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ACKNOWLEDGEMENT

Wed like to extend our appreciation to our

parents for they have provided the financial

that we needed for this research paper, our

friends who supported us morally and

encouraged us to finish it, our classmates

who inspired us and helped us what to do,

and lastly, our professor. We could have

not done this if not because of him.


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TABLE OF CONTENTS

I. Introduction -----------------------------------------------------------------1-3

II. Content ----------------------------------------------------------------------

THE MOST POWERFUL CONSUMER BEHAVIOR TRAIT IN THE WORLD---------------------4-6

CONSUMER NEEDS-------------------------------------------------------------------------------------7-8

PURCHASE PATTERNS----------------------------------------------------------------------------------9-11

INTERPRETING CONSUMER BEHAVIOR------------------------------------------------------------12-13

INFLUENCING CONSUMER BEHAVIOR--------------------------------------------------------------14-15

III. Methods/procedures --------------------------------------------------------------16-17

IV. Results ------------------------------------------------------------------------------18-29

V. Conclusion---------------------------------------------------------------------------30

VI. Recommendation-------------------------------------------------------------------31

VII. Bibliography-------------------------------------------------------------------------32


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Introduction

The study of consumers helps firms and organizations improve their marketing

strategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between

different alternatives (e.g., brands, products, and retailers);

The psychology of how the consumer is influenced by his or her environment

(e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other marketing decisions;

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that

differ in their level of importance or interest that they entail for the consumer;

and

How marketers can adapt and improve their marketing campaigns and

marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "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." Although it is not necessary to memorize this definition,

it brings up some useful points:
http://www.consumerpsychologist.com/cb_Introduction.htmlhttp://www.consumerpsychologist.com/cb_Introduction.html


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Behavior occurs either for the individual, or in the context of a group (e.g.,

friends influence what kinds of clothes a person wears) or an organization

(people on the job make decisions as to which products the firm should use).

Consumer behavior involves the use and disposal of products as well as the study

of how they are purchased. Product use is often of great interest to the marketer,

because this may influence how a product is best positioned or how we can

encourage increased consumption. Since many environmental problems result

from product disposal (e.g., motor oil being sent into sewage systems to save the

recycling fee, or garbage piling up at landfills) this is also an area of interest.

Consumer behavior involves services and ideas as well as tangible products.

The impact of consumer behavior on society is also of relevance. For example,

aggressive marketing of high fat foods, or aggressive marketing of easy credit,

may have serious repercussions for the national health and economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategyi.e., for making better marketing

campaigns. For example, by understanding that consumers are more receptive to

food advertising when they are hungry, we learn to schedule snack

advertisements late in the afternoon. By understanding that new products are

usually initially adopted by a few consumers and only spread later, and then only

gradually, to the rest of the population, we learn that (1) companies that

introduce new products must be well financed so that they can stay afloat until

their products become a commercial success and (2) it is important to please

initial customers, since they will in turn influence many subsequent customers

brand choices.


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A second application is public policy. In the 1980s, Accutane, a near miracle cure

for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects

if taken by pregnant women. Although physicians were instructed to warn their

female patients of this, a number still became pregnant while taking the drug. To

get consumers attention, the Federal Drug Administration (FDA) took the step of

requiring that very graphic pictures of deformed babies be shown on the

medicine containers.

Social marketing involves getting ideas across to consumers rather than selling

something. Marty Fishbein, a marketing professor, went on sabbatical to work for

the Centers for Disease Control trying to reduce the incidence of transmission of

diseases through illegal drug use. The best solution, obviously, would be if we

could get illegal drug users to stop. This, however, was deemed to be infeasible. It

was also determined that the practice of sharing needles was too ingrained in the

drug culture to be stopped. As a result, using knowledge of consumer attitudes,

Dr. Fishbein created a campaign that encouraged the cleaning of needles in

bleach before sharing them, a goal that was believed to be more realistic.

As a final benefit, studying consumer behavior should make us better consumers.

Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of

laundry detergent, you should pay less per ounce than if you bought two 32 ounce

bottles. In practice, however, you often pay a size premium by buying the larger

quantity. In other words, in this case, knowing this fact will sensitize you to the

need to check the unit cost labels to determine if you are really getting a bargain.


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The Most Powerful ConsumerBehavior Trait in the World

Of course, there isnt just one aspect of consumer behavior that will make

the difference between success and failure. But there IS one aspect that is more

powerful than all the others. Where a good piece of direct mail might produce a 3% rate

of return, this can produce a 50% rate of return, or even higher.

Refer to the best consumer behavior reference material money cant buy

children.

