1. Consumer response to a message is the agenda of the chapter
The Consumer Audience
Consumer response to a message is the agenda of the chapter

2. Consumer Behavior
What motivates customers as they make purchase decisions?
How these factors help them in finding group of people who might profitably target with an advertisement message?
Major questions related to buying/purchase
How did the purchase process happen?
Was it something g u need or just bought that?
Were you planning for the product?
Did you ask anyone before buying the product?
Did you ask someone after you bought that product?

3. Consumer behavior describes how individuals or groups select, purchase, use or dispose of products
Also CB describes the needs that motivate these behaviors
Consumers are the people who buy or use products to satisfy their needs and wants
Customers are specific types of consumers, they are people who are devoted fans who buy a particular brand or shop at specific store.
How to categorize consumers:
Divide them by the type of market like B2C & B2B
Customers/purchasers or consumers
Purchasers and consumers have different needs and wants

4. Cultural and Social Influence on Consumer Decisions
Many factors affect the way we make purchase decisions
Culture and society affect your values and opinions
Our brought up in a particular family make certain habits and biases. So does your friends and acquaintances.
Major forces/factors of culture which affect our decision making process:
Culture
Social Class
Reference Groups
Family and
Demographics

5. Culture is made up of:
Tangible items like art, literature, building, clothing, furniture, music, functions/gatherings
Intangible concepts like history, knowledge, morals, customs, laws etc
Culture define way of life of group of people
Culture is learned and passed on from one generation to other.
Norms is boundary of culture, the source of norms is our values, values depicts our belief system
We value honesty, integrity, joint family system etc

6. Core values of the brand should match core values of the consumer
Core values govern attitude and attitude (positive or negative) drives behavior
Core values of the brand should match core values of the consumer
A sense of belonging
Excitement
Fun and Enjoyment
Warm relationship
self-fulfillment
respect from others
a sense of accomplishment
security
self- respect
Sub cultures divide by age, values, ethnic, etc
Corporate culture
How company operates…some are formal and some are informal.

7. The position you and your family occupy within your society
Social Class
The position you and your family occupy within your society
The factors are:
Income
Wealth
Education
Family prestige
Value of home
Neighborhood
Different buying patterns of every class

8. Political parties, religious groups, co-workers, peers etc.
Reference Groups
A reference group is a group of people we use as a guide for behaviors in specific conditions
Political parties, religious groups, co-workers, peers etc.
Individuals can be described in terms of their relationship with others:
Inner-directed (Individualistic)
Outer-directed (group and society)
For consumers, reference group have 3 functions:
they provide information
they serve as means of comparison
they offer guidance
celebrity endorsement come in that parameter

9. Family
The family is the most important ref group because of its longevity and the intensity of its relationships
Lifestyle … the way you spend your time and money and the kind of activities you value
Demographics
are the statistical, personal, social and economic characteristics used to describe a population including age, gender, education, income, occupation, race, and family size.

10. Psychological influences that motivate consumers
Perception and state of mind
State of mind affects the way you perceive information as well as determines your particular pattern of consumer behavior
Past experience, opinions, word-of-mouth etc
Mental states like anger, fatigue, hunger, excitement, lethargy
Needs and Wants
Innate needs … biological … primary needs.. Necessary needs to maintain life…food. Water, shelter, sex
Acquired needs …are those we learn in response to our culture and environment

11. Selective perceptions
Selective exposure
Selective distortion
Selective retention
Satisfaction
If products meets expectations… satisfaction results otherwise dissatisfaction
Cognitive dissonance… try to compensate bad experience by not listening to bad words about the products and try to find +ve things
Motivation
A motiv is an internal force that stimulates you to behave in a particular manner.
This force comes from tension when needs remained unfulfilled

