1. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 1 Consumer Behavior Influences on consumer behavior Psychological Decision making Attitudes and attitude change Sociocultural Reference groups Family decision making Culture and subculture

2. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 2 Consumer Problems and Recognition Consumer problem: Discrepancy between ideal and actual state--e.g., consumer : has insufficient hair is hungry has run out of ink in his or her inkjet cartridge Problems can be solved in several ways -- e.g., stress reduction <----- vacation, movie, hot bath, medication

3. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 3 CONSUMER DECISIONS: Theory and Reality in Consumer Buying Information Search Problem Recognition Evaluation of Alternatives Purchase Postpurchase Evaluation/ Behaviors Theory Complications

4. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 4 Approaches to Search for Problem Solutions INTERNAL EXTERNAL Memory Thinking Word of mouth, media, store visits, trial CATALOG

5. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 5 Cost vs. Benefits of Search Market Characteristics Product Characteristics Consumer Characteristics Situation Characteristics

6. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 6 Decision Issues Types of decisions Routinized response (e.g., gas, sodas) Limited problem solving (e.g., car service, fast food) Extended problem solving (e.g., new car, computer, medical procedures) Type of evaluation: Compensatory: Decision based on overall value of alternatives (good attribute can outweigh bad ones) Non-compensatory: Absolutely must meet at least one important criterion (e.g., car must have automatic transmission)

7. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 7 Variety Seeking and Impulse Buying Variety seeking »need varies among consumers by optimal stimulation level (OSL) »Use innovativeness Impulse purchases »Motivation »Consequences “Don’t give me that same old cola, that same old cola-- I want a rock’n’roller!”

8. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 8 Psychological Influences Motivation Personality Perception Attention and competition for attention Selective perception Subliminal influence? Perceived risk Learning Change in behavior May or may not be conscious Values, beliefs, and attitudes Lifestyle—e.g., VALS2

9. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 9 Attitude Change Strategies Change Affect Classical conditioning Attitude toward the ad Mere exposure Change behavior (e.g., sampling) Change Belief Component Change existing beliefs Change importance of attributes Add beliefs Change ideal

10. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 10 One-sided vs. two sided appeals One-sided: only saying what favors your side Two-sided: stating your case but also admitting points favoring the other side Why is this effective?

11. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 11 Sociocultural Influences Personal Influence Opinion leadership Word of mouth and rumors Reference groups Associative: “We’re the Pepsi generation…” Dissociative: “It’s not your father’s car.” Aspirational Culture Subculture

12. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 12 Potential Family Life Cycle Stages YOUNG SINGLE BLENDED SINGLE PARENT FULL NEST I/II/III EMPTY NEST I/II OLDER SINGLE YOUNG COUPLE

13. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 13 Economic/Marketing Implications of Household Cycles Income tends to increase with time But children/ obligations add cost Divorce increases costs may change income distribution marriage Product demand due to singles with low expenses new couples divorced families children empty nesters --> more income

14. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 14 Household Decision Making Roles/influence Information gatherers/holders Influencers Decision makers Purchasers Users

15. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 15 More Sociocultural Influences Social class In the U.S. Positioning strategies: “Upward Pull” “At Level” In other cultures Culture: “Share meanings” Subculture Ethnic Generational Regional Religious groups

16. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 16 Organizational Buyers Types Industrial Reseller Government and non-profit organizations Characteristics Greater involvement Bureaucracy Long term relationships

17. MKTG 370 CONSUMER BEHAVIOR Lars Perner, Instructor 17 The Means-End Chain Large engine Fast acceleration Performance Feeling of power Self-esteem Aim promotion/ positioning at higher levels of chain ! Attributes Consequences Values