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What is Consumer Behavior?
• The processes involved when consumers selectselect, purchasepurchase, useuse, and/or disposedispose of products to satisfy needs and desires
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What Influences Consumer Behavior?
3 Factors Influence Consumer Behavior
• Cultural Cultural
• Social Social
• PersonalPersonal
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What Influences Consumer Behavior?
Cultural FactorsCultural Factors
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
Culture is dynamic
Subcultures
Provide more specific identification and socialization for their members
- religions subculture,
ethnic subculture,
geographic subculture,
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Disneyland Hotel
Hong Kong
• Does not have a
4th floor
• WHY?
• “4” sounds like
“death” in
Cantonese
SubculturesSubcultures Why subcultures important to
marketers?
Among Among others:others:
RitualsRituals
MythsMyths
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)
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Myths• A story containing
symbolic elements that represent the shared emotions/ideals of a culture– Outcome serves
as moral guide for people
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
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What Influences Consumer Behavior?
Social FactorsSocial
Factors
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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
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Upper uppersLower uppersUpper middlesMiddle class
Working classUpper lowersLower lowers
Social ClassesSocial Classes
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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
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Conspicuous Consumption
• People’s desire to provide prominent visible evidence of their :
ability to afford ability to afford luxury goodsluxury goods
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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”
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What Influences Consumer Behavior?
Personal Factors
Personal Factors
Personal
Factors
• Personality
• Lifestyle
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Personality
• A person’s unique psychological makeup and how it consistently influences the way a person responds to his/her environment
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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
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Brand Personality
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Brand Personality
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Brand Personality
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Brand Personality
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Brand Personality
LIFESTYLEA 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.
The handling and performance of a sport car, with the
comfort and space of a sedan
For Urban adventures, the sporty and agile RAV4 will be
Able to take you anywhere your wanderlust leads you.
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
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.
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What Influences Consumer Behavior?
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PerceptionPerception• Adding meaning to raw sensations
Figure 2.1
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Sensory Thresholds
ABSOLUTE THRESHOLDThe minimum amount of stimulation that can be detected on a sensory channel
DIFFERENTIAL THRESHOLDThe ability of a sensory system to detect changes or differences between 2 stimuli.
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Many ads use hidden messages.Can you find the hidden message in this company logo?
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Decision-MakingProcess
Decision-MakingProcess
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Decision-making ProcessProblem 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)
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Figure 6.5 Successive Sets Involved in Consumer Decision Making
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Decision Rules
• Compensatory
• Noncompensatory: shortcuts via basic standards– Lexicographic rule– Conjunctive rule
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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
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ATTRIBUTE
MEMORYCAPACITY
GRAPHICSCAPABILITY
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
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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 =
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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
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NON-COMPENSATORY MODELS OF
CONSUMER CHOICE
• Positive & negative attributes may not net
out
• Attributes evaluated in isolation
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Lexicographic heuristic: Best brand on perceived most important attribute Brand Chosen = ??
ATTRIBUTE
MEMORYCAPACITY
GRAPHICSCAPABILITY
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
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Lexicographic heuristic: Best brand on perceived most important attribute Brand Chosen = DellDell
ATTRIBUTE
MEMORYCAPACITY
GRAPHICSCAPABILITY
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
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Conjunctive heuristic: minimum for each attribute - choose brand meets minimum
for all Brand Chosen = ??
ATTRIBUTE
MEMORYCAPACITY
GRAPHICSCAPABILITY
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
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Conjunctive heuristic: minimum for each attribute - choose brand meets minimum
for all Brand Chosen = AppleApple
ATTRIBUTE
MEMORYCAPACITY
GRAPHICSCAPABILITY
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
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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)
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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)
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How Customers Use & Dispose of Products
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Business Market- Organizational Buying Behavior
Business Market- Organizational Buying Behavior
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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
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