   Dominant Family Purchase   Demographic Factors   The Consumer Buying Process   Maslow‘s hierarchy of needs   Socio...
What is Consumer Behavior?-How many times throughout the day do people makeproduct decisions?-If you stop to think about i...
What is Consumer Behavior?-Consumer  behavior: it is the study of consumers and the processes they use tochoose, use (cons...
PRODUCT          DOMINANT         TYPICAL DECISION                    DECISION                     MAKERWomen‘s casual    ...
   Age   Stage in family life cycle   Occupation   Economic circumstances   Lifestyle   social influence variables  ...
Marketing Inputs Marketing Inputs                                                          Purchase ProductProduct        ...
Maslow‘s Hierarchy of Needs                     Self                     Actualisation           Esteem            Social ...
Class name       Social status         Occupation of head of        % of                                             house...
http://www.nivelessocioeconomicos.com/index.php?option=com_content&task=view&id=32&Itemid=110Portal Niveles Socioeconómico...
Value and Relationship Quality-Consumers choose goods and services based on theassumption that they will be rewarded with ...
Value and Relationship Quality-If a product/service is provided that has low quality, and a high price, that does not crea...
So what is meant by Quality?Quality is a product or services ability to meet the customers need or want.-Quality is diffic...
So what is meant by Quality?‗ServicesResponsiveness- Services are performed in a prompt manner.Reliability-The service is ...
Why People Buy-Marketers spend millions of dollars trying to understand why people buy products andservices.-Sometimes it ...
Why People Buy-Sociological- The study of the thoughts, feelings, and behaviors of groupinteraction, especially in a socia...
Other reason why people buy
-Complex buyer behaviour e.g. Intel PentiumProcessor-Dissonance-reducing behaviour (brandreduces after-sales discomfort)-H...
-recognition of the need e.g a new PC-choice of involvement level (time and effort justified)e.g. two week ends-identifica...
Internal Influences – Learning-Consumer behavior is largely learned behavior.-Learning is a change of behavior following a...
Internal Influences – Memory-Marketing messages can be effective only if the consumer correctlyunderstands the messages, a...
Internal Influences – MemoryThree things influence consumers ability to understand messages:Physical Characteristics of me...
Internal Influences – Memory-Simplicity of the message: A simple message is generally easier tounderstand. Using short phr...
Internal Influences – MemoryCharacteristics of the message receiver (consumer)-Intelligence: unless you are specifically m...
Internal Influences – MemoryCharacteristics of the environment-Intensity of information: If a consumer is overloaded with ...
Internal Influences - Emotion and PerceptionA. Emotion-Emotion is difficult to define, and even more difficult to predict....
Internal Influences - Emotion and PerceptionB. Perception-Perception is the process by which people select, organize, andi...
Internal Influences - Motivation-Motivation is an internal state that drives us to satisfy needs.-Motivation is the energi...
Internal Influences - Motivation     Need                     Gained                 Avoided                              ...
Internal Influences - MotivationAccording to McGuire, there are 12 psychological motives, 12reasons why consumers are moti...
Internal Influences - Motivation1. Need for consistencyPeople have a basic desire to have all parts of themselves consiste...
Internal Influences - Motivation5. Need for independenceAmericans strive for individuality and self-expression and many pr...
Internal Influences - Motivation9. Need for affiliationAffiliation is the need to develop mutually helpful and satisfying ...
Internal Influences - Lifestyle and AttitudeA. Lifestyle-Lifestyle is a common word to explain complicated consumerbehavio...
Internal Influences - Lifestyle and AttitudeA. Lifestyle-Lifestyle is a common word to explain complicated consumer behavi...
Internal Influences - Lifestyle and AttitudeB. Attitude-An attitude is an internal evaluation, expressed outwardly about a...
Internal Influences - Lifestyle and AttitudeELM Model (Petty and Cacioppo, 1981)One theory about attitude change is the El...
External influences - IntroductionWhat are external influences in consumer behavior?-What a consumer eats, wears, and beli...
External influences - Introduction-People are social and they want to belong to special groups.-Group members share common...
External influences - Introduction        Type of Social Power   Description                    Example        Referent   ...
External influences – Introduction-External influences can also include situational influences, sometimes calledatmospheri...
External Influences - Family Life Cycle (FLC)-Family life cycle is defined as what type of family the target market consum...
External Influences - Consumer Culture-Culture includes knowledge, belief, art, law, morals, customs, and any othercapabil...
External Influences - Consumer Culture                      Behavior             Meaning in the US           Meaning in ot...
External Influences - Consumer Culture-Factors that Define a Culture:i. Individual/Collective: The culture in the US is an...
External Influences - Social Environment and Social ClassSocial EnvironmentReference groups have an influence on purchasin...
External Influences - Social Environment and Social ClassSocial ClassPopulations can be subdivided into groups who members...
External Influences - Social Environment and Social Class                                                PROFILE OF THE AM...
External Influences - Social Environment and Social ClassSocial Class                                    PROFILE OF THE ME...
External Influences - Family Influences (Birth Order)-Where a child places in the birth order can have an effect on how th...
External Influences - Family Influences (Birth Order)(2) Oldest Child-Is only child for period of time; used to being cent...
