Communication & Consumer Behavior SBM 338 Lanny Wilke

Consumer Behavior The process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.

The Consumer Decision-Making Process Problem Recognition The consumer perceives a need and becomes motivated to solve the problem Initiates the subsequent decision processes Caused by a difference between the consumer’s ideal state and actual state. “problem” does not always imply a negative state.

Sources of problem recognition Out of stock  Consumer has used their existing supply of a product.  Purchase decision is usually simple & routine and is often resolved by choosing a familiar brand. Dissatisfaction  Consumer is dissatisfied with the current state of affairs and/or the product or service being used.  Advertising may be used to help them recognize when they have a problem and/or need to make a purchase.

New needs/wants  Changes in consumers’ lives may result in new needs.  Not all purchases are based on needs.  Wants – a felt need that is shaped by a person’s knowledge, culture, and personality.

Related products/services  Problem recognition may also be stimulated by the purchase of a product.

Marketer-induced problem recognition  Marketers’ actions may encourage consumers not to be content with their current state or situation.  Marketers also take advantage of consumer’s tendency toward novelty-seeking behavior, which leads them to try new brands.  Encourage switching using advertising and promotion techniques.

New products  Can also occur when innovative products are introduced and brought to the attention of consumers.  What types of problems will the new product solve?

Examining Consumer Motivations Hierarchy of needs

Psychoanalytic Theory Sigmund Freud Consumer motivations are very complex and unclear to the casual observer Motivation Research Methods include in-depth interviews, projective techniques, association tests, & focus groups

May lead to strange insights:  A man buys a convertible as a substitute for a mistress.  Women like to bake cakes because they feel like they are giving birth to a baby.  Women wear perfume to “attract a man” and “glorify their existence.”

 Men like frankfurters better than women do because cooking them (hot dogs, not men) makes women feel guilty. It’s an admission of laziness.  When people shower, their sins go down the drain with the soap as they rinse.

Some ad agencies have used motivation research to gain further insights into how consumers think. Women associated roaches with men who had abandoned them. Ronald McDonald created a more nurturing mood than did the Burger King.

Information Search Internal search Scan info stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. External search Personal sources Marketer-controlled sources Public sources Personal experience

Determining how much and which sources involves several factors: The importance of the purchase decision, The effort needed to acquire info, Amount of relevant past experience Degree of perceived risk Time available

Perception How consumers acquire and use info from external sources. Particularly interested in: How consumers sense external info How they select and attend to various sources of info How this info is interpreted and given meaning.

Perception is the process by which an individual receives, selects, organizes, and interprets info to create a meaningful picture of the world. It is an individual process. Depends on internal factors such as: Belief experiences Needs Moods Expectations

Also influenced by the characteristics of a stimulus Size Color Intensity And the context in which it is seen or heard.

Sensation Three distinct processes. The immediate, direct response of the senses to a stimulus. Perception uses these senses to create a representation of the stimulus.

Selecting information Other determinants of whether marketing stimuli will be attended to & how they will be interpreted: Consumer’s personality Needs Motives Expectations Experiences Explains why people focus on some things and ignore others.

Interpreting information Very individualized Also depends on the nature of the stimulus. Perception is a filtering process.

Selective perception Selective exposure Consumers choose whether or not to make themselves available to info. Selective attention The consumer chooses to focus attention on certain stimuli while excluding others.

Selective comprehension Interpreting info based on their own attitudes, beliefs, motives, and experiences. Often interpret info in a manner that supports their own position.

Subliminal perception The ability to perceive a stimulus that is below the level of conscious awareness. NOT a recommended creative tactic.

Part 2 - Perception