12. Attitude and values
Attitude impact on motivation
Attitude are learned, can be established, changes, modified, or replaced.
Attitude vary in direction and strength… positive/negative or neutral
Personality
It refers to consistency in behavior in terms of how we react to events and situations and behave in various roles
Psychographic influences
It refers to lifestyle and psychological characteristics like attitude, interest and opinions
AOI (Attitude, opinion and Interest)
Lifestyle
How people allocate time, money and energy

13. Behavioral influences on consumer decisions Usage behavior
Usage refers to how much of a product category or brand a customer buys
Consumers can be described in terms of their relationship with a product category and as well as brand
Heavy users mostly buy most of the product
Pareto Rule says 80% of the product is bought by 20% users
Innovation and adoption
The consumer decision process
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Post purchase evaluation

14. Steps to Segmentation Identify market type Examples: Homogenous
Heterogeneous
Examples:
Telecom companies launch campaigns
Petrol company ads

15. Steps to Segmentation Identify market type
Dividing the market into groups of people with similar characteristics in certain key product-related areas (Segment)

16. Steps to Segmentation Identify market type Segment
Identify the group that will be the most profitable audience / is most likely to respond to the message (Target)

17. Why Use Segmentation Approach?
Precisely match needs & wants of customers with high buying potential
Advertising messages
Product variations
Save on wastage in media plans
Generate more sales

18. Segmentation Approaches
Demographics
Age & Life Stage
Gender
Ethnicity
Religion
Income
Education
Household Size
Psychographics
Society/Culture
Lifestyle
Personality
Geographics
International
National
State
City
Climate
Urban/Rural
Customer-Oriented
Benefits Sought
Specific Problems solved by product
Specific Benefits offered
Behavior Traits
Usage Rates
User Status
Brand Loyalty
Product-Oriented

19. Demographics
Are statistical, personal, social & economic characteristics used to describe a population
Age
Gender
Education
Income
Occupation
Race / Ethnicity
Family Size

20. Geographic The area in which the target market lives Urban / Suburban
City
Province
National
International
Climate

21. Psychographic
Refers to lifestyles & psychological characteristics such as values, attitudes, beliefs, personality, motivations, interests & opinions
Activities (Hobbies, shopping, entertainment, social events…)
Opinions (Self, social issues, morality, culture, business, religion, environment, society…)
Interests (family, job, community, fashion, food, health…)
Trends & Fads

22. Important Components Culture & Values
Freedom, independence, individualism, collectivism, achievement, respect, excitement, openness, conservativeness, need for self-fulfillment, long-term orientation, superiority, etc…
Reference Groups – guides for behavior
Social Class

23. Usage Behavior
How much of a product category or brand a customer buys or may buy or how willing people are to innovate
Consumer Categories Based on Product Usage
Usage Rates
Light
Medium
Heavy
Brand Relationship
Non-Users
Ex-Users
Regulars
First-Timers
Loyal Users
Switchers
Innovation
Innovators
Early Adopters
Early Majority
Late Majority
Laggards

24. Benefit Segmentation
Based on consumers’ needs or problems (or wants) or specific benefits consumers hope to derive

25. Maslow’s Hierarchy of Needs
Primary (Innate) vs. Secondary Needs (acquired)
Relevant Products
Examples

26. Other Segmentations Lifestyles Analysis
How people allocate time, energy & money
VALS – Values & Lifestyle Analysis
Sociodemographic Segmentation
Baby Boomers, Gen X, Gen Y, Millenium Kids…

27. Target Profiling Also called Consumer Narrative
Descriptions of the target audience that read like a description of someone you know
Example (for Fishing Boat Charter):
Married men within 35 – 50 year age bracket with kids up to 3 in number aged 6 – 16, upper middle class socio-economic background with income around $90K or more per year. Well settled in their career with white-collar professional jobs. Reside in a coastal area of Florida. Busy schedule and usually pre-plan vacations & value comfort & relaxation over adventure. Vacations are a way to spend quality family time. Want to be role models for their sons and have strong progressive family values… Many have had prior fishing experience…