Understanding Consumer Behavior and the factors affecting its decision-making.

1. Greg Emmanuel L. Villahermosa

2. Consumer
Psychology
Is a specialty
area that studies
how our
thoughts,
beliefs, feelings
and perceptions
influence how
people buy and
relate to goods
and services.

3. "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".

4. A CONSUMER is
a person or group
of people, such as
a household, who
are the final users
of products or
services. The
consumer's use is
final in the sense
that the product is
usually not
improved by the
use.

5. How consumers choose businesses,
products and services
The numbers are rising
on businesses using
Social Media to their
advantage and rightfully
so, since 97% of
customers will purchase
from your business
based on a review they
find on the product they
are looking for, even
more so the review is
through people they
trust, hence why social
networks work.

6. Factors Influencing Buying Decisions
Culture and societal environment
an individual will be influenced by his family,
his friends, his cultural environment or
society that will “teach” him values,
preferences as well as common behaviors to
their own culture.

7. McDonald’s for example
The importance to have an
offer with specific products to
meet the needs and tastes of
consumers from different
cultures, the fast-food giant
has for example: a
McBaguette in France (with
french baguette and Dijon
mustard), a Chicken
Maharaja Mac and a Masala
Grill Chicken in India (with
Indian spices) as well as a
Mega Teriyaki Burger (with
teriyaki sauce) or Gurakoro
(with macaroni gratin and
croquettes) in Japan.

8. Social classes
People from different
social classes tend to have
different desires and
consumption patterns.
Disparities resulting from
the difference in their
purchasing power, but
not only that. According
to some researchers,
behavior and buying
habits would also be a
way of identification and
belonging to its social
class.
Acculturation is a process in which
members of one cultural group adopt
the beliefs and behaviors of another
group. Acculturation is usually in
the direction of a minority group
adopting habits and language patterns
of the dominant group.

9. Cultural trends
Cultural trends or
“Bandwagon effect” are
defined as trends widely
followed by people and
which are amplified by their
mere popularity and by
conformity or compliance
with social pressure. The
more people follow a trend,
the more others will want to
follow it.

10. Family
The family is maybe the most
influencing factor for an
individual. It forms an
environment of socialization
in which an individual will
evolve, shape his personality,
acquire values. But also
develop attitudes and opinions
on various subjects such as
politics, society, social
relations or himself and his
desires.

11. Personality and
self-concept
Because consumers do
not just buy products
based on their needs or
for their intrinsic
features but they are also
looking for products that
are consistent and
reinforce the image they
have of themselves or
they would like to have.

12. Motivation
Motivation is what will
drive consumers to
develop a purchasing
behavior.
according to research,
the type of product they
sell and the consumers
they target, pick out the
motivation and the need
to which their product
respond in order to make
them appear as the
solution to the
consumers’ need.

14. Throwback
Video Courtesy: Kapuso Mo, Jessica Soho

15. Breakthrough in the world
Advertising
David Mackenzie Ogilvy, CBE,
23 June 1911 – 21 July 1999
was an advertising executive. He is widely
hailed as "The Father of Advertising." In
1962, Time called him "the most sought-after
wizard in today's advertising industry.“
His education was in Oxford University After a
year, he returned to Scotland and started
selling AGA cooking stoves, door-to-door. His
success at this marked him out to his
employer, who asked him to write an
instruction manual, The Theory and Practice
of Selling the AGA Cooker, for the other
salesmen. Thirty years later, Fortune magazine
editors called it the finest sales instruction
manual ever written.

16. His best-selling book Confessions of an Advertising
Man is one of the most popular and famous books
on advertising.
Ogilvy’s advertising philosophy followed these four
basic principles:
Creative brilliance: had a strong emphasis on the "BIG
IDEA."
Research: coming, as he did, from a background in
research, he never underestimated its importance in
advertising. In fact, in 1952, when he opened his own
agency, he billed himself as research director.
Actual results for clients: "In the modern world
of business, it is useless to be a creative, original thinker
unless you can also sell what you create.“
Professional discipline: "I prefer the discipline of
knowledge to the anarchy of ignorance." He codified
knowledge into slide and film presentations he called
Magic Lanterns. He also instituted several training
programs for young advertising professionals.

17. Smoking Kid - Best of #OgilvyCannes
2012 / #CannesLions

18. Slice-of-Life
Depicts people in
normal settings, such
as at the dinner table
or in their car.
McDonald's often uses
slice-of-life styles
showing youngsters
munching french fries
and Happy Meals on
family outings.

19. LIFESTYLE
Shows how well the product
will fit in with the
consumer's lifestyle. As
their Volkswagen Jetta
moves through the streets
of the French Quarter, the
Gen X drivers plug in a
techno music CD and
marvel at how the rhythms
of the world mimic the
ambient vibe inside their
vehicle.

20. Testimonial
Testimonial or endorsing a
product. Sarah Michelle
Gellar, star of Buffy the
Vampire Slayer, endorses
Maybelline cosmetics while
country singer Shania Twain
introduced Revlon's Color
Stay Liquid Lip. Dell
Computers founder Michael
Dell touts his vision of the
customer experience via Dell
in television ads.

21. FANTASYCreates a fantasy for
the viewer built
around use of the
product. Carmakers
often use this style to
let viewers fantasize
about how they
would feel to be
speeding around
tight corners or
down long country
roads in their cars.

22. DEMONSTRATION
Shows consumers the
expected benefit. Many
consumer products use
this technique.
Laundry detergent
spots are famous for
demonstrating how
their product will clean
clothes whiter and
brighter.

23. MUSICAL
Conveys the message of the advertisement through song.
For example, Nike's recent ads depicting a marathoner's
tortured feet, skier Pikabo Street's surgery scarred knee,
and a surfer's thigh scarred by a shark attack while
strains of Joe Cocker's "You Are So Beautiful" are heard
in the background.
SCIENTIFIC
Uses research or scientific evidence to give brand
superiority over competitors. Pain relievers like Advil,
Bayer, and Excedrin use scientific evidence in their ads.

25. Thank You for Listening!