Childrens behavior around products and marketing is exactly the same as

adults, just without the social window-dressing we all acquire through the years to

avoid showing openly what were really feeling.

Have you noticed that when a child really gets excited about a new toy they

behave in ways that shout to the world around them that they think its the best, most

captivating thing in the world, ever? With very young children this new item appeal

can be focused on the box or wrapping paper around the toy that you paid so much for.

If youve seen this happen when a child of a similar age is present too,

you may also have witnessed how such an item can become the sole point of attention;

both of them want it and nothing else will do. Even the same item in the wrong colour

can be deemed inferior to whichever item got fussed over first. Previously pleasant kids

can turn positively venomous over an apparently innocuous piece of plastic, whose sole

endearing quality appears to be that one child has it in his or her possession and is

totally enamored with it.


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Whilst this is most easily observed when it happens with children, its not

something the rest of us grow out of. Adults too are very quick to be enthusiastic about

products theyve recently acquired, and their enthusiasm can understandably be

interpreted by those around them as an honest endorsement of the product, and not one

that is just driven by novelty. This enthusiasm can be highly infectious.

Studies show that people who had just been given an item so they had no

sentimental attachment to it valued it far more highly than people who hadnt;

recipients of a university mug thought that it was worth twice as much as people who

hadnt been given one.

In another experiment students were divided into two groups of fifty: one

group was told to imagine they had a ticket for an important college basketball game

and asked what the minimum they would take for it would be; and the others that they

had the chance to buy one. The average selling price was TEN TIMES the average

buying price!

The opportunity for leveraging this aspect of consumer behavior lies in

the social interaction of consumers. Let me put that another way:people like to talk.

If people simply felt this way and kept it to themselves their over-valuing

would be an irrelevance: all that would happen is fewer things would get sold than might

otherwise be the case because people considering selling them would over-estimate their

value and ask for too much.


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Of course people dont keep their purchases to themselves and if they

enthuse about their purchases other people will want to purchase too.

One of the reasons such conversations can be so effective is that people

like to be friends with people like them. So by definition your customers friends are

likely to be your target market too.

Another reason is that people often seek reassurance that their friends

ARE like them and that they have made a good decision, by encouraging their friend to

make the same one. There really is emotional safety and reassurance in numbers.

So the most powerful consumer behavior trait available to you is the

enthusiastic endorsement of one customer to someone else they know. If you can create

an aspect or dimension to your product that your consumers WANT to share with their

friends, particularly when theyve first receive it and novelty value is at a maximum, you

will dramatically increase your sales.


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CONSUMER NEEDS

Consumers adjust purchasing behavior based on their individual needs

and interpersonal factors. In order to understand these influences, researchers try to

ascertain what happens inside consumers' minds and to identify physical and social

exterior influences on purchase decisions.

On some levels, consumer choice can appear to be quite random.

However, each decision that is made has some meaning behind it, even if that choice

does not always appear to be rational. Purchase decisions depend on personal emotions,

social situations, goals, and values.

People buy to satisfy all types of needs, not just for utilitarian purposes.

These needs, as identified by Abraham Maslow in the early 1940s, may be physical or

biological, for safety and security, for love and affiliation, to obtain prestige and esteem,

or for self-fulfillment. For example, connecting products with love or belonging has been

a success for several wildly popular campaigns such as "Reach Out and Touch

Someone," "Fly the Friendly Skies," and "Gentlemen Prefer Hanes." This type of focus

might link products either to the attainment of love and belonging, or by linking those

products with people similar to those with whom people would like to associate.

Prestige is another intangible need, and those concerned with status will

pay for it. However, goods appealing to this type of need must be viewed as high-profile

products that others will see in use. One benefit of targeting this type of market is that


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the demand curve for luxury products is typically the reverse of the standard; high-

status products sell better with higher prices.

Some equate the type of need to be met with certain classes of goods. For

instance, a need for achievement might drive people to perform difficult tasks, to

exercise skills and talents, and to invest in products such as tools, do-it-yourself

materials, and self-improvement programs, among others. The need to nurture or for

nurturing leads consumers to buy products associated with things such as parenthood,

cooking, pets, houseplants, and charitable service appeals.

Personality traits and characteristics are also important to establish how

consumers meet their needs. Pragmatists will buy what is practical or useful, and they

make purchases based more on quality and durability than on physical beauty. The

aesthetically inclined consumer, on the other hand, is drawn to objects that project

symmetry, harmony, and beauty. Intellectuals are more interested in obtaining

knowledge and truth and tend to be more critical. They also like to compare and

contrast similar products before making the decision to buy. Politically motivated

people seek out products and services that will give them an "edge," enhancing power

and social position. And people who are more social can best be motivated by appealing

to their fondness for humanity with advertising that suggests empathy, kindness, and

nurturing behavior. One successful way an insurance company targeted this market was

through its "You're in good hands with Allstate" campaign.