External Influences - Family Influences (Birth Order)(4) Middle Child of Three brothers-Has neither the rights of oldest n...
‗The decision-making process by which formal      organisations establish the need for     purchased products and services...
-Organisation purpose- Goodyear Tyres-Derived demand- follows cars and lorries-Concentrated purchasing- stockholdings ofru...
Characteristics of organisationalbuyer behaviour                  2. General  1. Problem                      3. Product  ...
Buying a Machine Vision System (example):
•Economic Outlook:                                      Domestic & Global                                      •Pace of Te...
Comportamiento del Consumidor
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Comportamiento del Consumidor

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Comportamiento del Consumidor

  1. 1.  Dominant Family Purchase Demographic Factors The Consumer Buying Process Maslow‘s hierarchy of needs Socioeconomic classification scheme Types of buyer behaviour The Buying Decision Process Organisational Buyer Behaviour
  2. 2. What is Consumer Behavior?-How many times throughout the day do people makeproduct decisions?-If you stop to think about it, many product decisions aremade every day, some without much thought.-What should I wear? What should I eat? What am I goingto do today?-Many product decisions are answered routinely every dayand they help move the economy of cities, countries andultimately the world.-Product decisions also shape life for the consumer.-How can simple decisions be so important?-Why do marketers spend millions of dollars to uncoverthe reasons behind these decisions?
  3. 3. What is Consumer Behavior?-Consumer behavior: it is the study of consumers and the processes they use tochoose, use (consume), and dispose of products and services (impacts the world).-Consumer behavior incorporates ideas from several sciences includingpsychology, biology, chemistry and economics.-―All marketing decisions are based on assumptions and knowledge of consumerbehavior‖ (Hawkins and Mothersbaugh, 2007).-Researching consumer behavior is a complex process, but understanding consumerbehavior is critical to marketers-they can use it to: -Provide value and customer satisfaction. -Effectively target customers. -Enhance the value of the company. -Improve products and services. -Create a competitive advantage -Understand how customers view our products vs their competitors products. -Apply marketing strategies toward a positive affect on society (encourage people to support charities, promote healthy habits, reduce drug use etc.)
  4. 4. PRODUCT DOMINANT TYPICAL DECISION DECISION MAKERWomen‘s casual Wife Price, style clothing Vacations Syncratic (both) Whether to go, where Men‘s casual Husband Type, price, style clothingLife insurance Husband Company, coverage Homeowner‘s Husband Company, coverage insurance Household Wife Style, brand, price appliances
  5. 5.  Age Stage in family life cycle Occupation Economic circumstances Lifestyle social influence variables  family background  reference groups  roles and status
  6. 6. Marketing Inputs Marketing Inputs Purchase ProductProduct Decisions PricePrice Consumer Product Choice Promotion Location ChoicePromotion Place Brand Choice Other ChoicesPlace Psychological Inputs Culture Attitude Learning Perception Cohen (1991)
  7. 7. Maslow‘s Hierarchy of Needs Self Actualisation Esteem Social Safety Physiological
  8. 8. Class name Social status Occupation of head of % of household populatio n A Upper middle Higher managerial, 3 administrative or professional B Middle Intermediate managerial, 14 administrative or professional C1 Lower middle Supervisors or clerical, junior managerial, 27 administrative or professional C2 Skilled working Skilled manual workers 25 D Working Semiskilled and unskilled 19 workers E Those at lowest levels Pensioners, widows, 12 of subsistence casual or lower-grade workers
  9. 9. http://www.nivelessocioeconomicos.com/index.php?option=com_content&task=view&id=32&Itemid=110Portal Niveles Socioeconómicos - Criterios deClasificación Socioeconómica
  10. 10. Value and Relationship Quality-Consumers choose goods and services based on theassumption that they will be rewarded with value andsatisfaction.-Consumption is the process by which goods and services areused and assigned a level of value by the consumer.-That level could be positive, if the customer was satisfied, or itcould be negative if they did not find any value in their purchase.-Marketers have to provide the right combination ofquality, price and customer service in order to give customerspositive value and satisfaction.-That will in turn create happy, loyal customers. The formulalooks like this:Quality + Price + Customer Service = Value and Satisfaction
  11. 11. Value and Relationship Quality-If a product/service is provided that has low quality, and a high price, that does not create ahappy, satisfied customer.-At the same time, having a great product at the best possible price means nothing if the customer istreated badly, or not provided with the opportunity to return unwanted items.
  12. 12. So what is meant by Quality?Quality is a product or services ability to meet the customers need or want.-Quality is difficult to define, and varies with each consumer, however we can take a lookat some of the components of quality for products and services:ProductsPerformance- The product does what it is supposed to do.Features- The product includes all the specifications that it says it has or that arerequired, this includes safety measures.Reliability- The product performs consistently.Durability- When the product is being used it has to last under the conditions of normaluse.Serviceability- The product is easy to maintain or repair either by the consumer or byproviding a warranty which says the company will provide repairs.Aesthetics- This is important to consumers, products have to look good, and thiscontributes to a brand equity and identity.Perception- Even if the product has good quality, if the customer does not think so, then itwont sell. The customer has to have positive feelings about the product, the company, thebrand name and the employees.
