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Lecture 4 psychological determinants of consumer behavior


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Psychological determinants of Consumer Behavior

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Lecture 4 psychological determinants of consumer behavior

  2. 2. DETERMINANTS THAT INFLUENCE CONSUMER BEHAVIOR 1 2 3 4 Psychological Sociological Economic Demographic
  3. 3. OTHER DETERMINANTS THAT INFLUENCE CONSUMER BEHAVIOR 1 2 3 War Earthquake Flood Change of consumer behavior 4 Infectious diseases
  4. 4. PSYCHOLOGICAL DETERMINANTS 1 2 3 Needs Motives Motivation 4 Perception Internal world of a person 5 6 7 8 9 Personality, self-image Learning Consumer knowledge Intentions Attitudes and beliefs
  5. 5. 1. NEEDS Definitions Feeling a lack of something and efforts to remove that feeling Feeling of imbalance in the body / strive to make a balance Physical and emotional discomfort and dissatisfaction and desire for their removal Pressure on the nervous system to take action
  6. 6. 1. NEEDS Definitions А В С Current state Where are you at the moment Gap Desired state Where you want to be The ad shows a man in the desired state and suggests a solution (purchasing equipment) to get fit
  7. 7. 1. NEEDS Factors that influence the appearance of needs:  Economic and social development  Social structure  Family, friends, partners  Habits, experience  Religion  Fashion, taste, preferences Needs change over time!
  8. 8. 2. MOTIVES Definitions need motive objective 1. Internal force that drives man to act! 2. Comes from unfulfilled needs! 3. Strong tension directed towards a specific purpose! 4. Desire to fulfill the needs (physiological and psychological) by buying products! 5. Immediate triggers to action! 1. Energy towards fulfilling the needs!
  9. 9. 2. MOTIVES Why do people buy? hunger fashion company standard habits
  10. 10. 2. MOTIVES How motives occur? Interpersonal unfulfilled needs External impact (ads, friends, family)
  11. 11. 2. MOTIVES Classification of motives 1: А. Rational Б. Emotional -economic motives -price, quality, functionality, safety, durability Ex: car, laptop, expensive travel -subjective, personal motives -prestige, fashion, status, pride, recreation, curiosity, satisfying human senses Ex: restaurants, jewelry, new products TIME
  12. 12. 2. MOTIVES Classification of motives 2: А. Primary Б. Secondary - innate, biogenic, for living Ex: food, water, sex, air - acquired, learned, psychogenic Ex: restaurants, jewelry, education
  13. 13. 2. MOTIVES Classification of motives 3: А. Positive Б. Negative -driving force towards some object or condition Ex: eating healthy food -driving force away from some object or condition Ex: avoiding fatty food
  14. 14. 2. MOTIVES Classification of motives 4: А. Short-term Б. Long-term -they have to be fulfilled at once! Ex: petrol, ATM, food, water -their satisfaction can be postponed, when purchasing conditions (price, quality) are suitable Ex: car, education, computerAFFECT -reflex, current, automatic product purchase (caused of anger, fear, surprise, confusion)
  15. 15. 3. MOTIVATION Cycle of motivation Needs Motive Objective (purpose) Non-filled needs, wants, desires Pressure, strive, energy Buying products New needs Dissatisfaction (lack of time, money) Defensive mechanisms -frustration -aggression -blaming others -withdrawal -suppressing the need -rationalization -fantasizing
  16. 16. 3. MOTIVATION Motivational conflict Fulfilling a need at the expense of others! (money and time spent on one need reduce money and time for other needs) 1 2 3 decision between two desirable alternatives new furniture / expensive trip decision between two undesirable alternatives decision has both positive and negative consequences cleaning the room / washing dishes smoking / health career / private life Approach - Approach Avoidance - Avoidance Approach - Avoidance
  17. 17. 3. MOTIVATION Motivation theories– connecting needs with goods and services MASLOW THEORY Physiological Safety Social Esteem Self-actualization
  18. 18. MASLOW’S HIERARCHY OF NEEDS Figure 4.2
  19. 19. 3. MOTIVATION Motivation theories– connecting needs with goods and services David McClelland Trio needs theory Power Achievement Affiliation Achieving personal success Desire for companionship, friendship, acceptance, belonging Need to control other persons and various subjects
  20. 20. 3. MOTIVATION What motive is shown in the ad?
