1. Consumer behavior and Market Segmentation

2. Learning Objectives The complexity of consumer buying behavior
Environmental Influences on Consumer Behavior
Personal Influence on buying behavior
Market segmentation
Consumer Learning and Habit Development
Contemporary Advertising Chapter 5

3. The Complexity of consumer buying decisions
Figure: Decision Making Process
Personality
INPUT
(stimuli)
OUTPUT
(behavior)
Intention
Environmental
influences
Purchase
Evaluation
Post purchase
behavior
Other
Information
(Group member-
ship, Family,
Social class,
Culture,
subculture)
Motivation
Interest
Perceptions
Product
awareness
Discontinuation
Rejection Or
Nontrial
Want
Recognition
Contemporary Advertising Chapter 5
Learning-attitudes

4. Contemporary Advertising Chapter 5
Personal Influence on Consumer Behavior The importance of Your Inner Self
Human beings are individuals
Consider these observations:
People’s attitudes, believes, and preferences change
Individual behavior is inconsistent and difficult to predict from one day to another.
People are often unable to explain their behavior
Contemporary Advertising Chapter 5

5. Needs and Motives Figure: Promotional appeals and hierarchy of needs
Contemporary Advertising Chapter 5

6. Individual perception
is the personalized way of sensing the stimuli to which an individual is exposed
the act or process of comprehending the world in which the individual exists
Contemporary Advertising Chapter 5

7. Consumer Learning and Habit Development
Learning is a relatively permanent change in thought process or behavior that occurs because of a reinforced experience.
Learning is the mental process of memory, thinking and rational application of knowledge to practical problems.
Learning is a trial -and-error process.
Contemporary Advertising Chapter 5

8. Consumer Learning Stimulus-response theory
Theory that treats learning as a trial -and-error process
whereby needs, motives and drives are triggered
by some cue to cause the individual respond
in an effort to satisfy the need
Contemporary Advertising Chapter 5

9. Individual perception Theory of Cognitive Dissonance
Leon Festinger developed the theory of cognitive dissonance, which states basically that people try to justify their behavior by reducing the degree to which their impressions or beliefs are inconsistent with reality.
Contemporary Advertising Chapter 5

10. Why most consumers are habitual?
Habit - the acquired behavior pattern that
becomes nearly or completely involuntary
- is the natural extension of learning
We resort to habit when we select products because it easy;
We rely on habit because of necessity;
We resort to habit because it is usually the rational thing to do.
Contemporary Advertising Chapter 5

11. Interest of Advertisers in Habit
Habit breaking- to get consumers to break an existing purchase habit, that is , to stop buying their habitual brand and to try a new brand;
Habit acquisition- to get consumers to acquire the habit of buying their brand;
Reinforcing habits - to remind current customers of the value of their purchase and to encourage them to continue purchasing.
Contemporary Advertising Chapter 5

12. Environmental influences on Consumer Behavior
Family Influence - from an early age, family communication affects our socialization as consumers - our attitudes toward many products and our purchasing habits, a child learning the "right" products to buy.
Society's Influence - when we affiliate with a particular societal division, or identify with some reference group, it affects our views on life, our perceptual screens, and eventually the products we buy.
Societal Divisions: The group we belong to. Sociologists traditionally divided society into social classes.
Contemporary Advertising Chapter 5

13. Environmental influences on Consumer Behavior
Reference Groups: To whom we relate. People we try to emulate or whose approval concerns us.
Opinion Leaders: The people we trust. A person or organization whose beliefs or attitudes are respected by people who share an interest in some specific activity.
Contemporary Advertising Chapter 5

14. The Influence of Culture and Subculture
Culture - a homogeneous group's whole sets of beliefs, attitudes, and ways of doing things, typically handed down from generation to generation.
Subculture - a segment within a culture that shares a set of meanings, values or activities that differ in certain respects from those of the overall culture.
Contemporary Advertising Chapter 5