  13. 13. So what is meant by Quality?‗ServicesResponsiveness- Services are performed in a prompt manner.Reliability-The service is performed right, the first time, and allsubsequent times.Assurance- Knowledgeable and friendly employees are essentialas customers will equate employees behavior with the entirecompany. If a customer has a bad experience with anemployee, they will be less likely to purchase from the entirecompanys offerings. Customers expect technical competenceand professionalism from salespeople.Empathy-Providing individualized attention to customers willmake them feel special and keep them coming back.Tangibles- Some services provide physical evidence that theyoccurred, for example a restaurant cooks (service) and providesthe food (product).
  14. 14. Why People Buy-Marketers spend millions of dollars trying to understand why people buy products andservices.-Sometimes it seems that there is no reason for a purchase, but in reality there is always areason.-Many factors are involved in a customers buying decision, any one of which can becomethe deciding factor, such as:-Conspicuous consumption: Lavish spending for the purpose of displaying wealth or socialstatus; preference for buying increases with price.-Snob effect: Desire to buy something nobody else has; preference for buying increaseswith rarity or scarcity.-Bandwagon effect: Desire to buy something everybody else is buying; preference forbuying increases with perceived popularity.-Economic: To enhance their lifestyle or to fulfill two of Maslows needs: physiological(food, shelter) and Safety and Security.-Psychological: This is the study of how people interact with their environment, productsare consumed to enhance their well being, for example air fresheners, furniture andconvection ovens.
  15. 15. Why People Buy-Sociological- The study of the thoughts, feelings, and behaviors of groupinteraction, especially in a social setting. People want to feel accepted and lovedby their peers and they need to consume products that will appeal to theirchosen groups. For example a consumer wants to join a kayaking team wouldhave to purchase the proper gear, clothing and maybe even music genre inorder to fit in with the group.-Practical- Consumers purchase products because they need them tosurvive, such as shoes and medicine.-Impractical- is the opposite of practical, purchasing products that are notnecessary.-Rational- Purchases are made with logical, thought out reasoning.-Irrational- products are purchased for foolish or absurd reasons.-Factual- Purchasing products based on researched reports.-Emotional- purchasing products based on feelings-Buy to satisfy a need (for a reason).-Buy to satisfy a want (desire).
  16. 16. Other reason why people buy
  17. 17. -Complex buyer behaviour e.g. Intel PentiumProcessor-Dissonance-reducing behaviour (brandreduces after-sales discomfort)-Habitual buying behaviour e.g. salt - littledifference-Variety seeking behaviour- significant branddifferences e.g soap powder
  18. 18. -recognition of the need e.g a new PC-choice of involvement level (time and effort justified)e.g. two week ends-identification of alternatives e.g. Dell, PC World-evaluation of alternatives e.g. price, customerservice, software support, printer/scanner package-decision- choice made e.g Epsom-action e.g buy Epsom model from Best Buy-post-purchase behaviour e.g. use, breakdowns, etc
  19. 19. Internal Influences – Learning-Consumer behavior is largely learned behavior.-Learning is a change of behavior following an interactionbetween a person and their environment.-A person touches a hot stove and then gets hurt, because ofthat interaction they learn not to touch the hot stove again.-Most attitudes, values, tastes, behaviors, preferences, symbolicmeanings and feelings are acquired through learning.-People buy things and then make decisions for futurepurchases based on if they liked theproduct, quality, service, and price.-Social organizations help people learn "appropriate" beliefsabout issues like drinking and driving, proper nutrition, etc.-Companies that help their customers learn about their productsand create positive feelings with their product, service, brandname, and employees-have a competitive advantage.
  20. 20. Internal Influences – Memory-Marketing messages can be effective only if the consumer correctlyunderstands the messages, and remembers them when needed.-Memory refers to a consumers ability to understand the marketingmessages and assign them value and meaning.-Value and meaning always together.-The value and meaning assigned is largely determined by internalfactors, (thoughts, feelings, emotion, attitude, perception, motivation,personality, lifestyle) which are different for each consumer.-For example, a consumer who drinks lots of milk, sees anadvertisement that says "Get Milk?" and since they already have positivefeelings for the product they will purchase more milk, whereas aconsumer who does not enjoy drinking milk and sees the same ad, maydismiss the ad or may try drinking more milk for a short period of timeand then decrease consumption again.
  21. 21. Internal Influences – MemoryThree things influence consumers ability to understand messages:Physical Characteristics of messageImagery: When the brand name, words, and slogan work together to create an image in the mind of the consumer, it willinvoke ideas, feelings and objects, and a direct recovery of past experiences. Disney is big on evoking nostalgia and pastexperiences, they want adult customers to remember being taken to the Disney parks as a child and then repeat theexperiences with their own children. Much of their advertisement depicts families having wonderful experiencestogether, while the adults are remembering being there as children.Color: Colors have an enormous impact on marketing messages, and color affects consumers in a subjective manner, sothat most of the time consumers don‘t even know they are being affected! For example, in the US, the color red makespeople eat 25% more, therefore most restaurants use red as their main color. ( Home :: McDonalds.com ; Welcome toKFC.com ; Jack in the Box – Home ).The meaning and value assigned to colors changes with the culture, so marketers need to be fully aware of how color isinterpreted by different groups of people. For example, the Starbucks Coffee Company logo is green, but when theyopened shops in Malaysia, they had to change the logo to brown because in that culture green is associated with sickness.Font: The presentation of words and how they are shaped will also enhance the marketing message and contribute to thevalue and meaning. For example, these two different fonts for a cigarette company will convey entirely differentmeanings, and may attract two different customers. Caribou Cigarettes Caribou Cigarettes-The first logo is block style, bold and more intense and may be more masculine. The second is a script font, with morecurls, softer lines and may be more feminine.-So which is better? Well, that depends on the product and the target market you are trying to attract.