  21. 21. 3. MOTIVATION What motive is shown in the ad? power
  22. 22. 3. MOTIVATION What motive is shown in the ad?
  23. 23. 3. MOTIVATION What motive is shown in the ad? affiliation
  24. 24. 3. MOTIVATION What motive is shown in the ad?
  25. 25. 3. MOTIVATION What motive is shown in the ad? success
  26. 26. 4. PERCEPTION How we see the world around us!
  27. 27. 4. PERCEPTUAL PROCESS We receive external stimuli through our five senses
  28. 28. 4. PERCEPTION = psychological process of recording and processing information from the outside world on the basis of personal attitudes, knowledge, experience, memory, fantasies, expectations trader painter zoologist
  29. 29. 4. PERCEPTION 4 types of selection Selective Exposure Selective Attention Selective Retention Selective Distortion Exposure on information Noticing only relevant information Memorizing only important information Individual interpretation of information
  30. 30. 4. PERCEPTION Threshold of consciousness Absolute thresholds = minimum stimulation that an average person can notice (the lowest level at which an individual can experience a sensation) Stimuli Absolute thresholds Vision A candle flame 30 miles away Hearing A watch ticking 20 feet away Taste A teaspoon of sugar in a gallon of water Smell A drop of perfume in a six-room house Touch A wing of a fly on your cheek, dropped 1 cm
  31. 31. 4. PERCEPTION Threshold of consciousness Absolute thresholds = minimum stimulations that an average person can notice Differential threshold of consciousness = minimal difference that can be detected between two similar stimuli -Negative changes hardly are noticeable (change in volume, change in price) -Positive changes are more noticeable
  32. 32. 4. PERCEPTION Subliminal Perception A person sees or hears messages without being aware of them! very weak or too brief stimuli beneath the threshold of consciousness sound, music, voice, text inserted in ads high speed photography no major effect on the behavior
  33. 33. 4. PERCEPTION Subliminal Perception
  34. 34. 4. PERCEPTION Perceived risk Level of risk and uncertainty that consumers faces as a result of the purchase of the product! Financial Functional Social Psychological Physical (health) -buying a brand -experience -testimonials -friends, family -additional information -expensive products -guarantees
  35. 35. 5. PERSONALITY AND SELF-IMAGE What is personality? Something that is inherited, experienced from early childhood Something that is constantly changing under the influence of environment/society One unified entity / special characteristics of a person
  36. 36. 5. PERSONALITY AND SELF-IMAGE What is personality? Def: inner psychological characteristics that both determine and reflect how a person responds to his/her environment Companies must identify those inner specific personality traits to make appropriate product and promotions Inner – specific qualities, attributes, traits, factors and mannerisms that distinguish one individual from another – influencing the individual's product choice!
  37. 37. 5. PERSONALITY AND SELF-IMAGE Definitions 1 2 3 Looks, how one wants to present in front of others! Internal side of a person Personal identity with their attitudes, beliefs, desires, motives, interests, feelings
  38. 38. 5. PERSONALITY AND SELF-IMAGE What kinds of people exist? We are just like we are! Some are fat, some thin, some tall, some short, some blue-eyed, some white, and so is the behavior. Some are confident, others are withdrawn, some are smart, some stupid. Studies show that We are all born with a wide range of possibilities!
  39. 39. 5. PERSONALITY AND SELF-IMAGE Companies use personality in promotions! We are all created equal! But after that, it's up to you!
