplete self-definition tend to complete this identity by acquiring and displaying symbols associated with it (e.g., men and their “macho” products). Symbolic self-completion theory Consumption and Self-Concept
  144. 144. (e.g., men and their “macho” products). Adolescent boys for example may use “macho” products like cars and cigarettes to bolster their developing masculinity Symbolic self-completion theory Consumption and Self-Concept
  145. 145. Sex roles
  146. 146. Gender differences • Women eat more fruit • Men are more likely to eat meat as one writer put it “boy food does not grow .It is hunted or killed” • Men are big root beer drinkers • Women account for the bulk of sales of bottled water
  147. 147. Sex typed products Masculine • Pocket knife • Shaving cream • Stereo system • Wall paint • Tool kit • Briefcase • Scotch
  148. 148. Sex typed products Feminine • Baby oil • Hand lotion • Clothes dryer • Facial tissue • Scarf • Bedroom slipper
  149. 149. Ideals of Beauty -A person’s satisfaction with the physical image he or she presents to others is affected by how closely that image corresponds to the image valued by his or her culture. -Ideals of beauty for men and women include physical features (big breasts or small , bulging muscle or not ) as well as clothing styles, cosmetics, hairstyles, skin tone (pale versus tan ), and body type (petite , athletic) Body Image
  150. 150. Ideals of beauty • Other positively valued female characteristics include higher than average forehead , fuller lips , shorter jaw and a smaller chin and nose • Women on the other hand favor men with a heavy lower face (an indication of high concentration of androgens that create strength), those who are slightly above average height and those with a prominent brow
  151. 151. Ideals of Beauty • Is Beauty Universal? • Men are attracted to an hourglass shape • Women prefer men with a heavy lower face, above-average height, and a prominent brow • The Western Ideal: • Big round eyes, tiny waists, large breasts, blond hair, and blue eyes
  152. 152. Female body type • The British Association of Model Agents (AMA) says that female models should be around 34-24-34 in (86-61- 86 cm) and at least (1.73 m) tall.
  153. 153. Working on the Body • Cosmetic Surgery: • Consumers are increasing electing to have cosmetic surgery to change a poor body image or enhance appearance. • Men are increasingly having cosmetic surgery too. • Breast Augmentation
  154. 154. WHAT MEN (mostly) WANT? Men usually say that they use aesthetic medicine for professional reasons, when in fact they also want to look their best. -Injections for a younger look (Botox & hyaluronic) -Eye contour therapy: puffy eyes, dark circles -Skin resurfacing with laser or light peels : ageing spots, acne scars, blemishes -Hair removal : back, nape, chest, legs, unibrow, Hair loss
  155. 155. WHAT WOMEN (mostly) WANT • Dynamic 60’s: • cannot stand their “slackly arm or thighs”, • now that they have time and money, they want to take care of themselves without asking anybody’s permission! • 40’s and 50’s: • See dramatic changes on their face and wish to push back a potential lifting for another 5, 10 to 15 years • 17 to 20 year-olds: • Are complexes by sudden stretch marks, or excessive hairs, or their silhouette
  156. 156. Body reshaping • Body reshaping or body sculpting cosmetic surgery is becoming increasingly popular in the UK. There are some parts of the body that cannot change no matter how much diet or exercise you do. If there is a certain part of your body that you are not entirely happy with one of these procedures could suit you. • The most popular body reshaping cosmetic surgery procedures include: 1. Fat Removal (Liposuction) 2. Tummy Tuck 3. Thigh and Buttock lift 4. Buttock Implants 5. Calf Implants 6. Arm Lift and Reduction
  157. 157. Attitude Chapter 7
  158. 158. The Power of Attitudes • Attitude: a lasting, general evaluation of people, objects, advertisements, or issues • Help to determine a number of preferences and actions
  159. 159. Negative publicity about a celeb’s personal life plays a big role which increases the risk to develop negative attitude towards them .
  160. 160. Cognition • The cognitive component consists of a consumer’s beliefs about an object. • For example, an individual may believe that Mountain Dew - Is popular with younger consumers. -Contains a lot of caffeine. - Is competitively priced. -Is made by a large company.
  161. 161. Attitude • I know that McDonalds is junk food that will not do much for me nutritionally, I may like the taste of it so much that I eat it anyway.
  162. 162. Classical conditioning • Classical conditioning can also associate a product or service with a favorable emotional state. • A study by Gerald Gorn used this approach to examine how background music in ads influences product choice. • He found that subjects were more likely to choose a product when it was presented against a background of music they liked
  163. 163. Types of attitudes Five attitudes groups an be found in any market : 1. Enthusiastic attitude 2. Positive attitude 3. Indifferent attitude 4. Negative attitude 5. Hostile attitude
  164. 164. Types of attitudes /strategies 1-They thank enthusiastic and suggest they continue 2-They reinforce those who are positively disposed 3-They try to win the loyalty of indifferent people 4-They spend no time trying to change the negative and hostile attitude
  165. 165. Adding Attributes Changes Attitudes • This slide shows an ad for a Panasonic wireless projector. • It is a good example of companies attempting to add a new attribute to the attitude formation mix. • In this ad, Panasonic is showing that they have added wireless feature to their product, which makes it easier and more convenient to use.
  166. 166. Attitudes are Learned • We are not born with attitudes • Attitudes relative to purchase behavior are formed as a result of 1. direct experience with the product 2. word-of-mouth 3. exposure to mass media advertising, the internet, and direct marketing
  167. 167. Attitudes Occur Within a Situation • How attitudes affect behavior depends on the situation in which the behavior occurs • Thus a specific situation may cause consumers to behave in ways that are inconsistent with their attitudes • From a marketer’s perspective, it is important to consider the situation in which the behavior takes place, or one might misinterpret the relationship between attitude and behavior
  168. 168. Attitudes Occur Within a Situation • You may dislike McDonald’s—because of the solid waste pollution, because it’s a multinational corporation, or because you doesn’t feel the food is healthy. • But if you is running late for an evening meeting and have little time to eat, you may decide to eat at McDonald’s, even though that’s inconsistent with your attitude. • Has he changed his attitude? No.
  169. 169. Attitudes Occur Within a Situation • You may buy a different shampoo each time you shops. • This might reflect dissatisfaction with the brands you have used in the past. • Or it may reflect that you are trying to save money and is buying the least expensive brand each time
  170. 170. Sources of Attitudes Three Major Influences on Attitude Formation 1. Personal experience 2. Influence of family and friends 3. Exposure to direct marketing and mass-media
  171. 171. 1. Personal Experience • The primary basis on which attitudes towards goods and services are formed • Free products, cents-off promotions, etc. • Marketer’s goal is to get consumers to try a product and, hopefully, develop a positive attitude towards it
  172. 172. 2. Influence of Family & Friends • Family and friends are a major influence on our values, beliefs and attitudes • We carry over into adulthood many of the attitudes we developed as children • Our peer and social groups also influence our attitudes
  173. 173. Reference groups • One study shows that over 40 per cent of Americans seek the advice of family or friends when shopping for doctors, lawyers, and auto mechanics. • Word of mouth is also important with respect to restaurants, entertainment, banking, and personal services. • And young adults are more willing to seek referrals than are older people
  174. 174. 3. Direct Marketing & Mass Media Television, radio, newspapers and magazines provide marketers with unlimited opportunities to create positive attitudes towards their products

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