  22. 22. Internal Influences – Memory-Simplicity of the message: A simple message is generally easier tounderstand. Using short phrases and easy to read terminology, such as―heart healthy‖ will quickly and easily convey the message that the productis good for your heart. ( Aceite Capullo )-Consistency of the message: The message needs to fit in with thesurrounding information—style, color, text, photographs, music—all have towork together. For example, showing a television ad for travel to theCaribbean will have soft, flowing fonts, bright colors, and reggae music. Itcan sometimes be an advantage to have inconsistent messages, someconsumers may remember the ad more if some of the elements don‘t makesense.-Source of the message: Consumers will be more likely to remember andpurchase products endorsed by credible sources, animated characters orcelebrities. They have to be likeable, have some expertise or at leastpretend that they have expertise), be trustworthy, and attractive.
  23. 23. Internal Influences – MemoryCharacteristics of the message receiver (consumer)-Intelligence: unless you are specifically marketing a product to extremely intelligent individuals, it is best to wordmarketing messages on a level most people can understand, and don‘t ever talk to your customers in a way thatwould make them feel inferior.-Involvement: A customer with higher levels of involvement with the product, service and marketing information willhave more recall than a consumer with less involvement. Creating more interest in the product and making a websitemore interactive will help to increase sales. More involvement means more sales.-Familiarity: Generally, the more familiar a customer is with a product, the more likely they are to purchase it;however, having too much familiarity can lead to adaptation, when customers become tired of their ―familiar‖purchases and seek out novelty items. For example, in the US in the 1990s, ketchup sales began slipping and torevamp sales, ketchup manufacturers created green and purple ketchup, these novelty items boosted sales, but onlyfor a few months, when consumers became tired of them.-Expectations: If the customer doesn‘t know what to expect from the product or service, then they are not going topurchase it. This explains why familiar brand names like Campbell‘s Soup, Coca-Cola and Disney do not change theirlogos—customers are familiar with them, have positive thoughts about them and know what to expect.-Physical limits: Marketers need to remember that some consumers have limitations such as hearing impairment orcolor blindness and this needs to be taken into consideration when creating marketing messages
  24. 24. Internal Influences – MemoryCharacteristics of the environment-Intensity of information: If a consumer is overloaded with stimuli in an environment, they are much morelikely to avoid the ad, or not comprehend it at all.Lets face it, we live in a world cluttered with advertisements, it can be difficult to break through all of it andget to your target market customers. Marketers have to be more creative since customers can now skipcommercials (thanks to recordable television); marketers use product placement in the actual movie ortelevision show, the characters in the show use the brand name products and may even talk about how theylike the brand name. This is all part of the advertising. Marketers are also making use of new socialmarketing movements such as Twitter and Facebook that can be programmed to reach customers that wantto see your marketing messages.-Framing: Messages can be framed to seem positive or negative and this will affect how customers assignvalue. "If you dont use sunscreen, you could get skin cancer" or "Use sunscreen to moisturize and protectyour delicate skin".-Timing: Many factors will influence how a message is interpreted and assigned value including: amount oftime customer has to view a message, time of day, and type of medium used. A customer driving in themorning 70mph past a billboard for coffee may only have a few seconds to interpret the message, but sinceit is a time of day when that product is most consumed, they may be more likely to act on the message.
  25. 25. Internal Influences - Emotion and PerceptionA. Emotion-Emotion is difficult to define, and even more difficult to predict.-However, they are important to marketers because consumers tend to react tomarketing messages and make purchases based on feelings and emotions.-Emotion can be used to create product benefits.-Such as with Cheerios cereal; its commercials feature families having wonderfulmoments together, that couldnt have happened without those products.-Emotion in advertising enhances attention, attraction, and is processed more bythe consumer and may be remembered better.-These are elements of the relationship between emotion and understanding:-Self control- the ability to control your emotions-Emotional empathy- the ability to understand other peoples emotions-Positive/negative outlook- a persons outlook on life can be optimistic ordepressed and negative; most people fall somewhere in between--Productivity- ability to use emotions to solve problems
  26. 26. Internal Influences - Emotion and PerceptionB. Perception-Perception is the process by which people select, organize, andinterpret information.-Perception has four major steps:1. Exposure - When a stimulus (like a billboard) comes within rangeof your senses (vision)2. Attention - Determined by the individual and the situation;Nerves pass the information onto the brain for processing3. Interpretation - when marketing messages are assigned meaning4. Memory:a. Short-term—for immediate decision makingb. Long-term—for retention
  27. 27. Internal Influences - Motivation-Motivation is an internal state that drives us to satisfy needs.-Motivation is the energizing force that activates behavior.-Once we recognize that we have a need, a state of tension existsthat drives the consumer to the goal of reducing this tension andeliminating the need.-Consequently, only unmet needs motivate-According to Maslows hierarchy of human needs, for each needthere are positives gained and negatives that are avoided bymeeting that particular set of needs.-Products that are purchased because of a need will satisfy a goaland avoid unwanted consequences.-For example, people need to feel secure so they purchase smokedetectors, therefore gaining protection and avoiding loss and fear offire, only unmet needs motivate.
