Presentation on theme: "Consumer Behavior Why do we do what we do? MKTG 340 Maureen O’Connor."— Presentation transcript:
Consumer Behavior Why do we do what we do? MKTG 340 Maureen O’Connor
Did you know… Asian-Americans are more likely to purchase organic foods than any other ethnic group? Women who live in the Northeastern U.S. are more likely to be influenced by a company’s eco-friendliness? 47% of consumers say they would not buy a product if they found the ads offensive?
What affects consumer behavior? Internal factors – Motivation, ability and opportunity to purchase – Perception – Understanding – Attitudes – Memory
Consider Jessica’s desire for a ski vacation…. Motivation, Ability and Opportunity – Does she have the time and money? – Since it will be expensive she is motivated to do research Perception – She’ll look for relevant information Understanding – She will focus and categorize the information
Jessica… Attitude – She will develop attitudes about different options – She already brings pre-existing attitudes about vacations to the decision making process Memory – She will retrieve information from memory that influences her decision
What else affects consumer behavior? External Forces – Culture – Values – Social Class – Personality – Family – Reference Groups
Advertising’s work… To understand and reflect the internal and external factors that influence target consumers To influence the decision-making process
Problem recognition The point at which the consumer realizes a gap between the current and ideal state – Can be triggered by marketing communications – Marketing communications presents a solution
Internal Search Consumer rejects brands – that he or she doesn’t like, or had a bad experience with – That he or she has little knowledge or experience with – Consumer accepts brands With high brand equity High quality products, reasonably priced Supported by attractive, clear messages
External Search Looking for information from outside sources to make a better decision: – Friends and relatives – Experts – Books and magazines – The Internet – Stores and salespeople – Advertisements
External Search Influenced by: – Ability to search (time and knowledge) – Cost/benefit of search (is it worth it?) – Motivation to search Involvement (how important is it to me?) Cognition (am I someone who needs a lot of information?) Shopping enthusiasm (do I like to shop?)
Evaluation of Choices Evoked set: – the top 2 or 3 brands the consumers considers purchasing Multi-attribute selection: – Evaluating brands by product performance or brand features Likeability – The consumer chooses the product he feels best about, based on previous experience or an emotional bond with the brand
How does advertising respond? Articulates the need Demonstrates the benefits that satisfy the need Provides the necessary relevant information Encourages and rewards purchase Objective? – Get into the consumer’s evoked set
Influences on Consumers Cultural, social and psychological factors influence consumer decision making and interpretation of advertising Together, these factors combine to create “attitudes”
Attitudes Marketing can influence consumer attitudes about products by linking products to values Attitudes have 3 parts: – How we feel (affective) – How we think (cognitive) – How we act (behavior)
Attitudes are influenced by values American values – Freedom – Comfortable life – Equality – Excitement – Happiness – Personal accomplishment – Security – Self fulfillment Chinese values – Trust – Respect for elders – Harmony – Reciprocity – Long term relationship – Benevolence
Attitudes are influenced by Culture – Holidays, celebrations, customs, rituals Social class – Combination of education and economics Family – Where is the family in its life cycle? – How is decision making allocated within the family?
Also… Reference Group – Membership and aspirational groups Diversity – Race and ethnicity Need for community and affiliation Personality – Introverted vs. extroverted – Moody vs. even-tempered
Better understanding leads to better communication… Helps define and refine advertising objectives Guides decisions about what the ads should say and look like Tells us where and when advertising should be placed Helps us understand when and how to use different promotional tactics
Types of Business to Business Buys Straight rebuy: – Reorder what you have ordered in the past Modified rebuy – Make some change based on dissatisfaction with current buy or new opportunity for savings/value New task – A new purchase – Little or no experience with product
Your consent to our cookies if you continue to use this website.