Lecture 4 psychological determinants of consumer behavior

PSYCHOLOGICAL DETERMINANTS OF CONSUMER BEHAVIOR

Prof. SAVICA

DETERMINANTS THAT INFLUENCE CONSUMER BEHAVIOR

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2

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4

Psychological

Sociological

Economic

Demographic

OTHER DETERMINANTS THAT INFLUENCE CONSUMER BEHAVIOR

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2

3

War

Earthquake

Flood

Change of consumer behavior

4 Infectious diseases

PSYCHOLOGICAL DETERMINANTS

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2

3

Needs

Motives

Motivation

4 Perception

Internal world of a person

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Personality, self-image

Learning

Consumer knowledge

Intentions

Attitudes and beliefs

1. NEEDSDefinitions

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

1. NEEDSDefinitions

А В С

Current state

Where are youat 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

1. NEEDSFactors 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!

2. MOTIVESDefinitions

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!

5. Energy towards fulfilling the needs!

2. MOTIVESWhy do people buy?

hunger

fashion

company

standard

habits

2. MOTIVESHow motives occur?

Interpersonal unfulfilled needs

External impact (ads, friends, family)

2. MOTIVESClassification 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


А. Primary Б. Secondary

- innate, biogenic, for living

Ex: food, water, sex, air

- acquired, learned, psychogenic

Ex: restaurants, jewelry, education


А. Positive Б. Negative

-driving force towards some object or conditionEx: eating healthy food

-driving force away from some object or conditionEx: avoiding fatty food


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)

3. MOTIVATIONCycle 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

3. MOTIVATIONMotivational conflict

Fulfilling a need at the expense of others!(money and time spent on one need reduce money and time for other

needs)

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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 / healthcareer / private life

Approach - Approach

Avoidance - Avoidance

Approach - Avoidance

3. MOTIVATIONMotivation theories– connecting needs with goods and services

MASLOW THEORY

Physiological

Safety

Social

Esteem

Self-actualization

MASLOW’S HIERARCHY OF NEEDS

Figure 4.2

3. MOTIVATIONMotivation theories– connecting needs with goods and services

David McClellandTrio needs theory

Power Achievement Affiliation

Achieving personal success

Desire for companionship,

friendship, acceptance, belonging

Need to control other persons and various

subjects

3. MOTIVATIONWhat motive is shown in the ad?


power


affiliation


success

4. PERCEPTIONHow we see the world around us!

4. PERCEPTUAL PROCESS

We receive external stimuli through our five senses

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

4. PERCEPTION4 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

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

4. PERCEPTIONThreshold 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

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

4. PERCEPTIONSubliminal Perception

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

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/societyOne unified entity / special characteristics of a person


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!


Definitions

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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


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!


Companies use personality in promotions!

We are all created equal! But after that, it's up to you!


1 feature: Personality reflects individual differences

Personality = unique combination of factors, no two individuals are exactly alike!


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


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!

5. PERSONALITY AND SELF-IMAGERelationship 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


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!


According to Jung: two types of people!

introvert closed, withdrawn, cautious, quiet

extrovert open, lively, communicative, dynamic


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!

5. PERSONALITY AND SELF-IMAGEConsumers have a variety of enduring images of

themselvesA 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!

5. PERSONALITY AND SELF-IMAGEHow a self-image is created and

developed?

intelligence

socialization

education

environment

culture

6. CONSUMER LEARNINGWhy 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

6. CONSUMER LEARNINGDefinitions

----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

6. CONSUMER LEARNINGLearning elements

1.MOTIVATION

Motivation acts as a spur to learning!


2.CUES

Cues are the stimuli that give direction to motives!


3.RESPONSE

How individuals react to a drive or a cue constitutes their response! Learning can occur even when responses are not overt!


4.REINFORCEMEN

T

Likelihood that a specific response will occur in future!

6. CONSUMER LEARNINGReinforcement

Likelihood that a specific response will occur in the future!

7. CONSUMER KNOWLEDGEWhat 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?

7. CONSUMER KNOWLEDGEWhat consumers know and don’t know about the

products!

=consumer with more knowledge will buy a better product!

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? ?√

7. CONSUMER KNOWLEDGE5 types of knowledge:

1. Knowledge of the existence of a product

Are consumers aware of the product?

First approachCan consumers recall the

product?

Second approachCan 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!


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!


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


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!


5. Knowledge of persuasion

Knowledge of persuasive tactics and goals of companies!

Manipulations!

7. CONSUMER KNOWLEDGEKnowledge sources

Comments from others

Family, friends, partner

Media

Internet

Experience

7. CONSUMER KNOWLEDGEUndesirable (unwanted)

knowledge

Bad information, failing to understand the idea of the company

Change of opinion

8. CONSUMER INTENTIONSSubjective estimates about what consumers will buy

in the future!

What are the intentions of the consumers?

One can learn from EXPERIENCE!

8. CONSUMER INTENTIONSTypes 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?

9. ATTITUDES AND BELIEFSAttitude = preference for one product over another

= learned predispositions

How attitudes are created?

ExperienceSocialization What we like vs. what we don’t like!

Marketers:

1. Repeating the existing attitudes

2. Changing the existing attitudes

3. Creating new attitudes

9. ATTITUDES AND BELIEFSAttitude is not a customer's intention to buy!

9. ATTITUDES AND BELIEFSBelief = knowledge of what we think is true from our point

of view (from experience)

MINI TESTExplain the following terms

• Personality-------------------------

• Unwanted knowledge--------------

• Attitude----------------------------

• Introvert is--------------------------

• Belief--------------------------------

• Perception---------------------------

• Differential threshold of consciousness- -------------------

• Financial risk----------------------

Lecture 4 psychological determinants of consumer behavior

Marketing

Transcript of Lecture 4 psychological determinants of consumer behavior