  28. 28. Internal Influences - Motivation Need Gained Avoided Creativity, Self-Actualization Unfulfilled potential accomplishment Pride, recognition, Esteem Failure, inadequacy prestige Acceptance, Rejection, Social popularity embarrassment Security Safety, protection Loss, danger, fear Physiological Health, comfort Sickness, discomfort Positives and Negatives for Each Need (Based on Maslow)
  29. 29. Internal Influences - MotivationAccording to McGuire, there are 12 psychological motives, 12reasons why consumers are motivated to make purchases:1. Need for consistency2. Need for attribute causation3. Need to categorize4. Need for cues5. Need for independence6. Need for self-expression7. Need for ego-defense8. Need for reinforcement9. Need for affiliation10. Need for modeling11. Need for novelty12 Need for Assertion
  30. 30. Internal Influences - Motivation1. Need for consistencyPeople have a basic desire to have all parts of themselves consistent and theypurchase products that fulfill this need. People that listen to country music willpurchase products like cowboy boots, heavy duty trucks and pets.2. Need for attribute causationPeople have the need to determine who or what causes things to happen tothem. Some people choose to attribute it to themselves, fate or an outside forcelike God.3. Need to categorizeCategories allow people to process a large amount of information. Vehicles arecategorized into cars, SUVs, light trucks, heavy duty trucks, van, sporty, mid-size, hybrid, electric and so on. This helps consumers quickly narrow down theirchoices when purchasing a vehicle.4. Need for cuesMost people will view others behavior and infer what they feel and think.Clothing plays an important role in presenting image of a person. People quicklyjudge others by the clothing they are wearing and the vehicle they drive.
  31. 31. Internal Influences - Motivation5. Need for independenceAmericans strive for individuality and self-expression and many products aremarketed as "limited edition" or being different and uniqueThe Japanese culture discourages individuality and focuses on affiliation, and behaviorthat enhances family and culture.6. Need for self-expressionAmericans are known for letting others know who and what they are by theirextravagant purchases, especially clothing and cars. Who really needs a $1,200 pen?What is that saying about that person?7. Need for ego-defenseThe need to defend your identity. An insecure customer will purchase well-knownbrand names for fear of being labeled socially incorrect.8. Need for reinforcementPeople are motivated to act because they are rewarded for doing it. Forexample, showing off a new diamond ring to your friends creates acceptance andapproval.
  32. 32. Internal Influences - Motivation9. Need for affiliationAffiliation is the need to develop mutually helpful and satisfying relationships withothers, which is a critical part of all peoples lives.10. Need for modelingConformity and the need to base behavior on that of others. This is the major motivation ofchildren, tweens (8-12 year olds), and especially teenagers-and in their social worldconformity mean acceptance.11. Need for noveltyPeople have variety seeking-behavior and this may be a reason for brand switching andimpulse buys, but that depends on the person. People experiencing rapid life changes willseek stability, while people in stable life situations will seek change. The travel industry usesthis by changing up their ads and showing adventure vacations where people are activelyhaving fun and some ads showing relaxing vacations where people are swinging in ahammock.12. Need for AssertionCustomers need to engage in activities that will increase self-esteem and self-esteem in theeyes of others. Most consumers respond positively to ads that appeal to this need. In anadvertisement for a ladies razor, it will say "show off your beautiful legs to your man," thiswill appeal to women by showing that the product increases your self-esteem.
  33. 33. Internal Influences - Lifestyle and AttitudeA. Lifestyle-Lifestyle is a common word to explain complicated consumerbehaviors.Lifestyle is a way to segment people into groups based on threethings: opinions, attitudes and activities.-Lifestyle means the ways groups of consumers spend time andmoney.-Lifestyle can include things like bowling, cooking, carracing, kayaking, attending charity events, having pets, interestin politics, watching sporting events and so on
  34. 34. Internal Influences - Lifestyle and AttitudeA. Lifestyle-Lifestyle is a common word to explain complicated consumer behaviors.Lifestyle is a way to segment people into groups based on three things:opinions, attitudes and activities.-Lifestyle means the ways groups of consumers spend time and money.-Lifestyle can include things like bowling, cooking, carracing, kayaking, attending charity events, having pets, interest inpolitics, watching sporting events and so on.-Everyone has two lifestyles-the one they are currently in and the one theywant to be in, which is always better than the current one.-Marketers exploit this desire to move into a better lifestyle by showcasingpeople who are better off than the intended target market in their ads.-For example most ads targeting children show children that are almost tooold for the product, this appeals to younger children who desire to be likethem.