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PURCHASE PATTERNS

While all of this information might be helpful to marketers, it is equally

important to understand what compels the consumer to actually make a purchase, as

opposed to just generating interest. For example, some consumers respond based on

how they are feeling, or more emotionally, while some are focused on making the wisest

economic decision. Knowing the different elements that stimulate consumer purchase

activity can help marketers design appropriate sales techniques and responses.

A study conducted by Susan Powell Mantel focused on analyzing the roles

of "attribute-based processing" and "attitude-based processing" when analyzing

consumer preference. According to the study, product attributes (qualities such as price,

size, nutritional value, durability, etc.) are often compared disproportionately, i.e., one is

the more focal subject of comparison, thus eliciting more consideration when the

consumer decides which brand is the "best." The order of brand presentation in these

cases is particularly important.

Adding to the complexity of the issue is the fact that purchase decisions

are not always made on the basis of an "attribute-by-attribute" comparison (attribute-

based processing). Consumers also make decisions based on an overall evaluation of

their impressions, intuition, and knowledge based on past experience, or attitude-based

processing. Learned attitudes also influence these decisions. For example, parents who

drank Kool-Aid as children often buy it for their kids, either because they associate it

with fond memories or just because of brand familiarity or loyalty.


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There is time and effort associated with each of these strategies, though

attribute-based processing requires significantly more effort on the consumer's part. To

dedicate the time required for an attribute-by-attribute comparison, consumers need

the combination of motivation and the time or opportunity to use such a strategy.

Other contributing factors were discussed in Mantel's study, such as

personality differences and each individual's "need for cognition." Need for cognition

reflects to what extent individuals "engage in and enjoy thinking." People with a high

need for cognition tend to evaluate more and make more optimal in-store purchase

decisions. This is in part because they do not react to displays and in-store promotions

unless significant price reductions are offered. Low-need cognition people react easily

when a product is put on promotion regardless of the discount offered.

Consumers are also affected by their perceived roles, which are acquired

through social processes. These roles create individuals' needs for things that will enable

them to perform those roles, improve their performance in those roles, facilitate

reaching their goals, or symbolize a role/relationship, much in the way a woman's

engagement ring symbolizes her taking on the role of a wife.

Other factors that influence purchase decisions include the importance

attributed to the decision. People are not likely to take as much time doing brand

comparisons of mouthwash as they are a new car. The importance of the purchase, as

well as the risk involved, adds to how much time and effort will be spent evaluating the

merits of each product or service under consideration. In cases of importance such as

the purchase of a car or home appliance, consumers are more likely to use rational,

attribute-based comparisons, in order to make the most informed decision possible.


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In some cases, consumers make very little effort to evaluate product

choices. "Habitual evaluation" refers to a state in which the consumer disregards

marketing materials placed in a store, whether because of brand loyalty, lack of time, or

some other reason. Indeed, evaluating all relevant marketing information can become

time consuming if it is done every time a person shops.

On the opposite side of the coin, "extensive evaluation" is the state in

which consumers consider the prices and promotions of all brands before making a

choice. There are also in-between states of evaluation, depending again on the

importance of the purchase and the time available to make a decision (some consumers,

usually those who earn higher incomes, value their time more than the cost savings they

would incur). Decisions on whether to compare various products at any given time may

be a factor of the anticipated economic returns, search costs or time constraints, and

individual household purchasing patterns.


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INTERPRETING CONSUMER

BEHAVIOR

When market researchers begin evaluating the behavior of consumers, it is

a mistake to rely on conventional wisdom, especially when it is possible to study the

actual activity in which consumers are engaged when using a product or service. Where

are they when they buy certain items? When do they use it? Who is with them when they

make the purchase? Why do they buy under certain circumstances and not others?

Researchers need to determine the major needs being satisfied by that good or service in

order to effectively sell it.

There are two principal ways to evaluate the motivation behind consumer

purchases. These are by direction (what they want) and intensity (how much they want

it). Direction refers to what the customer wants from a product. For example, if a

customer is selecting pain reliever, they may like the idea is one pain reliever is cheaper

than another, but what they really want is fast pain relief, and will probably pay more if

they think the more expensive brand can do that more effectively. Marketers need to

understand the principal motivation behind each type of product to correctly target

potential customers.

