1. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Consumer Behavior Chapter 9

2. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Objectives 1.Differentiate between customer behavior and consumer behavior. 2.Explain how marketers classify behavioral influences on consumer decisions. 3.Describe cultural, group, and family influences on consumer behavior. 4.Describe each of the personal determinants of consumer behavior; needs and motives, perceptions, attitudes, and self-concept theory. 5.Discuss the difference between high-involvement and low-involvement purchase decisions. 6.Outline the steps in the consumer decision process. 7.Differentiate among routinized response behavior, limited problem solving, and extended problem solving by consumers.

3. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Customer vs. Consumer Behavior Customer behavior includes both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products. Consumer behavior is the process through which the ultimate buyer makes purchase decisions.

4. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Three Broad Categories of Consumer Behavior 1.Cultural 2.Social 3.Family Influences

5. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. This ad is from the early 1900’s demonstrating how culture changes over time. The ad states like every woman her primary ambition was to marry…” and discusses the need for fresh breath. Other fresh breath products on this web site demonstrate how some things change and some things stay the same.

6. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Cultural Influences Culture can be defined as the values, beliefs, preferences, and tastes handed down from one generation to the next. It is the broadest environmental determinant of consumer behavior. It is important to recognize the concept of ethnocentrism, or the tendency to view your own culture as the norm, as it relates to consumer behavior.

7. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Core Values in U.S. Culture Education Individualism Freedom youthfulness Activity Humanitarianism Efficiency Practicality

8. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. One of the core values in the U.S. culture is family and another one is efficiency. This ad plays to both of those values. By visiting the web site for Stouffers you will discover they started in 1922. You will also find their basic vision for the company.

9. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Subcultures Groups with their own distinct modes of behavior. Cultures are not homogeneous entities with universal values. Subcultures differ by: –Ethnicity –Nationality –Age –Rural versus urban location –Religion –Geographic distribution

10. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 0.40% 12.10% 12.50% 1.80% 0.70% 3.10% Hispanic American African Americans Asian American Native American Two or More Races Other Ethnic and Racial Minorities Note: Percentages have been rounded. SOURCE: Data from Roger Simon and Angie Cannon, “An Amazing Journey,” U.S. News & World Report, August 6. 2001, p. 12.

11. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Subculture This web site is designed to meet the needs of the growing Hispanic population who prefer Spanish- Language Programs.

12. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Social Influences Group membership influences an individual’s purchase decisions and behavior in both overt and subtle ways. –Norms are the values, attitudes, and behaviors that a group deems appropriate for its members. –Status is the relative position of any individual member in a group. –Roles define behavior that members of a group expect of individuals who hold specific positions.

13. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Reference Groups – Member’s Purchases Requires two conditions: 1.The purchased product must be one that others can see and identify. 2.The purchased item must be conspicuous; it must stand out as something unusual, a brand or product that not everyone owns.

14. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Social Classes W. Lloyd Warner identified six classes: 1.Upper-upper 2.Lower-upper 3.Upper-middle 4.Lower-middle 5.Working class 6.Lower class Class rankings are determined by: 1.Occupation 2.Income 3.Education 4.Family background 5.Residence location

15. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Four Categories of Family Influences 1.Autonomic role is when the partners independently make equal numbers of decisions. 2.Husband-dominant role is when the husband makes most of the decisions. 3.Wife-dominant role is when the wife makes most of the decisions. 4.Syncratic role is when both partners jointly make most decisions.

16. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Personal Determinants of Consumer Behavior Personal Determinants Unique Needs Determinants Motives Learned Responses Perception Self Concepts Attitudes

17. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Perceptions Perception is the meaning that a person attributes to incoming stimuli gathered through the five senses—sight, hearing, touch, taste, and smell. Two types of factors: 1.Stimulus factors—characteristics of the physical object such as size, color, weight, and shape. 2.Individual factors—unique characteristics of the individual, including not only sensory processes but also experiences with similar inputs and basic motivations and expectations.

18. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Subliminal Perception Almost 50 years ago, a New Jersey movie theater tried to boost concession sales by flashing the words Eat Popcorn and Drink Coca- Cola. Subliminal advertising is aimed at the subconscious level of awareness. Subliminal advertising has been universally condemned as manipulative, and is exceedingly unlikely that it can induce purchasing. Research has shown that subliminal messages cannot force receivers to purchase goods that they would not consciously want.

19. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Attitude Components The cognitive component refers to the individual’s information and knowledge about an object or concept. The affective component deals with feelings or emotional reactions. The behavioral component involves tendencies to act in a certain manner.

20. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Changing Consumer Attitudes 1.Attempt to produce consumer attitudes that will motivate purchase of a particular product. 2.Evaluate existing consumer attitudes and then make the product features appeal to them.

21. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Integrated Model of the Consumer Decision Process

22. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Three Categories of Problem-Solving Behavior Routinized Response Behavior –Consumers make many purchases routinely by choosing a preferred brand or one of a limited group of acceptable brands. Limited Problem Solving –Affected by the number of evaluative criteria and brands, the extent of external search, and the process for determining preferences. Extended Problem Solving –Results when brands are difficult to categorize or evaluate.