  40. 40. 5. PERSONALITY AND SELF-IMAGE 1 feature: Personality reflects individual differences Personality = unique combination of factors, no two individuals are exactly alike!
  41. 41. 5. PERSONALITY AND SELF-IMAGE 2 feature: Personality is consistent and enduring Although a child may be characterized as quiet and peaceful, over time, influenced by environmental, economic, sociological, psychological factors, he/she can manifest different behavior
  42. 42. 5. PERSONALITY AND SELF-IMAGE 3 feature: Personality can change Personality changes with major changes in life: marriage, divorce, birth of a child, death of a loved one, a significant career promotion. Personality changes with aging = more sensitive, calmer, quieter, more stable!
  43. 43. 5. PERSONALITY AND SELF-IMAGE Relationship between food and personality! Snack food Personality traits  potato chips  pretzels  crackers  cheese curls  nuts  popcorn  meat snacks Ambitious, successful, high achiever Lively, flirtatious, intuitive, overcommit to projects Rational, logical, contemplative, shy, lonely Principled, fair, proper, plans ahead, loves order Easygoing, empathetic, understanding, calm Modest, self-confident, takes charges Generous, gregarious, trustworthy, trusting
  44. 44. 5. PERSONALITY AND SELF-IMAGE Colours and personality Colour Personality link Marketing insights Blue Yellow Green Red Orange White Black Silver, gold =commands respect, authority =caution, novelty, warmth, temporary =secure, natural, relaxed, easygoing =human, exciting, hot, passionate, strong =powerful, affordable, informal =goodness, purity, chastity, delicacy =sophistication, power, authority, mystery =regal, wealthy, stately IBM holds the title to blue Coffee in yellow tastes “weak” Vegetables and chewing gum Makes food smell better Draws attention quickly Reduced calories High-tech electronics, bath products Suggests premium price!
  45. 45. 5. PERSONALITY AND SELF-IMAGE According to Jung: two types of people! introvert closed, withdrawn, cautious, quiet extrovert open, lively, communicative, dynamic
  46. 46. 5. PERSONALITY AND SELF-IMAGE According to Karen Horney: CAD Theory compliant aggressive detached Move towards others Move against others Move away from others Wants to be loved, appreciated Wants to be admired, respected Wants to be independent, self- sufficient, individual Survey: Children who are detached, are not loyal to brands, and want to try different brands!
  47. 47. 5. PERSONALITY AND SELF-IMAGE Consumers have a variety of enduring images of themselves A person acts quite differently with different people in different situations! One person has multiple selves! (different behavior with parents, at school, at work, at a museum, with friends) Self-image can change!
  48. 48. 5. PERSONALITY AND SELF-IMAGE How a self-image is created and developed? intelligence socialization education environment culture
  49. 49. 6. CONSUMER LEARNING Why consumer learning is important for marketers? From marketing point of view– teaching consumers about products, product attributes and their potential benefits: where to buy them, how to use them, how to maintain them, how to dispose of them Cognitive learning Behavioral learning Learning is a mental process Learning is a result of external stimuli
  50. 50. 6. CONSUMER LEARNING Definitions ----is a process through which consumers gain new knowledge and use it accompanied by personal experience as a basis for future behavior in similar situations Continuous process of changes in consumer behavior (learned behavior) from previous experience! process Intentional learning Incidental learning
  51. 51. 6. CONSUMER LEARNING Learning elements 1. MOTIVATION Motivation acts as a spur to learning!
  52. 52. 6. CONSUMER LEARNING Learning elements 2. CUES Cues are the stimuli that give direction to motives!
  53. 53. 6. CONSUMER LEARNING Learning elements 3. RESPONSE How individuals react to a drive or a cue constitutes their response! Learning can occur even when responses are not overt!
  54. 54. 6. CONSUMER LEARNING Learning elements 4. REINFORCEMENT Likelihood that a specific response will occur in future!