The other way to evaluate consumer behavior, intensity, refers to whether

a customer's interest in a product is compelling enough that they will go out and make

the purchase. Good marketing can create that kind of intensity. A successful example of

such a campaign was Burger King's "Aren't You Hungry?" campaign, which aired on


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late-night television and was compelling enough for people to leave their homes late at

night to go out and buy hamburgers. Understanding consumer motivation is the best

way to learn how to increase buyer incentive, as well as a better alternative to the easy

incentive-decreasing the price.

While it is easy to speculate on all these elements of consumer motivation,

it is much harder to actively research motivating factors for any given product. It is rare

that a consumer's reasons for buying a product or service can be accurately determined

through direct questioning. Researchers have had to develop other ways to get real

responses. These include asking consumers "How do you think a friend of yours would

react to this marketing material?" While consumers do not like to admit that marketing

affects them at all, they are often willing to speculate on how it would affect someone

else. And most often they answer with what would be their own responses.

Another tactic that has proven successful is to ask consumers "What kind of person

would use this type of product?" By asking this question, market researchers can

determine what the consumer believes buying the product would say about them, as well

as whether or not they would want to be seen as that type of person.


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INFLUENCING CONSUMER

BEHAVIOR

One of the best ways to influence consumer behavior is to give buyers an

acceptable motive. This is somewhat related to the idea of asking what type of person

would buy a certain product in evaluating consumer behavior. Consumers want to feel

they're doing something good, being a good person, eating healthy, making contacts,

keeping up appearances, or that they just deserve to be spoiled a little bit. If marketers

can convince consumers that they need a product or service for some "legitimate"

reason, customers will be more likely to make a purchase.

In addition, sensory stimuli are important to marketing. When food

packages are appealing or associated with other positive qualities, people often find that

they "taste" better. For example, people often "taste" with their eyes, discerning

differences in products where they do not see any difference during a blind taste test.

One of the best examples of this was a test of loyal Coca-Cola customers who were totally

unwilling to concede that any other soda was its equal. While able to see what they were

drinking, they maintained this position. But during blind testing, some were unable to

tell the difference between Coke and root beer.

Finally, another alternative for influencing customer behavior is by

offering specialized goods. While commonality was once popular, more and more people

are seeking diversity in taste, personal preferences, and lifestyle. Some successful


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campaigns touting the way their products stand out from the crowd include Dodge's

"The Rules Have Changed" and Arby's "This is different. Different is good."

In fact, marketers are quite successful at targeting "rebels" and the

"counterculture," as it is referred to incommodity Your Dissent. As Thomas Frank

writes, "Consumerism is no longer about 'conformity' but about difference. It counsels

not rigid adherence to the taste of the herd but vigilant and constantly updated

individualism. We consume not to fit in, but to prove, on the surface at least, that we are

rock 'n' roll rebels, each one of use as rule-breaking and hierarchy-defying as our heroes

of the 60s, who now pitch cars, shoes, and beer. This imperative of endless difference is

today the genius at the heart of American capitalism, an eternal fleeing from 'sameness'

that satiates our thirst for the New with such achievements of civilization as the infinite

brands of identical cola, the myriad colors and irrepressible variety of the cigarette rack

at 7-Eleven."


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METHODS/PROCEDURES

SURVEY

(CONSUMER BEHAVIOR)NAME: AGE:

GENDER:

When buying a product such as:

a. Foods (which do you prefer?)

o Quality

o Quantityo Specify _______________

b. Clothes

o Quality

o Quantity

o Specify _______________

c.Appliances

o Quality

o Quantity

o Specify _______________

d. Personal things

o Quality

o Quantity

o Specify _______________

e. Medicines

o Quality

o Quantity

o Specify _______________


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Where is the best place to buy products?

Foods

__________________________________________________

Clothes__________________________________________________

Personal things

__________________________________________________

Appliances

__________________________________________________

Medicines

__________________________________________________

You buy products every:

o Month

o Mid-year

o Sale

o Annually

o Seasonal

Which is more convincing?

o Advertisement

o Sales talk

o Promos

Why do you buy a certain product?

_________________________________________

_________________________________________________


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CONCLUSION


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RECOMMENDATION


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BIBLIOGRAPHY

Graves, Philip, The Consumer Behavior Resource The Psychology of

Shopping,http://www.philipgraves.net,2008

Lars Perner, Consumer behavior: the psychology of marketing USCMarshall, http://www.consumerpsychologist.com/, 1999-2010

Alex L. Brown, Chapter 6 Consumer Behavior

http://www.udel.edu/alex/
http://www.udel.edu/alex/http://www.udel.edu/alex/

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