Consumer Behavior ‘the study of why, when, where, and how people buy and consume products and services”

Consumer Behavior Market segments must be studied for behavior patterns, traits, needs, and wants the marketer can best respond to Examples: Go-Gurt; Soup at Hand, Nutri- Grain Cereal Bars; Quaker Oatmeal Express; Go Snacks; PoP’ables; Nouriche Examples: Hagar Imperial Separates; Levis Tailored Classics

Nature Or Nurture? Is your consumer behavior determined more by your inborn traits or your external environment? CB=f(Psychological Variables; Social Influences; Situational Variables)

Exhibit 2: Model of Consumer Behavior

Psychological Influences Type and Level of Motivation Learned Responses Attitudes (Derive from Beliefs) Personality Traits

Maslow’s Hierarchy of Needs Personal Needs-Need for Esteem and Self-Actualization Social Needs Safety Needs Physiological Needs

Personality Personality Tests—MBTI (Myers-Briggs) Psychographics—the study of lifestyles Measured by “AIO Inventories” A=Activities; I=Interests; O=Opinions

Social Influences Culture Subculture Social Class Reference Groups Family

Culture Culture—”the software of human beings” America’s cultural values—independence, conquering spirit, individuality, youthfulness

Subculture “a group within the larger culture whose members share some common beliefs, characteristics, or behavior patterns” May be based on age, ethnicity, geography, religious beliefs, sexual preference, etc. Examples—Southerners, Southern Baptists, African Americans, Teenagers, Gays and Lesbians

What determines a person’s social class? Income Education Level Occupation Neighborhood or Dwelling Area Family Name

Social Classes In America Relative sizeGroupSome (abbreviated) characteristics Upper-class Upper-middle class Lower-middle class* Upper-lower (“working”) class* Lower-lower class 1.5% 12.5% 32% 38% 16% People from old wealthy families and socially prominent new rich... Small business people, teachers, office workers, technicians--the typical white collar workers... The blue collar workers--factory workers, skilled laborers, and service people…most earn good incomes... Unskilled laborers and people in very low status occupations * America’s “mass market”

Characteristics and Attitudes of Middle versus Lower Classes Middle classes –Plan and save for the future –Analyze alternatives –Feel they have opportunities –Willing to take risks –Confident about decision making –Want long-run quality or value

Characteristics and Attitudes of Middle versus Lower Classes (continued) Lower classes –Live for the present –"Feel" what is "best" –Feel controlled by the world –"Play it safe" –Want help with decision making –Want short-run satisfaction

Other Social Influences Reference Groups Opinion Leaders

Family Life Cycle