The document discusses factors that influence consumer behavior. There are three main factors - cultural, social, and personal. Cultural factors include values, subcultures, rituals, and myths shared among a culture's members. Social factors comprise social class, reference groups, and family influences. Personal factors are personality, lifestyle, and perceptions. Consumer behavior is also shaped by the consumer decision-making process which involves problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Marketers aim to understand these influences to better reach and appeal to target consumers.

1. 16-1
What is Consumer Behavior?
• The processes
involved when
consumers selectselect,
purchasepurchase, useuse,
and/or disposedispose of
products to satisfy
needs and desires

2. 16-2

3. 16-3
What Influences Consumer Behavior?
3 Factors Influence Consumer Behavior
• CulturalCultural
• SocialSocial
• PersonalPersonal

4. 16-4
What Influences Consumer Behavior?
Cultural
Factors
Cultural
Factors

5. CULTURAL FACTORSCULTURAL FACTORS
• The accumulation of shared
meanings, rituals, norms, and
traditions among members
- Culture is mainly about “life
values”
• US values:
i. achievement & success
ii. activities
iii. individualistic
iv. fitness & health

6. Culture is dynamic

7. Subcultures
Provide more specific
identification and socialization
for their members
- religions subculture,
ethnic subculture,
geographic subculture,

8. 16-8
Disneyland Hotel
Hong Kong
• Does not have a
4th floor
• WHY?
• “4” sounds like
“death” in
Cantonese

9. SubculturesSubcultures
Why subcultures important to
marketers?
AmongAmong
others:others:
RitualsRituals
MythsMyths

10. RitualRitual
A type of symbolic activity consisting of
a series of steps occurring in a fixed sequence and
repeated over time
- wedding
- religion celebrations
- death
- birthday
- Valentine’s day, mother’s day
- graduation
Why rituals are important to marketing?
Rituals tend to be replete with ritual artifacts (products and
services)

11. 16-11
Myths
• A story containing
symbolic elements
that represent the
shared
emotions/ideals of
a culture
– Outcome serves
as moral guide
for people

12. MythsMyths
How myths being applied in marketing?
- Through advertisements – relating the
product with the intended value where
the relationship between the two is
already understood.
- Perodua Kancil….
”a smart choice – just like you are”
Garuda Airlines
The Goldern Arch of McDonald’s

13. 16-13
What Influences Consumer Behavior?
Social
Factors
Social
Factors

14. 16-14
Social Class
A person’s social
class impacts what
he/she does with
money and on how
consumption choices
reflect one’s place in
society
– Products as status
symbols

15. 16-15
Upper uppers
Lower uppers
Upper middles
Middle class
Working class
Upper lowers
Lower lowers
Social ClassesSocial Classes

16. 16-16
Social ClassSocial Class
• “Haves” vs. “have-nots”
• Where we occupy in the
social structure determines
how much we spend and
how we spend it
• Social class is determined
by:
income, family background,income, family background,
and occupationand occupation

17. 16-17
Conspicuous Consumption
• People’s desire to
provide prominent
visible evidence of
their :
ability to affordability to afford
luxury goodsluxury goods

18. 16-18
The Trophy Wife
• Beautiful and young
lady married to a very
rich man who is very
much older than she
is
• Wives of wealthy
husbands as “walking
billboards”

19. 16-19
What Influences Consumer Behavior?
Personal
Factors
Personal
Factors

20. Personal
Factors
• Personality
• Lifestyle

21. 16-21
Personality
• A person’s unique
psychological
makeup and how it
consistently
influences the way a
person responds to
his/her environment

22. 16-22
Brand Personality
• Set of traits people
attribute to a product
as if it were a person
• Brand equity
Marketers create “brand
personality” to be matched
with their target market.
Levi’s: ruggedness
Ladylike: feminine
Polo: politeness

23. 16-23
Brand Personality

24. 16-24
Brand Personality

25. 16-25
Brand Personality

26. 16-26
Brand Personality

27. 16-27
Brand Personality

28. LIFESTYLE
A lifestyle is a person’s pattern of
living in the world as expressed in
activities, interests, and opinions.
- achievement-oriented
- materialistic
- familyman
- outgoing
Marketers search for relationships
between their products and lifestyle
groups.