  35. 35. Internal Influences - Lifestyle and AttitudeB. Attitude-An attitude is an internal evaluation, expressed outwardly about a person, object or issue.-There are three components of attitude - affect, behavior and cognition.-This is sometimes called the ABCs of attitude.-These three components work together to form a hierarchy of effects: Purchase Hierarchy of effects High involvement Belief—affect—behavior Low involvement Belief—behavior—affect Experiential Affect—behavior—belief Behavioral Influence Behavior—belief—affect-In a purchase that requires a high level of involvement, such as a car, consumers willconsider various choices and develop beliefs about each choice; then they develop feelingsabout the products (affect); and finally they act on the behavior and decide to purchase, ornot.-Whereas with a behavioral influence, the customer will act first (purchase), then developbeliefs about their purchase and that leads to developing feelings about the product orservice.
  36. 36. Internal Influences - Lifestyle and AttitudeELM Model (Petty and Cacioppo, 1981)One theory about attitude change is the Elaboration Likelihood Model (ELM).This model shows how attitudes are changed based on the level ofinvolvement in the purchase. As soon as a message is received a consumerbegins to process it, depending on the level of involvement and motivationit will then follow one of two routes—the central route or the peripheralroute.The central route: If the consumer is highly involved in the purchase, thenthey will put forth considerable effort toward understanding the marketingmessages. They will look for cues in the message that pertain to theproduct, its attributes, and advantages.The peripheral route: If the consumer is not highly involved in thepurchase, or lacks the motivation to process information, they are morelikely to pay attention to the attractiveness of the people in theadvertisement, images and music, which are all non-product relatedinformation. These cues play a major role in persuading consumers topurchase. This usually leads to a product attitude change that doesn‘t last.
  37. 37. External influences - IntroductionWhat are external influences in consumer behavior?-What a consumer eats, wears, and believes are all learned and influenced by theculture they live in, their family, childhood and social environment.-All of these are external factors that affect purchases.A list of the external influences that affect consumer behavior:AgeRaceGenderEducation levelCross-cultural influencesSub-cultures (Hispanic-American)Social status (upper, middle, lower)Customs, Beliefs, Expectations, Traditions, HabitsReference groups are groups that have shared beliefs, interests and behaviorsand influence a consumer‘s behavior:
  38. 38. External influences - Introduction-People are social and they want to belong to special groups.-Group members share common interests, influence eachother, and share rules and values.-Primary groups are those with the most influence, such asfamily members; secondary groups have less interaction thanthe primary group, such as clubs and organizations.-As children grow into teenagers, their parents become less ofan influence and peer groups become more of an influence.-All groups exert what is called social power; some groups havemore power than others over consumers‘ decisions.
  39. 39. External influences - Introduction Type of Social Power Description Example Referent A person likes a group and A teenager wants to join a acts like them so the group popular group, so they begin will accept them to dress like them and listen to their groups‘ chosen music Legitimate Membership comes with A boss has authority over his agreements and there will be employees and can fire them if consequences for they don‘t do an adequate job nonconformity Expert Groups have knowledge that Consumers who want to be others want to gain members of The American Medical Association seek to gain their knowledge of health and wellness Reward Groups with power to give A school soccer team can give rewards to members trophies to their best players (members) Coercive A group can penalize In the army, soldiers who do members for not following the not report for duty on time rules can be forced to do manual labor or even get kicked out of the army
  40. 40. External influences – Introduction-External influences can also include situational influences, sometimes calledatmospherics—sensory items in an environment that may change buying patterns, such asmusic, color, smell, and lighting.-If a store plays loud rock music, they may attract young adults, but drive away olderconsumers. Color is a huge influence on behavior, but is also dependent on culture, sincedifferent cultures perceive colors differently. In the US white is a color worn at weddings, andin China, red is the color of choice for weddings. Many bakeries will pump the smell of theirtreats outside the store, so that passersby will be more likely to want to come in.-Before making a purchase, consumers will go through an external information search. Theywill go through this search in order to evaluate the alternatives and narrow down their list ofchoices. It includes:Personal experience- have they purchased this product before? How do they feel about it?Websites/Internet search- researching the quality of the productKnowledge- someone with little or no knowledge of the product will need lots of informationFriends/reference groups- consumers ask friends, family and coworkers about theirexperiences with the product.Advertising and promotions--A purchase may be ultimately made due to Heuristics. This is a personal set of values thateveryone has and it causes consumers to buy what they are comfortable buying, such aspurchasing from specific countries of origin, or products that they are brand loyal to.
  41. 41. External Influences - Family Life Cycle (FLC)-Family life cycle is defined as what type of family the target market consumer is in.-DINKS are ―double income no kids‖ and SINKS are ―single income no kids‖.-Marketers love to target the DINKS and SINKS because they have lots of discretionary income and no children to spend iton, so they spend their extra money on themselves, their house, their pets and vacations.Stages of the Family Life Cycle (FLC)-Young and single-Engaged couples-DINKS (Double Income No Kids)-SINKS (Single Income No Kids)-Married with children: Babies, Toddlers, Elementary School Age (5-7), Tweens (8-12), Teens (13-17), Older-Single parents-Empty nester-Boomerang Kids (adult children who have moved back in with their parents)-Extended parents (grandparents raising their grandchildren)-Blended Families (stepchildren)-Recently divorced-Same-sex singles/couples-Retired - Wealthy or Medicare dependentThe engaged couples and the recently divorced spend money on similar products, although for different reasons.Engaged couples are buying products to begin a life together and the recently divorced are buying products that theyalready had and now need to replace.Extended parents are grandparents taking care of their grandchildren.Same sex couples and singles are grouped together whether they have children or not, because of their lifestyle andinterests.An empty nester is someone whose children are now grown adults and have moved out of the house.Boomerang kids are adult children who are living with their parents.