  55. 55. 6. CONSUMER LEARNING Reinforcement Likelihood that a specific response will occur in the future!
  56. 56. 7. CONSUMER KNOWLEDGE What consumers know and don’t know about the products! =set of all the information engraved in the memory of a consumer, relevant for buying and consuming of products! 1. What is Crest? What Topol means? 2. What the abbreviation SPF means? 3. What is the difference between Rolex and Timex? 4. What is Maybach?
  57. 57. 7. CONSUMER KNOWLEDGE What consumers know and don’t know about the products! =consumer with more knowledge will buy a better product! ? ? ? ? ? ? √
  58. 58. 7. CONSUMER KNOWLEDGE 5 types of knowledge: 1. Knowledge of the existence of a product Are consumers aware of the product? First approach Can consumers recall the product? Second approach Can consumers recognize the product name? Example: Marketer asks consumers to write all the chocolate brands they know The first indicated/listed brand is called Awareness of the Brand positioning Example: Marketer shows a list of chocolate brands to consumers, and they need to identify brands they know!
  59. 59. 7. CONSUMER KNOWLEDGE 5 types of knowledge: 2. Knowledge of characteristics and associations of the product Analysis of image-what consumers know about the characteristics and associations of the product Ex: What comes to your mind when you see this rabbit? consumers who reported the association are counted! More consumers- stronger association Usage of a scale ... on a scale from 1 to 5 consumers are asked to indicate whether or not are familiar with the product!
  60. 60. 7. CONSUMER KNOWLEDGE 5 types of knowledge: 3. Knowledge in buying Knowledge about elements of the purchasing act (prices, working hours, shop location) А) knowledge about PRICE Б) knowledge about TIME  Traditional discounts  Trade show discounts  Seasonal discounts В) knowledge about LOCATION  shop, market  Internet, website  Catalogue
  61. 61. 7. CONSUMER KNOWLEDGE 5 types of knowledge: 4. Knowledge of consuming and using the products Knowledge about how one product can be consumed and what is required for its usage!  If the consumer does not know how to use the product, he/she wont buy it!  Wrong way of using a product can cause injury!  Additional information and education!
  62. 62. 7. CONSUMER KNOWLEDGE 5 types of knowledge: 5. Knowledge of persuasion Knowledge of persuasive tactics and goals of companies!  Manipulations!
  63. 63. 7. CONSUMER KNOWLEDGE Knowledge sources Comments from others Family, friends, partner Media Internet Experience
  64. 64. 7. CONSUMER KNOWLEDGE Undesirable (unwanted) knowledge Bad information, failing to understand the idea of the company Change of opinion
  65. 65. 8. CONSUMER INTENTIONS Subjective estimates about what consumers will buy in the future! What are the intentions of the consumers? One can learn from EXPERIENCE!
  66. 66. 8. CONSUMER INTENTIONS Types of consumer intentions Intention to buy Will you buy Milka chocolate this weekend? Intention to buy again Will you buy Milka chocolate again? Consumer intentions Will you spend 10 Euros for Milka chocolate? Intentions for information Do you need additional information on Milka chocolate? Intentions to consume Will you consumer Milka chocolate at work?
  67. 67. 9. ATTITUDES AND BELIEFS Attitude = preference for one product over another = learned predispositions How attitudes are created? Experience Socialization What we like vs. what we don’t like! Marketers: 1. Repeating the existing attitudes 2. Changing the existing attitudes 3. Creating new attitudes
  68. 68. 9. ATTITUDES AND BELIEFS Attitude is not a customer's intention to buy!
  69. 69. 9. ATTITUDES AND BELIEFS Belief = knowledge of what we think is true from our point of view (from experience)
  70. 70. MINI TEST Explain the following terms • Personality------------------------- • Unwanted knowledge-------------- • Attitude---------------------------- • Introvert is-------------------------- • Belief-------------------------------- • Perception--------------------------- • Differential threshold of consciousness- ------------------- • Financial risk----------------------