Marketing Instructor Abdel Fatah Afifi MA&T, MBA, PCT, ACPA 2 nd Semester 2009/2010

Afifi, Marketing, 2nd Semester 2009/20102 Chapter 5 Consumer Behavior

Afifi, Marketing, 2nd Semester 2009/20103 Consumer Behavior  Marketing has a great deal to learn from other fields such as: 1. Psychology, 2. Sociology, 3. Anthropology, 4. Economics, etc. –  especially when it comes to consumer motivation and behavior.

Afifi, Marketing, 2nd Semester 2009/20104 Customer vs. Consumer Behavior  Customer behavior:  Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products  Consumer behavior:  Consumer behavior: the process through which the ultimate buyer makes purchase decisions

Afifi, Marketing, 2nd Semester 2009/20105  Cultural Influences Culture: values, beliefs, preferences, and tastes handed down from one generation to the next 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. Interpersonal Determinants of Consumer Behavior

Afifi, Marketing, 2nd Semester 2009/20106 While some cultural values change over time, basic core values do not. Examples of American core values include:  Importance of family and home life  Education  Youthfulness  Individualism Core Values in the U.S. Culture

Afifi, Marketing, 2nd Semester 2009/20107 Cultural differences are particularly important for international marketers Successful strategies in one country often cannot extend to other international markets because of cultural variations. International Perspective on Cultural Influences

Afifi, Marketing, 2nd Semester 2009/20108  subgroup of culture with its own, distinct modes of behavior. Cultures are not homogeneous entities with universal values. Subcultures can differ by:  Ethnicity or Nationality  Age or Gender  Religion  Social class or Profession Subcultures:

Afifi, Marketing, 2nd Semester 2009/20109 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 within the group Social Influences

Afifi, Marketing, 2nd Semester 2009/  The Asch Phenomenon:  The Asch Phenomenon: the effect of a reference group on individual decision-making  Reference groups:  Reference groups: groups whose value structures and standards influence a person ’ s behavior Requires two conditions:  The purchased product must be one that others can see and identify  The purchased item must be conspicuous; it must stand out as something unusual, a brand or product that not everyone owns

Afifi, Marketing, 2nd Semester 2009/  Social classes  Social classes Groups whose rankings are determined by occupation, income, education, family background, and residence location  Opinion leaders  Opinion leaders Trendsetters who purchase new products before others in a group and then influence others in their purchases

Afifi, Marketing, 2nd Semester 2009/  Family Influences Autonomic Husband-dominant Wife-dominant  Children and Teenagers in Family Purchases Growing numbers are assuming responsibility for family shopping Also influence what parents buy

Afifi, Marketing, 2nd Semester 2009/ Personal Determinants of Consumer Behavior  Needs & Motives  Perceptions  Attitudes  Learning  Self Concept

Afifi, Marketing, 2nd Semester 2009/ Need: an imbalance between a consumer ’ s actual and desired states Motives: inner states that direct a person toward the goal of satisfying a felt need Needs and Motives

Afifi, Marketing, 2nd Semester 2009/ Maslow ’ s Hierarchy of Needs  Self-Actualization  Esteem Needs  Social Needs  Safety Needs  Physiological Needs

Afifi, Marketing, 2nd Semester 2009/  Perceptions:  Perceptions: the meaning that a person attributes to incoming stimuli gathered through the five senses – sight, hearing, touch, taste, and smell.  Perceptual screens:  Perceptual screens: the filtering processes through which all inputs must pass  Subliminal Perception:  Subliminal Perception: subconscious receipt of information Perceptions

Afifi, Marketing, 2nd Semester 2009/  A person ’ s enduring favorable or unfavorable evaluations, emotional feelings, or action tendencies toward some object or idea Attitude components:  Cognitive  Affective  Behavioral Attitudes

Afifi, Marketing, 2nd Semester 2009/  Changing Consumer Attitudes Attempt to produce consumer attitudes that will motivate the purchase of a particular product Evaluate existing consumer attitudes and then make the product characteristics appeal to them  Modifying the Components of Attitude Attitudes change in response to inconsistencies among the three components Marketers can work to modify attitudes by providing evidence of product benefits and by correcting misconceptions

Afifi, Marketing, 2nd Semester 2009/  An immediate or expected change in behavior as a result of experience.  Process includes the components of: Drive, Cue, Response, Reinforcement  Applying Learning Theory to Marketing Decisions  Shaping Learning

Afifi, Marketing, 2nd Semester 2009/ A person ’ s multifaceted picture of himself or herself, composed of the:  Real self  Self-image  Looking-glass self  Ideal self Self-Concept

Afifi, Marketing, 2nd Semester 2009/  Consumers complete a step-by- step process when making purchase decisions High-involvement purchase decisions are those with high levels of potential social or economic consequences Low-involvement decisions are routine purchases that pose little risk to the consumer Search Alternative Evaluation Purchase Decision Purchase Act Post- purchase Evaluation Problem Opportunity Recognition The Consumer Decision Process

Afifi, Marketing, 2nd Semester 2009/ Problem or Opportunity Recognition Consumer becomes aware of a significant discrepancy between the existing situation and the desired situation Motivates the individual to achieve the desired state of affairs

Afifi, Marketing, 2nd Semester 2009/ Search Consumer gathers information related to their attainment of the desired state of affairs Identifies alternative means of problem solution May cover internal or external sources of information Brands that a consumer actually considers buying before making a purchase decision are known as the evoked set

Afifi, Marketing, 2nd Semester 2009/ Evaluation of Alternatives Consumer evaluates the evoked set Difficult to completely separate the second and third steps, since some evaluation takes place as the search progresses Outcome of the evaluation stage is the choice of a brand or product (or possibly a decision to renew the search) Evaluative criteria: features that a consumer considers in choosing among alternatives

Afifi, Marketing, 2nd Semester 2009/ Purchase Decision and Purchase Act  Purchase Decision and Purchase Act Consumer narrows the alternatives down to one The purchase location is decided  Post purchase Evaluation After the purchase, consumers are either satisfied or experience post-purchase anxiety Cognitive dissonance

Afifi, Marketing, 2nd Semester 2009/ Classifying Consumer Problem- Solving Processes Three categories of problem- solving behavior:  Routine Response Behavior  Limited Problem Solving  Extended Problem Solving