30. The handling and performance of a sport car, with the
comfort and space of a sedan

31. For Urban adventures, the sporty and agile RAV4 will be
Able to take you anywhere your wanderlust leads you.

32. Innova:
Spacious and luxurious
appointed, the Innova offers
unparalleled comfort for the
entire family.
Avanza:
Versatile, stylish and specious,
the Avanza is also surprisingly
affordable

33. The rockers enjoyed Rock and Roll, and
their style consisted of jeans, boots and
leather jackets. They wore black leather
and studs, had anti-authority beliefs, and
projected an easy rider nomadic
romanticism. The Rockers lived for the
present, with a scruffy, masculine, ‘bad
boy’ image.
The rockers were essentially from the
working class and despised any fashion.
They each had the same hairstyle, shaggy
with a bit of slick to it. Highway cafes are
the hangout of the Rockers for the greasy
foods and jukeboxes. Riding motorcycles
was of the upmost importance, so they
kept away from drugs and alcohol. The
motorcycles were also modified or "souped
up" in order to be in top racing form. Every
Rocker had a ‘Triumph’ or a ‘Norton’, a
brand of motorcycle.

35. 16-35
What Influences Consumer Behavior?

37. 16-37
PerceptionPerception
• Adding meaning to raw sensations
Figure 2.1

38. 16-38

39. 16-39
Sensory Thresholds
ABSOLUTE
THRESHOLD
The minimum amount of
stimulation that can be
detected on a sensory
channel
DIFFERENTIAL
THRESHOLD
The ability of a sensory
system to detect changes
or differences between 2
stimuli.

40. 16-40

41. 16-41
Many ads use hidden messages.
Can you find the hidden message in
this company logo?

42. 16-42
Decision-
Making
Process
Decision-
Making
Process

43. 16-43
Decision-making Process
Problem Recognition
Information Search
Evaluation of Alternatives
Product Choice
Outcomes
Richard realizes that he
dislikes his B&W TV
Richard surfs Web to learn
about TVs
Richard chooses a TV with
an appealing feature
Richard compares models
on reputation and features
Richard brings home and
enjoys his TVFigure 9.1 (Abridged)

44. 16-44
Figure 6.5 Successive Sets Involved in Consumer
Decision Making

45. 16-45
Decision Rules
• Compensatory
• Noncompensatory: shortcuts via basic
standards
– Lexicographic rule
– Conjunctive rule

46. 16-46
COMPENSATORY RULE:
Expectancy-Value Model
• Consumer evaluates product
• Combine brand beliefs - importance
• Weights attached to each attribute
• Allow “balance-out”
Total perceived valueTotal perceived value
= (weights x beliefs) of all attributes= (weights x beliefs) of all attributes

47. 16-47
ATTRIBUTE
MEMORY
CAPACITY
GRAPHICS
CAPABILITY
SIZE &
WEIGHT
PRICE
PEMBERAT 0.4 0.3 0.2 0.1
IBM 8 9 6 9
APPLE 7 7 7 7
DELL 10 4 3 2
TOSHIBA 5 3 8 5
Each attributes is rated from 0 to 10, where 10 represents the highest level
on that attribute. Minimum acceptable cutoff level for each attribute = 7

48. 16-48
IBM = 0.4(8) + 0.3(9) + 0.2(6) + 0.1(9) = 8.0
APPLE = 0.4(7) + 0.3(7) + 0.2(8) + 0.1(7) = 7.2
DELL = 0.4(10) + 0.3(4) + 0.2(3) + 0.1(2) = 6.0
TOSHIBA = 0.4(5) + 0.3(3) + 0.2(8) + 0.1(5) = 5.0
Brand chosen =