  42. 42. External Influences - Consumer Culture-Culture includes knowledge, belief, art, law, morals, customs, and any othercapabilities and habits acquired by humans as members of society.-How does culture affect consumer behavior? Whatever a person consumes willdetermine their level of acceptance in their society. If someone does not actconsistently with cultural expectations, they risk not being accepted in society.-What happens when a company ignores culture? McDonald‘s is one of the mostpopular restaurants in the world. At their American based restaurants they servebeef hamburgers, but when they decided to open restaurants in India, they usedlamb meat for their hamburgers, because the Indian people do not eat cow meat; ifMcDonald‘s had ignored this cultural difference they would not have been successfulin India! That was the problem when The Walt Disney Company opened EuroDisneyoutside Paris; it was almost a failure because Disney ignored the culture. The Frenchpeople drink wine at very young ages and prefer sugar on their popcorn, not salt,like Americans. Disney did not accommodate their theme park until they realizedthat the French people were indeed their target market, so they changed the nameof the park to Disneyland Paris and made modifications to their menus and also tothe wait lines in the park.
  43. 43. External Influences - Consumer Culture Behavior Meaning in the US Meaning in other cultures Consuming wine and Those under the age of In European countries it beer 21 are not allowed to is common for children drink alcohol to drink wine/beer at family meals; when in a bar in Korea you pour drinks for your friends and family first, then wait for them to pour your drink Drinking coffee Generally adults drink it In Turkey, coffee is a in the morning because special drink that you of the caffeine, and serve to guests; in Italy giving coffee to a child is coffee is enjoyed after a not accepted family meal; in China tea is the drink of choice Cooking pork ribs Grilled outside at a Jewish and Muslims do backyard party not eat pork Kissing To express romantic In many cultures kissing feelings about someone is acceptable when greeting a friend Using the number 7 Lucky number Unlucky number in Kenya, Singapore and Ghana
  44. 44. External Influences - Consumer Culture-Factors that Define a Culture:i. Individual/Collective: The culture in the US is an individualistic society, where people generallylook out for themselves; The Japanese culture focuses on the collective, and people work tobetter society as a whole.ii. Extended/Limited Family: In the US, families move away from each other and generally don‘tlive together in the same house; In many Asian and European countries, parents, kids,grandparents and even aunts and uncles live together in the same house.iii. Adult/Child: Different cultures will define when someone is an adult. In the US it is 18 yearsold, but in some South American countries it is 14 or 15 years old. In the Hebrew culture a boybecomes a man at 13 during his Bar Mitzvah ceremony. In the Hispanic culture a girl becomes anadult at 15th birthday party.iv. Masculine/Feminine: Cultures define the roles of men and women differently, including theirrank, and prestige in society.v. Youth/Age: The value placed on Elders depends on the culturevi. Cleanliness: In the US, cleanliness is very important, in fact most of the products advertisedon American TV claim to improve cleaning; In other cultures showering on a daily basis isunnecessary.vii. Tradition/Change: Some societies prefer traditions over making changes.viii. Hard work/Leisure: In some cultures hard work is valued over leisure time.ix. Sensual gratification/Abstinence: The Netherlands is a society that openly talks about andadvertises sexual activity; in Muslim societies those topics are taboo, and women who getpregnant before marriage are often shunned.
  45. 45. External Influences - Social Environment and Social ClassSocial EnvironmentReference groups have an influence on purchasing behavior, but the level of influence willdepend on where the product will be consumed—in public or in private—and whether theproduct is a want or a need. GROUP INFLUENCE ON PRODUCT AND BRAND SELECTION Need Want Public Example: fast food lunch Example: yacht A product used in public A product used in public that you need that you want weak group influence for strong group influence for product selection, strong product selection, strong group influence for brand group influence for brand selection selection Private Example: bed sheets Example: hot tub A product used in private A product used in private that you need that you want weak group influence for strong group influence for product selection, weak product selection, weak group influence for brand group influence for brand selection selection
  46. 46. External Influences - Social Environment and Social ClassSocial ClassPopulations can be subdivided into groups who members share similar hobbies, opinions, andactivities. In general, people have two lifestyles—the one they are in and the one they strive to bein, which is usually better than their current situation. It is important for a marketer tounderstand the subdivisions of society in order to better choose target markets for theirproducts and services.