49. 16-49
IBM = 0.4(8) + 0.3(9) + 0.2(6) + 0.1(9) = 8.0
APPLE = 0.4(7) + 0.3(7) + 0.2(8) + 0.1(7) = 7.2
DELL = 0.4(10) + 0.3(4) + 0.2(3) + 0.1(2) = 6.0
TOSHIBA = 0.4(5) + 0.3(3) + 0.2(8) + 0.1(5) = 5.0
Brand chosen = IBM
- Highest score of 8.0

50. 16-50
NON-COMPENSATORY MODELS OF
CONSUMER CHOICE
• Positive & negative attributes may not net
out
• Attributes evaluated in isolation

51. 16-51
Lexicographic heuristic:
Best brand on perceived most important attribute
Brand Chosen = ??
ATTRIBUTE
MEMORY
CAPACITY
GRAPHICS
CAPABILITY
SIZE &
WEIGHT
PRICE
PEMBERAT 0.4 0.3 0.2 0.1
IBM 8 9 6 9
APPLE 7 7 7 7
DELL 10 4 3 2
TOSHIBA 5 3 8 5
Each attributes is rated from 0 to 10, where 10 represents the highest level
on that attribute. Minimum acceptable cutoff level for each attribute = 7

52. 16-52
Lexicographic heuristic:
Best brand on perceived most important attribute
Brand Chosen = DellDell
ATTRIBUTE
MEMORY
CAPACITY
GRAPHICS
CAPABILITY
SIZE &
WEIGHT
PRICE
PEMBERAT 0.4 0.3 0.2 0.1
IBM 8 9 6 9
APPLE 7 7 7 7
DELL 10 4 3 2
TOSHIBA 5 3 8 5
Each attributes is rated from 0 to 10, where 10 represents the highest level
on that attribute. Minimum acceptable cutoff level for each attribute = 7

53. 16-53
Conjunctive heuristic:
minimum for each attribute - choose brand meets
minimum for all
Brand Chosen = ??
ATTRIBUTE
MEMORY
CAPACITY
GRAPHICS
CAPABILITY
SIZE &
WEIGHT
PRICE
PEMBERAT 0.4 0.3 0.2 0.1
IBM 8 9 6 9
APPLE 7 7 7 8
DELL 10 4 3 2
TOSHIBA 5 3 8 5
Each attributes is rated from 0 to 10, where 10 represents the highest level
on that attribute. Minimum acceptable cutoff level for each attribute = 7

54. 16-54
Conjunctive heuristic:
minimum for each attribute - choose brand meets
minimum for all
Brand Chosen = AppleApple
ATTRIBUTE
MEMORY
CAPACITY
GRAPHICS
CAPABILITY
SIZE &
WEIGHT
PRICE
PEMBERAT 0.4 0.3 0.2 0.1
IBM 8 9 6 9
APPLE 7 7 7 8
DELL 10 4 3 2
TOSHIBA 5 3 8 5
Each attributes is rated from 0 to 10, where 10 represents the highest level
on that attribute. Minimum acceptable cutoff level for each attribute = 7

55. 16-55
Heuristics: Mental Shortcuts
• Mental rules-of-thumb
that lead to a speedy
decision
– Examples: higher price =
higher quality, buying the
same brand your mother
bought
• Can lead to bad decisions
due to flawed
assumptions (especially
with unusually named
brands)

56. 16-56
Inertia:
The Lazy Customer
• Many buy the same brand every time
– We buy out of habit because it requires less
effort
– Little/no underlying commitment here
• Brand switching frequently occurs (cheaper price,
original brand out-of-stock, point-of-purchase
displays)

57. 16-57
How Customers Use & Dispose of Products

58. 16-58
Business Market
- Organizational
Buying Behavior
Business Market
- Organizational
Buying Behavior

59. 16-59
Organizational vs. Consumer Decision
Making
• Organizational buying is
different…
– Involves many people
– Precise, technical specifications
(require a lot of product
knowledge)
– Past experience and careful
weighing of alternatives (impulse
buying is rare)
– Decisions are often risky (to one’s
career)
– Substantial dollar volume
– More emphasis on personal
selling