  47. 47. External Influences - Social Environment and Social Class PROFILE OF THE AMERICAN CLASS STRUCTURE CLASS % Pop INCOME EDUCATION OCCUPATION DESCRIPTIONSocial Class LEVEL Upper-Upper .3% $5 million and Graduate CEO, Inherited up Degree Executives, wealth, Senator aristocratic, fund charities, ―old money‖, participate in politics Upper 1.2 $2 million Graduate Executive, Entrepreneurs, Degree professional Sports Stars, Entertainers Lower-Upper 12.5 $250,000 Graduate Executive, Education is Degree, medical Professional, important, degree Doctor involved in arts Middle Class 32 $100,000 College Degree Office workers, Insecure due to managers economic fluctuations, live in the suburbs Working Class 38 $50,000 High school Teacher, Skilled workers, plumber, may be in danger of falling into a lower class Lower 9 $20,000 Some High Janitor, farmer Poorly School educated, low income, work as laborers Lower-Lower 7 $9,000 and Grade School Minimum wage Unskilled, may under or unemployed be unemployed for long periods of time, receive government support
  48. 48. External Influences - Social Environment and Social ClassSocial Class PROFILE OF THE MEXICAN CLASS STRUCTURE CLASS % Pop DESCRIPTION A (muy rica y bien acomodada) 0.6% Muy altos ingresos; médicos, abogados, políticos, funcionarios de gobierno, presidentes de la república (medio millón o más USD) B (clase rica) 1.93% Altos ingresos, $100,000 a 400,000 USD C1 (clase alta) Profesionistas con ingresos fuertes (50,000 a 90,000 USD) C2 (clase media alta) Tienen ingresos mensuales de 18.54% 20,000 a 40,000 USD. Alto poder adquisitivo; puestos de altos ejecutivos y directivos. D (clase media media) 27.23% Ingreso mensual de 10,000 a 19,000 USD; casas de lujo ejecutivas de alto poder adquisitivo. E (clase media baja) 21.42% Ingresos mensuales de 1,000 a 9,000 USD; poder adquisitivo mediano. F (clase popular) 30.28% De 100 a 300 USD mensuales; para muchos países de AL; la mayoría de la población se encuentra en este nivel
  49. 49. External Influences - Family Influences (Birth Order)-Where a child places in the birth order can have an effect on how they see themselves, andtherefore affects their consumer behavior.-The middle child often seems to have the most negative impressions of his lot in life.-Younger children always want to be able to do the things older brothers are allowed to do.-And older brothers may feel that the younger ones get away with things they were not able todo when they were the same age. Here are the levels of birth order:(1) Only Child-Pampered and spoiled-Is center of attention; often enjoys position. May feel special.-Relies on service from others rather than own efforts.-Feels unfairly treated when doesnt get own way.-Likelier to hold a professional position.-Concerned with meeting parents‘ expectations.-Confident.-Pays Attention to Detail.-Good in School.-Overly Critical.
  50. 50. External Influences - Family Influences (Birth Order)(2) Oldest Child-Is only child for period of time; used to being center of attention.-Believes must gain and hold superiority over other children.-Being right, controlling often important.-Strives to keep or regain parents attention through conformity. If this failed, chooses to misbehave.-May develop competent, responsible behavior or become very discouraged.-Sometime strives to protect and help others.-Confident and determined.-Born Leader and organized.-Eager to Please.-Likes to Avoid Trouble.(3) Second Oldest Child-Never has parents undivided attention.-Always has sibling ahead whos more advanced.-Acts as if in race, trying to catch up or overtake first child. If first child is "good," second maybecome "bad." Develops abilities first child doesnt exhibit. If first child successful, may feel uncertainof self and abilities.-May be rebel.-Feels "squeezed" if third child is born.-May push down other brothers.
  51. 51. External Influences - Family Influences (Birth Order)(4) Middle Child of Three brothers-Has neither the rights of oldest nor privileges of youngest.-May feel like they don‘t have place in family.-Becomes discouraged and "problem child" or elevates self by pushing down other brothers.-Is adaptable.-Learns to deal with both oldest and youngest brothers.(5) Youngest Sibling-Feels every one bigger and more capable.-Expects others to do things, make decisions, take responsibility.-Becomes boss of family in getting service and own way.-Develops feelings of inferiority or becomes "speeder" and overtakes older siblings.-Remains "The Baby." Places others in service.I-f youngest of three, often allies with oldest child against middle child.-Persistent and affectionate-Crave the Spotlight
  52. 52. ‗The decision-making process by which formal organisations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers‘ Kotler and Armstrong (1989)
  53. 53. -Organisation purpose- Goodyear Tyres-Derived demand- follows cars and lorries-Concentrated purchasing- stockholdings ofrubber-Direct dealings- large purchaser of basicrubber - no intermediaries-Specialist activities- learns about theproduct-Multiple purchase influences- DMU -Decision making unit
  54. 54. Characteristics of organisationalbuyer behaviour 2. General 1. Problem 3. Product Description Recognition Specifications of Need 5. Acquisition 4. Supplier Organizational and Analysis Search Buying Process of Proposals 7. Selection 6. Supplier 8. Performance of Selection Review Order Routine
  55. 55. Buying a Machine Vision System (example):
  56. 56. •Economic Outlook: Domestic & Global •Pace of Technological EnvironmentalA projected change Change Forcesin business •Global Trade Relationsconditions candrastically alter •Goals, Objectives, andbuying plan. Organizational Strategies Forces •Organizational Position Organizational of Purchasing Buying Behavior •Roles, relative Group influence, and patterns Forces of interaction of buying decision participants •Job function, past Individual experience, and buying Forces motives of individual decision participants

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